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Question about a stocks

Posted on 4/23/14 at 11:38 am
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/23/14 at 11:38 am
Im a newb and dont know shite about stocks but I have a question.

Im looking at putting about a grand on one stock thats priced around $6 a share. There is talks this company will be bought by another in the next 6-12 months. Should I wait till then to buy or buy now?
Posted by rintintin
Life is Life
Member since Nov 2008
16183 posts
Posted on 4/23/14 at 11:53 am to
Spill the beans!!!







For your question, if there is a suspected buyout, usually the earlier you get in the better as companies are usually bought out at a higher price per share.
Posted by tigerbacon
Arkansas
Member since Aug 2010
3699 posts
Posted on 4/23/14 at 12:22 pm to
A deal isn't done until it is done. My company has gone through three for sure sells but all of this went for nothing still hasn't sold
Posted by Y.A. Tittle
Member since Sep 2003
101473 posts
Posted on 4/23/14 at 12:24 pm to
quote:

Spill the beans!!!
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 4/23/14 at 12:37 pm to
quote:

dont know shite about stocks


quote:

Im looking at putting about a grand on one stock


You are correct about your not knowing shite. No offense. Do you have any diversified investments?
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/23/14 at 1:32 pm to
quote:

You are correct about your not knowing shite. No offense. Do you have any diversified investments?


I don't even know what you mean by "diversified investments"

Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 4/23/14 at 1:44 pm to
He's asking you why you don't spread that grand amongst different industries (Exxon, Microsoft, Coke).
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/23/14 at 2:07 pm to
Good question
Posted by drsung
Member since Aug 2004
197 posts
Posted on 4/23/14 at 2:25 pm to
What's the company?

Generally when a company purchases another company the share price of the purchased company goes up. Therefore, you would want to own the shares before the announcement of the purchase is made.
Posted by rintintin
Life is Life
Member since Nov 2008
16183 posts
Posted on 4/23/14 at 2:56 pm to
Well to be fair I don't think a grand is enough to spread around many stocks for diversification. If you're gonna do that you might as well just throw it in an index or mutual fund. You won't get much more diversified than that with the added advantage of not paying multiple commission fees.

It sounds like he just wants to gamble and go big on the hopes that this buyout is for real.
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/24/14 at 6:58 pm to
quote:

It sounds like he just wants to gamble and go big on the hopes that this buyout is for real.


Yea kinda. Consensus is the shares are undervalued by 40% and it should make that up this year and / or get bought. Put my money on SD and keeping my fingers crossed it makes me a little money
Posted by tysonslefthook
Near Baton Rouge
Member since Apr 2014
1218 posts
Posted on 4/24/14 at 7:40 pm to
I took a brief look at it. It's a gamble. If you'd be ok with going to the boat and putting a grand on black and losing it then do it now! I'm not knocking your idea at all. There may very well be a buyout and if that's the case you'll be rewarded for your risk. Worst case scenario is you lose a few hundred bucks when the stock takes a tumble and you have to bail out. I guess it comes down to how bad you need that grand...
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/24/14 at 9:14 pm to
I had some money set aside for toys and figured I'd take a handful and try stocks. I follow that company pretty close anyway and have more riding in their success than just 1k. Hope both work out
Posted by tysonslefthook
Near Baton Rouge
Member since Apr 2014
1218 posts
Posted on 4/24/14 at 9:31 pm to
Good luck than man. I'm going to take a second look at it myself just out if curiosity.
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/24/14 at 10:11 pm to
Since the firing of former CEO Tom Ward the company has made a turnaround. I personally feel like its only a matter of time before their stocks reflect the positive direction of the company.

As admitted, I know nothing about finances. Had to get my stock guy to explain what a CD is and had no idea about dividend on stocks
Posted by slackster
Houston
Member since Mar 2009
84996 posts
Posted on 4/24/14 at 10:34 pm to
Be careful. Everything you've said makes me believe in doesn't take much to take advantage of you financially.

But seriously.
Posted by tysonslefthook
Near Baton Rouge
Member since Apr 2014
1218 posts
Posted on 4/24/14 at 10:34 pm to


In a nutshell a dividend is just a corporations way of returning some of it's profits to the owners in that corporation, i.e the shareholders.
Posted by tysonslefthook
Near Baton Rouge
Member since Apr 2014
1218 posts
Posted on 4/24/14 at 10:38 pm to
quote:

Be careful. Everything you've said makes me believe in doesn't take much to take advantage of you financially. But seriously.


Agreed, don't risk anything you can't handle losing right now until you get confident. I'm not saying you WILL lose it, but my advice is to be prepared to lose it. The only way to really gain an understanding of the market is to have skin in the game. When I was 22 years old I put 500 bucks ok the market to play with. It's all I had at the time that I was willing to part with. I lost it fairly quickly, but I learned some hard lessons that I won't make with my retirement as a result...
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 4/25/14 at 6:40 am to
I'm 32 now and basically doing the same thing. If I lose it then I can only blame myself and will hopefully gain knowledge from it.

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