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Started By
Message
re: Penny Stocks
Posted on 2/12/14 at 10:23 pm to Blastoise
Posted on 2/12/14 at 10:23 pm to Blastoise
quote:
Would it be more beneficial to invest tom, so I can get a part of those dividends, or after when the pps will fall?
I don't know. Conventional wisdom would say buy after the dividend revalues the stock, but I have a weird feeling about this one. I think I'm going to buy tomorrow. If you follow through FINRA rules, the stock after the stock dividend will be worth, for a short while at least, slightly above $2, and the stock the SA Public Employee's Fund gets will be worth only about $1.6. The deal is a complicated one, and basically a very large retirement fund is getting shares, and I think Allied Energy is also, or another company who they are acquiring additional leases from.
If you follow the logic the guy who is saying short it on Seeking Alpha is using, your head will spin, and you will wonder how he is allowed to write anything about investing at all. He uses a pre dividend value on one side of his argument, and then claims the current shareholders will get screwed. Not true, FINRA say differently on a stock dividend. We get paid 1.4 shares, and then the others get stock worth about $1.6. No ownership diminution at all.
After the dividend they will also be listed and trading on the Johanensberg Exchange.
I've never seen a company look out for its shareholders like this ever. The CEO is a really interesting guy though. Look at the insider ownership, and also the institutional ownership for what is still a penny stock. I really think this is going to be a $20 stock some day.
0
Posted on 2/12/14 at 10:39 pm to Iowa Golfer
What hedge funds are on this?
Posted on 2/12/14 at 10:59 pm to Chris Farley
I can't answer that on a public message board. Sorry. I'd risk losing a source and friend for that.
Posted on 2/12/14 at 11:16 pm to blueboxer1119
I took a quick glance and I am intrigued as well. They have some red flags but if they are partnered with who it appears they are partnered with most of those flags go away. Will diff be looking into them further.
Posted on 2/12/14 at 11:33 pm to GREENHEAD22
How much are ya'll talking about putting in to this one for the long term? like a few hundred or a few thousand?
Posted on 2/12/14 at 11:39 pm to daniele
I have to do a whole lot more looking before I do any of that.
Posted on 2/13/14 at 6:59 am to GREENHEAD22
"How much are ya'll talking about putting in to this one for the long term? like a few hundred or a few thousand?"
I stayed up all night and read about this one. The decision for me was whether to get in today. I like the idea of being given shares for a potential homerun. Im gonna drop about 5K in it this morning and not look at it for a year or so.
I stayed up all night and read about this one. The decision for me was whether to get in today. I like the idea of being given shares for a potential homerun. Im gonna drop about 5K in it this morning and not look at it for a year or so.
Posted on 2/13/14 at 8:15 am to blueboxer1119
How long are we thinking for some noticeable CAK growth?
Posted on 2/13/14 at 8:23 am to Iowa Golfer
quote:
I can't answer that on a public message board. Sorry. I'd risk losing a source and friend for that.
That's fair. I ask because people hear that a hedge fund is on to a company and automatically assume it is a great idea. In reality, there are thousands of hedge funds in the US now and the market is over saturated with goons trying to make a buck. A lot of the bigger shops have self imposed restrictions on penny-stocks and wouldn't dabble in them anyway because their position size would be too illiquid. You wouldn't see an Och-Ziff or Tiger Management playing around in this arena.
Posted on 2/13/14 at 8:48 am to Chris Farley
A lot of financial institutions are prohibited from playing in the under $5 arena I think. I don't know that to be factual, but I've read it enough to think it has some validity. I have no idea what set of rules hedge funds need to play within.
Vanguard, Well Fargo and some others own it. That's public record. I know factually Wells high net worth clients were put in to it a long time ago.
Did anyone read through the dividend and revaluation? I'm interested to hear their take on buy today, or wait? In my case, buy more today, or wait.
Vanguard, Well Fargo and some others own it. That's public record. I know factually Wells high net worth clients were put in to it a long time ago.
Did anyone read through the dividend and revaluation? I'm interested to hear their take on buy today, or wait? In my case, buy more today, or wait.
Posted on 2/13/14 at 8:50 am to Iowa Golfer
quote:
Iowa Golfer
Do you know anything about GFOX? A close buddy of mine (through secondhand info) told me they're also currently sitting on a large oil reserve and haven't told anyone about it yet. Could be a similar play to CAK, albeit it's trading about 30 cents/share higher currently...
Posted on 2/13/14 at 8:56 am to Jwodie
No, but I did look at their balance sheet quickly. Based on their cash and current assets they aren't going to survive. Having said that, there could be a lot more to the story, which can take time to do due diligence on.
Posted on 2/13/14 at 10:19 am to Iowa Golfer
I bought more CAK @ 1.65. We'll see how good or bad of a decision that was in a couple of days.
I have covered calls sold, but it doesn't look worth selling more at the present time, so I'm trying to sell Feb $2.5 puts at $1.6. And trying to buy August $2.5 calls at a dime.
The put trade is designed to protect me against a huge swing and lower the cost basis. If the shares are put to me at $2.5, I'm really in the stock for under a $1.2.
I'm really at a loss as what to do pre-dividend and post dividend outside of this mornings positioning.
I have covered calls sold, but it doesn't look worth selling more at the present time, so I'm trying to sell Feb $2.5 puts at $1.6. And trying to buy August $2.5 calls at a dime.
The put trade is designed to protect me against a huge swing and lower the cost basis. If the shares are put to me at $2.5, I'm really in the stock for under a $1.2.
I'm really at a loss as what to do pre-dividend and post dividend outside of this mornings positioning.
Posted on 2/13/14 at 3:32 pm to Iowa Golfer
quote:
I'm really at a loss as what to do pre-dividend and post dividend outside of this mornings positioning.
I rolled the dice a little. Lucky for me, I had a meeting before I bought. It dropped and I got in for $1.55.
When will we feel the effects of the dividends?
I'm very interested to see where pps will be when it gets sorted out.
I think this is the guy you mentioned earlier backtracking...
LINK
Posted on 2/13/14 at 5:33 pm to blueboxer1119
I bought. If it goes down to .70 after the dividend, which is my guess, I'm buying more. One way to look at it is that you own a smaller percentage, not due to the dividend, but due to them issuing shares, of something that has a lot more cash. It looks like it is still a win at .70 if bought at today's prices.
The link you gave is closer to reality than the link he was disagreeing with. That guy, a regular contributor, completely took his link down.
I think, per FINRA, a short doesn't need to cover the stock dividend. I think. But they're paying cash for fractional shares, so unless 1.4 whatever the figure is multiplied by shares owned doesn't come out even, a short would need to pay the cash for fractional shares on the shares they "borrowed".
The link you gave is closer to reality than the link he was disagreeing with. That guy, a regular contributor, completely took his link down.
I think, per FINRA, a short doesn't need to cover the stock dividend. I think. But they're paying cash for fractional shares, so unless 1.4 whatever the figure is multiplied by shares owned doesn't come out even, a short would need to pay the cash for fractional shares on the shares they "borrowed".
Posted on 2/13/14 at 6:51 pm to Iowa Golfer
I picked up a few shares today just out of curiosity to see what it does. Fingers crossed! 
Posted on 2/13/14 at 7:52 pm to DWaginHTown
There will likely be a CAK thread started at some point. I'm going to be beating this drum for several years is my guess.
Posted on 2/13/14 at 8:12 pm to Iowa Golfer
quote:
There will likely be a CAK thread started at some point. I'm going to be beating this drum for several years is my guess.
Start it up!
Posted on 2/13/14 at 8:13 pm to Iowa Golfer
I had some questions about the dividend. To wit, shareholder of record date is today, and transfers take up to three days. Ex-dividend date is the 24th. Stock dividends are treated differently. Long story made short, I received a response from Houston, from someone on CAMAC's BoD, at 8:11 P.M. Pretty impressive.
I continue to be about as excited with this investment as I have ever been. I trade a lot of securities, and I seldom grow attached enough to be a long term shareholder. This is one I'll likely be talking about for years to come.
I continue to be about as excited with this investment as I have ever been. I trade a lot of securities, and I seldom grow attached enough to be a long term shareholder. This is one I'll likely be talking about for years to come.
Posted on 2/13/14 at 8:16 pm to TigeRoots
quote:
Start it up!
I'm going to wait. First, after the almost certain decline in pps, to shake out those who think making money is done quickly, and second, wait for someone to get as excited as me, and he or she can start the thread.
You're all welcome in advance. I'm a patient man. Kind of anyway.
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