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Electro-Sensors Inc. Message Board

  • spoiler79 spoiler79 Apr 28, 2006 12:28 PM Flag

    MY THOUGHTS ABOUT NEXT WEEK

    Everybody wants that $1 special dividend. Even at $10.50 price, it represents a little less than 10% dividend yield which is a fantastic return in less than one week. But I can tell you right now that 90% of people buying this stock today will not hold after ex-dividend date. They just want the dividend.

    Therefore, I think this stock could easily go up to $15-$18 range by close on Wednesday, May 3. And then on Thursday, May 4, it is going to drop big time. Why? It takes two days to become a shareholder on record. Therefore, shareholders on Wednesday will be recorded on Friday.

    I don't care about the dividend. Therefore, if you want to play smart with this microcap stock, then follow my advice. Buy it now, enjoy the ride up to $15 or more by Wednesday afternoon. Before Wednesday market close, sell all your positions, and go short on the stock. It will open very low on Thursday morning and will continue to tank all day on Thursday, Friday and following Monday. As it is tanks during these three days, cover your shorts incrementally. Don't cover your shorts all at one time, because it has a very small float and your short-covering will start a big buying pressure.

    Now, I know that some of you will read this message and think that I am nut case. I may very well be, but I am a trader and not an investor. I make money on momentum stocks and I don't follow that Wall Street gibberish "buy and hold" strategy.

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