When they announce the secondary the PPS will take a hit.
I'am with you on the secondary offering the stock will take a hit like it did when the shelf filing was announced. Investors will have a "short term loss", not a gain.Companies like to announce the new stock offering when the PPS is at or near the 52wk high like it is now, the purpose is not as important as the timing of the offering. The amount will most likely be the total amount stated in the shelf filing but if they don't ask for it all you can bet they will in the near future. The amount of the drop in the PPS is anybodys guess but it will be short term only. SPCB will do just fine long term. Good Luck !
So superbowl, did you take your own advice and sell half your shares before earnings? Just curious
Yes I did, but to be fair and up front I had a number in mind I was comfortable with and I doubled it knowing it was to be a temp. trade. I still believe SPCB will use a new 52wk high to offer new stock and we can see a short term pull-back which will be the time to add shares. 50% of my effort is making gains and 50% of my effort is not losing money. We all should do what works for us. We all look at things a little different and that can be good.
Even if it's high volume trading. Most of the trades are 2-bit trades from 10 shares posted today to a few hundred shares with a few 1k shares mixed in. The morning trades will be the same. The real trading begins after the first 30min after the opening bell when the big boys take their positions. It wouldn't surprise me to see SPCB close over 10% for the day after things settle down for the day.
That would be the bright side, but great earnings, revenue and guidance would be the perfect time for the company to turn that shelf offering into a stock offering which would counter any uptick in the PPS over the "short term".I wouldn't go bet the farm until that offering is used and it will be used to raise capital and that isn't a bad thing in the long run. Good Luck !
Doubt if Imperial would have done this a few days before earnings unless they were quite sure report was going to be very good.
AND they were done buying up their shares !
a much bigger deal than it would be for most stocks.
The reason is that it is a FIRST. Most knowledgeable small cap investors will tell you that the really big money is made if you are fortunate to get in a stock BEFORE it is "discovered" by institutions & funds. Once that happens, it achieves credibility and then nobody wants to be the last one on board for the rocket ride.
Couldn't agree with you more on that one. We need institutions and funds buying ! That's a big factor that moves a stock.
Most people think that post PPS movement is based on how great the earnings, revenue, and guidance are but most of the time that is really not the case. The PPS will move after the actual posted numbers are compared to the EXPECTED ESTIMATED NUMBERS. Many companies can lose money but if they lose less than expected the PPS can soar. I agree the increase in earnings is important but that number may already be baked in. It's the expectations vs the real numbers that will make the difference. No matter how great the numbers may be, if it's expected, the stock will be flat or under pressure.
Give up some upside to lock in gains or risk profits for even grater returns? What to do, what to do...
What to do is what works for you over time, after all it's your money ! I sell half going into earnings so I can lock in gains and still have half if SPCB hits a home run. If the stock "sells on the news", I wait until the knife stops falling as indicated by the volume slowing down to almost normal (2-3 days), then I buy back the half I sold and that will offset the loss of the half I held on to. To me it is just as important to learn how to not lose money as it is to make profits off the gains.
Bottom line, don't be a "pig" ! Good Luck!
they have over 100 million in debt an 1 million in cash
The DEBT means NOTHING !
I just got a new car using a 100% loan (debt), at 0 %. I have almost no cash because I use all my cash for my business, rentals, stocks, and bonds, things that make me money ! That is the same way smart business is done. You make it sound like CPE is near BK and nothing is further from the truth !
CPE has a PEG of 1.68 which shows great growth for the PE. Book value is $6.93 which shows solid assets vs liabilities. The PPS for 52wks shows the high was 3X the low.. Target for 14 analyst starts at $11.00 for the low to $17 for the high. CPE is on track for RECORD REVENUES this year and a 39% increase for next year.
I think this stock will go much higher before the end of the year. The pluses are far greater than any negatives.
zacks is base on someones opinion -
Well that statement tells it all. You know NOTHING about ZACKS ! Opinions have NOTHING to do with the ranking of a stock at Zacks. Zacks is just one tool in the toolbox.
Tueday is the presentation,,,,which will be very good..the funds are running this down today then buy on the cheap before the presentation,,,,
That is exactly the same thing I was thinking ! I've been around the block a few times an I have seen this game played before.
The main job of the "shorts" and the Funds is to get you to do what they want you to do, Sell ! Tomorrow will be a great day for the longs.
What balance sheet are you looking at ? The ASSETS are almost 4X the Liabilities ! This company is RICH !
72K is not the average volume but your point is well taken. I think you may have something going on with the very high volume this morning and you're right, it can only be something good ! Good Luck to all Longs !
No matter where the PPS ends today with all the games that will be played, this stock is headed much higher after the dust settles and that is a FACT !
Time to lock in positions and let the money do the talking. We may bounce around a little tomorrow but in the long term trash is gold to this company and we have a lot of it !