Looking for a secondary any day here. Then.....I BUY, and ONLY then
I agree with you up to "ONLY then". I think you will get your chance to buy on the dip with a "offering" but I think it's a good idea to have some good "core holdings" because this stock is having a "coming out party" with Institutional and Fund holdings. With 2 Analyst that JUST STARTED following SPCB the days of "Flying under the Radar" are almost gone. In addition the 52wk high is $13.49 and a stock like this is almost a sure thing to repeat that high an go higher. When you get a day like today with very low volume that can be a gift to buy some trading shares for tomorrow and make a few bucks.
Every time SPCB happens to have a down day he is right there saying how smart
I never said that I was smart. If I was that smart I wouldn't have learned the hard way in 50 years of investing and when you learn the hard way you don't forget it. As for money that was not made by keeping some dry powder you are right so far in this stock but that doesn't happen all the time. I bring up the offering because I NEVER Monday morning Quarterback. Anybody can do that! I try to connect the dots and prepare for what I know can and most times will happen from past track records. You always take one side to pump, pump, pump. I don't invest that way. I want to know the negatives. You use what works for you and I'll use what works for me. We both agree this is a good stock to hold long.
Stock down as low as $1.05 on volume that is already higher than the normal day volume in just 2 hours of trading and opens just .56 from the 52wk high, That is the perfect storm to use that shelf offering to raise cash and they will at the right time and now is the right time just ask mister know it all commonsense. That's all he does is pump. Never looks at the total picture. It's not just about making money, it's also about not losing money. One very famous rich man named Carl was asked why he always sold to soon. His reply was "I got rich by selling to soon"!
This is still a great stock and I have some dry powder to use that I have been saving just for that offering when it happens. In the mean time I still have a "core" I hold all the time. Good Luck!
Wow,,,,, Even with the offering,,,the strength here is great,,,, Very Nice ! Luck to all
You may be in for a surprise ! After many offerings the PPS goes down without the help of the market makers to keep the PPS above the selling discount price of the offering. Usually it's only a short term thing and the PPS does recover. The TRUE value of the PPS will be AFTER the offering is over and the stock is on its own to seek fair market value on normal trading volume. I manage to limit my loses my selling all my shares in aftermarket at a big lost then I got about half my shares back on the low end and i'am waiting to see what happens after the offering. If they go lower I most likely will buy more and hold the same amount I had before the offering. I really think this a stock with a GREAT one year chart in a great field to be in.
If you're looking for a stock still under the radar look at SPCB. I had had them for years and nobody followed them until this year when 2 analyst started estimating their numbers. Now the funds and institutions are getting on broad. I think it's still early. Good Luck!
The sad part is that they could have issued these shares about two months ago when the pps was $11
What date was the S3 shelf offering filed. I can't find it going back 2 years. Thanks
Well, there you have- $9 a share. Pretty weak!
In most offerings the offered shares are sold at what is considered a "discount" price. The market makers will try to keep the PPS above the offer price and many times when the offering is completed the PPS will fall but sometimes it will go up so it's your call.
Bottom line I don't think the PPS will move either way much for awhile.
Be glad you didn't have AKS and CPE like I did.
I expected PPS to be down a buck or 10% but the day is early. I tried to dump in pre-market but it didn't happen so the trade carried over to the open and there was a second or two the PPS surged and my trade went thur. I WILL pick this stock back up after the bleeding stops and the volume drops so I don't catch a falling knife, usually 2-3 days. This is a good stock, 3 bagger in 52wks. and great growth of earnings PEG. Good Luck to those that hang in there!
.... Anyone remember how this stock reacted to an increase in the float?
It will react like any other stock that offers over 25% more stock than is on the books now. In the short term CPE will take a beating but it's to late to do anything about it now if you don't want to lose money on the stock.Long term the stock will do well with a great field to be in and a great PEG just over 1 and less than 2. Stock offerings are always bad news short term but if they use the capitial to increase revenue and earnings things will be bright for the future. Good Luck !
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.