Shelf filings by fast growing businesses have been statistically proven to be excellent entry points
And why is that?
Because a stock almost always sells off on a S.R. but you are right to buy now for bigger profits later !
The only catch I worry about is why they need so much capital, 50M, but that will depend on what they use the money for and at this point we don't know and don't tell me they said this and at. Never buy into the company spin and never think they will NOT have an offering to raise that 50M like commonsense tells people. Seems he's new to investing. The only companies that do not offer the new stock are the ones that are failing and nobody will buy their stock and SPCB is not a failing company. They always pump up the company like any other company will do. Just consider everything ! Good Luck !
Usually I can eat a whole pie which is 10 pcs. or 10 shares but yesterday I had to tell Papa John's to cut the pie into only 5 pcs. because I wasn't that hungry and couldn't eat 10pcs. ! Less
The POINT is the SIZE and the VALUE of each of the 5 pcs. is DOUBLE that of the 10 pcs Pizza! Get It ?
Does it reduce the shares? Yes. Does this mean fewer shares, sure, but how does this HELP US? So what if there are 40 million shares instead of 55 million shares. How does this materially affect the investor?
I can see your LOGIC !
Think of the company as a Pizza Pie and each cut is a share. Usually I can eat a whole pie which is 10 pcs. or 10 shares but yesterday I had to tell Papa John's to cut the pie into only 5 pcs. because I wasn't that hungry and couldn't eat 10pcs. !
"Insiders usually do no trades in month 1 and month 3 of a quarter for the following reasons.
It doesn't have to be an "insider"! It's the information that's important and that could to passed on to a friend that the insider knows and has a agreement with and would benefit both parties. There are many ways to cheat the system and make the wrong people rich, just ask the people in Washington who are suppose to have "your best interest at heart" but can only think of their wealth and power !t Happens every day and is hard to prove !
not seeing the 3.7 you're talking about. but i agree that this was way overdone.
Click "Analyst Estimates" look under "earnings history" look at June 2014 (last Quarter). Up 3.7% from est. same at ZACKS.
That's what is listed on Yahoo and is also shown at ZACKS today. Looks like what the Analyst expected is not what they really expected, they lied, should be working in Washington, oh that's right, they are all on vacation. They don't work like the rest of us just steal our money to waste it.
If this was a heavy shorted stock and they miss earnings,rev,or guidance I could understand the 18% selloff, but a cheap stock like this that earns. 20 plus in earnings and has a great PEG with little debt and STILL rated #1 STRONG BUY but that loses $2.50 per share makes no sense to me. No way am I selling. Good Luck Longs !
I'll go with the earning leak.
No, it's not earnings and they are saying the same thing on the LSCC MB. After checking other semi conductor stocks like ONNN you will find most are way down today. You could overlay a 1 day chart on many semi stocks and the pattern is the same today. Why that is, I have no idea.
Someone leaked the news. Someone knows. Stinks.
That's what I thought at first until all my semi conductor stocks are doing the same thing. You could lay a 1 day chart of IDTI over LSCC and they would almost match. ONNN isn't doing much better. The whole semi field is getting hit and it has nothing to do with LSCC earnings..
Volume is way to high. It's the big boys that are dumping, the small investor knows nothing. Maybe an earnings leak, maybe an stock offering, maybe an SEC filing after the bell. Bottom line, if it's bad news we will be the last to know. The way it's dropping could have a lot of stop-loss triggers, looks like a few waterfalls.
Back to where we started from
On July 15th SPCB closed at $9.08. Next day SuperCom announced the creation of a Shelf Registration.
WRONG AGAIN COMMONCENTS ! The stock is lower than what it was before the SR and much lower than the new 52wk high of 10.88 just set. The SR ALLOWS for a QUICK secondary offering of NEW STOCK to raise CAPITAL FAST. Try to get that thur your head! The SR in and of itself is not the secondary offering. Their will be a stock offering and investor's know that they just don't know when. On the bright side the volume is low so I 'am not to worry about the PPS but I'am a little concern why they need 50M for a small cap company. Your problem is you are to concern about what the company does and their B.S. and much less concern about what the PPS does and that's what counts the most to investors. Have a GREAT DAY !
One of the first things I notice after the first hour of trading yesterday was the low volume which continue thur the day and finished well below the average volume. This to me, was a sign that the "knife" had stopped falling and that it was time to add on the way up. Your never going to guess the bottom on heavy volume so it's good to wait until the bleeding stops even if you miss some gains on the way up. Even if the up trend doesn't continue I still play the odds on a good stock like SPCB.
As far as buying and selling on the dips, for most people its better to just buy and hold because most people let emotion and company spin get in the way and don't want to look at, or believe, the negatives, which are the most important things about any stock. Good Luck !
I took 30 min to reply to your post but yahoo wiped out my post because I listed the links to back up what I stated. I'am not going thur it again.
I think you are the one that's confused. In short. the SR is good for 3 years. You got that right. It is not a secondary, you get partial credit. It is not a secondary BUT ALLOWS for a secondary sale of new shares at a moments notice to RAISE CAPITIAL. This as the same EFFECT to an investor as a secondary offering at any time which will dilute the current share MAKING THE VALUE OF THE SHARES FALL.
Bottom line you got one right and EVERYONE can see the PPS has been down since the SEC Filing. That's what happens when investors see dilution.
Yes, but look at the weekly volume for the last 3 weeks. Weekly shows well below average volume on this move lower.
The fact that the PPS moved lower on low volume for weeks was due to the feeling that a few people like myself felt the move from 7 to over 10 because of a big contract, annual earnings release and the june 9 earnings release was too far too fast for the results they showed. The fact that it was on low volume means it was not confirmed to be the general feeling of everyone. The real "hit' was the wed. "shelf offering" that seems to always signal a falling stock and that can last for a long time or be short lived. I have seen one company withdraw the offering and since the filing is not effective until an "effective date" is set and filed, they can withdraw it at any time to take the cloud over the PPS away. The other problem I see is they want to raise $50M and that is a lot of money for a company of 58 employees ! You can bet SPCB will study the reaction of investors and adjust their goals and if it works and they get away with it they have a habit of repeating it and I'am not saying it's good or bad I just know offerings hurt a stock short term.
Today the volume is already above the average daily volume on a down day for SPCB but an up day for the market and that confirms the down trend. Once the volume slows down to almost the normal daily volume that will be the signal that everybody that wants out, is out, and the base is forming. I find that is the best way not to be trapped into catching a falling knife and helps buying at the right time. Nobody can always buy at the bottom and sell at the top but there are signals that can help you max the gains in this stock. Not everybody should trade, most people are better off buying and holding long term. Good Luck !
You seem to look at a company only thur rose colored glasses. You put total trust in the company spin and that the only thing you want to hear. You are not dumb but I don't think you have been around the block as many times as I have. I always pay more attention to the negative side of a stock which I view as MOST important. The habits of this company show they would have some new shares issued soon, as they always have done in the past. Every year the number of shares has increased. If you go back on my past messages I stated this stock would hit the high sevens I was just waiting for the offering which you can call it any name you want it still results in offering stock. We are both on the same side, we just see things different. This is a great stock and a great time to add shares. Even I added a few early just to be safe but now I'am on the way to SPCB being my leading stock next to CPE.