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How can I determine a certain stock's share structure?
Yes vert is a nasty one to watch for and on the flip side shorting can seem the same but nite normally carries out those and more on smaller volume.
Check out these sites for news..
Both are pay sites, Knobias is all news, Equityfeed is everything and news, both have live streaming news with custom setting..
Free sites:
http://www.google.com/search?source=ig&hl=en&rlz=&=&q=otcbb+news&aq=f&aqi=g1&aql=&oq=&gs_rfai=CpZX7e6B7TNLaBpmMhQSexZWkBQAAAKoEBU_QiSbr#q=otcbb&hl=en&tbs=nws:1,qdr:d,sbd:1&source=lnt&sa=X&ei=jqB7TMGgFIH68Aa6lMzIBg&ved=0CBsQpwU&fp=c68f50c8d6720fd1
http://www.microcapmarkets.com/data_main_nav.jsp?market=OTCBB
Pay sites:
http://www.knobias.com/
http://www.equityfeed.com/
Anyone have a source where you can see stock news, particularly the pennies? Even if is is subscription based, I will gladly pay. We do have news here, but I would like it organized so that I can see all news without having to look up each symbol. Thanks!
Thank you for your response!
You may want to read this site noted below. They explain why some analysts valuations aren't always right. Here is what they say analysts use:
The EPS number that most analysts use is the pro forma EPS. To compute this number, use the net income that excludes any one-time gains or losses and excludes any non-cash expenses like stock options or amortization of goodwill. Then divide this number by the number of fully diluted shares outstanding. You can easily find historical EPS figures and to see forecasts for the next 1-2 years by visiting free financial sites such as Yahoo Finance (enter the ticker and then click on "estimates").
http://www.abcstockinvesting.com/stock-valuation.html
Question:What earnings do analyst go by,basic, diluted,adjusted and what should the avg. investor use in his/her dd?
Yea, back to getting up early and paying chauffeur, yuk!
u start early down there
Good morning Pat, summer is over here, kids back to school... yaaawnn
I personally don't subscribe to any penny newsletters but I know that a lot of people do. What I do is watch twitter to see if a particular stock I am interested in buying is being pumped or promo'd by any groups - I try to stay clear of those - especially when they are already up a huge percentage.
You know what, I can't even answer that for you. I have never done that and it is beyond my knowledge so I wouldn't even try to give you advice on it. Maybe someone else reading this board could answer it for you.
I agree, but at same time believe deep analysis and logical thinking are key for both traders and investors.
One way would be to get the latest updates by subscribing to penny stock newsletters, alerts, so as to keep updates and have knowledge to make informed decision
Hi Trix,
I really do appreciate the valuable information here , but please bear with me I am trying to fit the pieces together :)
Say I have enough money to buy some debt/conversion to free trading securities that are not restricted , to be safe could I open
a personal escrow account to do the transfer of cash for securities
exchange ? Do I have to go thru a lawyer ?
Thanks
Bid
Thank you so much !:)
I bookmarked this site years ago regarding PIPE's - it is from 2002 but it has a pretty detailed description:
PIPE transactions
http://www.altassets.net/private-equity-knowledge-bank/learning-curve/article/nz2856.html
23 Jul 2002. Source: Testa, Hurwitz & Thibeault. Michael A Conza
The turbulence of the public markets over the last couple of years has led many investors and companies to look at PIPEs (Private Investment in Public Equity). It does, however, have some pitfalls. Michael A Conza of Testa, Hurwitz & Thibeault gives an overview of PIPEs and discusses some of the structural issues that should be considered by investors.
In a PIPE transaction, investors purchase securities directly from a publicly traded company in a private placement, typically at a discount to the market price of the company's common stock. Because the sale of the securities is not pre-registered with the SEC, the securities are ‘restricted' and cannot be immediately resold by the investors into the public markets. Accordingly, the company will agree as part of the PIPE deal promptly to register the restricted securities with the SEC. Thus, the PIPE transaction can offer the company the speed and predictability of a private placement, while providing investors with a nearly liquid security at a discount from the current trading price.
PIPE flavors
PIPE transactions come in many varieties - differing on the basis of the structure and terms of the deal, the securities offered, and the investor base.
‘Pure PIPE' vs ‘Standard PIPE.' In a ‘pure' PIPE, investors agree to purchase the company's securities in a private placement on the condition that a registration statement for the resale of those securities is declared effective by the SEC immediately after the closing of the private placement. The closing of the pure PIPE transaction, therefore, is delayed until the effective date of the registration statement, giving investors the immediate ability to resell the securities purchased in the PIPE. Due in large part to the legal concerns raised by this structure, a number of investment banking firms will not undertake these pure PIPE transactions.
In contrast, a ‘standard' PIPE transaction is structured so that the private placement of the securities is closed not only prior to the effectiveness of the resale registration statement, but also prior to the filing of such registration statement with the SEC. The company agrees in the PIPE documents to file for the registration of such securities promptly following the closing (typically within ten days of the closing) and to use its best efforts to obtain effectiveness of the registration statement (generally within 30 days of the filing). However, depending on whether or not the SEC opts to review the registration statement, the resale registration process can take several months to complete. Due in large part to this period of illiquidity, investors typically purchase their PIPE securities at a discount to the public market price.
Securities issued. Although various types of debt and equity securities, as well as more exotic securities such as derivatives, can be sold and registered with the SEC in a PIPE transaction, most PIPEs involve the issuance by the company of common stock, convertible preferred stock or convertible debt. As an inducement to complete the PIPE financing, investors also may require warrants as a ‘sweetener.' Warrant terms vary widely, but typically include an exercise price set at a premium to the current market price.
Traditional. The majority of ‘traditional' PIPEs involve the sale of common stock at a fixed price that reflects a set discount (generally five per cent to 15 per cent) from the current market price of the company's common stock. However, traditional PIPEs may instead consist of the sale of preferred stock which, at the investor's election, is convertible into common stock at a fixed conversion price. Such preferred stock may entitle the investors to dividends and other rights and, in a sale, merger or liquidation of the company, will provide the investor with the right to receive back the purchase price of the preferred stock prior to any distributions to the holders of common stock. These benefits can be argued to off-set the illiquidity discount applicable to traditional common stock PIPEs, and therefore traditional preferred stock PIPEs are often priced at or near the current market price of the company's common stock.
Structured. In a ‘structured' PIPE, the company will sell preferred stock or debt securities which, in either case, are convertible into the company's common stock. The conversion price in a structured PIPE, however, is either variable or contains a re-set mechanism that automatically adjusts the conversion price downwards (ie, allows the investor to acquire more shares) if the market price of the company's common stock falls below the conversion or re-set price fixed at the time of issuance. Structured PIPEs provide price protection to investors but subject the company's common stockholders to the risk of significant dilution. Additionally, a structured PIPE transaction may require shareholder approval prior to the issuance of the PIPE securities. In 2001, according to industry surveys, approximately 23 per cent of all PIPE transactions (representing only ten per cent of dollars raised) were structured PIPEs.
The ‘Death Spiral' PIPE. If improperly structured, PIPE transactions have the potential for significant shareholder dilution. Such ‘toxic' transactions typically involve a convertible security with a conversion price that is linked, often at a discount, to the market price of the company's common stock at a discount to the current market price, the discount provides a built-in economic gain, which creates the incentive immediately to sell the securities purchased instead of holding them. As the company's stock price drops, the company is required to issue more stock under the terms of the PIPE transaction. These additional issuances cause further downward price pressure, and the price of the common stock often enters a ‘death spiral.'
The effect of toxic financings is hastened by their unpopularity with institutional investors. Institutional investors are wary of the extreme dilutive effect on the holders of common stock and the historically inevitable decline of their own investments as a result of toxic transactions. Merely announcing a PIPE transaction that does not sufficiently limit the ultimate dilution suffered by current stockholders can negatively impact the company's stock price as existing investors attempt to sell their positions before the results are manifested.
Investor base
PIPE deals are marketed and sold to a wide range of investors, largely depending upon the type of PIPE (eg, pure vs standard, traditional vs structured), the size and industry of the company and the quality of the placement agent, if any, involved in the transaction. Historically, PIPEs were not sold to traditional private equity investors, but rather to sophisticated public market investors focused not only on the fundamentals of the company but also on the technical aspects of public market investing dynamics, such as trading volume, float and volatility. These investors generally do not seek board seats or special approval rights and, apart from their right to a resale registration, are content to be treated as ‘outside' investors.
Recently, a growing number of traditional venture capital firms have made investments in PIPE transactions. Although many of these investments have been structured in a fairly straight-forward manner, it is not uncommon for venture capitalists to attempt to transpose to the PIPE arena the full-blown rights and protections that they typically seek with respect to private company preferred stock investments. Often, such ‘venture capital PIPE' investments will raise a host of issues under the federal securities laws, corporate laws and the Nasdaq rules. Venture capital firms should also carefully review their partnership agreements to determine whether or not an investment in a PIPE transaction is permissible.
Doing the deal
A significant advantage of PIPE transactions over traditional public offerings is that they can be completed rapidly - typically two to three weeks from kick-off to closing. In a typical PIPE transaction, due diligence is limited in scope because of the compressed time frame, and generally consists of a review of the company's filings with the SEC and press releases and investigative conference calls with the company's management, counsel and accountants.
The documentation for a PIPE financing is relatively minimal: typically consisting of an offering circular summarising the terms of the financing and containing a description of the business of the company taken directly from the company's filings with the SEC, a purchase agreement, a registration rights agreement, an investor questionnaire, a legal opinion from company counsel and, in the case of a convertible preferred stock offering, a certificate of designations or charter amendment defining the rights and privileges of the preferred stock.
After the closing of the financing transaction, the company and its counsel prepare and file the registration statement to register for resale by the investors the common stock issued (or issuable on conversion of preferred stock or other securities issued) in the PIPE. Typically, the registration statement is filed within ten days after the closing, and the company is required to use its best efforts to have the SEC declare the registration statement effective within thirty days after the filing. The SEC may elect to review and comment on the registration statement, which could delay the effectiveness past this 30-day commitment. Once the SEC is satisfied with the registration statement, it will declare it effective and resales of the PIPE securities may begin. The company must keep the registration statement up to date during the entire time that PIPE investors are reselling their restricted securities pursuant to the registration statement.
Copyright © 2002 Testa, Hurwitz & Thibeault, LLP. All Rights Reserved
Michael A Conza is a partner at Testa, Hurwitz and Thibeault, LLP.
This article is reproduced with permission of Testa, Hurwitz & Thibeault, LLP. For more information about Testa, Hurwitz & Thibeault, LLP, please contact www.tht.com
Question about PIPE's ?
This seems to be very popular lately, my question how does a person buy stock ( Pinks ) at a discounted price from a company wanting to raise capital without getting burned ? are there smaller funding groups that a investor/trader can trust ?
thanks
Bid
Due diligence: The degree of care and caution required before making a decision. A financial and technical investigation to determine whether an investment is sound.
I guess it all depends upon what your definition of dd is. For me, looking into past filings and reading up on news events is my form of dd. Most of the in and out daytraders don't even want to hear about dd - they are in for a quick scalp.
I think you are talking more about doing dd regarding fundamental analysis and checking earnings, dividends yields, book value, p/e ratio, etc. From what I know about Ihub, these boards cater more toward traders than investors but I am sure there are some that use it exclusively.
Interesting, but that is what I would call a trade set up, as opposed to DD.
Here is what I trade and how:
I trade the 6e and the emini using fibs and volume.
If you go to a daily/15/512 tick chart of either (the emini is more technical), you will literally poop.
Buy at the 50% with a stop at the 38%, and take profit at about 120%.
Make sure the market internals are supporting your trade direction and you will be golden.
Also, never trade against the morning gap.
Does anyone do fundamental DD on stocks?
I saw a post a while back, but haven't re-located it yet. If I do I will post it here as a response.
Thanks for the response and have a great day!
Well there are so many different styles but this is an example of how I do it. I am mainly a bounce player. So I have a scan setup for the type of stocks I want to see - like down a certain percentage, a certain exchange, and by price. Then when I see one that looks interesting I will immediately start checking: First the obvious: news- is there a reason for the dive, and is it warranted (the drop)? Then I quickly check price history, share structure, and past share structure (check reverse split history on any of the bb or pinks). I use http://www.otcmarkets.com/
for checking most of that along with Pro and Market Trader - once I decide if want to buy it I will jump in and the amount I buy depends on how well I already know it or feel comfortable - if it is something that I don't know well and am not too sure of I start with a smaller position. I decide when I go in where I want to exit and that is both on the gain or loss side. That's it in a nutshell. Ask someone else and they will give you an entirely different scenario. lol
It's an open question for people to give their process.
But I am looking for a process for fundamental analysis, I would guess. Now I know that funadamental analysis is useless on non-reporting pinks, but I would like to know how people find the winners that jump.
What type of DD are you looking at? That is a very broad question since everyone has their own trading style. Are you looking at charts or are you looking at news or are you looking at filings? Are you a trader, are you an investor? Get my point? Take a look in the Ibox - there are a bunch of different links there that may be of help to you.
Does anyone have any links to explanations, preferably step by step, on how to do DD?
Much appreciated and stay thirsty!
I'll stick to a shower with Irish Spring Soap - it is less fattening!
lol not that I am superstitious but I already had a tiny computer glitch today when I launched.
Good morning Pat, happy Friday the 13th... forgot about VERT
THanks will do.
Red
VERT is a known diluter. You are right about watching level II, Jimmy. As you said, when you see loads and loads of buying at the ask and it doesn't move and then one or two hits on the bid and it downticks - that is a sure sign of dilution.
Well they all dilute, some more than others though. I haven't been keeping up with the MM's as much lately so I can't say for sure who the usual suspects are. Look for the obvious, the same MM sitting at the best ask on L2 and lots of hits with no movement or a down tic after the ask has been hit good with volume.
Thanks, The t/a I've been contacting no longers gives me info as of 8/4. How do I find out what MM's are known diluters?
Red
The best way is contacting the companies T/A daily to see what the float/OS is. Unfortunately many of the penny stock T/A's won't give that info because of policy or they are being gagged by the company so you just have to watch the trades, L2 to see what MM's are on the ask, certain MM's are known diluters ie: MM VFIN and the stocks movement.
Is there a good way to spot dilution? I've always thought form t sells after EOD was a sign. Or is it done other ways, if so please explain?
Red
lol u may want to study this list too:
AFACT - As far as I can tell.
AFAIK - As far as I know.
AFK ( afk ) - Away From Keyboard
ASCII - An acronym for "American Standard Code for Information Interchange", used to assign English characters into numbers.
ASK ( ask ) - Current Price A Stock May Be Readily Bought For.
Bagger, (one, double, triple, quad or more ) - how many times the price of a stock has multiplied since the purchase.
BB - Bulletin Board
BBIAB - Be Back In A Bit.
BBIAM - Be Back In A Minute.
BBL ( bbl ) - Be Back Later.
Bear - A person who thinks a stock or markets will go lower.
Bearish - Looking for a stock or market to go lower.
BID ( bid ) - Price posted that a Market Maker will pay for stock.
BOX ( box ) - Computer
BRB ( brb ) - Be Right Back
Breakout - A chart pattern used to indicate a rise in a stock's price above its resistance level (such as its previous high price). Also a common exclamation when a stock's price moves up a high percentage in a short period of time.
BTW - By the way
Bull - A person who thinks a stock or markets are going higher.
Bullish - Looking for a stock or the markets to go Higher.
BW - Business Wire ( News Service )
CEO - Chief Executive Officer
CFO - Chief Financial Officer
CIO - Chief Information Officer
COO - Chief Operating Officer
CYA ( cya ) - See Ya
CUL8R - See you later.
DCC - Start a chat or send a file.
DD ( dd ) - Due Diligence
Double(r) - Stock that's price has doubled since a given time.
DT ( dt ) - Down Tick in the price of a stock, Price is falling. Our DayTrading.
Due Diligence - Research the fundamentals of a stock.
DH - Day High
DL - Day Low
DYODD - Do your own due diligence.
E2EG - Ear-to-ear grin.
EG - Evil Grin.
EOD ( eod ) - End Of Day
EOM ( eom ) - End Of Month or End of Message
ERR ( err ) - Growl or getting mad.
FAQ - Frequently asked questions.
Fire - Stock that is hot, rising fast.
Front Running - People own the stock then promote it while selling.
FS - Forward Split
FWIW - For what it's worth.
FYI - For your information.
G - Grin
GAL - Get a life.
Gapper, Gapping, Gapolla, GAPPA - Stock that moves from its previous closing price before the market opens.
GMTA - Great minds think alike.
GTG - Got To Go.
GUI - Graphical User Interface ( What you see when using software )
Head Fake - Stock Price heading up or down contrary to ones opinion.
HOD - High Of Day
HTH - Hope this helps. or Hope that helps.
IMHO ( imho ) - In My Honest Opinion, In My Humble Opinion
IMO ( imo ) - In My Opinion
IOW - In other words.
IPO - Initial Public Offering.
IRC - Internet Relay Chat ( Network for live chat )
IRL - In real life.
IT - Information Technology.
KISS - Lip Smacking, Keep It Simple Stupid.
L8TR ( l8tr ) - Later ( Like see ya later )
LAGGED, LAGG ( lagged ) - Long delay between sending and receiving data over the Internet.
LMAO - Laughing My A$$ Off
LOL ( lol ) - Laugh Out Loud
MB - Message Board.
MIRC - Internet Chat Program.
MM ( mm ) - Market Maker ( the folks who handle the trades of stocks )
MODS - Moderators, Board assistants.
MOMO - Momentum stock, lots of interest and buyers for hours days or weeks.
NASDAQ - National Association of Securities Dealers.
NEWBEE ( newbee, newbe ) - New user of Internet and or computer.
NICK ( nick ) - Name used by people ( Individual ) on the Internet.
NQB - National Quotations Bureau.
NUKE ( nuke ) - "Denial of Service Attack" that will crash your computer forcing you to reboot.
NYSE - New York Stock Exchange
OEM ( oem ) - Original Equipment Manufacturer
OFFER ( offer ) - Current Price A Stock May Be Readily Bought For. What a Market Maker is willing to pay for a stock or other issue.
OMG - Oh My God
OT - Off Topic, used on message boards when the post is not on the threads subject..
OTCBB - Over The Counter Bulletin Board.
PD (pd and p&d ) - Pump and Dump
PIC ( pic ) - Picture
Pink Sheet - Stocks quoted by the NQB.
PM - Private Message
POINT ( point ) - Dollar or Stick
PPL ( ppl ) - People
PRN - PRNewswire ( News Service )
Pump and Dump - Front running, people own the stock then promote it while selling.
Reloading - To Buy Again or to enter in the order for a buy or sell in the browser window but not yet hitting the send button so as to be prepared for news or movement.
ROFL ( rofl ) - Rolling On Floor Laughing
ROFLMAO - Rolling on floor laughing my a** off
RS - Reverse Split
SAD - Short Against Delivery
SBPO - Small Business Public Offering
SCALP (S) ( scalp ) - A quick trade for an 1/16 or more.
SI ( si ) - Silicon Investor
SNRK - Under breath Laugh
SOES - Small order execution system.
Spread - The difference between the offer and the bid. The difference between the price a Market Maker is willing to buy a security and the price at which a Market Maker is willing to sell it.
STICK ( stick ) - One point or dollar.
Tank, Tanking - Stock thats price is falling.
Teenie - 1/16th
Thread - A series of messages on a message board or other means that generally have the same topic.
TICK ( tick ) - Can mean the last movement in a issues price ( up tick or down tick ) Also a market indicator. As a market indicator quote systems keep track of the up ticks and down ticks of stocks through out the day. The tick shown will be the difference between the up ticks and down ticks for that day so far. A positive number means there have been that many more up ticks than down and a negative number means the opposite.
TRIN ( trin ) - A market indicator used in technical analysis, calculated as follows: TRIN = ((number of advancing issues divided by number of declining issues) divided by (Total up volume divided by Total down volume)). A value of less than 1 is bullish, greater than 1 bearish. also called Arms Index.
TTFN - Ta Ta For Now ( UK Folks ? )
TTYL - Talk to you latter.
TTYS - Talk to you soon.
UT ( ut ) - Up tick in the price of a stock, Price moved up.
URL ( url ) - Uniform Resource Locater, Internet address of a web page ( http://sitename )
Thank you.I knew it meant a new price.I just didnt know exactly what it stood for.
Can someone tell me just what HOD stands for?
When you look level II you can only see the size of the mm offer. They are probably talking about how many prints went through on the bid or ask. You can tell this by watching time and sales.
I am on boards all the time where people comment there 1 mil on the ask or bid. How can a persom read the vol into an L2?
Got to Settings/My Pictures
Someone directed me here - glad to find you!
besides a trading platform, what are the fav tools of the day trader?
Here's another L2 article - more interesting reading!
http://www.hotstockmarket.com/forums/showthread.php?t=14938
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