Investor Help (NO Ihub questions)

[iheartweimers]

http://www.zacks.com/registration/pfp/?ALERT=zrmodule&ADID=ZACKS_PFP_ZRMODULE&skip_rpt_name_check=skip_rpt_name_check&t=JBL

Maybe this can help. Otherwise, we would be guessing
because we need to know what your goals are. Quick
buck trader? Long term investor? This is the stock for
neither, IMO, but you had a reason for buying it.

[Jmp8]

Hey all, I'm pretty new so bare with me please. I got into Jabil (JBL) before their earnings report came out. There stock rose a little more then 5% the day of their earning released (after bell). The after market has wiped that gain and looks as if a decline is headed for tomorrow. I was just wondering, why the decline? The earnings statement looks good, I don't really know what I'm reading but I see increase a lot.. can someone help me with this?

[cintrix]

u need to call up itc and ask them since they are doing the transaction

[kkg32]

I have stock (Richfield Oil & Gas)held by ITC that I would like to gift to my son before December 31. He also has an account with ITC with some of the same stock. I have the "Stock Power" form and the signature guarantee, but I need some help regarding the information to enter in some of the blank spaces -- plus info regarding the fee required for the transfer.

[jcwillis]

Lower Highs, Lower Lows, Below 50DayMA, Stock's Bearish at this time. News could change trend as news always trumps technicals. Let the other guy buy in to bring it above the 50DayMA, or let the 50DayMA come down to meet sp. Anything, in this Market, is not a bargain if below 50DayMA. Should you decide you cannot resist, and consider it a bargain, then be sure to control risk with a tight stop-loss.

In your earlier question about how to tell if there is buying or selling, sp is one indicator. Other technical indicators are OBV, MFI, and RSI (shown on your provided chart) as well as others. If these are trending up while sp is moving down, it could indicate stealth buying.

Hope the best for you in all your trading.

[Jmp8]

I was wondering if anyone here could offer some technical guidance on the chart for Ford. Just curious as to where analysis points the direction of the stock and what indications for it?
http://stockcharts.com/h-sc/ui?s=F&p=D&b=5&g=0&id=p66958787595

[Jmp8]

ok I figured, didn't think it was so black and white or green and red I should say

[cintrix]

Usually from the direction of the pps.

[Jmp8]

I saw someone post on a specific stock's board that big volume late day is big selling.. Is this true? How can you tell if the volume is for buying or selling?

[cintrix]

I use Etrade's level II service through both Pro and Market Trader. I get it for free - you have to make at least 30 trades per quarter to qualify. There are paid-for level II services if your broker doesn't offer you any. IHub has one and there are others. I won't comment on them since I don't use them.

[cintrix]

Yes, but you have to pay it back - the same way you pay back when you are covering. When you short, you are borrowing shares that you will later pay back (hopefully at a lower price). If that stock issued a divy you have to pay that back too.

[Jmp8]

Again on dividends. What happens if I'm shorting a stock durng the ex date? Do I get a dividend if I'm shorting the company?

[Jmp8]

well I'll take that as somewhat as a good sign. I have a pretty good track record with the short period of time I've been trading so adding level II should only help me. Where's the best place to get level II quotes?

[cintrix]

I can't imagine not using level II while I am trading. Although when I first began trading, level II wasn't even available back then! Regarding market orders - I have no idea what type of plays you are doing but I truly hope that you are not using market orders with penny stocks. Some brokers don't even allow market orders with penny stocks - you could end up buying something for a lot more than what the current ask is. To tell you the truth I never use market orders ever - even when I am buying a 20 dollar stock. The only time I ever used them in the past is if say an event happened that made it move hugely and every time you put an order in the ask kept upticking - if you want the stock no matter what u can put a market order it so you know it will fill.

Also, level II doesn't represent every single retail order. Sometimes if you put an aon order in they don't show it on level II. Or you can put a limit order in say for 30k shares of a penny stock - u would see your order there and when it fills, u see it gone, but there may still be a mm representing 5k shares and a few hundred thousand can go through and that 5k is still there - mm's have inventory and especially when there is a diluting stock there could be much more shares to go that you can't see.

[Jmp8]

wow... sounds like I should have asked this question a long time ago. So basically if I'm actively day trading, I'm doing it blind with out level 2 quotes? Level 2 data is basically only a good reflection on limit orders though right? If I make a market order there is no way they can tell I'm in line to buy

[cintrix]

Shorts being bought or short covering? There are sights that list short interest - this is one:
http://shortsqueeze.com/

Level II - geez, you have a few hours? lol The basics of level II is that you get to see the market maker line up on the bid side and on the ask side. So if you see a long line of mm's on the bid at the current price and you see only one mm at the ask it would indicate that because of this bid support the price would soon be upticking. The opposite happens when the price declines - the ask gets thick with more mm's lined up and the bid gets thin. Years ago there was a pretty good level II tutorial website but I have no idea what or where it is anymore. I basically learned level II on my own by just watching it everyday. Here is someone who explains it in depth:http://www.hotstockmarket.com/t/35169/introduction-to-level-ii-level-2-l2-l-ii-lii

[Jmp8]

When I hold a position on a very active stock I see a lot of people on the subsequent board talking about seeing a lots of shorts being bought. Can someone explain where to get this "behind the scenes" information and explain in fair detail what level 2 is?

[iheartweimers]

My post that went to JGulley317 was meant for Jmp8.
Sorry.

[Churak]

Churak thinks you nailed it correctly.

[cintrix]

Basic are earnings or losses based on the current outstanding shares. Diluted is based on the convertibles and warrants when they convert. Weighted Average Shares OS counts any increase during the year of the os - I think. Let me get Churak to check my answer.

[cintrix]

Some companies like to have a lot of cash for acquisitions, etc - that is why a lot of the tech companies don't do divies. But sometimes the return on equity can be affected. Take a look at this article regarding why a company would do a divy - they explain it better:Last but not least most companies can only grow their ROE/ROA so much as they could be reaching the limits of their marketplace. The ROE would then incrementally start declining, making it worthwhile for these stocks to pay out dividends instead of spending the cash on acquisitions to buy competitors or start a division in a completely new sector in order to diversify. More often than not branching out into different industries does not work.
http://www.dividendgrowthinvestor.com/2008/11/why-should-companies-pay-out-dividends.html

[iheartweimers]

I can give you my two cents. As cintrix said, many choices
depend on many variables so you have to study, chose a course of action, and modify as events and your circumstance
change. First, I would tell you to resist jumping in because
you might miss something. You are entering a game like
a dice table in Las Vegas. Throw your money down on a tip
or hunch and you will get killed. The game has been going
on forever, choose your entry point carefully. Educated day
traders, options traders, shorters can make money in down
(bear) markets, and buyers who want to hold for a long time
want to buy at a market or stock bottom. You must be both
educated and nimble, IMO. Safety is only found in a bank
vault, however, so you have to choose risk level early on.
Brokerage houses vary in many ways too and you must
choose based on what kind of trading, frequency of trade,
amount of investment you intend to make. Compare and
call them, like banks you can switch. Scottrade has a matrix
to compare services offered, but may not be best broker
for your circumstances. When you open an account, some
houses offer free investment classes, materials, forums.
I am mostly in for moderate risk, long term, high dividend
portfolio, and play with 2-3 OTC pennies to gamble.

[Gixene]

Could anyone help me understand these two animals better, haha? I did some research, but maybe if someone could put it in perspective to someone who is a novice.

Net Loss or Gain Per Share (basic and diluted)

Weighted Average Shares Outstanding

Thanks in advance, Gulley

[Jmp8]

dispersing extra cash? never knew there was such a concept

[cintrix]

Good press, rewarding shareholders, dispersing excess cash, yada, yada. lol

[Jmp8]

I'd prefer the cash as well.. One more thing on dividens. Why would companies opt to offer a dividend? I see Apple and Google don't pay out dividends and those companies are doing pretty well. Is it an incentive play to attract investors?

[cintrix]

Goes right into your trading account. Or, as I mentioned you can enroll in a DRIP and reinvest it with the same company. I used to do that for a bunch of my long term stocks that I never touch. But I got sick of owning so many fractional shares at different prices that I discontinued it and just decided to take the cash on everything.

[Jmp8]

Sounds like a good play once I have my portfolio up. Does that money get deposited directly into my investment account or do they send a check?

[cintrix]

Yes, but many times the stocks drop right after the stock goes ex so you have to be careful. Dividends are probably better played for long term investors. You find a stock that doesn't deviate too much and pays a decent percentage you can get a steady income if you buy enough shares.

[Jmp8]

That's fine, I'll search around for that answer. I never really care about volatility either but always struck my curiousity what the number indicated. Would like to know anyone's interpretation though

[cintrix]

volatility average - I am not a chartist and never use this - maybe someone else can chime in

[cintrix]

If you day trade all your capital gains will be short term, therefore it is based on your tax bracket. Long term is 15% (held for one year or more). There is no way for me to tell you how much you will be taxed - it could go anywhere up to 35% depending on your income.

[Jmp8]

Is there much money to be made in dividend shopping. Theoretticaly if I had 1000 shares in VZ from yuor scenario I could make a quick $500 over night right?

[cintrix]

yes, that is right - i just bought ainv for the divy next week - i may sell it after the exdate or a I may keep it a little while depending on what it does

[Jmp8]

I know I am bombarding this board with questions simultaneously but online explanations through web sites are so text book and thus a bit hard to understand. My question is about volatility average. I know a larger number indicates higher changes in stock prices but what is considered high and what is considered low?

[Jmp8]

again I appreciate the help. So no matter what.. I could buy a stock a day before the dividends are paid and receive the dividend. The amount of time I have in the stock only is going to determine my tax status or rate?

[Jmp8]

Can someone tell me a generalized number (Percentage) that I will be paying towards tax as income and not capital gains as I am a day trader.

[cintrix]

If you buy it and only own it a little bit before the ex date there is a difference the way you would be taxed. Ordinary divys vs Quaified:http://www.myjourneytomillions.com/articles/difference-between-ordinary-dividend-qualified-dividend/

[Jmp8]

I appreciate the information. Is there a certain time I would have needed to buy into VZ to get the dividend? I know I can't sell before the ex date but is there a date I have to have owned the stock to get the dividend? Or could I possibly buy into the company a few days before the ex date and then recieve the dividend for only being a share holder for a few days?

[cintrix]

If you are a shareholder of a company that issues a dividend then you are entitled to that cash dividend as long as you don't sell it before the ex-div date. Not all stocks give dividends. You can also chose to reinvest the dividend instead of taking the cash - it is called the DRIP - Dividend Re Invest Plan - This site is good to plug tickers into - it tells you when the divy will happen and how much you will get:
http://www.dividend.com/dividend-stocks/technology/telecom-services-domestic/vz-verizon/
I plugged in VZ - so if you own 100 VZ shares you will get $50 providing you don't sell it before 1/6 and they will pay it to you on 2/1.
This is a site calendar site:
http://www.thestreet.com/dividends/index.html

[Jmp8]

Hello all I am trying to undertand dividends better. Can someone explain to me how I can know how much dividend I will be paid (dollar amount or percentage?) if I am eligible and what makes me eligible for a dividen?

[iheartweimers]

I am retired, on a farm in Fingerlakes country of NY.
I use DSL via phone co landline for Internet feed. I
will never have cable here, just as well because like
in developing countries the future is wireless from tower
or satellite. The provider you choose does matter. It
matters for price, google Sprint merger and you will see.
Also coverage, tower placement,mountains, valleys matter.
I use Verizon for mobile phone because it works where
I live, not because of price. You also have to consider
contract lengths, if one applies. Please google Toshiba
Thrive Review, read Jul 12, 2011 review by Eric Franklin
as he compares it with other top choices (before Kindle
Fire released.) Toshiba does not have 3G so you can't
buy one with a AT&T or Verizon chip in it, but you can
tether it with a smartphone or other 3d party device (see
Amazon, use their search block, type in wireless tethering,
Go. One example is Aluratek 3G Portable Wireless USB
Router. On sale today for $73.99 I see. If you already have
a smartphone, trade on that? I also have called my Scottrade
Branch by cellphone and asked for assistance in a trade
and they were happy to do it, for regular $7 fee.
If you want, send me your phone no. [e-mail]
and time to call if you still need help.
John

[starbuxsux]

Do you use your tablets with a phone/internet provider such as AT&T? Or do you just use them with wifi and hope you're around a hot spot?

I called At&t to see their rates for ipad data plans etc. They don't seem to carry or support Toshiba Thrives.

It doesn't matter to me who the provider is just doesn't make sense to have the tablet for trading on the road if I have to pray for hot spots.

[Churak]

depends...some see factoring as a lending of last resort and its expensive. Re amort of debt discount - typically this is a non cash item and is added back on the cash flow statement like depreciation of a car or plant. If you are trying to do this kind of DD on a penny stock, you are SOL cause it's pretty much meaningless, IMHO. If you are trying to analyze the f\s of a real company, I SUGGest that you read up on analyzing financial statements...or enroll on the CPA program...GLTY...

[Gixene]

Man oh man, that helped. But this all seems confusing to a novice investor. How important are these numbers of factoring and amortization of debt discount?

Gulley

[Churak]

http://www.accountingcoach.com/online-accounting-course/89Xpg06.html

[Gixene]

Okay, I think I get it. I'm just trying to understand filings. So could you or anyone help explain what amortization of debt discount is and give me an example?

Thanks for you help, cintrix and Churak.

Gulley

[Churak]

We used factoring many years ago as an importer & distributor to retail chains. Not sure it is the same but back then, we received 80% of the value of the invoice upon proof of receipt of the merchandise by the retailer. The invoice was stamped that the invoice was basically sold to the factor & the retailer was to pay the factor directly. Upon receipt of payment of the invoice by the factor, we were credited with the balance. We were charged interest on the outstanding balance. Each customer was credit approved by the factor for a certain amount and we could ship up to this amount. In addition, we had a global credit limit that we could borrow against by virtue of these advances. It was essentially a line of credit and if we shipped over the limit, we got nothing. I think the company we used (I am in Canada & it was many years ago) was Walter Heller & I believe they were based in the US.

[cintrix]

I will be perfectly honest with you. I am really not too familiar with it so I don't want to give wrong info - I will try and find an account on IHub who can answer your question.

[Gixene]

So it was hard to understand, but essentially. It's a percentage of advanced funding that a company gets when credited. Funds are usually received 24 hours after invoice has been verified. Though only 70% to 90% of funds are given at that point in time. The rest is given when amount is paid in full. Or am I still way off? Who lends a business this kind of money, banks or is there certain groups just for this.

Thanks for your patience, Gulley