~ Friday! $PSMT ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $PSMT ~ Earnings expected on Friday * Want more like this? Search Keyword:MACMONEY >>> http://tinyurl.com/MACMONEY <<< One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
PriceSmart, Inc. (PriceSmart) business consists primarily of international membership shopping warehouse clubs similar to warehouse clubs in the United States. As of August 31, 2010, the total number of warehouse clubs in operation was 27 operating in 11 countries and one the United States territory, in comparison to 26 warehouse clubs operating in 11 countries and one the United States territory as of August 31, 2009. In addition to the warehouse clubs operated directly by the Company there is one warehouse club in operation in Saipan, Micronesia licensed to and operated by local business people, from which the Company earns a small royalty fee. The Company completed construction of a new Panama warehouse club (Brisas) in April 2010. The Company completed construction of a new warehouse club in Trinidad (San Fernando) in April 2010, bringing the number of warehouse clubs in Trinidad to four.
These are rights to purchase Pricemart stock (PSMT) at $8/share. Each right allows you to purchase 1.5 shares of PSMT @ $8. The rights expire on 1/31/06, so you have to convert them quickly or sell the rights, but its a great bargain right now.
The simple math:
If you own 2 warrants at 15 cents each, your cost is 30 cents. It enables you to purchase 3 shares of PSMT at $8. PSMT is currently trading at $8.15. You can then sell your 3 shares at $8.15, making a profit of 15 cents for each 2 shares of PSMTR purchased. In other words, if you purchase 13,333 shares of PSMTR at 15 cents, and convert them this week to PSMT stock, and then flip PSMT immediately, you will profit $1,000. The scheme requires capital and cheap trading (online perhaps).
In the least, those with lots of money will realize the huge potential involved at this deflated price, and will purchase the rights up to 22.5 cents, the current actual value of the rights. Buying at 15 cents and selling at 22.5 is also a great deal.