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In general, a price change on relatively low volume for a particular stock suggests an aberration, whereas a price change on high volume portends a genuine trend reversal. An active trader looks at volume to determine a price trend and the obvious goal is to trade in the direction of the major price trend. One of the best times to buy is when a stock is going down on low volume (with no news) as compared to recent increases on higher volume. This suggests that the selling is lighter and that the holders of the stock that are going to sell have finished selling and the rest are holding. The sellers of the stocks then may come back into the market when they see the price stabilize. It's also not a bad idea to sell on high volume on the way up (if the volume appears to be tapering off), as this usually creates abnormally high prices that cannot be maintained very long
The basic theory is this: if price and volume are moving in the same direction, the trend of the stock price will continue. If they are running counter to each other, the trend will reverse.
http://www.moneyshow.com/articles.asp?aid=daytraders-4676
Matters of family members on board of directors.
http://www.thefbcg.com/When-Can-Family-Members-Serve-on-the-Board/
When Can Family Members Serve on the Board?
As a reader of The Family Business Advisor, you know our advice is that family businesses should have an active board with excellent outside directors. Insiders, including family member and non-family key employees, should be kept to a minimum.
However, what is doable and what is desirable don’t always match. And in some situations, a larger, more inclusive board makes great sense.
To help you avoid family feuds over board seats, here is our experience-based advice about making directors of family members.
Two Different Outcomes
Let’s discuss two examples each with a different outcome. One is a large family business with participants from three generations. It had a long-standing policy that after 10 years of employment, family members became eligible to serve on the board. The board grew and grew as more than a dozen family members met the criteria.
The 13th, however, was unlucky. A grating personality cost him the support of the majority of board members, and he was not elected to serve. His defenders maintained that he was “no worse than some of the others on the board.” Soon the arguments escalated. Ultimately, the conflict over membership led to the sale of the business.
The other company, which was nearing its 100th anniversary, had a policy of electing two directors from each of eight family branches. The policy had been established two generations earlier, when there were only two family branches. Each branch got to choose who would represent it.
The board increasingly became an arena for much family drama, with branch pitted against branch.
This case had a happy ending, however, when the board was restructured to seven members, including outsiders for the first time. Branch representation was specifically eliminated as a criterion of board membership.
Not surprisingly, family conflict was significantly reduced.
Reasons for Taking Action
Choosing board members from the family is difficult at best. Some bad yet frequently used reasons for electing family members to the board are:
To reward or punish. “She’s been a good, loyal family member – let’s reward her with a board seat.”
To avoid conflict. “Gee, if we don’t put Phil on the board, there’s going to be trouble with Aunt Pat.”
To avoid hurt feelings. “Ann will be so upset if we don’t put her on the board.”
To demonstrate loyalty or love. “Eddie won’t hurt anything by being on the board, and he may feel we love him less if we don’t give him a seat.”
Because it has always been done that way. “Mother has a board seat, and I should have it when she’s through.”
Clear policies should be developed concerning board membership. Once developed, they should be communicated to all who might consider themselves candidates for the board. We suggest that when you are considering whether family members should be on a board, you should think in terms of family reasons and business reasons.
Business reasons for board inclusion are straightforward. If family members have relevant business experience or expertise, or if they demonstrate superior strategic or analytical thinking and business knowledge, they may be considered as directors.
Remember, the purpose of the board is to hold top management accountable, help the business plot its course through strategic planning, and serve as a sounding board on difficult challenges confronting the firm.
The best family reason for board inclusion is that a particular family member enjoys a high level of trust by the whole family. Such trust will build confidence and encourage the family to stand behind the company.
If a family member controls a significant block of stock, he or she might be considered. Indeed, when a business is held equally by three or four second-generations siblings, they might all sit on the board – as long as they don’t set a precedent for branch representation. That can be dangerous because branch interests can be seen as more important than the interest of the whole.
On the other hand, a family member who is able to capture and articulate the goals and vision of the family as a whole might be considered.
Grasping Family Goals
The best family-business boards focus on accountability strategy and helping the CEO grapple with tough, thorny issues. As a family grows and stock is spread among more owners, having a few more family members on a board along with a substantial number of solid outsiders may make sense.
Shareholder relations become a more important issue for the board. A family voice or two in addition to the chairman and CEO’s may help the board to better grasp the family’s goals and perspectives. Including a broadly and deeply respected family member may provide a way for catalyzing trust in a fractious family.
As long as family members don’t take up precious board slots that should go to more qualified people and are capable of making real contributions, a small number of family owners on your board of directors may improve board functions and shareholder communication.
http://www.thefbcg.com/When-Can-Family-Members-Serve-on-the-Board/
Volume should never be used independent of price action to determine buying or selling patterns.
http://www.moneyshow.com/articles.asp?aid=daytraders-4676
Noticed a big bad ass leasing solar company is off 26% based on a bad ER. maybe when SUNW post a big positive ER some of those dropping like flys from that company willbuy into us. IMO Make it so market!
Whoa, 1.75? What crystal skull are you looking at? Please explain your prediction. What is it based on?
mark@hulbertratings.com Special for USA TODAY 5/5/2016
CORPORATE INSIDERS SENDING BULLISH SIGNS
And if they’re right, Dow 20,000 is likely within next year
Here’s some welcome news for investors worried about recent market volatility: Corporate insiders on balance are giving stocks the benefit of the doubt. That is a bullish sign for their companies — and for the market in general.
A corporation’s insiders, of course, are its officers, directors and largest shareholders. We know when they buy or sell shares of their companies’ stock because they are required to immediately report their transactions to the Securities and Exchange Commission. Shrewd investors pay close attention on the theory that insiders know more about their companies’ prospects than do the rest of us.
You wouldn’t know the insiders are bullish from focusing on the raw data reported to the SEC, however. For example, Jonathan Moreland, director of research forInsider Insights newsletter, reports that in April there were 95% more firms in which insiders sold than bought.
But the raw data can be misleading, according to Nejat Seyhun, a finance professor at the University of Michigan and one of academia’s leading experts oninsider behavior. One reason, he said, is insiders almost always sell more than they buy. That’s because a big portion of the typical insider’s compensation comes in shares rather than cash, and he or she must sell those shares to pay for any big purchase. Such sales have little if anything to do with the insider’s confidence in his company’s prospects.
Purchases of stock made with their own money, in contrast, are a much less ambiguous signal of what insiders think about their companies. A good example is Jamie Dimon. The CEO of JPMorgan Chase sent a strong vote of confidence in early Februarywhen he spent almost $27 million buying 500,000 JPMorgan shares after the bank’s stock had tumbled 20% in 2016 alone. That turned out to be a turning point for JPMorgan shares — and the broader market.
The clearer motivation for open-market buying is why it’s important to compare the pace of recent insider purchases to historical averages. Before doing that, however, Seyhun says it’s important to strip out from the insider data those transactions undertaken by a firm’s largest shareholders. That’s because they on balance have no special insight into their firm’s prospects. Seyhun has found from research the insiders whose transactions are most worth paying attention to are a firm’s officers and directors.
Ignoring the largest shareholders’ transactions is especially important now, since they have been particularly heavy sellers as the market has approached its previous highs. And, since their transactions are typically so much larger than those of officers and directors, they otherwise dominate the raw insider data.
Upon adjusting the insider data for these and other factors, Seyhun calculates that, in recent months, 32% of the transactions from the most important insiders have been purchases. Because that’s higher than the historical average of 29%, he concludes that the insiders on balance are bullish right now.
Seyhun has devised a complex econometric model that uses the insider data to forecast the stock market’s likely performance over the next 12 months. It currently is projecting a 16% return, which translates into a Dow Jones level of greater than 20,000.
Insider transaction data are also helpful in drawing our attention to particular sectors that represent particularly good value. Now, according to Seyhun, the energy and technology sectors are two in which insiders are relatively most bullish. In addition, he said, insiders in small-cap stocks currently are more bullish than insiders in large-cap stocks.
A turning point for JPMorgan came when CEO Jamie Dimon bought 500,000 shares after the bank’s stock had tumbled 20% in 2016.
KIMBERLY WHITE, GETTY IMAGES FOR FORTUNE
Mark Hulbert
Well so far we have finished green. Unless the dumper showes up it will be a good start for next week.
Almost there. Earnings report coming up next week. Get ready to roll.
Interesting to watch the evolution of the sunw discussion here. Where as bears have more or less dominated the discussion the last couple of weeks , it now appears that the bulls have reasserted themselves and leveled the playing field. Defense of SunWorks has risen to a new level. Arguments by bears have been answered and have been shown to be lacking in facts. While meantime the bulls have gathered expert opionions to counter the bears position. It appears the bulls are winning hands down. IMO. JUST FACTS.
Definition - What does Accretive Acquisition mean?
An accretive acquisition occurs when the value of the buyer increases as a result of acquiring a specific company. This value accretion occurs because the buyer gets to add the acquisition's proforma EBITDA/earnings to its own EBITDA/earnings, therefore yielding a higher consolidated proforma EBITDA/earnings. If the buyer is valued at a higher EV/EBITDA or price/earnings multiple than the acquired company, the total value "pops" due to the application of the buyer's multiple to the combined proforma EBITDA/earnings, essentially resulting in multiple arbitrage on the acquisition.
http://www.obliviousinvestor.com/dont-bother-picking-stocks
What a Stock’s Price Means
The current share price of a stock reflects the market’s best estimate of the value of all of the dividends that the stock is expected to pay over the entire future of the company.
This means that, for a given stock, there’s a certain level of earnings growth already built into the price. How well the stock does is determined by how the company’s actual profits compare to the market’s expectations for the company’s profits.
If the company’s profits in the future exactly match the market’s estimates, the stock should provide a rate of return roughly equal to that of the entire stock market.
If the company’s earnings end up falling short of the market’s expectations, the stock will underperform the market.
If the company’s earnings surpass the market’s expectations, the stock will outperform the market.
In other words, whether the company is doing well or doing poorly is irrelevant. What matters is how well the company is doing compared to how well it was expected to do.
What you need to do to beat the market:
So in order to pick stocks that outperform the market, you need to know two things:
What the market’s expectations for the company are, and
Whether those expectations are too high or too low.
Knowing that the company is going to grow over the next [period of whatever length] is completely meaningless unless the rest of the market doesn’t already know that as well. In short, you need to have information that the rest of the market doesn’t have.
Is it possible? Sure.
I’ll freely admit that over an investor’s lifetime, there are likely to be a handful of scenarios in which he or she really does have information about a company that the market hasn’t yet responded to. If you find yourself in such a position, then go for it. Go ahead and buy (or sell) that stock. (As long as you’re not violating insider trading rules, that is.)
Building an entire portfolio?
I do, however, have significant doubts as to whether an investor is likely to be privy to such information often enough to be able to build an entire diversified portfolio out of individual stocks.
My suggestion: Don’t push it. Don’t invest in any individual stocks unless you can honestly state that you know something the market doesn’t. (And don’t underestimate the depth and breadth of the market’s knowledge.)
What do I suggest instead? Mutual funds. Which ones? Low-cost index funds in most cases.
Future guidance helps investors plot their profits
Q: Why are companies’ outlooks so important?
A: A company delivers solid revenue growth. It beats earnings forecasts. But the stock goes down anyway. The reason often has to do with the “outlook.”
Many — but not all — companies’ managements will guide investors on what to expect from profitability in the upcoming period. This outlook or “guidance” can often be more important to investors than the results from the just-reported period.
That’s perfectly understandable. Investors are attempting to price stocks based on what the company’s earnings will be three to six months from now, not what they were in the prior period. Past results are important to investors, but mainly to help understand the future.
It’s not just a theory. Consider online retailer Priceline, which saw its shares drop $101.60, or 7.5%, to $1,253.04 Wednesday. The stock price decline occurred despite the company reporting nearly 18% higher revenue and betterthan- expected adjusted quarterly profit of $10.54 a share.
The problem traces back to the company’s guidance for the future not being as bullish as some hoped. The company now expects to earn between $11.60 and $12.50 a share in the second quarter. That is sharply below the $14.87 a share expected by investors.
Matt Krantz
mkrantz@usatoday.com USA TODAY 5/5/2016
Rather interesting watching the L2. You can actually see the manipulation of the PPS occuring as bidder drops his ASK to the current lowest BID. In the low volume at the moment it is very effective in keeping the PPS low. Wonder what would happen if the price suddenly shot up. Would somebody manipulating the price get burned?
Probably. It would be all over for them. The burn would be sever, as in pants on fire. But what do I know. It's just IMO!!!!!
Future guidance helps investors plot their profits
Q: Why are companies’ outlooks so important?
A: A company delivers solid revenue growth. It beats earnings forecasts. But the stock goes down anyway. The reason often has to do with the “outlook.”
Many — but not all — companies’ managements will guide investors on what to expect from profitability in the upcoming period. This outlook or “guidance” can often be more important to investors than the results from the just-reported period.
That’s perfectly understandable. Investors are attempting to price stocks based on what the company’s earnings will be three to six months from now, not what they were in the prior period. Past results are important to investors, but mainly to help understand the future.
It’s not just a theory. Consider online retailer Priceline, which saw its shares drop $101.60, or 7.5%, to $1,253.04 Wednesday. The stock price decline occurred despite the company reporting nearly 18% higher revenue and betterthan- expected adjusted quarterly profit of $10.54 a share.
The problem traces back to the company’s guidance for the future not being as bullish as some hoped. The company now expects to earn between $11.60 and $12.50 a share in the second quarter. That is sharply below the $14.87 a share expected by investors.
Matt Krantz
mkrantz@usatoday.com USA TODAY 5/5/2016
Mark Hulbert
mark@hulbertratings.com Special for USA TODAY 5/5/2016
CORPORATE INSIDERS SENDING BULLISH SIGNS
And if they’re right, Dow 20,000 is likely within next year
Here’s some welcome news for investors worried about recent market volatility: Corporate insiders on balance are giving stocks the benefit of the doubt. That is a bullish sign for their companies — and for the market in general.
A corporation’s insiders, of course, are its officers, directors and largest shareholders. We know when they buy or sell shares of their companies’ stock because they are required to immediately report their transactions to the Securities and Exchange Commission. Shrewd investors pay close attention on the theory that insiders know more about their companies’ prospects than do the rest of us.
You wouldn’t know the insiders are bullish from focusing on the raw data reported to the SEC, however. For example, Jonathan Moreland, director of research forInsider Insights newsletter, reports that in April there were 95% more firms in which insiders sold than bought.
But the raw data can be misleading, according to Nejat Seyhun, a finance professor at the University of Michigan and one of academia’s leading experts oninsider behavior. One reason, he said, is insiders almost always sell more than they buy. That’s because a big portion of the typical insider’s compensation comes in shares rather than cash, and he or she must sell those shares to pay for any big purchase. Such sales have little if anything to do with the insider’s confidence in his company’s prospects.
Purchases of stock made with their own money, in contrast, are a much less ambiguous signal of what insiders think about their companies. A good example is Jamie Dimon. The CEO of JPMorgan Chase sent a strong vote of confidence in early Februarywhen he spent almost $27 million buying 500,000 JPMorgan shares after the bank’s stock had tumbled 20% in 2016 alone. That turned out to be a turning point for JPMorgan shares — and the broader market.
The clearer motivation for open-market buying is why it’s important to compare the pace of recent insider purchases to historical averages. Before doing that, however, Seyhun says it’s important to strip out from the insider data those transactions undertaken by a firm’s largest shareholders. That’s because they on balance have no special insight into their firm’s prospects. Seyhun has found from research the insiders whose transactions are most worth paying attention to are a firm’s officers and directors.
Ignoring the largest shareholders’ transactions is especially important now, since they have been particularly heavy sellers as the market has approached its previous highs. And, since their transactions are typically so much larger than those of officers and directors, they otherwise dominate the raw insider data.
Upon adjusting the insider data for these and other factors, Seyhun calculates that, in recent months, 32% of the transactions from the most important insiders have been purchases. Because that’s higher than the historical average of 29%, he concludes that the insiders on balance are bullish right now.
Seyhun has devised a complex econometric model that uses the insider data to forecast the stock market’s likely performance over the next 12 months. It currently is projecting a 16% return, which translates into a Dow Jones level of greater than 20,000.
Insider transaction data are also helpful in drawing our attention to particular sectors that represent particularly good value. Now, according to Seyhun, the energy and technology sectors are two in which insiders are relatively most bullish. In addition, he said, insiders in small-cap stocks currently are more bullish than insiders in large-cap stocks.
A turning point for JPMorgan came when CEO Jamie Dimon bought 500,000 shares after the bank’s stock had tumbled 20% in 2016.
KIMBERLY WHITE, GETTY IMAGES FOR FORTUNE
Mark Hulbert
SandRidge Energy (NYSE:SD) is in discussions with its creditors about reaching a debt restructuring deal ahead of a possible bankruptcy filing, Reuters reports.
• If SD seeks bankruptcy protection, there is no certainty it would get enough support among creditors beforehand for a prepackaged deal, according to the report; a potential alternative would be a pre-negotiated bankruptcy, with some but not all debt investors agreeing on terms.
• SD, which had $3.6B in debt as of Dec. 31, has an interest payment due June 1; while the company has missed such payments before, it managed to make them later.
The whole market was down today yet SUNW finished up. Go SUNW! Long and loving it.
Could you please show me where tye current toxic finance is? I can't seem to find any lately.
This long doesn't believe that Jim Nelson has any obligation to explain any business decision to share holders. Nice if he chooses to but not required. All that is required is that he keeps the company profitable. Our rewards will come eventually. He is doing what is required. Unless someone has a 5% or greater stake in the company you have no say in how it is being run. Opinions are free, but that is all they are, free. Otherwise they are of no importance to the success or failure of sunw.
It is amazing. So far JN hasn't lied to us even once. And that is a fact. Nobody can prove otherwise. So here we are with one of the best growth companies on the market. So far actually showing a profit. That Is amazing for a micro cap stock. The fact that the market has yet to react to this is somewhat surprising but no doubt after first quarter ER is in that will change. So far Jim Nelson has told us what he expected to accomplish and set about doing just what he said he would do. Make money! As for awarding himself bonuses, don't think so. It's embedded in his contract. It's call milestones! He hit's a milestone and THE BOARD awards bonus stocks. Jim has absolutely no say in it except to perform as required by his contract. Perfectly legal and the way the market works. We are very fortunate to be invested in this company. The future is extremely bright. Long an proud of it.
Whoa! Ok I want to load up on this stock. When is the best time to start buying, do you think? Looks like a great investment to me!
Back in 2012 or so bought into this based on the cell. While do belive it exist I no longer give a crap if it gets to market or not. I am perfectly happy that my investmement is safe in a growing and profitable company. Bring up events from two years ago, one year ago, six months ago serves no purrpose What so ever. It is the past. This is the present and my investment stays green most of the time. When it sinks I don't panic and start screaming fraud, liers, cheats etc. I wait. And sure enough it turnes green again. I have made a lot of money here and expect to make more. Anyone who invests with expectations of instant profit should seek another way of making money, the market isn't for you.
Nobody has ever claimed that investing is safe, quite the contray. You are told from day one you might lose your money. Every SEC filing that is made about the companys finances tells you the same thing. I you can't read then you shouldn't invest. If you believe the company is violating SEC rules then you as an invester should feel obligated to report the company to the SEC for investigations of your allegations. Posting your thoughts here does absolutely no good. If you have proof of wrong doing REPORT IT!
Finally, the PPS, while unsatisfactory to some, does not reflect the true value of a company, nor does it reflect the progress of the company. It is simply a number that reflects the current market interest. Complaints about having no institutional investors has nothing to do with management. It has to do with the fact that we are not yet at the $5.00 threshold most institutional companies require prior to investing in a company. It will come eventually.
I do love the color green on SUNW. Last legs, going down, it's all over my ass! Upward and onword.
Oh did mention never above 2.77 again? Yeah right.
Sunworks is soaring. AND THAT,'S A FACT!!!
Sunworks, Inc. Solar Design Center Secures $250,000 in Gross Sales During First Week of Operations
Marketwired Sunworks, Inc.
23 minutes ago
????
Sunworks, Inc. Solar Design Center Secures $250,000 in Gross Sales During First Week of Operations .
Design Center 1Click here for high-resolution version
ROSEVILLE, CA--(Marketwired - April 13, 2016) - Sunworks, Inc. (SUNW), a leading provider of solar power solutions, opened the doors to its Solar Design Center, a new marketing initiative designed to pioneer the way consumers purchase solar systems. The Sunworks Solar Design Center is a visual educational center where customers can learn about solar and have a custom solution designed while they wait.
Located in Rocklin, California, the new Sunworks Solar Design Center is projected to generate nearly $5.0 million in incremental annual sales for Sunworks' rapidly growing Residential Solar Division. The Center acts as a dual purpose location for both the sales and design team to work with their existing customers, as well as a cutting edge, yet comfortable destination where new customers can experience premium products and the benefits of solar first hand.
"As the industry matures and solar becomes more mainstream, it's important that consumers get the best products, and the best value available," said Jim Nelson, CEO. "We believe our Design Center will allow us to educate consumers in a relaxed, no pressure environment and provide us an opportunity to showcase the unique and customized solutions Sunworks can offer."
"We're thrilled to have opened up our first Sunworks Solar Design Center in Rocklin," said Emil Beitpolous, VP of Residential at Sunworks. "We received an overwhelming response from the community and the initial success following our grand opening, exceeded all of our expectations."
Sunworks employees are available and on hand 7 days a week to provide custom solar designs and quotes, as well as answer all questions.
About the Sunworks Solar Design Center
The purpose of the Sunworks Solar Design Center is to provide a place where customers can learn about solar and have a custom solar solution designed within the same visit. The Design Center is open 7 days a week and will feature some the latest renewable products in the industry. Additionally, customers will be able to sign up and select financing options that best align with their unique needs.
Public forum has reopened as SunWorks
So you are saying the entire board of directors for corporate SunWorks is missing and not at the new headquarters? And that JN is not teleconferencing with headquarters? That JN must be physically be present at all times in order for the company to work? BTW, it is the middle of the k-12 school year. I doubt that JN wants to uproot his kids right now.
Also by your so called logic a CEO of a airline must be a pilot in order to properly run an airline. Almost none are. Or that the CEO of Dardin Industries must be a chef in order to manage restaurants. He's not. I could go on and on with that line.
Wish we would get some PR's on SunWorks as a whole. Been to quite.
Think I will add to my position. At these prices you can't go wrong.
Eventually the warrants will take off. Nice that we have plenty of time for that to happen.
It would appear that sunww is good to go.
Patience. We'll get there eventually. Just wish we were at least painted on someones radar other than our own.
Got to tell you the bath water is ice cold.
Interesting. We are up .03 or so pre market on 20k shares.
We just don't exist.
http://m.benzinga.com/article/7751174
But the magnificent Cramer claims the market hasn't reacted to that attack!
The real problem is that Wall Street doesn't even know this stock is real. Take off your rose colored glasses and just wait for reality to come along.