InvestorsHub Logo
Followers 38
Posts 4774
Boards Moderated 3
Alias Born 02/09/2006

Re: poor_user post# 9

Tuesday, 03/18/2008 11:12:34 PM

Tuesday, March 18, 2008 11:12:34 PM

Post# of 101
I originally started the MRVL board thinking that MRVL would turn out to be like SIGM is now. But we all know the BS that MRVL went through with the options mess and on and on.

SIGM is a 'pure' stock that actually makes a ton of money and has a float that's so small allows for a great return potential in the right market conditions.

So many stocks have been sold off due to large firms getting margined out and being forced sellers regardless of value.

Imagine a stock you buy today that truly has the potential of more than tripling in a year. I knew MRVL was potentially dead money when they split and I was all over the board screaming for them not to do it. Well, 500 mill shares now creates a real problem for supply/demand to allow the stock to move up. It just takes too many buyers to move it. SIGM not only has a tiny float of 27 mill shares, but also is buying back their stock (3 mill shares) which will put a big bid in it.

The volitility created by the tiny float means the call options are extremely well priced allowing for even more $$$ each month selling calls against your position.


Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.