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Re: hweb2 post# 5741

Wednesday, 03/02/2005 4:44:09 PM

Wednesday, March 02, 2005 4:44:09 PM

Post# of 173838
Spreads and value...

I think that I will get in on this conversation... Spreads are a funtion of volume and not liquidty... Back in my days as an OTC trader I tried to find stocks that I called chunk/junk...I could always find a home for a large amount of stock but really didn't have a thought what to do with $1000.00 worth... I traded stocks like Tom Brown Drilling with a quote of 2.00 bid, offered at $5.00 and would see less than 500 shares a month... Once I had 30,000 shares offered and made $1.25 on the spread and sold it to employees of the company...Tom Brown became very large company... Beldridge Oil,, Wiser oil,, Superior Oil,, Texas Land Trust (TPL)NYSE all had balance sheets that showed great value and never traded... Stock with large spreads are the most likely 10-baggers...No one cares and accumulation is easier than widely covered stocks...BLMC which I do not own could become a 10-bagger if things work out... They own land and lease out mineral rights... It is 45.00 per share...What is it's land worth without oil and what are the royalities worth... This stock rarely trades but it is value....This exposure is more than it's probably had in years...NVR trading above 800 a share sold in the 50's not too many years ago and had no volume... Lack of volume creates opportunity in the market because stocks with out volume trade closer to thier enterprise values and usually lack any add on in stock price for thier future opportunities... Hank..


Please post stock symbols first in all your posts. If it's a foreign stock, please also list the US pk equivalent symbol...

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