All things STOCKS

#3,152
#3,152
My only experience with Groupon was something like buying a $20 fuel card from Shell for $10 that I never received. Indirectly, one of the ladies at work would search for restaurant deals before our department ventured out to group lunches.
 
#3,153
#3,153
Thunder Good-Oil said:
I'm not clear on which price movement that you are asking about with a reverse stock split. The math works the same whether somebody is short or long in a stock. If somebody is short 100 shares at around $1/share and there is a 10:1 RS then they're only going to be obligated to cover 10 shares that now trade around $10.

If you're asking about the effects of an RS, there are a few things going on that will affect share prices. A stock could be boosted after a reverse split if there are buyers getting involved that were restricted from purchasing shares below a certain price. The opposite also happens due to psychology. Reverse splits are a strong indicator that a company is in deep trouble and many investors want no part of investing there.

It is a positive that there is less dilution. But reverse splits are a horrible look.

It's pretty much a gamble whether the company's total valuation rises or falls post RS. The traders have all of the information well before the RS event occurs.
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So a short seller can hold the shares through a r/s ?
 
#3,154
#3,154
Orange_Vol1321 said:
So a short seller can hold the shares through a r/s ?
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I've never experienced shorting through a RS, but I don't see why not. There would be a huge spike in demand leading up to a RS if shorts were required to cover before splits. That's just one of those things that brokers do to keep markets orderly. They also do that as dividends are paid and when maneuvering companies through mergers and other reorganizations.
 
#3,155
#3,155
Thunder Good-Oil said:
I've never experienced shorting through a RS, but I don't see why not. There would be a huge spike in demand leading up to a RS if shorts were required to cover before splits. That's just one of those things that brokers do to keep markets orderly. They also do that as dividends are paid and when maneuvering companies through mergers and other reorganizations.
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Yea that was my real question. If a short borrows 10000 shares expecting a .29 cent stock to drop I figured they would have to sell those back before the RS price hike.


NM. I follow you now. The short seller stocks would just split too.
 
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#3,156
#3,156
Orange_Vol1321 said:
Yea that was my real question. If a short borrows 10000 shares expecting a .29 cent stock to drop I figured they would have to sell those back before the RS price hike.


NM. I follow you now. The short seller stocks would just split too.
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This would also reduce the number of options which would probably make them difficult to trade. You start with 100 options at $10/share price, 1-10 RS would render $100/share but for only 10 options. Most options trade by 100s. I would imagine there would be very little interest in 10 options when you try to unload them.
 
#3,158
#3,158
Carp said:
I'm a newbie into the stock market. Just rolled over my 401k from an old job to a Charles Schwab IRA account. It was just shy of $4k, so not much, but enough to play with, and it certainly wasn't gaining anything just sitting there. Below is an overview of my Portfolio. Some advice/criticism would certainly be appreciated.


So far, it's been a mixed bag with my investments. I was a little overzealous when I first opened the account last week and purchased 10 shares of Disney @ $122/share. Since that investment, I'm down $47 as of this typing, but I'm comfortable with it as a long term investment given Disney's strong brand reputation (and they've not even reopened their parks)

I took a gamble on Groupon before the reverse split and purchased 1000 shares at $1.44. That's been a big disappointment so far, though it soared yesterday almost back to my purchase price. The thinking I had was that as small businesses open back up from lockdown, Groupon should see a big uptick in sales. So far as of this typing, I am down $339.50. Again, I wasn't expecting immediate returns on this, more of a long term asset. But still, I am second guessing this one.


Since that 1st day, I've tried to be a little smarter and do more research on stocks and the market before I place an order. I purchased 33 shares in Pinterest at 20.66 last Thursday and sold it at today's high of 22.49. Total gain of 60.39.

I've also tried my hand in the penny stock market. I purchased 333 shares of Valens Groworks at 1.89/share. I'm up 24.74 as of this typing. But hoping for an uptick here given their trends pre-corona.

After reading @VolAllen suggestion on SAVE, I reinvested the money I made from the PINS sale into SAVE.
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Don’t day trade or purchase short term equitys with your retirement. Put that 4K into an index fund and keep adding to it. You’ll be a millionaire before you know it if you keep adding and have the time (depending on your age).

If you want to day trade get a separate brokerage account and do it with play (extra) money.

I suggest you get on bogleheads.com and do some reading if you’re serious about longterm growth.
 
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#3,161
#3,161
Where are the handgun manufacturers? If they haven't recently doubled their all time highs they are a bargain. But equity holders wouldn't want to hold leading up to the November elections unless there is near zero chance of Biden winning the POTUS.
 
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#3,162
#3,162
BigOrangeMojo said:
Currently analyzing the following 3 Hotel stocks: Hilton, Hyatt, and Marriott. Will likely initiate at least 1 long term position soon.
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Great brands. They're harder to keep up with as they're sometimes REITs, sometimes operators, sometimes franchisors, sometimes having jettisoned food service. They're also clustered in urbanized areas and the municipalities that they are in will soon encounter waves of under funded operations. Real estate property taxes are going to soar in those cities that are on fire. It could become a death spiral.
 
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#3,163
#3,163
Thunder Good-Oil said:
Where are the handgun manufacturers? If they haven't recently doubled their all time highs they are a bargain. But equity holders wouldn't want to hold leading up to the November elections unless there is near zero chance of Biden winning the POTUS.
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The only two I could find on Robinhood are Smith and Wesson and Rueger, They haven't been the best buys from what ive seen they've both been hovering around their 52 week high.
 
#3,164
#3,164
BigOrangeMojo said:
Currently analyzing the following 3 Hotel stocks: Hilton, Hyatt, and Marriott. Will likely initiate at least 1 long term position soon.
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Hilton and Hyatt I dont know much about, but I can give a little info on Marriott. Marriott is currently in a similar position as the airline industry in looking at longer term layoffs and having employees leave the company ( voluntary right now but could be involuntary in September.) While things may pick up somewhat soon, the company does not expect rev par levels to return back to normal until mid 2022. I know you said you were looking at it as a longer term play, but that money will probably be tied up for 2 years before returning to or near its max.
 
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#3,168
#3,168
VolAllen said:
RMED
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What specifically do you like about RMED?

I know everyone says to avoid penny stock trades, but I've got $100 left to invest so I figured I'd do some research on some penny stocks. I'm looking to invest it into SSFT. They just partnered with Google after some successful ventures. IT sector has been doing extremely well the last few months too.
 
#3,171
#3,171
Bought all 3 hotel stocks at opening. I only invested 75% of what I normally would have in each. Invested in Tanger after dip this morning.

Looking at WBA and CVS today. (Long term plays)

Just sold remainder of DKNG. Valuation plus dilution gives me pause in the short term. Will revisit if stock dips back some.
 
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