Rumor is Bunk...News is better:
news this am:
Oberwise, CEO is forgoing any cash salary for the coming year in exhange for 250,000 warrents to BUY stock at a 25% premium to the stock price on the day of the agreement.
That date was Aug. 26. Close price then was $ 3.25.
That means he is willing to buy stock at $ 4.0625 up until Sep. 1, 1998.
Undoubtably, the news of that leaked out -- and caused the price to climb to that level over the last few days.
Now, however, this news announcement is like "Insider buying".
If he doesn't exercise warrents at the stated price, he gets no cash compensation for the year. And it is also like corporate "buy-backs" in that it demonstrates to the street the level of confidence management has in the company.
Also, I like the fact he made the move in such a way to "enhance" my value as a stockholder. It was a good way to get the stock price up -- not all corporate officers are as interested in "stock-holder" value.
So, did I buy more?
Nah... Remember, I'm a contrary indicator...
But then, my wife did buy today.
That gal that Loves Utilities and big dividend checks. The one who only likes "SAFE" investments. The one who doesn't like to take chances...
We got the message via FAX and she simply said, "Buy."
But then she used to be an "Insider" -- Corporate Secretary. So guess she figures Oberwise's confidence is well placed.
TA shows we're nearly at resistance of the yearly high.
So will we go down?
...I dunno...
Wish I did.
But be aware also of a new game on the street:
It's called, "Beat the momentium Crowd."
And it works by anticipating breakouts that MIGHT occur and positioning oneself in the issue BEFORE the breakout. It works because there are a lot of day traders and momentium followers willing to buy AFTER the breakout.
So will we breakout?
... I dunno...
Wish I did.
But I'm positioned in case we do...
Jerry |
