Welcome to SI. Today's your first day of posting and you made it on the OVIS thread. AND INACCURATE IT WAS!! WOW aren't we all honored!!
HERE IS YOUR POST. MY RESPONSES ARE IN BOLD:
If I take posession of my certificates of stock I create the following problems
1. One reason to take possession of a stock certificate is to get dividends in the form
of stock. I don't believe OVIS has declared a dividend and therefore that reason isn't
valid.
Thats a non-issue. You get dividends in a stock whether you have posession of your certificates or not
2. I believe the reason one buys stocks is to invest in ventures which engage in the kinds of business which will return a profit and therefore increase the value of the stock (ie: my investment).
Correct statement. Then why would you suppose Magellan is so MAD at the fact OVIS has gone from $.20 to $2.50? Beats me !!
I don't see any fundamental value in driving up the price of a stock
by taking possession of the certificate(s) so the short seller must buy in at a higher price. I contend that creates an artificial price and only serves me if I want to sell the stock because it has reached a price I am willing to sell at.
You got it all wrong. Fundamental value is determined by discounting future EPS growth expections, given Ovis' $13M in loss carry forwards to that will be used to increase EPS by a factor of(The tax rate + pre-tax profits), and given the fact the OVIS has had a successful turnaround and in an acquisition mode, future EPS growth should be very impressive. In other words, past operating history means NOTHING to WALL STREET!
The forced short squeeze will not lead to an "artificial price" , because such high price levels will be justified and fair. Why justified and fair? Because its an Illegal short seller induced price. It is a fair(punishment) price for illegally shorting a stock. At Higher prices the firm can grow it business more wisely, acquire more companies and increase shareholder value. While prices are under $10/share, there are not too many things firms can do to grow the business
3. If you have possession of the stock certificates when you wish to sell, it is like buying/selling stocks without having "real-time quotes". When the price reaches my sell point I call my broker and put in a sell order. Under the new regulations, the settlement date is 3 days (not 5). I now get to jump through hoops to unload the stock. If I miss the closing date (which is in fact out of my control with all the government regulations in place to protect me), my sell order will be executed at the price in effect when the transaction is complete.
That is a FALSE statement, and you know IT!!! When you have possession of your cert. You can call your broker and sell. The order will be placed and the broker will remind you to send in the the CERT so as it reaches the broker in 3 business days. If it does not reach the BROKER in 3 days, the broker will simply call you and ask if you have sent the cert. If you say yes and the mail is late, then he will simply give you an extension of 3 more days(if you have not taken any extensions in the previous 12 months). If you say no , you forgot to send it, then they will give you the same 3 day extension.
The reason the sell price has been reached is because I (all of
us) forced the short seller to buy in at a higher price.
4. Lets let the next guy take possession of his certificates. I will leave mine on file with my broker so when I am ready to sell I can do so at the time and price which is best for my investments. (Not necessarily those of the officers and directors of OVIS).
That will always happen. There will always be people that like to take the free ride off other people's sweat. But there is a large enough group that have taken or requested delivery, that will make this work. There are several brokers that control over 250,000 shares that have requested delivery.
Either you are deliberately trying to post false information or are genuinly mistaken. I tend to think its the former.
Not everyone has a 6th grade education here, be forwarned.
TOM
|
