More thoughts on NITE and SWS
Chuzzlewit, I went over to the SI NITE board, trying to find some discussion of the secondary offering you refer to, and lost interest when I found that most of the recent posts were of the dog-fight variety so common here. Nevertheless, I did find a message illustrating why SWS'S price movement, over the last month, has become more closely correlated with NITE's:
SWS! A cheap way to invest in NITE is to buy SWS shares. SWS holds 1.7 million NITE shares. It's subsidiary "Mydiscountbroker.com" which offers wireless online trading facility is a nice bonus! Enjoy the ride!
Message 9351089
Interesting. SWS is involved in all sorts of financial activities, and seems to be making a profit at them all. See the SI thread:
Subject 25142
Yet the only things about SWS that the momentum players are interested in are its on-line brokerage business, and its ownership of NITE shares.
As I said in my original post about SWS [https://www.siliconinvestor.com/readmsg.aspx?msgid=9053440],
what bothers me most about the boom in on-line brokerage stocks is that no distinction is made between solid, profitable firms and fly-by-nighters, which means that the former are made captive to the latter.
I would prefer it if companies were judged on their merits, rather than on the group they belong to or on what stock they own! Dream on...
Incidentally, one the hottest topics of discussion on the SWS thread is whether SWS should sell off its NITE shares, and if so, when. What would you advise? SWS itself announced today (Friday) that it would in fact be selling some of its NITE holdings, on an "as needed" basis, to fund a 40-million-dollar expansion of its on-line business.
biz.yahoo.com
And would this second announcement,also made today, change your assessment of the possible impact on SWS of a NITE secondary offering?
DALLAS, May 7 (Reuters) - Financial services company Southwest Securities Group Inc. on Friday said its board has declared a 10 percent stock dividend.
In a statement, the Dallas-based holding company said the 10 percent stock dividend will be distributed on Aug. 2, 1999 to shareholders of record as of July 15, 1999.
Shareholders will receive one new share for each 10 shares of SWS owned as of the record date. Fractional shares will be paid in cash. All outstanding options will be adjusted by this stock dividend.
biz.yahoo.com
Regards,
Joan |
