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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?


To: TraderGreg who wrote (1942)5/13/1998 2:32:00 AM
From: Ga Bard  Respond to of 9440
 
PKGP ... If the company asks shareholders to call their certs, you sell?

From my experience when a company does that they are loaded to the hilt with shares and want investors to call for certs. Why would they do that could and I say could be to get the stock price up and sell into the short cover. Also a company so worried about their stock their is a reason for it. Most of the time there is a need more than anything. Makes no difference I sell.

OK, does that mean you override the DD you did that got you into the stock in the first place?

Absolutely, they need the stock price up BAD ... All the DD in the world is not going to do any good if they company is worried about the stock price instead of getting on with the business. I DDed Bany and the second that release came I sold and it tanked with others doing the same thing and it has not recovered yet.

or does it mean you exit and then wait from the sidelines?

I day trader it based on DD but NEVER LONG

BTW, has it been your experience that companies that ask investors to call for certs use that strategy as a smoke screen to dilute into buying in anticipation of the proverbial "squeeze"?

Yep that is my opinon and so far I have seen exactly that. SHort trap swueeze what ever comes from buying only or a 100% certificat call. I personally call only for certs I want to but I rarely do it and did it a few times before but a dilution came and it never worked. Fool me once shame on the situation, fool my twice shame on you, fool me three times I am a fool. Buying it the only way to make a short cover.

I could be wrong but hey safe than sorry

GB