PTSC
Penny stocks are notoriously very risky. One stock I've been keeping an eye on since it came up on the magicformula list is Patriot Scientific. My record is mixed with it, I sold it for profit last year and then lost some money after a second purchase some months later.
However, their press release in March said that they would try and give out a dividend consistently every six months. Since the last one was on April 9th, this week I saw that it had been significantly been beaten down, so I decided to take a shot at it. Bought 2000 shares at $0.405 shortly before it crashed for no apparent reason down to $0.34. That still doesn't make or break it, in fact, I could've bought some more, but I decided not to risk it. At the close of business of the following day, however, it seemed like my intuition had been correct (to some extent) when the CEO said that the stock is highly undervalued and the company has been repurchasing their stock in the interest of shareholders. Sadly, no mention of the dividend. Can anyone comment on this? Am I right in saying that if management says that they've bought their own stock they can't issue a dividend because that would be equivalent to trading based on inside information? What I mean is: if I know that I'll issue a dividend and I see my stock falling, of course I'd be inclined to buy like a madman because I know that when news of the new dividend comes out everyone will want to buy like a madman. The fine line here is that they kind of already did announce in March that they wanted to give out a biannual dividend, but they never said when the second one for the year would be issued. Thoughts/concerns/comments?
As for the other stocks I own, EGY went down $0.27 or 5.6%, FRX gained $0.05 or 0.1%, NRF went down $0.69, or 6.5%, VPHM lost $0.08 or 0.9%. For the week, I fell 1.8%, whereas the S&P gained 1 point or less than 0.1%.
For the coming week I'm expecting PTSC to gain some more, tread into the $0.50 zone, NRF to recoup some lost ground, and perhaps VPHM also. FRX should continue to stay under the $40 mark bar some new report. Finally, EGY is the stock to watch. I believe that without further news it'll slowly trickle down to even $4.20 when it should be rebought, based on the board's opinion.
However, their press release in March said that they would try and give out a dividend consistently every six months. Since the last one was on April 9th, this week I saw that it had been significantly been beaten down, so I decided to take a shot at it. Bought 2000 shares at $0.405 shortly before it crashed for no apparent reason down to $0.34. That still doesn't make or break it, in fact, I could've bought some more, but I decided not to risk it. At the close of business of the following day, however, it seemed like my intuition had been correct (to some extent) when the CEO said that the stock is highly undervalued and the company has been repurchasing their stock in the interest of shareholders. Sadly, no mention of the dividend. Can anyone comment on this? Am I right in saying that if management says that they've bought their own stock they can't issue a dividend because that would be equivalent to trading based on inside information? What I mean is: if I know that I'll issue a dividend and I see my stock falling, of course I'd be inclined to buy like a madman because I know that when news of the new dividend comes out everyone will want to buy like a madman. The fine line here is that they kind of already did announce in March that they wanted to give out a biannual dividend, but they never said when the second one for the year would be issued. Thoughts/concerns/comments?
As for the other stocks I own, EGY went down $0.27 or 5.6%, FRX gained $0.05 or 0.1%, NRF went down $0.69, or 6.5%, VPHM lost $0.08 or 0.9%. For the week, I fell 1.8%, whereas the S&P gained 1 point or less than 0.1%.
For the coming week I'm expecting PTSC to gain some more, tread into the $0.50 zone, NRF to recoup some lost ground, and perhaps VPHM also. FRX should continue to stay under the $40 mark bar some new report. Finally, EGY is the stock to watch. I believe that without further news it'll slowly trickle down to even $4.20 when it should be rebought, based on the board's opinion.
posted by Fra... at 11:46
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