Topic: Yahoo people really suck sometimes

[JMM]

As many of you know I took what little savings I had and invested in the market. One of the companies, CACS, recently (mid Nov) made a public statement that they would issue 6 million more shares. I have my yahoo finance to keep up with ELAB and CACS. Today CACS really hit the dirt, I lost a lot of profit percentage points. So I go to the message boards, and some peeps are talking about "the deal" and that pricing would be around 8 bucks and stuff. I politely post and ask what "the deal" is, and I get called stupid blonde and other names. That's nice... At least the peeps that invested in ELAB (generic pharm) are always helpful and more intelligent in their postings. I think since CACS used to be so cheap they have a bunch of yahoo wannabe investors who are angry that the sky is not the limit with tech stocks.

My questions are these:

Where can I find out when the new stocks come out? It is not on their website or any other place, even scottrade does not have that info.

When a company issues new stocks, does it cause a slight crash before issue?

When a company skyrockets percentagewise in a year (Dec 2002 37 cents, Dec 2003 15 dollars), does that cause an SEC investigation?

Some people posted that CACS would post lower than expected business for the 4th quarter, shoot, I can't find that info.

This company has been around for years, they compete with Nortel, Cisco, and Tellabs among others. I invested to make a few bucks, but as you know I'm on limited income and cannot afford a big loss. If someone could help me understand the dynamics involved here, or figure out what this "deal" is they talk about, I would be grateful. I'm about to pull the plug and take my small profit and be happy with that.

If it is normal for a stock to drop before issuance of new shares because a company wants to attract more buyers, I can understand that too, I just wish I had more answers, and I sure as heck am not going to ask some of the know it alls on the CACS message boards. I trust Doggy and you guys who have had experience in the markets.  

[jualdeaux]

Quote:
As many of you know I took what little savings I had and invested in the market. One of the companies, CACS, recently (mid Nov) made a public statement that they would issue 6 million more shares. I have my yahoo finance to keep up with ELAB and CACS. Today CACS really hit the dirt, I lost a lot of profit percentage points. So I go to the message boards, and some peeps are talking about "the deal" and that pricing would be around 8 bucks and stuff. I politely post and ask what "the deal" is, and I get called stupid blonde and other names. That's nice... At least the peeps that invested in ELAB (generic pharm) are always helpful and more intelligent in their postings. I think since CACS used to be so cheap they have a bunch of yahoo wannabe investors who are angry that the sky is not the limit with tech stocks.

My questions are these:

Where can I find out when the new stocks come out? It is not on their website or any other place, even scottrade does not have that info.

When a company issues new stocks, does it cause a slight crash before issue?

When a company skyrockets percentagewise in a year (Dec 2002 37 cents, Dec 2003 15 dollars), does that cause an SEC investigation?

Some people posted that CACS would post lower than expected business for the 4th quarter, shoot, I can't find that info.

This company has been around for years, they compete with Nortel, Cisco, and Tellabs among others. I invested to make a few bucks, but as you know I'm on limited income and cannot afford a big loss. If someone could help me understand the dynamics involved here, or figure out what this "deal" is they talk about, I would be grateful. I'm about to pull the plug and take my small profit and be happy with that.

If it is normal for a stock to drop before issuance of new shares because a company wants to attract more buyers, I can understand that too, I just wish I had more answers, and I sure as heck am not going to ask some of the know it alls on the CACS message boards. I trust Doggy and you guys who have had experience in the markets.    

Okay, I'll try to answer some of these. Before I do, however, I want it known that these are extremly simple answers. It is hard to give the proper ones as that would take almost as long as my five years in school.

if it is a new stock for a new company, they sometimes post announcements in The Wall Street Journal to let people know about it. Unfortunately, you and I have no way of getting in on that first issue because large underwriters buy all the shares on the Primary Market. Once the shares are issued to the underwriters, they sell them to the more general public on the secondary market and those you should be able to get through your broker or trader.

A company can decide to issue new shares, if they have any left ontheir charter, for a variety of reasons. It can be for the purpose of raising funds to finance a new venture to trying to get cash to pay off existing debt. if it is for a new venture, and it is jusdged as a venture that is likely to substantially increase the value or income of the firm, then you may get an upward swing in price. If the latter, it will look like the company isn't run very well and it may cause the price to go down. One thing is for sure, the dividends, if the company pays them, is going to drop a bit as there is now more shares on the market to pay to.

An SEC investigation is usually commenced only if there is evidence or very strong suspicion that there is illegal trading or fraud going on. Just jumping that much isn't enough.

You may be able to find that info in their quarterly report or in business journals. You should try to find their 10-k reports. those have a wealth of info about the company.

Does this help?

[JMM]

http://finance.yahoo.com/q/is?s=cacs

http://finance.yahoo.com/q/ae?s=CACS

Thanks for the reply. This is what I am looking at but I do not understand. I can see the past few quarters were rough, but it is telecom and it was killing all the companies, not just CACS. I'm not looking for dividends, I do not have enough money for that, I'm looking for growth and the ability to cash in and make more (minus the 28 percent capital gains tax of course) than what I began with. Their growth was astounding this year, is why I picked them, and the near future promised more.

As long as I'm going to keep this block of savings in telecom stocks (wife has pharm companies, more of a sure bet) I need to understand what I'm looking at more, not just read the news and hear what those yahoo wannabees say.
 

[JMM]

One more question. What causes aftermarket raises? I thought once the trading hours are over that is it until the next day?  

[jualdeaux]

Well, the one thing I know is that researching a company properly takes a ton of time and effort. You have to look at what the company does, how well it does that compared to similar companies, what the industry is doing, how their sector in that industry is doing, how the overall econ is doing. Then you need to factor political, legal and social issues relate to this company. Finding all this takes time a lots of resources.

if this looks really daunting, it is. it is more than an average individual with a full-time job and a family can do on their own. That is why analysts get paid what they do and why people have to listen to them.

Sorry, thata I can't be mroe help or give more specific advice.

One question. Do you know anyone in the business? If not, can you find one that you could trust and cultivate that relationship? That is the best way as they could help you find out some of this info.

[jualdeaux]

Quote:
One more question. What causes aftermarket raises? I thought once the trading hours are over that is it until the next day?  

I'll answer this question with a question. Is the NYSE and the NASDAQ the only markets in the world? There are lots of other markets wehre stocks can be bought and sold. Some stocks are listed in more than one market. Also, certain news is released after the closing bell that affects what the demand and trading will be like at the start of the next day's trading.

One last thing, there is something called "late trading" that has been going on a bit with some mutual funds that isn't legal. This is where some mutual managers allow certain preferred clients to wait till just after the closing bell decide if they want to make trades. this allows them to see if the fund goes up or not. if it does go up the clients will get the the benefit of making a trade without the risk. This is something the SEC has been investigating for a bit that is very illegal.

As far as I know these are the reasons prices change after the market closes.

[JMM]

Thanks J, I'm waiting for Dogmatix to get online and give me a reply since his career is in stocks. I do want to thank you for the replies, you helped me understand better. I may pull out and go ADCT, at less than 3 bucks a share and 2 upgrades to buy today from major firms, I could afford more shares and increase my profits percentagewise. Then again, if CACS recovers, I may be screwing myself. I guess if the release of those 6 million shares or a price setting is this week or next, most major investors would want to pull out, like you said, they are looking for dividends, I'm looking for growth.  

[jualdeaux]

Quote:
Thanks J, I'm waiting for Dogmatix to get online and give me a reply since his career is in stocks. I do want to thank you for the replies, you helped me understand better. I may pull out and go ADCT, at less than 3 bucks a share and 2 upgrades to buy today from major firms, I could afford more shares and increase my profits percentagewise. Then again, if CACS recovers, I may be screwing myself. I guess if the release of those 6 million shares or a price setting is this week or next, most major investors would want to pull out, like you said, they are looking for dividends, I'm looking for growth.  

You'd be surprised how many people look for that growth factor. Shoot Microsoft just gave out their first ever dividend a bit ago. People who bought them looked only toward the growth of the stock as their major interest. it is also what drove the .com boom of the nineties. How many companies never made a profit but skyrocketed up into the hundreds of dollars? Two of the best and largest companies, Amazon and Yahoo are just starting to get to the stage where they could make a profit and their stock was the most sought after. That is what always shocked me. People were flocking in droves to get the stock of a company that has no proper business model and never has and maybe never will show a profit. How can you expect a company like that to last? Investors knowingly or unknowingly bought into the greater fool theory that states that there will always be a fool greater than me to buy this stock when I want to sell it. As you saw, many people lost their shirts, and much more, when that theory broke down.

Dog will be able to help you much more than I can as I am not really in that area. I just had tons of classes at school about it and like to read.

I dont think I've ever posted this much in a single thread.

[JMM]

Hey J, is why I asked, any advice is better than no advice, heck, I'm just learning this stuff. I know I'm playing with fire with growth, I forget his name, he is considered one of the top experts in the stock market, he stated that to have any chance at making money, you need at least 25k, preferably 50k. That leaves me out, but at least I am making more than what I had. Maybe I will get there one day.

Keep reading amigo, you know your stuff... The army taught me the only stupid question is the one that you do not ask. Is why I love the people on these forums.  

[SL-Punisher]

Keeping in mind that the stock market is a confidence game. You aren't buying value, you're buying faith.

[JMM]

True Dat SL! If I was rich, I would play the real estate game, my wife works for a company that is real estate, the owner is LOADED, but not fancy, he is a country boy that knows Texas land values... Great guy BTW, my wife only worked there for 3 months before last christmas, she got the same bonus as everyone else, 1500 dollars! I was like wow, that is one heck of a guy!  

[jualdeaux]

Quote:
Keeping in mind that the stock market is a confidence game. You aren't buying value, you're buying faith.  

That is definitly true. The electronic herd giveth and taketh away. I've always wondered what would happed if we had a market crash and everyone  held on to their shares so the prices didn't drop.

[JMM]

I think that there would not be a crash per se, bad times, yes, but the money would stay where it belongs, and the damage would be minimal, no?  

[jualdeaux]

An interesting book that I had to read in school was The Lexus and the Olive Tree. It talks about geopolitics, finance and globalisation amoung other things.

http://www.amazon.com/exec/obidos/tg/detail/-/0385499345/qid=1070500028/sr=1-1/ref=sr_1_1/104-4157687-0059917?v=glance&s=books

[SL-Punisher]

Where's is the money exactly? The value of the dollar is determined on the global currency market (In part with about a bazzilon other domestic factors), and that when you really get down to it is just another confidence game. If the value of the dollar takes a dive...well that will shake confidence won't it? Corporations will be less likley to expand and hire more people, banks will be less likley to approve new loans, people will spend less and save more. People aren't able to think on a global scale...they can only really make decisions that affect themselves.

You can't really control the herd, you can perhaps try to direct it a little bit. If you try and stand in its way you'll just end up getting run over.

When people are in a panic situation (Stock market crash) they don't keep their money invested...they think that they should pull out before they lose anymore. They don't care that they're making matters worse, and in the long-term the stock market will recover.

Everything is determined by confidence.

[Gambler]

I would take anything the people on the Yahoo boards with a grain of salt.  I've been following a few boards now for 6+ years and  you see two types of people there.

1)  The cheerleaders who will view anything as a chance to buy more stocks, regardless of how low it drops.

2)  The naysayers who will preface  any news, change in the price with the fact that it's all a lie, that the  company is within hours of dropping dead.  Most of them are short sellers who are attempting to panic you into selling your shares at a lower price so they make money.  

All you can really do is read between the lines of both  types of people and attempt to glean information.

 

[jualdeaux]

I know Pun, it was more of a rhetorical statement than anything else.

[JMM]

As many of you know I took what little savings I had and invested in the market. One of the companies, CACS, recently (mid Nov) made a public statement that they would issue 6 million more shares. I have my yahoo finance to keep up with ELAB and CACS. Today CACS really hit the dirt, I lost a lot of profit percentage points. So I go to the message boards, and some peeps are talking about "the deal" and that pricing would be around 8 bucks and stuff. I politely post and ask what "the deal" is, and I get called stupid blonde and other names. That's nice... At least the peeps that invested in ELAB (generic pharm) are always helpful and more intelligent in their postings. I think since CACS used to be so cheap they have a bunch of yahoo wannabe investors who are angry that the sky is not the limit with tech stocks.

My questions are these:

Where can I find out when the new stocks come out? It is not on their website or any other place, even scottrade does not have that info.

When a company issues new stocks, does it cause a slight crash before issue?

When a company skyrockets percentagewise in a year (Dec 2002 37 cents, Dec 2003 15 dollars), does that cause an SEC investigation?

Some people posted that CACS would post lower than expected business for the 4th quarter, shoot, I can't find that info.

This company has been around for years, they compete with Nortel, Cisco, and Tellabs among others. I invested to make a few bucks, but as you know I'm on limited income and cannot afford a big loss. If someone could help me understand the dynamics involved here, or figure out what this "deal" is they talk about, I would be grateful. I'm about to pull the plug and take my small profit and be happy with that.

If it is normal for a stock to drop before issuance of new shares because a company wants to attract more buyers, I can understand that too, I just wish I had more answers, and I sure as heck am not going to ask some of the know it alls on the CACS message boards. I trust Doggy and you guys who have had experience in the markets.  

[jualdeaux]

Quote:
As many of you know I took what little savings I had and invested in the market. One of the companies, CACS, recently (mid Nov) made a public statement that they would issue 6 million more shares. I have my yahoo finance to keep up with ELAB and CACS. Today CACS really hit the dirt, I lost a lot of profit percentage points. So I go to the message boards, and some peeps are talking about "the deal" and that pricing would be around 8 bucks and stuff. I politely post and ask what "the deal" is, and I get called stupid blonde and other names. That's nice... At least the peeps that invested in ELAB (generic pharm) are always helpful and more intelligent in their postings. I think since CACS used to be so cheap they have a bunch of yahoo wannabe investors who are angry that the sky is not the limit with tech stocks.

My questions are these:

Where can I find out when the new stocks come out? It is not on their website or any other place, even scottrade does not have that info.

When a company issues new stocks, does it cause a slight crash before issue?

When a company skyrockets percentagewise in a year (Dec 2002 37 cents, Dec 2003 15 dollars), does that cause an SEC investigation?

Some people posted that CACS would post lower than expected business for the 4th quarter, shoot, I can't find that info.

This company has been around for years, they compete with Nortel, Cisco, and Tellabs among others. I invested to make a few bucks, but as you know I'm on limited income and cannot afford a big loss. If someone could help me understand the dynamics involved here, or figure out what this "deal" is they talk about, I would be grateful. I'm about to pull the plug and take my small profit and be happy with that.

If it is normal for a stock to drop before issuance of new shares because a company wants to attract more buyers, I can understand that too, I just wish I had more answers, and I sure as heck am not going to ask some of the know it alls on the CACS message boards. I trust Doggy and you guys who have had experience in the markets.    

Okay, I'll try to answer some of these. Before I do, however, I want it known that these are extremly simple answers. It is hard to give the proper ones as that would take almost as long as my five years in school.

if it is a new stock for a new company, they sometimes post announcements in The Wall Street Journal to let people know about it. Unfortunately, you and I have no way of getting in on that first issue because large underwriters buy all the shares on the Primary Market. Once the shares are issued to the underwriters, they sell them to the more general public on the secondary market and those you should be able to get through your broker or trader.

A company can decide to issue new shares, if they have any left ontheir charter, for a variety of reasons. It can be for the purpose of raising funds to finance a new venture to trying to get cash to pay off existing debt. if it is for a new venture, and it is jusdged as a venture that is likely to substantially increase the value or income of the firm, then you may get an upward swing in price. If the latter, it will look like the company isn't run very well and it may cause the price to go down. One thing is for sure, the dividends, if the company pays them, is going to drop a bit as there is now more shares on the market to pay to.

An SEC investigation is usually commenced only if there is evidence or very strong suspicion that there is illegal trading or fraud going on. Just jumping that much isn't enough.

You may be able to find that info in their quarterly report or in business journals. You should try to find their 10-k reports. those have a wealth of info about the company.

Does this help?

[JMM]

http://finance.yahoo.com/q/is?s=cacs

http://finance.yahoo.com/q/ae?s=CACS

Thanks for the reply. This is what I am looking at but I do not understand. I can see the past few quarters were rough, but it is telecom and it was killing all the companies, not just CACS. I'm not looking for dividends, I do not have enough money for that, I'm looking for growth and the ability to cash in and make more (minus the 28 percent capital gains tax of course) than what I began with. Their growth was astounding this year, is why I picked them, and the near future promised more.

As long as I'm going to keep this block of savings in telecom stocks (wife has pharm companies, more of a sure bet) I need to understand what I'm looking at more, not just read the news and hear what those yahoo wannabees say.