Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Rain Man]

Originally Posted by Hog Farmer

I got balls of steel !

I hope it goes back to $0.03 for you. You'll be lighting cigars with $100 bills.

[Discuss Thrower]

Good God.

You people aren't seriously putting money on PNOW, are you?

[ChiliConCarnage]

Originally Posted by Hog Farmer

On the other hand if I invest enough to own 51% of the company then I get to start calling the shots , right .

You want 51% of the votes. All shares aren't created equal! They probably have a poison pill and they'd just dilute your shares if you got over x% anyway.

I looked at pnow. It seems they have some revenue growth recently and are issuing preferred shares to long term investors. It seems their core business of booking hotel rooms sucked but they bought some coin company that is doing better? I'm not real familiar with the (rare?) coin business or why it's profitable.

I learned what the word numismatics means.

[Amnorix]

Originally Posted by Hog Farmer

Market cap is not an indicator of the value of a company . Some people think it is but its not.

errr...actually it is. Price per share times number of shares outstanding is market cap, as I'm sure you know, and is what the market thinks the company is worth. Typically when someone wants to buy the company -- in a going private transaction or otherwise -- then they offer to pay some premium to the market cap to entice a high enough percentage of the stockholders to sell and then they can clean up the rest.

So yeah, it's not a PRECISE indicator of value, but it's the BEST indicator of value on any given day.

[Rain Man]

Originally Posted by Discuss Thrower

Good God.

You people aren't seriously putting money on PNOW, are you?

I saw a statement where they'd made revenues four months in a row. That's serious progress. (Note that it's not a particular amount of revenue, just revenue.)

And check out this statement:

http://www.otcmarkets.com/stock/PNOW/news?id=148975

To bring Pure's numismatic market's value into perspective, just this past week, Heritage Auctions -- a platform where Pure's subsidiary, Meso Numismatics, will soon offer its collections -- exceeded sales of over $65M for the week, simply selling numismatic material.

I can do them even better. My company purchases our office supplies on amazon.com, which has revenues of over $107 BILLION. What does that say for the market prospects of my company?

[Discuss Thrower]

-$2.5 million in net income.

...

[scho63]

PNOW could be a "pump and dump" scam!

[Discuss Thrower]

It looks more like a desperate company.

[Rain Man]

Originally Posted by Discuss Thrower

It looks more like a desperate company.

It could possibly be a real company, but their numismatic move makes it clear that they're a company without an idea or a product. They're just some guys looking for an opportunity if it's real.

If it's not real, it's some rich guys who are using it to shield money from taxes.

[Halfcan]

Originally Posted by Rain Man

It could possibly be a real company, but their numismatic move makes it clear that they're a company without an idea or a product. They're just some guys looking for an opportunity if it's real.

If it's not real, it's some rich guys who are using it to shield money from taxes.

Looks like a pump and dump.

Check out Investorhub some of the comments pretty much state this.

Looks like a long history of bag holders.

[Hog's Gone Fishin]

[ChiliConCarnage]

Originally Posted by Hog Farmer

You sum bitch!

[lewdog]

Originally Posted by scho63

If you paid $4.36 for a single CALL option contract, which equals $436 for controlling 100 shares and the stock is roughly $18.20 today, if the stock goes to $23-$24 within the next 6 months, you will double your money.

Why? Because the option would be around $8-$8.50 as you would be much closer to the $30 strike with plenty of time left.

Make sense?

So I'd have a year in that scenario for the stock to hit $24. And if at that time I wanted, could sell that option and make about $450? It doesn't have to reach the strike number?

[scho63]

Originally Posted by lewdog

So I'd have a year in that scenario for the stock to hit $24. And if at that time I wanted, could sell that option and make about $450? It doesn't have to reach the strike number?

You would have one year until expiration to get closer to the strike price PLUS the premium you paid but as the option get's closer and closer to expiration, the time premium begins to disappear. If you are way "OUT of the money", the value begins to drop.

If the stock popped up $3-4 in the next two weeks and the call option jumped to $7.50- $8.00, you an sell at any time.

Also, options have ONE DAY SETTLEMENTS. You buy it today, you need the money available in your account by tomorrow. When you sell, the money is available the next day.

[RunKC]

Originally Posted by Amnorix

You may already know all this, but perhaps not, or perhaps someone else doesn't:

Can I ask if you have a 401(k) option? Especially one that has matching? You don't even have to answer -- just let me say that any kind of matching is FREE money, and you should take it.

Even if there is no match, you should invest in the 401(k). Here's why.

Example A (no 401(K) being used):

Gross pay of $2,000 (other than non-tax deductions like health insurance etc). State and federal taxes reduce that by, say, 20%. Take home $1,600.


Example B (with 401(K):

Gross pay of $2,000 (other than non-tax deductions like health insurance etc.). Put $200 per week into 401(k). Gross pay now $1,800. Pay 20% ($360), so take home is $1,440.

$1,440 plus the $200 in the 401(k) is $1,640. You're $40 ahead.

But here's the real kicker-- the $40 grows tax free in whatever investment you put it in.

You basically can't beat tax-free deductions plus tax-free growth compounding over time. It along with home ownership are the two easiest paths to building wealth in the U.S. due, largely, to our existing tax laws.

So any extra money I want to save should be put in my 401k?