3SOF

david

ZVUE...from 3.45 to 3.71 now

have you bought???

Quote from: David Randolph on February 06, 2007, 12:28:37 PM
Damn complacency, while I was studying other stocks, RDCM broke down badly. I could sell just a moment ago at $3.06.

I should have sold right at the open, because yesterday I saw they're diluting shareholder's value in a big way, but I thought it could run some more

The stock is no good, despite the best quarter ever in terms of revenues and EPS. I hate dilution.

Dang .. I should have checked in here first .. I just added on the dip    

Look at what I found over the website of the best long term pick I've studied today:



Nice I feel like studying it some more ...

Quote from: David Randolph on February 06, 2007, 12:28:37 PM
Damn complacency, while I was studying other stocks, RDCM broke down badly. I could sell just a moment ago at $3.06.

I should have sold right at the open, because yesterday I saw they're diluting shareholder's value in a big way, but I thought it could run some more

The stock is no good, despite the best quarter ever in terms of revenues and EPS. I hate dilution.

Crap, I was away when you posted this. Not good. Where do you look to see that dilution is hapening?

How about IGLD?
Breaking out on strong volume up 8%

Nice estimates if they can be believed
http://finance.yahoo.com/q/ae?s=IGLD

Market cap 270 m
small float at 6 mil

Health balance sheet

Quote from: dnickers on February 06, 2007, 01:03:59 PM

Quote from: tokyopua on February 06, 2007, 12:32:32 PM
PARL on fire on news, good financials after a quick look...

Nice call   In at 7.44.

Hope you made a quick profit on this one, I didnt buy persoanlly. Given David's quick analysis it may run out of steam here at a double resistance of the 50 dma and old resistance in October...

What's up with IMOT.ob ?

Quote from: tokyopua on February 06, 2007, 01:29:23 PM

Quote from: dnickers on February 06, 2007, 01:03:59 PM

Quote from: tokyopua on February 06, 2007, 12:32:32 PM
PARL on fire on news, good financials after a quick look...

Nice call   In at 7.44.

Hope you made a quick profit on this one, I didnt buy persoanlly. Given David's quick analysis it may run out of steam here at a double resistance of the 50 dma and old resistance in October...

Out at 7.69.

QuoteCrap, I was away when you posted this. Not good. Where do you look to see that dilution is hapening?

Great question. I was waiting for it. I actually wanted to buy RDCM for the Main, but stumbled on that dilution issue and walked away. Still trying to figure out why I didn't sell it right at the open ... complacency

Well, now that I look again ... I'm sorry, I'm totally confused now. Not so much dilution. Ok, now I remember, my issue with RDCM is that it is an Israeli company that doesn't report earnings using the form 10, but the form 20 for foreign companies, and as I've been seeing repeatedly, the market warrants those stocks a much below average valuation.

If we multiply the 4th quarter EPS by 4, we arrive at $0.28 for a full year, so the forward earnings multiple is about 11. The problem is the market usually values companies that report using forms 20 with an earnings multiple between 6 and 8 ...

I'm sorry, I've been seeing so many stocks that I probably confused RDCM with another stock, the issue is the forms in which the company presents its results with the SEC, not dilution

I guess I need a rest ...

From TA and FA, RDCM is still look good, I will hold for a while.

DTPI whats your take david? funadmentals look good

Ok, But I still would like to know where you look to determine if a company is diluting the shares?

I couldn't resist buying PFSW for the 3 Stocks on Fire Portfolio. You can read my full analysis on this thread.

I hope to buy it to the Main Portfolio too, after even deeper analysis. Too cheap and too much potential to ignore

David, I would also like your opinion of IGLD.  Thanks.  It does have a small float and the stock price has increased significantly since September.

Quote from: BadOscar on February 06, 2007, 01:49:44 PM
Ok, But I still would like to know where you look to determine if a company is diluting the shares?

Sure, there are two ways:

1) You look at the company's SEC filings, forms 10-K and 10-Q if they exist. You make a table with the number of shares outstanding. If the share count is rising, each share represents less of the company, hence there's dilution to existing shareholders.

2) An alternative way is to divide the net income by EPS numbers to get the # of shares outstanding on a yearly or quarterly basis. Again, make a graph or table with those # shares outstanding on an historical basis. If the share count is rising, there's dilution, if it is going down, it means the company has been buying back shares.

Market cap = # shares outstanding*share price

The changes in the number of shares outstanding explain why a stock can go down 50% or more and yet represent a bigger company. Some charts that you see of stocks that traded at $50, and now are at $5, many times the companies are worth more now, because the share count rose more than 10 fold. That is called heavy dilution.

One thing you wouldn't like to see is net income rising from one quarter to another, yet EPS declining. That means the share count rose more than the net income increase, that is, dilution.