CAFEW.PK -- Extremely Undervalued

[VikingFan]

viking, if I may ask, how did u come across CAFE? r u screening?

Yes, I screen, but last Tuesday it wasn't hard to find CAFE with its 14 mill. volume.  The key was finding CAFEW which was way undervalued at that point -- 1.72 then to over 9 now has been very nice.  I researched CAFEW and found it very compelling at that point...

[Melf Elf]

Yes, I screen, but last Tuesday it wasn't hard to find CAFE with its 14 mill. volume. The key was finding CAFEW which was way undervalued at that point -- 1.72 then to over 9 now has been very nice. I researched CAFEW and found it very compelling at that point...

That's great!  I have to give you another applause.  Nice work!

[snowcat]

Here is another stock that is moving in the momo of CAFE

SUPVA  also does energy-saving lighting up on 50xadv
http://finance.yahoo.com/q?s=supva

[Pete]

Viking, if you don't mind my asking, how do you find the valuation of a stock? Undervalued/overvalued?
TIA
P

[VikingFan]

CAFEW is a warrant, and I determined it was way undervalued by plugging in the parameters into a Black-Scholes option model.  You could also tell it was undervalued by looking at where it had traded the week before when the stock was at 3.15 (1.32), and where it  was trading at the time, when CAFE was at 6.35 (1.72).  With over 2 years to expiration, a warrant that gives you the right to buy such a volatile stock at 5.5 should have been worth far more than it was the week before after the stock had more than doubled.

[Pete]

Got it, thanks for the explaination Viking. Appreciate it.
P

[Tirebldr]

So in the future how does one go about locating these warrants, and the info on them?

[VikingFan]

Sold the rest of my CAFEW in the mid-10's.  Couldn't help but take the  profit here.  Will look to buy back on a nice pullback.  I've moved some of the proceeds to ORCT yesterday on its drop and WPCS for its huge potential and tiny float.

As for locating these warrants in the future, I guess we can only wait to see if any runners have publicly traded warrants, and then research the terms in the SEC filings.

[Tirebldr]

Wow!! That was fun. Was shooting for 10% and got stopped out at 4.5% as it fell outta site. Bought in too late. But had a blast anyhow.Thanks Saffey1 for the stop reminder.

So where is it going from here? Will this make any difference? What's happening? And why?   TIA!!!

20-Jul-05
14:45 CAFE Host America contacted informally by Fort Worth office of SEC (15.68 +1.10)

-Update- Co discloses in today's 8-K that: "On July 19, 2005, Host America Corporation was contacted informally by the Fort Worth Office of the Securities and Exchange Commission. The SEC has requested the voluntary provision of documents and related information regarding Host's press release of July 12, 2005 and its Form 8-K filing of that day to which the release was an exhibit, and into related developments in the trading of Host securities. The SEC has advised Host that the inquiry should not be construed as an indication by the SEC or its Staff that any violations of the law have occurred, nor should it be considered a reflection upon any person, entity or security. Host is fully cooperating with this inquiry."

[setravis]

CAFEW is now CAFEW.PK
This pick was moved from the Stock Picking board.