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| Title: | Market Investing |
|
| Moderator: | 2155::michaud |
|
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
328.0. "I smell a rat!" by PUFFNS::ALLIN1 () Wed Dec 09 1992 11:49
Hello,
June 1992:
I bought shares of a NASDAQ traded company based on a recommendation by a
friend who owned stock in the company at $14/share.
August 1992:
The company declares "COMMON WARRANTS," sets no date and advises stock holders
to get intouch with their brokers. My discount broker, however, could tell me
no more about the warrants than what was described in the letter.
September 1992:
Company sends a second letter regarding the warrants. Again no date. I call
my friend. He reassures me. I do nothing.
October 1992:
Company spins off a "research division" at $0.75/share and distributes
shares of the spin-off. Original company's stock by this time is trading at
$9/share. I get nervious and call my friend and in the end I do nothing.
November 1992:
Original stock is down to $4/share, spin-off is traded at $0.15.
December 1992:
Spin-off is "not priced" and is still described as "WTS 5/7/93"
whatever that means. Original stock is now up to $6.5/share.
What is wrong with this picture? What would you do?
Thanks,
JdB
| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 328.1 | Don't seek or take financial advice from friends... | ORION::OBRIEN | | Wed Dec 09 1992 15:55 | 1 |
| and stick with mutual funds.
|
| 328.2 | | BUOVAX::DUNCAN | Free and Flying | Mon Jan 25 1993 15:28 | 11 |
|
>What is wrong with this picture? What would you do?
I'd get another friend...;-)
Seriously, you might be more cautious about taking the advice of
another w/o collateral self-research. It's a dangerous approach
to any investing, esp. low-priced OTC issues.
- Phil
|