Conference nyoss1::market_investing

398.0. "Question on Command Credit Corp." by WFOV11::CERVONE () Thu Feb 25 1993 10:15

    I've heard some hot news on CDMD - Command Credit Corp. trading on the
    NASDAQ market at 13/16 as of Friday. Sounds like a potential to double
    or triple your Investmentin a short period of time.
    
    Does anyone  have any info on Command Credit Corp. That could help me
    decide on Investing in this company for a short period I am considering
    buying the shares.
    
    Hres how I heard about it.........................
    
    I heard from a finacial anylyst that this stock was going to tripple in
    price in a few weeks time frame. I called my broker and asked him for
    some info. This is what he sent me it was in the Moneyline section of
    The WSJ and he seems to think its a good buy. He also heard from a
    partner of his that this stock was going to do well in the next 2-3
    weeks so he is recommending it.
    
    The Moneyline WSJ add.............................
    
    The parent of Suburban Bank of Lake Worth said on Friday of last week 
    that it will acquire a New York Credit Card company in a stock swap deal
    worth about $10 million. The transaction between Suburban Bankshares
    and Command Credit Corp of Long Island will be accomplished through an
    exchange of shares on a one for one basis and issuance of warrents. The
    result will be that both Suburban and Command Credit will each own
    half of the merged company.
    
    Command provides back office credit card processing to banks
    and offers credit card programs to such diverse groups as the
    Republican Party and the Unites Nations' Earth Day organization.
    Command will bring about $4 million into the  transaction, the majority
    of which will be contributed to the capital of Suburban Bank, the
    companies said. "The bank needs capital and the opportunity to expand
    its product line," Command Chairman William G. Lucas said "Command will
    provide both."
    
    "At the same time, Command needs its own bank to expand the Command
    position in the credit card market, implement other finacial products
    and services and maximize the profit from all its bank programs. Suburban
    will be that bank," he said.
    
    Suburban Chairman Dean Vegosen said the merger is based on the
    "profitable synergism between the two operations." Suburban has assets
    of about $200 million. Its 1992 results are not yet available, but the
    company posted a $2.8 million loss for the nine months. Suburban turned
    a 1991 profit of $397,000. Suburban has four Palm Beach County offices.
    
    "We are satisfied that the worst at this bank is over," Lucas said.
    
    Mike Mitrione, Suburban's general counsel, said that Vegosen, a lawyer,
    will remain on the new company's board. Lucas will serve as chairman. A
    president has not yet been selected.
    
    Completion of the transaction is subject to shareholder and regulatory
    approval. Both companies' shares are traded on the computerized NASDAQ
    exchange. Suburban shares closed on Friday at $4, unchanged. Commands
    shares closed at 13/16 up 1/16.
    
    Any Info or comments appreciated................thanks
    
    Frank
    
    
                 

    Don't know much about it, but there certainly isn't a run on the stock
    yet.  Traded this morning at 11/16.  Bid/Ask spread of only 1/32.

    The quote as of today at 11:45:00 is 3/4 up 1/32.
    
    It seems the stock has been fluctuating back and forth from about .69
    cents to a high of a week or so ago of .8125 (13/16).
    
    I did buy some share of the stock and was able to get them at the bid
    of .68 cents. two days ago. I'm considering buyibg more.
    
    

    what would that stock be today?  Who would I contact if I wanted to
    invest in it?  I've never bought stock before.
    
    

>    what would that stock be today?  Who would I contact if I wanted to
>    invest in it?  
    
    Last trade today (so far) was 11/16ths.  Doesn't appear to be moving
    very fast in any direction.  You would have to open an account (thus
    depositing cash) with a broker, then call in your order.  You can't
    just buy stock like you'd buy groceries, despite the "over-the-counter"
    term.  Things are too efficient nowadays.
    
>                   I've never bought stock before.
    		    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
    Distant sounds of a bell ringing...
    
      John