dfwmustangs market watch stock market game #3

[1carcrazyguy]

Is PLUG about topped out? Will the CEO appearing on CNBC Squawk on the Street tomorrow help fuel it some more?


Also saw they have priced 3.9M shares at $5.74/share. Closed today at $6.36? So how does that work when they offer more share for less than today's closing?

[Broncojohnny]

Is PLUG about topped out? Will the CEO appearing on CNBC Squawk on the Street tomorrow help fuel it some more?


Also saw they have priced 3.9M shares at $5.74/share. Closed today at $6.36? So how does that work when they offer more share for less than today's closing?

It means their shit is about to be worth $5.74 a share lol

[1carcrazyguy]

Set a limit buy to 5.74 after it was announced but the stock only went up from like $6.15 at that point.

[slow99]

It means their shit is about to be worth $5.74 a share lol

Lmao

[slow99]

Is PLUG about topped out? Will the CEO appearing on CNBC Squawk on the Street tomorrow help fuel it some more?


Also saw they have priced 3.9M shares at $5.74/share. Closed today at $6.36? So how does that work when they offer more share for less than today's closing?

That's called a secondary offering and here's a little more info copy/pasted for you:


Why do share prices fall after a company has a secondary offering?

The best way to answer this question is to provide a simple illustration of what happens when a company increases the number of shares issued, or shares outstanding, through a secondary offering.

Let's start from the beginning. A company goes public with an initial public offering (IPO) of stock. In our example, XYZ Inc. has a successful IPO and raises $1 million by issuing 100,000 shares. These are purchased by a few dozen investors who are now the owners (shareholders) of the company. In the first full year of operations, XYZ produces a net income of $100,000.

One of the ways the investment community measures a company's profitability is based on earnings per share (EPS), which allows for a more meaningful comparison of corporate figures. So, in its first year of public ownership, XYZ had an EPS of $1 ($100,000 of net income / 100,000 shares outstanding). In other words, each share of XYZ stock held by a shareholder was worth $1 of earnings

Subsequently, things are looking up for XYZ, which prompts management to raise more equity capital through a secondary offering, which is successful. In this instance, the company only issues 50,000 shares, which produces additional equity of $50,000. The company then goes on to have another good year with a net income of $125,000.

That's the good news, at least for the company. However, when viewed from the point of view of the original investors - those who became shareholders through the IPO - their level of ownership has been decreased with the increase in the shareholder base. This consequence is referred to as the dilution of their ownership percentage.

Some simple math will illustrate this event. In the second year, XYZ had 150,000 shares outstanding: 100,000 from the IPO and 50,000 from the secondary offering. These shares have a claim on $125,000 of earnings (net income), or earnings per share of $0.83 ($125,000 of net income / 150,000 shares outstanding), which compares unfavorably to the $1 EPS from the previous year. In other words, the EPS value of the initial shareholders' ownership decreases by 17%!

While an absolute increase in a company's net income is a welcome sight, investors focus on what each share of their investment is producing. An increase in a company's capital base dilutes the company's earnings because they are spread among a greater number of shareholders.

Without a strong case for maintaining and/or boosting EPS, investor sentiment for a stock that is subject to a potential dilutive effect will be negative. Although it is not automatic, the prospect of share dilution will generally hurt a company's stock price.

[1carcrazyguy]

It went up a bit after the CEO appeared. Figured I would buy some anyway and leave enough room to buy more if it drops in the next few days.

[Captain Crawfish]

Wish I could pull off a 40% return everyday!!

[1carcrazyguy]

You must have landed on something good!

[black2002ls]

I wish I had picked up a LOT more FCEL last week. I am seeing a +60% ROI.

[jyro]

Despite what the talking heads on TV say

All those fuel cell stocks keep going crazy
I bought 2 of these at open today and this is what they did just today and what I added in one day to my IRA. Fuel cell has a conference call tomorrow @10.

------------------------------ after market
Ballard bldp +30.3% -- $1760 --- .28 +4%
Power plug plug +10.18% $4080 - .41 +3.98%
Fuel cell fcel +24.67% -- $100 ---.29 +7.38%

In order to buy at open I had to pay too much for Fcell to make much today, tomorrow should be better.

[black2002ls]

I wish I had bought $1k worth instead of $180 worth!

[95ragtop]

Damn you Jyro, and I was just happy to make my 10% in Fnma. You're killing it.

[1carcrazyguy]

We bought a little (very little) plug and fcel. It has done well but I expect it go south this week. We are going to hold onto it for the long run after hearing all that they have planned. Our next buys will likely be EXXI and T (near 52 week low).

These games have been a great learning tool.

[jyro]

wow, I would have never thought it could happen to me

Damn you Jyro, and I was just happy to make my 10% in Fnma. You're killing it.

I still can believe it, in the last few weeks, in my IRA, (no tax till I take it out) I've put in $58,000 from plug, vape and a few dope stocks. I started with 12,000 shares of plug at $3.13 each, Thanks to this game I was brave enough to roll the dice on it. It took me 30 years to save the money I'm using and for the last 28 years it's been inside my company 401 and it was very limited as to what I could invest in. Since I've retired I converted it to a IRA and now I can do as I wished with it but it wasn't till this game that I had any idea how to invest. I still don't know enough but I'm learning every day.
Being in vape was cool because it went from $5.00 to 41.00. I sold vape and reinvested the money when I found out vape said in their earnings in Dec. that they were broke and might cease operations. I was also invested in Plug at the same time it went from 3.00 to 6.00 where I sold it and reinvested it when it dropped. I still hold plug fcell and bldp and will till I get spooky and sell. Plug has a conference call Thursday, I hope by then, it's up good.

The best thing I can tell anyone is learn everything you can about a stock you're thinking abut putting money in don't act without knowledge or on impulse.

[1carcrazyguy]

The best thing I can tell anyone is learn everything you can about a stock you're thinking abut putting money in don't act without knowledge or on impulse.

Congrats on the great success! When the PLUG mentions kept popping up, I started reading everything I could find on them or about them. I was afraid to jump in for real then kept reading up. I finally got in at 7 and bought 100 shares and 75 of FCEL since plug and fcel often appeared in the same articles. From what I have read, expect it to be a crazy ride but has a potential to be really good once other large companies start following the lead of walmart and fedex. They also mentioned they have a large interest from Asia that could be huge for PLUG. With no more than we have tied up I plan to ride it out for a couple of years.