ILoveTDs Account Talk

[ILoveTDs]

Birch - I'm contemplating between FOE or PEIX, which would you suggest?

 

[Birchtree]

Both would be my suggestion - why choose.

 

[RealMoneyIssues]

I'm contemplating between FOE or PEIX, which would you suggest?

Why are you looking to buy them? What is your target? What is the downside risk?

 

[ILoveTDs]

Why are you looking to buy them? What is your target? What is the downside risk?

I am not the most savvy investor but energy overall was down last year and i think it might have a good bounce this year- especially going into the summer. Although not energy I think FOE will go in the direction of energy.

Both are relatively cheap in the cost per share and I only plan to invest about $1K, so I'm not going to put it in Apple or Price line and get 2 shares. They are both price relatively well within their 52 week range. I'm looking for stock with the opportunity to increase in price as oppose to paying a dividend as i am invested in WWE to cover my dividend revenue.

My target is about 15% sometime in June. The downside is the relative price leads the stock to more volitility- a .25 or $1 drop is a huge %.

 

[RealMoneyIssues]

I am not the most savvy investor but energy overall was down last year and i think it might have a good bounce this year- especially going into the summer. Although not energy I think FOE will go in the direction of energy.

Both are relatively cheap in the cost per share and I only plan to invest about $1K, so I'm not going to put it in Apple or Price line and get 2 shares. They are both price relatively well within their 52 week range. I'm looking for stock with the opportunity to increase in price as oppose to paying a dividend as i am invested in WWE to cover my dividend revenue.

My target is about 15% sometime in June. The downside is the relative price leads the stock to more volitility- a .25 or $1 drop is a huge %.

FOE:
http://stockcharts.com/h-sc/ui?s=FOE&p=D&yr=1&mn=0&dy=0&id=p19730354922

Resistance: $7.40
Support: $6.00 (minor) and $5.50 (major, 20 and 50 SMA)
Bullish consolidation, but the stock is well off the lows of $4.30. Is now, at $6.29 the time to buy or wait for a market/FOE dip to pick some up?

PEIX:
http://stockcharts.com/h-sc/ui?s=PEIX&p=D&yr=1&mn=0&dy=0&id=p49615327891

Resistance: $1.26 (200 SMA) and then $1.60 (double top)
Support: $1.12 (50 SMA), then $1.00 (pivot low), and then $0.83 (next pivot low)
Good bullish consolidation off the Nov 11 push up (honesty here, I made nearly 200% on this stock back then), but is coming into resistance. Watch the 200 SMA...

Just my 2 cents
Good Luck!

 

[Sensei]

I am not the most savvy investor but energy overall was down last year and i think it might have a good bounce this year- especially going into the summer. Although not energy I think FOE will go in the direction of energy.

Both are relatively cheap in the cost per share and I only plan to invest about $1K, so I'm not going to put it in Apple or Price line and get 2 shares. They are both price relatively well within their 52 week range. I'm looking for stock with the opportunity to increase in price as oppose to paying a dividend as i am invested in WWE to cover my dividend revenue.

My target is about 15% sometime in June. The downside is the relative price leads the stock to more volitility- a .25 or $1 drop is a huge %.

I think this has been discussed before, so forgive me if I'm being repetetive. But what's the difference whether you get 2 $500 shares or 100 $10 shares? Both equal $1K, and they'll move in terms of %, not dollars and cents.

 

[RealMoneyIssues]

I think this has been discussed before, so forgive me if I'm being repetetive. But what's the difference whether you get 2 $500 shares or 100 $10 shares? Both equal $1K, and they'll move in terms of %, not dollars and cents.

Bingo. I stopped tracking $$ and now only track %%

 

[ILoveTDs]

Agree with both you Sensei and RMI, it is more accurate to track by %% not $$, as ultimatly %% is the only thing that matters.

However, I find it way more UNLIKELY a $500 per share stock will break $1,000 a share within 52 week or go bankrupt within 52 weeks. On the other hand I wouldn't be suprised at all to see a $2 per share stock reach $4 within the next 52 weeks or become completly worthless. Therfore, my experiance is stock price does lend information about the stocks risk and volitility. If I was in my 50's Apple, Google, and PriceLine would be attractive to me, but I'm in my 30's so I like looking at the PINK sheet and taking more risk

 

[jpcavin]

I think this has been discussed before, so forgive me if I'm being repetetive. But what's the difference whether you get 2 $500 shares or 100 $10 shares? Both equal $1K, and they'll move in terms of %, not dollars and cents.

You gotta take the fees into consideration. If you have to pay a fee to purchase PEIX, the cost basis will have you in the negative. $8 to purchase a $1 share doesn't make too much sense.

 

[RealMoneyIssues]

You gotta take the fees into consideration. If you have to pay a fee to purchase PEIX, the cost basis will have you in the negative. $8 to purchase a $1 share doesn't make too much sense.

$1000 invested
1000 shares of $1 stock, add 0.8 cents per share for fee means a move to $1.008 puts you even. 0.8% gain
10 shares of a $100 stock, add 80 cents per share for fee means a move to $100.80 puts you even. 0.8% gain

Share price doesn't matter...

I hope my math is right

 

[jpcavin]

$1000 invested
1000 shares of $1 stock, add 0.8 cents per share for fee means a move to $1.008 puts you even. 0.8% gain
10 shares of a $100 stock, add 80 cents per share for fee means a move to $100.80 puts you even. 0.8% gain

Share price doesn't matter...

I hope my math is right

I'm still not getting it. $8 on a $1 share that moves to 1.08...still in the hole for me.

 

[jpcavin]

I think we are talking about different things. I understand what you are trying to say. I am just saying it's not worth paying $8 to purchase one(1) share of a $1 share. How long would it take just to recoup your $8 if you only had one share worth $1?

 

[Birchtree]

The difference is in 1000 shares versus 10 shares. You make one point on 1000 shares and you have $1000 worth of gain - subtract $8 from that. I owned many shares of RT back in 2008 at $0.89 and it made a run to $12 off the March '09 lows. Now that was a nice gain and I still own even more RT stock.

 

[jpcavin]

The difference is in 1000 shares versus 10 shares. You make one point on 1000 shares and you have $1000 worth of gain - subtract $8 from that. I owned many shares of RT back in 2008 at $0.89 and it made a run to $12 off the March '09 lows. Now that was a nice gain and I still own even more RT stock.

Yes, but if you only bought 1 share you would have made $3.11?

 

[Birchtree]

I'm feeling the earth move under my feet - see Ferdy run. Short covering will take us to 12,800 before we close. Snort.

 

[RealMoneyIssues]

Yes, but if you only bought 1 share you would have made $3.11?

why would you only buy 1 share of a $1 stock... I am not understanding what you are getting at

 

[jpcavin]

why would you only buy 1 share of a $1 stock... I am not understanding what you are getting at

That is exactly the point! You have to take the fees and the cost of the share to determine when considering the number of shares to purchase. The topic was PEIX, so the number of shares purchased is important when evaluating the fees vs share value.

 

[jpcavin]

Maybe we were just talking about different things. I read "it doesn't matter if you buy 2 shares or 1000 shares (the topic being PEIX)

 

[SteelSaving]

I'm still not getting it. $8 on a $1 share that moves to 1.08...still in the hole for me.

You don't pay $8 for each share you buy, just for the trade itself. Nobody is buying 1 share worth $1 and nobody mentioned doing that.

 

[jpcavin]

You don't pay $8 for each share you buy, just for the trade itself. Nobody is buying 1 share worth $1 and nobody mentioned doing that.

I'm aware that it's only $8 per trade and not per share. I was stating in a roundabout way, I guess, that the fee and the price/value of the share should be considered. If you don't purchase enough shares, the cost basis will have you in the negative. I belif we were both talking about different things.