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woodjom
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Just an IT Professional playing the Stock Market to bolster retirement portfolio. Current Portfolio: DHI, RSO, SO, NLY Play Money-Folio: N/A
  • PWEID.PK - Good Or Bad? 6 comments
    Nov 28, 2012 9:15 AM | about stocks: PWEID

    PacWest Equities (OTC:PWEID) has had a violent introduction by others who believe this stock is a loser. As commented several times by Michael Goode, there are 15 reason to not have a Long-term investment into PWEID.

    As a short-term stock, it cannot be viewed as a bad gainer. I myself purchased 500 shares of the stock, when it was PWEI, at .383/share. As of November 2, 2012, this stock produced a 3:1 forward split (approved by FINRA) and did so at around $1.15/share (pre-split). On Monday, 11/5/2012, it realized a starting price around .383/share and shot up to around .50/share and has consistently hovered between .60-.70 per share since it stabilized after the split.

    Biggest problem so far is that a slough of "naked short sellers" that shot this stock up on a daily basis in the first opening hours of the exchange trading, have not yet been called and so there are a lot of legitimate shares out there that the short sellers have not been forced to purchase.

    I personally believe that this stock has a potential yearly cap of around 1-2 dollars a share, pending business decisions and market implementation of their product(s).

    Updated Information about FINRA approved Split-Dividend:PWEI(NYSE:D) Forward Split Information

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Additional disclosure: I have 1500 shares of PWEID, as a result of the 3:1 split approved on 11/2.

    Stocks: PWEID
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  • splee123
    , contributor
    Comments (2) | Send Message
     
    I also purchased pre-split PWEI shares but have not received the post split PWEID shares as yet. It's been 2 weeks since the split and neither my broker (Scottrade) nor the Transfer Agent (First American Transfer) knows when the new shares will be issued.
    Therefore, I am stuck and can't trade this stock.

     

    Last Thursday, I spoke with First American Transfer, they told me that DTC basement where the "actual" PWEI certificate was stored was flooded during the Sandy. Also, PacWest mandated them to physically receive certificates for exchange to new shares instead of electronically exchanging the shares.

     

    I find the very difficult to accept this. What do you think? Also have you receive your new shares yet?
    18 Nov 2012, 06:49 AM Reply Like
  • woodjom
    , contributor
    Comments (14) | Send Message
     
    Author’s reply » After doing some research of my own. This delay in the foward split dividend is due to the same reason a company declares the dividends and 20-30 days later you receive the DRIP value. Think of the Dividend Forward Split as a DRIP. This stock will take a beating by the end of this week due to all of us selling off their shares from the Split.
    19 Nov 2012, 09:58 AM Reply Like
  • splee123
    , contributor
    Comments (2) | Send Message
     
    Are you saying that dividend shares will be released to us by end of the week? if so, who confirm this?
    19 Nov 2012, 09:37 PM Reply Like
  • woodjom
    , contributor
    Comments (14) | Send Message
     
    Author’s reply » from all the articles i read, they dont explicitely state that but that they created the temporary symbol in lieu of the Dividen Split being processed over the 20 day grace period.

     

    Which i deduced was that the resulting split stock will be transferred to your appropriate broker by the end of the grace period.

     

    I would assume this is due to the status of the stock being a Pink Sheet.

     

    I am no stock professional by no means but from the readings i have done that is my take on the matter. Trust me i want my split shares as much as anyone else, so i can do my own "dump" to reinvest the proceeds in other meaningful stocks.
    20 Nov 2012, 11:00 AM Reply Like
  • Mercury Value
    , contributor
    Comments (565) | Send Message
     
    you've been had by a pump and dump scam, and if you ever see a penny from this you should give faith healing a shot, because you've got a touch.

     

    sorry to be the bearer of bad tidings, but going forward it's a good practice to only invest in companies you know and understand. warren buffett calls this "the circle of competence."

     

    i can only assume that as a marine you've worked hard for your money and come by it honestly. don't let anyone steal it from you. one rule of thumb i like to use is to treat my investments like billable hours: if i'm investing $500, i might take ten hours ($50/hr) over the course of some days researching, reading, and thinking before i pull the trigger. there are sharks in the water.

     

    another thing to keep in mind is to never buy a stock that is being promoted. if it's such a great deal, what do they have to gain by telling you about it, after all? as my grandmother once told me, "those who say, don't know, and those who know, don't say."

     

    most importantly, never but ever invest a penny you can't afford to lose.
    19 Nov 2012, 04:04 AM Reply Like
  • woodjom
    , contributor
    Comments (14) | Send Message
     
    Author’s reply » Again this is a Short Stock....which by my personal definition is less than 3 month hold time. As soon as this stock is finished with the forward Divident i will be dumping it to regain original investment and then trickling the rest of it out for a profit. The gains from this stock will negate all other fees i have incurred over the last 4 months i have started investing (~ $200) and still have a overall gain in my account.

     

    Dont get me wrong, I wouldnt suggest having this stock as a Long-term investment ( > 1yr) but for those of us that have a couple $200 to spent ever so often and get over $700 ($500 return) its not a bad thing.
    19 Nov 2012, 10:00 AM Reply Like
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