Stock Question

[toastonastick]

One of my customers is going to be bought out by a larger company late this month early next month. My question is would it be wise to buy up some stock before this goes public? It is pretty much a done deal.

My contact at this company told me that if he were me he would buy as much as possible. Saying that a 30 to 50 percent jump can be just about guaranteed. I looked at the stock on MSN and its not traded heavily on a daily basis. Usually 5 to 8 thousand shares daily.

I don't do much trading and was just looking for a little advice.

Is this the norm?

Their stock is about 7 bucks a share.

 

[worm44]

woah...slow down--it depends on if is a buy-out, take-over or merger--there is a huge difference in the three and I can give you better info if you tell me what it is......

 

[worm44]

by the way I see that you used the term buy-out...umm could you let me in on what company it is....................Please-are you sure its a buy out?

 

[worm44]

5-8000 shares a day is nada..is this a OTC stock?-OTCBB stock?Pink sheet? Nasdaq? NYSE? American?

 

[toastonastick]

its NYSE

 

[Chopsticks]

What's up "Mr. Insider Trading?"

 

[toastonastick]

yeah I was wondering that myself, would me buying some of this stock be illegal?

Like I said before I am not very wallstreet savy, just have some shares here and there.

 

[Chopsticks]

That's kinda shady there, man. I remember about 7 years ago, my company was rumouring about a layoff in the works and one of the equipment techs starting chatting online about it. Needless to say, not only did they fire him, they tried to subpoena Yahoo in fear of this leak would coerce the stockholders in a panic that my company was doing bad prior to it releasing it's quarter results. Best of luck in whatever you do but just be careful whatever it is...

 

[toastonastick]

no other advice?

Worm you got any tips?

 

[THE KOD]

ask Martha Stewart about it.

Its illegal to have inside informaiton and use it or tell anyone so they may profit from it.

What company is it again !

 

[THE KOD]

My contact at this company told me that if he were me he would buy as much as possible. Saying that a 30 to 50 percent jump can be just about guaranteed. I looked at the stock on MSN and its not traded heavily on a daily basis. Usually 5 to 8 thousand shares daily.
Their stock is about 7 bucks a share.

..................................................................

You have to also be very carefull about the people who hand out these stock tips.

Alot of times they will attempt to create interest by spreading false information. And in fact people will take the risk for 7 bucks a share. And once the ball starts rolling the stock does jump up maybe to 30 bucks a share. And everyone hangs on hoping to make a major killing.

Except the guys who started the tips. They bought their shares under 7 and sell before it
starts going back down.

Been there done that.

 

[toastonastick]

Trust me its good info, My customer came to me to let me know that changes were coming down the road. He did this so I can prepare and try to keep there business. This guy reports direrctly to the CFO. I have known him for over 5 years.

 

[Franky Wright]

Out with it Toast!!!
Are you good friends with this guy? I mean go ahead and buy some, why not. Take 1-3% of what you have alloted for that kind of investment and throw it in there. You should know if you are already in the business.........
Just make sure you dont do it two days before it goes public I have a number of different stocks in my portfolio. I have always said it is "legalized gambling"
Keep us informed.......
Franky

 

[lay the wood2]

Toast

Generally this is the way it works, but like all things there are exceptions.
The company that is going to be bought out usually sees the value of it's shares rise at the time of the buyout; the company that does the buying or takes on the other company (Again there are exceptions), tends to see their values decrease because they assume debt and other things of the deal.

 

[devil dave]

post the stock it's just us here.

 

[Captain Crunch]

post the stock it's just us here.

OK, I have an idea. Post the ticker symbol, but mix up the letters, and then we can try and figure it out on our own. That way you are off the hook.

 

[devil dave]

nice :clap:

 

[toastonastick]

ha ha. well after long thought I have decided to take a chance.

 

[Ndfan]

just post some stock picks that you like and let us know your strongest pick.

 

[devil dave]

c'mon throw it out there.