Thanks for all the hate mailGlad to get people talking! I have been cheerleader for Cap-Ex on my blog since the beginning.
I am long Cap-Ex at two prices
.10/share and $1.10/share. I am not hereto bash Cap-Ex, I like the deal, I thought anything under $1.00/sharewould be a good purchase. I also figured the
.30/share private placementwould be in strong hands.
I just commented that the $.30/share private placement came due andpeople are taking profits. Cap-Ex traded to
.50/share representing a67% profit for the
.30 shareholders. I have cash and am more comfortable adding tomy position in the
.40 range be it
.49 or
.48/share.
One thing people forget is that there is one reason to buy a stock (because you want to make money)There is an endless reason to sell a stock (especially if there isprofit to be had).
I have done Investor Relation for years and here is how it goes. Someone like me makes a call or a comment on a stock and the hired IR guys can't /won't post on these boards so they get someone close to the deal who has a lot vested in the deal to discredit any comment that does not tow the blue sky message that the Company is trying to get out.
Since I am on a roll, here is how Private Placements work. Basically the Company wholesales stock to a small group of accredited investors at a preferable price below the current market. As a reward for renting this money for the 4 month hold there is a bonus warrant attached. Once the 4 month hold is off the wholesale holders of the Private Placement need the regular retail investor (you and me) to step in and purchase. I have no problem with this, that is the way the system works. I just prefer to buy the stock closer to the wholesale price.
I think most people here would agree that buying stock at $1.10/share and then watching it drop to
.50/share sucks while the
.30/share PP person says "thanks for coming out to play".
I will be expecting some more bashing and hate mail.