Trading Stocks?

LATEST - OCLR
There was a 1 for 5 reverse split for OCLRD on 04/30/2010. A reverse split occurs when a company reduces the number of outstanding shares, while at the same time proportionally increasing the value per share. In theory, there should be no reduction in the value of the security. Once the stock begins trading, however, the price is always subject to market fluctuation. This stock continues to have a favorable buy recommendation on it.

OCLARO Inc Com (OCLR) is a company primarily involved in fiber optics communication networks. Some analysts are rating its performance at “Outstanding” with a Buy recommendation. It climbed in value from .40 to $2.90/share in one year (4/1/09 – 4/1/10) and since March 1 of this year, to the end of the month, it has climbed in value from $2 to $2.75/share.

PCBC: May 7, Even with huge financial problems and the fact that it sold off twice the last couple weeks – and in spite of the current market sell off - PCBC is back on the favorable stock list of some analysts and they are recommending buying it. It has climbed back up to more than the level where I first recommended it the last week of April.

PCBC: This morning, April 29, Pacific Cap Bancorp (PCBC) opened almost 50% down in value. Three days ago, April 26, I reported (below) that on April 25 profit takers sold off PCBC but it shortly rebounded more than $4/share and held until yesterday, April 28 allowing traders an opportunity to make further "fast plays". It was a good ride and traders made huge profits if they previously bought this company properly and sold by market close yesterday. Unfortunately, PCBC is plagued with finacial problems and now has lost its favorable recommendation status.

If you have been following PACIFIC CAP BANCORP NEW COM (PCBC), you would have seen profit takers selling it yesterday 4/25/10. It lost about a third of its value closing down at $3.47. A couple reasons prompted this sell off. The stock had climbed so high, so fast that traders wanted to take a profit while they could, and they where spooked by a report, "The case against buying small-cap stocks now" that was published on 4/23/10 speaking to the problems that plague PCBC. Despite this trader action and published opinion, the stock still has a favorable market analyst opinion on it. It is still rated as “Outperform” and has a recommended “Buy” on it. A stock like this is considered a speculative “fast play” opportunity. You would have made a huge profit if you had bought it last week and sold it yesterday. There still may be a chance to make more profit on it. The company is still set to report favorable earnings Thursday, 4/29/10. Although futures are pointing to a lower market opening this morning 4/27/10, early traders are buying PCBC - just before the open, the stock is up .11. Until the company reports its earnings, there still may be a chance to make a few bucks but you must watch the stock closely.

ATTENTION TRADERS: If you have a stock tip, let me know about it and I will publish it here, or if you would like my opinion on a stock, let me know; I will publish my opinion on this blog. You may comment below;

STOCK MARKET

The stock market is a good place to either create wealth or lose all your money. No matter how you play it, no matter how confident you are with your positions, the market can suddenly turn in ways that were unexpected. One of the biggest problems is when the market closes each day, your positions may look well, but because of news around the world overnight, your positions may tank and by the time the market opens, it may be too late to avoid tremendous potential loses.

OPTIONS TRADING

Options trading is a very fast way to either make money hands over fist or go broke in a hurry. This kind of "playing" the stock market is very risky and takes a lot of guts, especially if you do not have a lot of money that you can afford to lose. It takes time and experience to get a good feel for options trading. In its simplest explanation, an OPTION to buy or sell a certain stock is bought or sold, rather than the stock itself. It allows someone to buy or sell the stock within a certain period of time, at a certain price, called the "strike price." The advantages are cost and volume. Options are much cheaper than the associated stock. For example, an option for a stock selling for, lets say, $10.00 a share, may be only .20 a share. One hundred shares of the stock would cost $1,000.00; the option for 100 shares, called a "lot," would cost only $20.00. The primary types of options are Calls and Puts. A Call option is traded if the stock is thought to rise; a Put option is traded if it is believed that the stock will go down. To be continued...