Alteration vs. Conservation Defined

[Exhibitman]

Originally Posted by Dpeck100

This is a low float stock that has no liquidity.

If someone smells blood they could destroy some shorts in this stock.

I read and write pretty good but I don’t understand either of these sentences. Something to do with urine and pants?

[frankbmd]

Originally Posted by Exhibitman

I read and write pretty good but I don’t understand either of these sentences. Something to do with urine and pants?

Just look up the differential diagnosis of hematuria associated with renal failure, Adam.

[Dpeck100]

Originally Posted by Exhibitman

I read and write pretty good but I don’t understand either of these sentences. Something to do with urine and pants?

CLCT is a very illiquid stock. It only trades on average just over 55,000 shares a day. The current short position is only 38,570 shares as of the last update so roughly two thirds of the daily average volume. That said there are days where this stock has only traded 13,000 shares.

This is a very small short position but if someone tried to put on a much larger short position and then a fund decided to put heavy buying pressure on the stock they could make it sky rocket and create a very serious short squeeze.

If you look at the stock right now the bid and ask are only showing 200 shares on each so the largest market order you can use and get the inside bid or ask is 200 shares. Nothing. To put that in perspective if you wanted to buy GE you could use a market order and get 45,000 shares.

Low float stocks that are heavily shorted are prime targets to try and manipulate higher with constant buying pressure. When a stock is sold short it represents pent up demand because the only way to exit the position is through a buy order. If someone is pressing it higher the shorts begin to lose and at some point just like in MMA they tap out and have no choice but to buy further exacerbating the scenario. Short squeezes can be violent.

Moral of the story a terrible stock to short because you can't get in or out easily. Even if one doesn't like a company they need to look at the short interest and trading volume to get a feel if it is a good short candidate and CLCT isn't.

[Peter_Spaeth]

You would have better insight than I, but it doesn't seem like a great stock to go long either.

[Dpeck100]

Originally Posted by Peter_Spaeth

You would have better insight than I, but it doesn't seem like a great stock to go long either.

Hard to say. Roughly two thirds of the company is their coin division and that has been soft. If you read the recent report it seems to be picking up some. Their card and autograph division is what is carrying the company.

It looks to me like it is running back up to the the top of the gap of $21.63 from February 7th last year. If it gets above that it could have legs.

The stock got hammered in the fourth quarter last year on general market weakness and heavy tax loss selling but I am not a fan personally of buying a stock that has doubled in five months.

Regardless this issue that has created many to be upset isn't going to change the direction of PSA.

[Peter_Spaeth]

Originally Posted by Dpeck100

Hard to say. Roughly two thirds of the company is their coin division and that has been soft. If you read the recent report it seems to be picking up some. Their card and autograph division is what is carrying the company.

It looks to me like it is running back up to the the top of the gap of $21.63 from February 7th last year. If it gets above that it could have legs.

The stock got hammered in the fourth quarter last year on general market weakness and heavy tax loss selling but I am not a fan personally of buying a stock that has doubled in five months.

Regardless this issue that has created many to be upset isn't going to change the direction of PSA.

I guess people keep grading the new bullion coins although I can't imagine why as even the MS70s don't seem to bring much of a premium, unlike PSA 10s of current cards.

[Dpeck100]

Originally Posted by Peter_Spaeth

I guess people keep grading the new bullion coins although I can't imagine why as even the MS70s don't seem to bring much of a premium, unlike PSA 10s of current cards.

From their press release.


Part of the growth in PCGS Bulk was aided by a successful Apollo 11 coin-grading program that generated thousands of these popular commemorative coins for submission. The creative packaging designed by the PCGS team helped raise our Q3 Bulk ASP over last year's ASP.



"The PSA and PSA/DNA business set another all-time revenue quarterly record for the division and eclipsed last year's Q3 revenue by roughly $1.3 million, a 24% increase year-over-year. Based on the first three quarters of fiscal 2019, this part of our company is expected to close out its ninth consecutive year of top and bottom line growth. The PSA backlog remains at record levels heading into Q4. The Company is currently revamping our existing space to expand operational capacity, so we can ultimately improve the extended turnaround times facing our customers."

[Exhibitman]

Suuuuure they are. Wanna buy a bridge in Brooklyn?