Dr. Paul W. Allen

When Big Losses in Stocks Happen

Hey friends. I don’t typically mention specific stocks in my posts as you know. Today, though, I’ll offer a rather extreme example of how chasing the hottest thing without a solid fundamental basis for doing so can lead to harmful loss to a stock portfolio.

Go here to view a Yahoo Finance page summarizing some key data for Helios and Matheson Analytics Inc. (HMNY). You can go here to view the website and specifically click on the MoviePass link to read about the arena of HMNY’s business that led to a skyrocketing price not so long ago followed by a free fall for the ages. In this Yahoo Finance link, you can see the daily price information for HMNY stock over the past 12 months. If you scroll down, you will note that the stock price closed on September 14, 2017 at $2.63 and then rose to a high price of $38.86 less than a month later on October 11. Yesterday (Friday, July 20, 2018), the price closed at $.104 per share.

Not unlike some cryptocurrency stocks of not long ago that rose feverishly only to have gravity pull them to the floor, HMNY is a story stock that for a moment was going to revolutionize how people go see movies. But the numbers didn’t add up to warrant the kind of “chasing” behavior that occurred.

Here’s an interesting article published several days ago at Seeking Alpha reflecting information about the nature of HMNY’s business model and the author’s opinion toward the business as it stands now.

Some people may have made a lot of money in HMNY’s stock. Many others probably took a really tough loss. One of the reasons I wrote Choose Stocks Wisely is because of […]

July 21st, 2018|Balance Sheet, hottest stocks|2 Comments

Freedom is Not Free

I’m sure you’ve read the words in my subject line before but they are important words. As we celebrate another Independence Day, it is surely a time to think on these words. So many lives have been surrendered for Americans to continue to claim the freedoms we hold dear. The costs to so many families across the generations implores our gratitude, respect, and remembrance. Our flag of freedom still waves today because God has blessed America greatly. The price of the freedoms we yet enjoy in America that are not enjoyed by many in the world has been paid by many brave patriots. […]

July 3rd, 2018|freedom, God, Independence Day|0 Comments

The 8-K

Hi friends. An 8-K is an SEC filing required by companies with regard to announcing material events. The 8-K must be filed within four business days of the material event. You can read this to learn more about the 8-K. […]

June 23rd, 2018|8-K, SEC filings|0 Comments

Insider Trade Filings

Hey friends. To research corporate financial filings, you can go to the primary source, the Securities and Exchange Commission (SEC) website. Today, I’ll write about insider trading activity information filed with the SEC. […]

June 8th, 2018|insider trading, SEC filings|2 Comments

A Time to Remember

Hey Friends,

Pausing from posting about the stock market again today, I wish you a meaningful Memorial Day weekend as we set aside this important time to remember all who have died while serving in our armed forces. How blessed we are in America to live in freedom and protecting that freedom has been so costly to many. I’m humbled and grateful!

While doing some reading today, I came across a couple of articles that present some key facts about Memorial Day. Please go here and here to see these articles.

May God bless you.

Paul

May 26th, 2018|Memorial Day, remembering|0 Comments

Happy Mother’s Day

Hey friends. How can one express proper gratitude to his or her mother? A mother’s love is boundless.

This Sunday, we stop to thank our mothers and recognize them on a day especially set apart for them. I hope tomorrow will truly be a special day as family members love on moms, expressing the care and respect due. My mother went to be with Jesus, her Savior and Lord, in 2009. A Proverbs 31 woman, my mother’s life impacts my life in countless ways today for I learned so much about God’s great love for me and for others by her example.

Have a wonderful and blessed Mother’s Day!

May 12th, 2018|Mother's Day|0 Comments

More Choose Stocks Wisely Talk

As time has passed since first publishing my book, “Choose Stocks Wisely,” in late 2013, a recurring question comes up. In fact, I’ve noted it coming up more often very recently from new purchasers of my book. I’ll express the question this way; “the screen from your book is producing almost no (to none) stocks.” I decided to share today my response to one reader over recent days because it reflects best what my thoughts are on this matter. […]

April 28th, 2018|Balance Sheet, stock filters, stock screen|6 Comments

GE’s Accounting Restatement

Revenue is recorded (booked) “when” it is both earned and realizable. Earned means the delivery process of the good or service is fulfilled by the seller. Realizable means the money is reasonably assured of being collected by the seller. […]

April 15th, 2018|GAAP, General Electric Company, revenue recognition|0 Comments

Christ is Risen!

Friends, I wish you a blessed Easter.

Jesus died for our sins to pay off its penalty. Romans 6:23 states: “For the wages of sin is death, but the gift of God is eternal life in Christ Jesus our Lord.” (NIV, Bible) And, Jesus conquered sin, death and the grave when He arose on the third day. As first Corinthians 15:4 states: “that he was buried, that he was raised on the third day according to the Scriptures…” (NIV, Bible)

Jesus is a living Savior, able to rescue forever the one who trusts in Him. Easter means that I’ll live forever. How exciting is that news? Friday, the day of the Lord’s crucifixion is gloriously followed by Sunday’s resurrection. I hope you are celebrating the greatest news on the planet.

May God bless each of you.

March 30th, 2018|Easter, Jesus Christ|0 Comments

Tariffs, Facebook, Wall Street Rollercoaster

What’s next for the stock market? This was quite a week. It almost seems to have become the norm of late.

Today, I’ll simply share some articles I found interesting. I’d welcome your thoughts. Lately, I have seen more mentions of “value” stocks; it’s interesting how the balance sheet always becomes so relevant and fashionable when uncertainty abounds.

Go here to read on tariffs and be sure to watch the brief Wilbur Ross video embedded in the article. Go here for another piece at Bloomberg. It has an interesting video included at the outset of the article. Finally, you may find this piece interesting and helpful concerning Facebook’s breach.

The market should be interesting next week, and I suspect “volatile” again.

May God bless you.

March 24th, 2018|Facebook, Tarriffs|2 Comments

About Dr. Paul W. Allen