Portfolio of the Week

[Websman]

Lye,
Thanks for considering me for "POTW well fare" , but my talent seems to be being the best at being the worst and I wouldn't want to mess it up. Didn't that American Idol guy what was his name ,William Hung ? make it big by being so bad. I'm on track for 16 consecutive losers !
billyjoe

It is my goal to be the worst POTW picker of all time...You'll never beat me Billyjoe.

[Rob]

What Do Ya Think?

Sorry, folks, I'm really busy and probably will be unable to get the score up until later this evening or tomorrow. In the meantime, I have a question about Karel's CELL. If you read this news story, it says:

"Brightpoint sets six-for-five stock split
Tue May 9, 2006 6:20 PM ET
May 9 (Reuters) - Brightpoint Inc. (CELL.O: Quote, Profile, Research) on Tuesday said its board approved a six-for-five stock split, to be effected through a 20 percent stock dividend.

The split is payable on May 31 to holders of record on May 19, the company said in a news release. (Reporting by Neha Singh in Bangalore)"

So the question is: is this really a split or just a huge honkin' dividend? If you were charged with keeping the score, how would you score this? I'll read the suggestions when I get home later this evening and figure out which way to go.

[IIC]

Maybe if there was some sort of prize more people would participate...Doug(IIC)

[skiracer]

Maybe if there was some sort of prize more people would participate...Doug(IIC)

Let's all throw in $5 or $10 a week and winner takes all at the close on Friday
Either we all open PayPal accounts or we send the money to the winner from each of us every week. That might make it alittle more interesting. Oh yeah, and starting this week, so everyone put up their $15 for this week. Next week we'll make it $5. Serious about the $5 or $10.

[Lyehopper]

Sorry, folks, I'm really busy and probably will be unable to get the score up until later this evening or tomorrow. In the meantime, I have a question about Karel's CELL. If you read this news story, it says:

"Brightpoint sets six-for-five stock split
Tue May 9, 2006 6:20 PM ET
May 9 (Reuters) - Brightpoint Inc. (CELL.O: Quote, Profile, Research) on Tuesday said its board approved a six-for-five stock split, to be effected through a 20 percent stock dividend.

The split is payable on May 31 to holders of record on May 19, the company said in a news release. (Reporting by Neha Singh in Bangalore)"

So the question is: is this really a split or just a huge honkin' dividend? If you were charged with keeping the score, how would you score this? I'll read the suggestions when I get home later this evening and figure out which way to go.

If the split is not payable till May 31.... it won't effect this weeks scorecard.... Right

[Websman]

Maybe if there was some sort of prize more people would participate...Doug(IIC)

Something like....maybe...a jar of Goji???

[Rob]

Week 20 (7), Day 3

Thanks for bearin' with me whilst I'm busier than a one-armed wallpaper-hanger with a bad case of hives.

Monday | Tuesday

[IIC]

Let's all throw in $5 or $10 a week and winner takes all at the close on Friday
Either we all open PayPal accounts or we send the money to the winner from each of us every week. That might make it alittle more interesting. Oh yeah, and starting this week, so everyone put up their $15 for this week. Next week we'll make it $5. Serious about the $5 or $10.

At least it would make it a little more interesting. Paypal is OK...but they sure charge a hefty commish on the money that I receive(about 5-6%)...IIC

[Karel]

... The split is payable on May 31 to holders of record on May 19, the company said in a news release. (Reporting by Neha Singh in Bangalore)" ...

There is newer news:

http://biz.yahoo.com/bw/060517/20060517005671.html?.v=1

If yesterday was the ex-d date, I am entitled to the extra shares. The quote: "holders on May 19" is a bit confusing, but I intend to be a holder of CELL on May 19, both in the POTW and in real money, if only to diminish my own confusion!

BTW, a dividend or a split are basically the same: either you get more shares for the same capital, or the same shares for less capital, and money for the difference. Dividends should be accounted for in the POTW by a dividend adjusted buy price on the ex-dividend date, I think. Has this ever happened before?

Regards,

Karel

[Rob]

Scoring

Karel, as you can see, I did adjust your purcahse price down by 20%. Having had to read the story in a bit of a rush, I didn't quite understand what they were doing. Their throwing the word "dividend" into the mix threw me a curve. When I later read, "The stock split will be accomplished through a 20% stock dividend, providing shareholders with one additional share of common stock for every five shares they hold," and that the float would be increased accordingly, I realized this would be the correct way to handle it.

On the question of figuring dividends into the daily/weekly POTW scores, personally I'm disinclined to do that, in favor of keeping it as simple and as easy to understand as possible. If you pick a stock that costs 30 bucks when you buy it, and you sell it for 33 bucks, you made 10%. Clean, simple, uncluttered. And if you think about it, how many people consider the dividend on a stock they plan to sell in a week or less? I'm not saying it doesn't happen, just that it's quite uncommon.

[mimo_100]

Sorry, folks, I'm really busy and probably will be unable to get the score up until later this evening or tomorrow. In the meantime, I have a question about Karel's CELL. If you read this news story, it says:

"Brightpoint sets six-for-five stock split
Tue May 9, 2006 6:20 PM ET
May 9 (Reuters) - Brightpoint Inc. (CELL.O: Quote, Profile, Research) on Tuesday said its board approved a six-for-five stock split, to be effected through a 20 percent stock dividend.

The split is payable on May 31 to holders of record on May 19, the company said in a news release. (Reporting by Neha Singh in Bangalore)"

So the question is: is this really a split or just a huge honkin' dividend? If you were charged with keeping the score, how would you score this? I'll read the suggestions when I get home later this evening and figure out which way to go.

A stock split and a stock dividend are the same thing

as far as the number of shares and the cost basis is concerned.



100% stock dividend = 2 for 1 split

50% stock dividend = 3 for 2 split

20% stock dividend = 6 for 5 split

10% stock dividend = 11 for 10 split

5% stock dividend = 21 for 20 split



The difference comes in when talking about the tax consequences

of the distribution.


Tim

[Rob]

Terminology

Thanks, Tim. Yes, I realize now it is the term "stock dividend" vs. just plain "dividend" that makes the difference.

[dmk112]

I'll cover the ELOS... thanks Rob

[Rob]

Week 20 (7), Day 4

As of today it's not looking quite as ugly as last week, but we ain't out of the woods yet.

Monday | Tuesday | Wednesday

[skiracer]

As of today it's not looking quite as ugly as last week, but we ain't out of the woods yet.

Monday | Tuesday | Wednesday

Now that exit on MED isn't looking as bad as I thought right after I did it. Funny that out of all the players that are on the plus side only two are long positions. All the others are short positions. I'm looking for something but nothing I see right now interests me that much.