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Any news on FNET

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September 15, 2009 – Comments (8) | RELATED TICKERS: FNET.DL

I bought FNET a couple of months ago at $1.195, so I'm happy today.  It's up almost 200% today.  But i'm a little weary.  I can't find any news as to why it shot up, and to be honest it makes no sense.

I recommended FNET in a post a month or so ago. I can't find it right now, but I'll keep looking.  I remember saying that I had FNET, SYMX, and CEP just added to my portfolio.

But here's the thing, a couple days ago I had a chance to go over their latest financial statement and their balance sheet had deteriorated badly.  I pegged down my target price for them from about $5 to $2.50.  So I feel like this is just dumb luck.  If you followed my advice, and I don't know why you would, you might be liking me right now, but I didn't have anything to do with us.

I'm happy because I made a boat load of money today. (Not bad for a guy accused of being a perma-bear).  But I'm tempered by the fact that I don't know what I'm doing.  I just thought they were undervalued.  Now I don't know, but until I find out why they shot up, I'm going to sit tight.

Any help would be appreciated. A quick search of the Net showed no news. I'll keep digging.

David in Qatar

8 Comments – Post Your Own

#1) On September 15, 2009 at 3:18 PM, whereaminow (< 20) wrote:

Gaming Is Super Hot As Date For Senate Repeal Approaches And Gambling Advocacy Groups Vamp Up Support

Link

Still seems fishy.  This isn't exaclty breaking news.  

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#2) On September 15, 2009 at 4:11 PM, whereaminow (< 20) wrote:

And it closes at $2.45

Definitely fishy action.  I don't like it.  I can't do anything until I understand what happened, but I don't feel got about it going forward.

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#3) On September 15, 2009 at 11:17 PM, ChrisGraley (29.63) wrote:

Just my opinion Dave, but anytime I see a big market action that I can't figure out, I sell. Especially in this case, when you are making money.

I'd look for insider trading first, and if I didn't see that, I'd walk away.

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#4) On September 15, 2009 at 11:31 PM, topsecret09 (36.65) wrote:

After looking at the last quarters balance sheet I would say something Is rotten In Denmark   http://finance.yahoo.com/q/bs?s=FNET  Where did the money go from 2 quarters ago ???

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#5) On September 16, 2009 at 6:05 AM, TMFBabo (100.00) wrote:

I bought in August at $1.18 and I unloaded yesterday at $3.11.  Too bad I missed the peak.  So much volume on no news...

My 3 guesses are:
1. Heavy insider trading (seems unlikely)
2. Institutional action.  Maybe a micro cap mutual fund finally discovered and bought it?
3. Some sort of pump.

My decision was much easier because I have many stocks on my watch list I still want to buy.  I just sold FNET and bought two stocks I wanted.  

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#6) On September 16, 2009 at 7:10 AM, TMFBabo (100.00) wrote:

By the way, I believe institutional action was the most likely of the 3 scenarios I presented.  To go from 136k average 3 month volume to 7.8M for a day is way too high for a pump in my opinion.  I could be terribly wrong, but that seems like an awful lot of volume not to be an institution.

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#7) On September 16, 2009 at 7:37 AM, portefeuille (99.61) wrote:

Where did the money go from 2 quarters ago ???

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FortuNet Announces Correction of Record and Payment Date for Special Cash Dividend

Sun Apr 19, 2009 5:33pm EDT

LAS VEGAS, April 19, 2009 (GLOBE NEWSWIRE) -- FortuNet, Inc. (the "Company")
(Nasdaq:FNET) announced on April 17, 2009 the details of a Special Cash Dividend
(the "Special Dividend") of $2.50 per share. The record and payment date for the
Special Dividend was inadvertently stated as Friday, April 17 and Monday, April
27, 2009, respectively. The correct and actual record date for the Special
Dividend is Friday April 24, 2009 and the payment date will be on Monday, May 4,
2009.

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#7) On August 14, 2009 at 11:50 PM, portefeuille (99.99) wrote: FNET - 1.17 - outperform

#30) On September 15, 2009 at 10:36 AM, portefeuille (99.99) wrote: FNET - end outperform - 2.70 - new rating: market perform
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(from here)
   
 

 

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#8) On September 18, 2009 at 2:22 PM, DaretothREdux (39.79) wrote:

David,

I'll you the same thing I keep telling my buddy that has gotten "lucky" on a few stocks:

No one ever went broke taking a profit.

If it seems too good to be true it probably is.

Dare

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