About : Quest Minerals & Mining acquires and operates energy and mineral related properties in the southeastern part of the United States. Quest is a holding company for Quest Energy, Ltd., and Gwenco, Inc. Gwenco leases over 700 acres of coal mines, with approximately 12,999,000 tons of coal in place. In 2007 Gwenco had reopened Gwenco’s deep mine at Pond Creek and has begun production at the Pond Creek seam.
I played this stock for in month of September for a very quick profit flip. My hands are eager to click on that buy button one more time, as In a couple of weeks QMNM will be filing their 3Q 10Q.
Here is some more DD, which makes me holdback before I jump into a blunder again.
Reverse stock splits aren’t pretty. They are admissions of failure. They are public declarations that certain companies can’t dig their way out of the pocket change muck on their own. Keeping this in mind, QMNM did 2 R/S’s the second half of last year. The latest one was just days before Christmas. If you ask me, that was an outright slap in the face of the shareholders. This should gives you a very good idea what type of guy Eugene is.
On the other hand, for decades, studies have shown that companies that repurchase 5%-10% of their shares outperform the market. Value investors consider buybacks one of the most reliable signals of an undervalued stock. HOWEVER, there are four reasons companies buy back their stock, and only one that helps shareholders…
1) When executives are paid with stock options instead of cash, the company dilutes shareholder value. So management can initiate a buyback to avoid shareholder complaints. But it’s really just a roundabout way to pay themselves bonuses.
2) When those executives redeem their options for shares, management can buy the shares back at better prices than they would have received otherwise. This is called a “very nefarious conduct.”
3) Rather than get locked into a raised dividend, the company wants a one-time share repurchase to return value to shareholders. But, if a stock yields 2%, buying back a share costs 50 years of dividends! This type of buyback accounts for the vast majority of today’s repurchases.
4) If management determines shares are undervalued, it can start a buyback program to remove shares from the market… and long-term investors are rewarded with leveraged returns. (When a company reduces the number of shares, each remaining share represents a greater percentage of the company and a greater percentage of future earnings.)
The above host is In my humble opinion only.