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STOCK #1

Hawaiian Electric (Ticker: HE) has been clobbered this week after the fallout from the Maui fires. It closed last Friday at $32.40. It closed Wednesday at $14.57. It actually finished down Wednesday after being up over 16% earlier. I don't have a position yet, but am watching it closely. I'm debating with myself about whether this potentially represents true value (at a lower level than where it is now) or whether bankruptcy is the end result.

STOCK #2

And an even wilder one if you can imagine that... Sachs Parente Golf (Ticker: SPGC), which makes $400 putters for golfers, had an IPO on Tuesday. It opened at $4.40 on Tuesday. At about 1:45pm EST it ran from $8+ to exactly $30 in just about 1 hour!

Wednesday's high was $21.90 and it closed at just $4.47. I bot some near the closing price figuring that whomever took it from $8 to $30 in an hour might try a second time after they tell a few friends. I don't expect ANYTHING NEAR $30, but thought it had a decent chance at getting a bounce.

So, in less than a 2-day stretch, SPGC went from $4+ to $30 and back down to $4+.

If you like roller coaster rides, you now know about two of them. Please don't play either of these with money that isn't gambling money. Also, please don't expect the juicy dividend paid by HE to remain. I fully expect it to be either slashed aggressively or eliminated altogether...and soon.

correct name is Sacks Parente Golf, spelled with a k rather than an h.

I don't like this entry point.

There is a selling shareholder with about 10% of the company selling 1 million shares under the same prospectus as the IPO. So you can expect plenty of shares to be available this week and that price to come back down. Its a very very small company so thats why the price ran up.

Also, I've never heard of the underwriter The Benchmark Company so good luck to them maintaining the price.

On the positive side, most of the shares are locked up for a year. I would expect this stock to be much lower after those lockup expire in 12 months. From the prospectus:


Lock-Up Agreements

Pursuant to certain “lock-up” agreements, the Company’s executive officers, directors and holders of more than 5% of the Company’s common stock and securities exercisable for or convertible into its common stock outstanding immediately upon the closing of this offering, except for 1,000,000 shares being offered for resale by a stockholder in the concurrent resale being registered in the registration statement of which this prospectus forms a part, have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any common stock or securities convertible into or exchangeable or exercisable for any common stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of twelve (12) months from the date of effectiveness of the offering. Further, holders of 5% or less of the Company’s common stock, except for 561,375 shares being offered for resale by a stockholder in the concurrent resale being registered in the registration statement of which this prospectus forms a part, have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any common stock or securities convertible into or exchangeable or exercisable for any common stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of six (6) months from the date of effectiveness of the offering. In addition, the Company has agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any common stock or securities convertible into or exchangeable or exercisable for any common stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of twelve (12) months from the date of closing of the offering.

I noticed the sudden drop for HE.

I had friends in the 80s who bought stock in the electric company responsible for the Three Mile Island nuke. Their theory was an electric monopoly will never go bankrupt.

They made a huge amount of money when the stock recovered after the accident.