Emergency meetings
Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
about emergency meetings. Any thoughts/ideas?
How do you Define emergency? For a club, I can't think of a reason for an emergency meeting.
On Wednesday, October 23, 2013, Janice Burwell wrote:
--
Mark Eckman
On Wednesday, October 23, 2013, Janice Burwell wrote:
Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
--
Mark Eckman
Occasionally we have telephone/email votes when the officers decide that something bad has transpired with a certain stock. For example, we cancelled a limit-buy order when a member died and we had to pay out the estate. We've only used it 4-5 times in our 8-year history.
Permission to do this is written as an amendment to our by-laws.
On Thu, Oct 24, 2013 at 6:56 AM, Mark Eckman <mark2459@gmail.com> wrote:
How do you Define emergency? For a club, I can't think of a reason for an emergency meeting.--
On Wednesday, October 23, 2013, Janice Burwell wrote:Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
Mark Eckman
Why muddy your bylaws? If your club operates on a majority rule just discuss what would merit that type of meeting and let the president handle it.
Lynn O.
On Oct 23, 2013 11:04 PM, "Janice Burwell" <burwellonthego@yahoo.com> wrote:
Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
This is an interesting topic. I guess your rules might depend on what would you consider an "emergency" situation. There really shouldn't be too many in an investment club.
An "emergency" I experienced with my club not too long ago was a sudden drop in a stock we had a limit order to purchase.I believe the company we were interested in announced earnings after the market closed that the market wasn't happy with. I noticed that the stock had moved way below our limit price pre-market so I didn't think it made sense to keep it on.
It wasn't easy to try and get everyones email input in any kind of timely manner. Perhaps the lesson there was more not to have limit orders in place across earnings dates or to determine in advance that someone will watch the market reaction and give them guidelines on how to proceed if there is a drastic swing in price.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.
What sort of club "emergencies" have others experienced?
Laurie Frederiksen
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On Thu, Oct 24, 2013 at 8:54 AM, Lynn Ostrem <garbagecop@gmail.com> wrote:
Why muddy your bylaws? If your club operates on a majority rule just discuss what would merit that type of meeting and let the president handle it.
Lynn O.
On Oct 23, 2013 11:04 PM, "Janice Burwell" <burwellonthego@yahoo.com> wrote:Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
My club held an "emergency" telephonic meeting when we received horrible news about EBIX. There were accusations against it, and IAS reported the bad information as well and stated that because of these allegations it would stop covering it. Because of these related news items we decided to sell. Because of our emergency meeting, we sold the day before a precipitous price drop.
I believe the company we were interested in announced earnings after the market closed that the market wasn't happy with. I noticed that the stock had moved way below our limit price pre-market so I didn't think it made sense to keep it on.
I tried emailing our club to see what everyone thought but everyone doesn't read their emails regularly. So I made the executive decision to take the limit off and I tried to get an email consensus on whether to still buy at the reduced price or re-assess the purchase decision in light of the new news.
Roy Chastain
On Thursday, October 24, 2013 10:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
This is an interesting topic. I guess your rules might depend on what
would you consider an "emergency" situation. There really shouldn't be too many in an investment club.
An "emergency" I experienced with my club not too long ago was a sudden drop in a stock we had a limit order to purchase.I believe the company we were interested in announced earnings after the market closed that the market wasn't happy with. I noticed that the stock had moved way below our limit price pre-market so I didn't think it made sense to keep it on.
It wasn't easy to try and get everyones email input in any kind of timely manner. Perhaps the lesson there was more not to have limit orders in place across earnings dates or to determine in advance that someone will watch the market reaction and give them guidelines on how to proceed if there is a drastic swing in price.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.
What sort of club "emergencies" have others experienced?
Laurie Frederiksen
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On Thu, Oct 24, 2013 at 8:54 AM, Lynn Ostrem <garbagecop@gmail.com> wrote:
Why muddy your bylaws? If your club operates on a majority rule just discuss what would merit that type of meeting and let the president handle it.Lynn O.On Oct 23, 2013 11:04 PM, "Janice Burwell" <burwellonthego@yahoo.com> wrote:Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
We use a stop loss on stocks that we fear might not hold until the next meeting. It has been effective and prevented losses on some of our stocks. A broker we had as a guest speaker said "stop losses" are for fearful investors. But with this economy I feel fearful most of the time!!
Jayne
Make A Lot Investment Club
Houston
From: Laurie Frederiksen <laurie@bivio.biz>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Thursday, October 24, 2013 12:12 PM
Subject: Re: [club_cafe] Emergency meetings
To: The Club Cafe <club_cafe@bivio.com>
Sent: Thursday, October 24, 2013 12:12 PM
Subject: Re: [club_cafe] Emergency meetings
This is an interesting topic. I guess your rules might depend on what would you consider an "emergency" situation. There really shouldn't be too many in an investment club.
An "emergency" I experienced with my club not too long ago was a sudden drop in a stock we had a limit order to purchase.I believe the company we were interested in announced earnings after the market closed that the market wasn't happy with. I noticed that the stock had moved way below our limit price pre-market so I didn't think it made sense to keep it on.
It wasn't easy to try and get everyones email input in any kind of timely manner. Perhaps the lesson there was more not to have limit orders in place across earnings dates or to determine in advance that someone will watch the market reaction and give them guidelines on how to proceed if there is a drastic swing in price.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.
What sort of club "emergencies" have others experienced?
Laurie Frederiksen
Invest with your friends!
http://www.bivio.com/
Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
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Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe
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On Thu, Oct 24, 2013 at 8:54 AM, Lynn Ostrem <garbagecop@gmail.com> wrote:
Why muddy your bylaws? If your club operates on a majority rule just discuss what would merit that type of meeting and let the president handle it.Lynn O.On Oct 23, 2013 11:04 PM, "Janice Burwell" <burwellonthego@yahoo.com> wrote:Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
On Thu, Oct 24, 2013 at 12:12 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
I tried emailing our club to see what everyone thought but everyone doesn't read their emails regularly. So I made the executive decision to take the limit off and I tried to get an email consensus on whether to still buy at the reduced price or re-assess the purchase decision in light of the new news.This is an interesting topic. I guess your rules might depend on what would you consider an "emergency" situation. There really shouldn't be too many in an investment club.An "emergency" I experienced with my club not too long ago was a sudden drop in a stock we had a limit order to purchase.
I believe the company we were interested in announced earnings after the market closed that the market wasn't happy with. I noticed that the stock had moved way below our limit price pre-market so I didn't think it made sense to keep it on.
It wasn't easy to try and get everyones email input in any kind of timely manner. Perhaps the lesson there was more not to have limit orders in place across earnings dates or to determine in advance that someone will watch the market reaction and give them guidelines on how to proceed if there is a drastic swing in price.
Perhaps you need to define specifically what an "emergency" is and then delegate those decisions to a small group of officers that are committed to be available.What sort of club "emergencies" have others experienced?
Laurie Frederiksen
Invest with your friends!
www.bivio.com
Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
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Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe
On Thu, Oct 24, 2013 at 8:54 AM, Lynn Ostrem <garbagecop@gmail.com> wrote:Why muddy your bylaws? If your club operates on a majority rule just discuss what would merit that type of meeting and let the president handle it.
Lynn O.
On Oct 23, 2013 11:04 PM, "Janice Burwell" <burwellonthego@yahoo.com> wrote:Our club is considering including language in our by laws
about emergency meetings. Any thoughts/ideas?
It's important to understand that Stop Loss orders do NOT
guarantee that a stock will be sold at the Stop Loss price.
When a stock reaches the Stop Loss price, then the Stop Loss
order becomes a Market order. If the stock drops rapidly
overnight, for example, and reaches the Stop Loss price
before the market opens, it will be sold for the current
price when the market opens. This could be MUCH lower than
the Stop Loss price. Luckily, huge, rapid drops are
relatively rare, but they do occur. If you really want to
protect yourself, and you own enough shares (usually a
multiple of 100 shares), then you can purchase a PUT
(option). If the stock price drops precipitately, you can
exercise the PUT to sell the shares at the PUT's strike
price. Of course, like all insurance policies, there is a
premium cost involved, and a PUT will cover the underlying
stock only for a certain time before it expires (like term
insurance). Recently I have seen that mini options have
become available. These options cover only 10 shares instead
of 100. The premium per share is probably similar to a
regular PUT, but the commission cost becomes a much larger
percentage of the total cost. Still, if you have only 10,
20, or 90 shares to protect, they might be useful.
guarantee that a stock will be sold at the Stop Loss price.
When a stock reaches the Stop Loss price, then the Stop Loss
order becomes a Market order. If the stock drops rapidly
overnight, for example, and reaches the Stop Loss price
before the market opens, it will be sold for the current
price when the market opens. This could be MUCH lower than
the Stop Loss price. Luckily, huge, rapid drops are
relatively rare, but they do occur. If you really want to
protect yourself, and you own enough shares (usually a
multiple of 100 shares), then you can purchase a PUT
(option). If the stock price drops precipitately, you can
exercise the PUT to sell the shares at the PUT's strike
price. Of course, like all insurance policies, there is a
premium cost involved, and a PUT will cover the underlying
stock only for a certain time before it expires (like term
insurance). Recently I have seen that mini options have
become available. These options cover only 10 shares instead
of 100. The premium per share is probably similar to a
regular PUT, but the commission cost becomes a much larger
percentage of the total cost. Still, if you have only 10,
20, or 90 shares to protect, they might be useful.
Here's an explanation of mini options.
http://www.schwab.com/public/schwab/resource_center/expert_insight/investing_strategies/options/what_is_a_mini_option.html
They're currently only available for 5 stocks. One of them, GLD, is not something we'd recommend that you hold in an investment club. It is a commodity ETF and it brings along very complicated accounting and tax reporting issues with it.http://www.schwab.com/public/schwab/resource_center/expert_insight/investing_strategies/options/what_is_a_mini_option.html
Laurie Frederiksen
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