November 24, 2016 - By Ruchi Gupta
CRIMSON WINE (OTCMKTS:CWGL)’s shares fetched interest from OTC traders lately as its stock price moved $0.05, reaching the $9.55 level after last close. Companies are ranked as per their market caps, divided into mid-cap, small-cap and large-cap segments. CRIMSON WINE (OTCMKTS:CWGL)’s market capitalization is $226.82 million.
Large-cap firms have a market cap of over $10 billion. These large firms have usually been in industry for a long time, and are major contributors in well-established segments. Investors in large-cap firms don’t necessarily bank hefty returns in short-time, instead they are rewarded with an increase in share value in the long run. Mid-cap firms have a market capitalization of $2 billion-$10 billion. Mid-cap firms are usually established firms operating in an industry that is projected to experience quick growth. Mid-cap firms are usually in the mid-stage of expansion. They carry increased risk than large-cap firms as they are not as established as large cap firms, though their growth prospects remain an attraction to shareholders.
Small-cap firms have a market capitalization of $300 million-$2 billion. These smaller firms are usually newer or possibly service a new industry or niche market. Generally considered to be at increased risk than large or mid-cap in part due to its size, age and the markets they serve. Small-cap firms typically have fewer resources and are more responsive to the ebb-and-flow of stock markets.
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CRIMSON WINE’s shares price has recorded $-3.57 month over month. Its short interest is recorded at 10,800 with as many as 0.2 days to close the position, against 11,200 in preceding month.
Over-the-counter stocks do not trade on major stock exchanges including the New York Stock Exchange (NYSE). These stocks are typically bought online via discount broker; they are not listed on a major exchange. OTC stocks are stated to be a riskier investment compared to other securities as they have been de-listed from a major exchange, or else do not meet the requirements for any of the reputed exchanges.
Ask and bid prices can be discovered on the OTC Bulletin Board and/or the “Pink Sheets”. Ask prices are simply the amount that the stockholder wants to receive. Bid prices, on the other hand, are the offered price of investors. OTC sellers can accept, refuse or suggest a new ask price. Another concern related to OTC stocks is that it is difficult to research on these stocks, as not enough statistical data is published. These companies are classically smaller in size or have witnessed some problems or issues. Cautious investors will require to research utilizing valid reference tools, like the OTC Research Corporation to know projections, operational performance, and expert opinions on the reliability and stability of OTC stocks and the firms that are behind them. These stocks can be bought online, but care and caution should be exercised.
Many stockbrokers who offer OTC stocks trail the pricing and operating report with less diligence compared to they do for securities listed on big stock exchanges. OTC stocks are stated as “thinly traded” securities following the sheer lack of volume compared to the other major stock exchanges. However, they can be bought online.
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Due to lack of data regarding OTC stocks, care and caution should be taken before buying these securities. Only stockbrokers that own are informed about OTC stocks should be referred to, as they are aware with the differences between the major listed stocks and OTC stocks. Investors must assess the firms behind the OTC stock and know about their fundamental performance and if they have addressed any problems. Shareholders should check the important financial factors, specifically their capital, earnings per share, recent sales, book value and cash flow. Any newcomers to OTC marketplace should practice trading stocks first, due to the unpredictable and volatile nature of the stock market. A number of wired virtual trading programs let you to trade futures, options and stocks without any real financial risk.
Disclaimer: Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
More notable recent Crimson Wine Group Ltd (OTCMKTS:CWGL) news were published by: Prnewswire.com which released: “CRIMSON WINE GROUP, LTD. COMPLETES SPIN-OFF FROM LEUCADIA NATIONAL CORPORATION” on February 25, 2013, also Seekingalpha.com with their article: “Wisdom In Wine: Crimson Wine Group’s Durable Value” published on September 29, 2016, Seekingalpha.com published: “Why Crimson Wine Group Could Be Worth $20” on September 09, 2013. More interesting news about Crimson Wine Group Ltd (OTCMKTS:CWGL) were released by: Prnewswire.com and their article: “Crimson Wine Group Announces Shannon McLaren As Chief Financial Officer” published on April 15, 2015 as well as Seekingalpha.com‘s news article titled: “Value Ignored: Crimson Wine Group” with publication date: April 29, 2016.
Crimson Wine Group, Ltd. is engaged in producing and selling ultra-premium and luxury wines. The company has a market cap of $226.82 million. The Firm operates through two divisions: Wholesale Sales and Direct to Consumer Sales. It has a 66.41 P/E ratio. The Wholesale Sales segment includes all sales through a third party where prices are given at a wholesale rate whereas Direct to Consumer Sales segment includes retail sales in the tasting room, remote sites and at on-site events, Wine Club sales, and other sales made directly to the consumer without the use of an intermediary.
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By Ruchi Gupta