Seeking Alpha Article from Tony Cataldo: Arris
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Posted On: 07/29/2018 3:04:00 PM
Seeking Alpha Article from Tony Cataldo:
Arris Fails To Meet Deadlines Or Disclose Negligence In The UnifiedOnline Case…So Far
Jul. 29, 2018 10:45 AM ET|5 comments |About: ARRIS International plc (ARRS), UOIP
Summary
If I fail to file my tax return on a timely basis, I pay a penalty; on Friday, news “hit” that Arris failed to meet a deadline, jeopardizing shareholder value.
UnifiedOnlilne stock, a penny stock and “neglected” security trading in a relatively inefficient market, reacted positively to the news.
Arris International PLC, a mid-cap stock operating in a relatively efficient market, reacted negatively to the news.
Ernst & Young, attorneys for Arris, and Arris executives have some very difficult decisions to make, and, IMHO, in the very near term.
It is my humble opinion that you will be able to safely buy UOIP at and up through $0.05 PPS, tomorrow, and do very, very well.
Source: PTAB
Below is the article that “hit” the wires on Friday, July 28, 2018:
I am not an attorney, and do not practice law, but it seems reasonable, to me, that failure by the law firm representing Arris (ARRS) and/or the Arris directors and officers constitutes some form or level of negligence. Below is the definition of Time-Barred:
Of course, executives have what is referred to as “D&O” or directors and officers insurance, but I am not sure that coverage would pay shareholders and stakeholders experiencing economic damages due to this form of negligence and/or gross negligence. It is, for this reason, that I believe there is a very high risk that the executives at Arris will be sued by shareholders in some form of class action lawsuit, at some future point in time. Again, I do not practice law – it is just some conjecture, on my part, and based on common sense.
How Did the Price-per-Share for UnifiedOnline, Inc. Stock React?
Below is the 5-day chart for the price-per-share [PPS] for UnifiedOnline (OTCPK:UOIP):
For Friday, the PPS increased 46.3%, closing very near the high-of-day at $0.0395 PPS.
How Did the Price-per-Share for Arris International, PLC React?
For Friday, the PPS decreased a mere 1.76%, closing very close to the low-of-day at $25.19 PPS.
Is there a Statistical Correlation between the 5-day movement in PPS for UnifiedOnline and Arris?
I like to run statistics. Of course, 5 days is a pretty darned small sample, but the news did hit on Friday, and there does appear to be some form of negative or inverse correlation, so that is what I have to work with and it is what it is.
First, just a simple 5-day chart comparison for the 2 stocks, using Fidelity:
There is not really much to see, in the above graphic. Clearly, there was an upside over-reaction for UOIP, relative to ARRS, but that is to be expected from a “neglected” security. When news “hits,” the level of neglect declines, and the stock tends to trade more efficiently. Let’s try using statistics.
UOIP Volume v. ARRS Volume
The above results are really quite excellent. Effectively, 66% of the volume in 1 stock explains the volume in the other. Arris is reacting to the news.
UOIP Close v. ARRS Close
The above results are also quite excellent. Effectively, 69% of the closing PPS in 1 stock explains the closing PPS in the other. Again, Arris is reacting to the news.
UOIP Low v. ARRS Low
Finally, the above results are also quite excellent. Effectively, 65% of the low PPS in 1 stock explains the low PPS in the other. Again, Arris is reacting to the news.
Conclusion
There is [1] a causal linkage, as we know from the lawsuit, itself, and [2] a statistical correlation, though inverse, between UOIP and ARRS over a mere 5 trading day period, and they are statistically significant. In the absence of evidence to the contrary, I would expect this pattern to continue this coming week.
Effectively, go long UOIP and short ARRS.
Raw data is provided, below:
My Objective, as I near 61 Years of Age, is to Retire - Kinda
I rolled over $10K from an IRA to a TDAmeritrade accounting on December 6, 2016. My gain for 2017 was $25,513.63. I added another $6,063.64 on December 17, 2017, and my year-to-date realized gains for 2018 are at $104,656.69, for a portfolio value at $188,092.97 as of Friday. I estimated that I needed less than $30K per year to retire, so I am a happy guy.
UOIP is going to pay off, and Arris is, now, under tremendous pressure to settle this case before it goes to a jury trial in less than 1 year. Quite frankly, I think they are “kaput” and do not understand why anyone would want to buy-and-hold this stock.
The above, of course, is not my entire net worth, and none of this is really day-trading, just purchases of neglected securities. I am having fun, and UOIP is going to put me into early retirement, where I will spend my remaining years on the planet [1] getting up early, [2] having some coffee with wifey, [3] spending a few minutes scanning the premarket to see if there is any action or opportunities (9 trading days out of 10, nothing is going on), and, of course, [4] mow the lawn, visit the grand critters, go out to eat, go fishing, do some writing, teach some online courses, and just have some fun. We’ve done a dozen cruises, but if stuff goes REALLY well, maybe a few more.
I am not wealthy and I am not poor, but trading the “neglected” securities is fun and kinda profitable.
Best to all!
AJ
Disclosure: I am/we are long UOIP.
https://seekingalpha.com/instablog/3646631-an...e-case-far
Arris Fails To Meet Deadlines Or Disclose Negligence In The UnifiedOnline Case…So Far
Jul. 29, 2018 10:45 AM ET|5 comments |About: ARRIS International plc (ARRS), UOIP
Summary
If I fail to file my tax return on a timely basis, I pay a penalty; on Friday, news “hit” that Arris failed to meet a deadline, jeopardizing shareholder value.
UnifiedOnlilne stock, a penny stock and “neglected” security trading in a relatively inefficient market, reacted positively to the news.
Arris International PLC, a mid-cap stock operating in a relatively efficient market, reacted negatively to the news.
Ernst & Young, attorneys for Arris, and Arris executives have some very difficult decisions to make, and, IMHO, in the very near term.
It is my humble opinion that you will be able to safely buy UOIP at and up through $0.05 PPS, tomorrow, and do very, very well.
Source: PTAB
Below is the article that “hit” the wires on Friday, July 28, 2018:
I am not an attorney, and do not practice law, but it seems reasonable, to me, that failure by the law firm representing Arris (ARRS) and/or the Arris directors and officers constitutes some form or level of negligence. Below is the definition of Time-Barred:
Of course, executives have what is referred to as “D&O” or directors and officers insurance, but I am not sure that coverage would pay shareholders and stakeholders experiencing economic damages due to this form of negligence and/or gross negligence. It is, for this reason, that I believe there is a very high risk that the executives at Arris will be sued by shareholders in some form of class action lawsuit, at some future point in time. Again, I do not practice law – it is just some conjecture, on my part, and based on common sense.
How Did the Price-per-Share for UnifiedOnline, Inc. Stock React?
Below is the 5-day chart for the price-per-share [PPS] for UnifiedOnline (OTCPK:UOIP):
For Friday, the PPS increased 46.3%, closing very near the high-of-day at $0.0395 PPS.
How Did the Price-per-Share for Arris International, PLC React?
For Friday, the PPS decreased a mere 1.76%, closing very close to the low-of-day at $25.19 PPS.
Is there a Statistical Correlation between the 5-day movement in PPS for UnifiedOnline and Arris?
I like to run statistics. Of course, 5 days is a pretty darned small sample, but the news did hit on Friday, and there does appear to be some form of negative or inverse correlation, so that is what I have to work with and it is what it is.
First, just a simple 5-day chart comparison for the 2 stocks, using Fidelity:
There is not really much to see, in the above graphic. Clearly, there was an upside over-reaction for UOIP, relative to ARRS, but that is to be expected from a “neglected” security. When news “hits,” the level of neglect declines, and the stock tends to trade more efficiently. Let’s try using statistics.
UOIP Volume v. ARRS Volume
The above results are really quite excellent. Effectively, 66% of the volume in 1 stock explains the volume in the other. Arris is reacting to the news.
UOIP Close v. ARRS Close
The above results are also quite excellent. Effectively, 69% of the closing PPS in 1 stock explains the closing PPS in the other. Again, Arris is reacting to the news.
UOIP Low v. ARRS Low
Finally, the above results are also quite excellent. Effectively, 65% of the low PPS in 1 stock explains the low PPS in the other. Again, Arris is reacting to the news.
Conclusion
There is [1] a causal linkage, as we know from the lawsuit, itself, and [2] a statistical correlation, though inverse, between UOIP and ARRS over a mere 5 trading day period, and they are statistically significant. In the absence of evidence to the contrary, I would expect this pattern to continue this coming week.
Effectively, go long UOIP and short ARRS.
Raw data is provided, below:
My Objective, as I near 61 Years of Age, is to Retire - Kinda
I rolled over $10K from an IRA to a TDAmeritrade accounting on December 6, 2016. My gain for 2017 was $25,513.63. I added another $6,063.64 on December 17, 2017, and my year-to-date realized gains for 2018 are at $104,656.69, for a portfolio value at $188,092.97 as of Friday. I estimated that I needed less than $30K per year to retire, so I am a happy guy.
UOIP is going to pay off, and Arris is, now, under tremendous pressure to settle this case before it goes to a jury trial in less than 1 year. Quite frankly, I think they are “kaput” and do not understand why anyone would want to buy-and-hold this stock.
The above, of course, is not my entire net worth, and none of this is really day-trading, just purchases of neglected securities. I am having fun, and UOIP is going to put me into early retirement, where I will spend my remaining years on the planet [1] getting up early, [2] having some coffee with wifey, [3] spending a few minutes scanning the premarket to see if there is any action or opportunities (9 trading days out of 10, nothing is going on), and, of course, [4] mow the lawn, visit the grand critters, go out to eat, go fishing, do some writing, teach some online courses, and just have some fun. We’ve done a dozen cruises, but if stuff goes REALLY well, maybe a few more.
I am not wealthy and I am not poor, but trading the “neglected” securities is fun and kinda profitable.
Best to all!
AJ
Disclosure: I am/we are long UOIP.
https://seekingalpha.com/instablog/3646631-an...e-case-far
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