8-K Forms. What Are They? How Can We Profit From Them?

We figured we’d let everyone know what exactly an 8-K is and why it’s so great for identifying future, potential runners.

If a company is full-reporting, then almost any change in their day-to-day operations, including anything from change of board of directions to a new arrangement, deal, merger, acquisition, etc. will be released in an 8-K. This is just the name given to the SEC form for notifying shareholders of this change in the company. 

The company is required to file an 8-K, but not necessarily a Press Release on the matter. Often times, the company will release an 8-K, then followed by the Press Release. This can be a great time to intersect and find potential gains, considering the fact that many traders amy overlook an 8-K due to its more formal/non-headline driven nature. However, a Press Release, with a catchy title can seriously attract investors to the same exact material in the 8-K.

Actual Gains excels in weeding through 8-Ks and finding the undiscovered potential in what could eventually make for a savvy press release, thus giving investors a potential edge and early position in companies before they Press Release and expand awareness on their prosperous operations. This is a nice trick, since the information is all already public, but traders may overlook it due to the presentation and may not see it until it is in a presentation that they prefer.  Sign up to see our alerts and how profitable these situations can be!

For more info, here is a list of events that an 8-K may be used to announce:

 

Section 1 Registrant’s Business and Operations
Item 1.01 Entry into a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement
Item 1.03 Bankruptcy or Receivership
Section 2 Financial Information
Item 2.01 Completion of Acquisition or Disposition of Assets
Item 2.02 Results of Operations and Financial Condition
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Item 2.05 Costs Associated with Exit or Disposal Activities
Item 2.06 Material Impairments
Section 3 Securities and Trading Markets
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.02 Unregistered Sales of Equity Securities
Item 3.03 Material Modification to Rights of Security Holders
Section 4 Matters Related to Accountants and Financial Statements
Item 4.01 Changes in Registrant’s Certifying Accountant
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Section 5 Corporate Governance and Management
Item 5.01 Changes in Control of Registrant
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
Item 5.04 Temporary Suspension of Trading Under Registrant’s Employee Benefit Plans
Item 5.05 Amendment to Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics
Item 5.06 Change in Shell Company Status
Section 6 Asset-Backed Securities
Item 6.01 ABS Informational and Computational Materials
Item 6.02 Change of Servicer or Trustee
Item 6.03 Change in Credit Enhancement or Other External Support
Item 6.04 Failure to Make a Required Distribution
Item 6.05 Securities Act Updating Disclosure
Section 7 Regulation FD
Item 7.01 Regulation FD Disclosure
Section 8 Other Events
Item 8.01 Other Events (The registrant can use this Item to report events that are not specifically called for by Form 8-K, that the registrant considers to be of importance to security holders.)
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits