Sky-mobi Limited (MOBI): Love companies without too many shares outstanding and a solid business plan. MOBI has been hit hard by shorting. This is great since the shorters covering mixed with late coming shorters who get "squeezed" mixed in with fresh buying should give this a very nice push. Im waiting for buying to start coming in then I think you can grab a nice $2 off the table safely...
Shares shorted have increased from 123.56K to 622.80K month-over-month, which is a change representing 6.89% of a 7.25M share float. The stock is exhibiting strong upside momentum - currently trading 41.32% above its SMA20, 75.77% above its SMA50, and 127.1% above its SMA200. The stock has had a couple of great days, gaining 18.15% over the last week.
Trailing stop of 15% just to be safe...
Harbin Electric, Inc. (HRBN): Another low float Chinese company. News reported the CEO had the financing (2 weeks ago) to take this company private in a buyout....with it near the 52 week low, I think this is a nice one to ride the uptick on! Grab it under $18 if possible and look to exit before the $20 resistance.
Industrial Electrical Equipment Industry. Market cap of $612.19M. PEG at 0.37. P/FCF at 8.42. Net institutional shares purchased over the current quarter at 1.6M, which is 7.97% of a 20.07M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.2). The stock is a short squeeze candidate, with a short float at 32.29% (equivalent to 14.37 days of average volume). The stock has lost 12.86% over the last year.
KUTV- This one is a little trickier. Made such a huge run on major increase in volume and was up nearly 100%. Now everyone is grabbing profits and shorts are screaming in...but this has a low float, great exposure on NASDAQ and is primed for another run. A stock like this will usually reverse from its open. Just like today...it ran up, but finished at the bottom. If it opens down big (under $5.50), I think it finishes Friday up and is a great entry. If it opens on an uptick I would hold off till next week to ride it. Good luck.
Always use those trailing stops!
Thursday, May 5, 2011
Wednesday, May 4, 2011
Updates on last few picks
Sorry I did not keep you updated on the last two trades... I like telling people when to get out as well as buy.
AVVC is done. High risk. Hit it for a nice 10% gain, but re entered with terrible timing and got hit with a 13% loss. It was a total pump and dump. I made the mistake of still trying to grab a profit after the flyers and emails went out (its too late then).
Same with SGLB. Grabbed a position at .11 only to stop out at .09. However it dropped to around.055 and buying came flooding in, so I grabbed a position at .068 and closed it at .098. Now its sitting at .03 a couple days later. Shouldnt mess with P and D's.
EBIX was a good short if you kept the trailing stops. You might have gotten stopped out April 1st...if not you are now in the money. It continues to bleed and edge lower! What a great pick it became. I think its headed below $20 if it can break the resistance.
Finally the Japanese Shorts are paying off! Took a month but they are all declining nicely if you have a short position
GLUU has been a GREAT buy and trade. Pick up shares in the $3.65 range if it dips. Its a solid company and people have been trading in and out.
Remember always use your Stops!
AVVC is done. High risk. Hit it for a nice 10% gain, but re entered with terrible timing and got hit with a 13% loss. It was a total pump and dump. I made the mistake of still trying to grab a profit after the flyers and emails went out (its too late then).
Same with SGLB. Grabbed a position at .11 only to stop out at .09. However it dropped to around.055 and buying came flooding in, so I grabbed a position at .068 and closed it at .098. Now its sitting at .03 a couple days later. Shouldnt mess with P and D's.
EBIX was a good short if you kept the trailing stops. You might have gotten stopped out April 1st...if not you are now in the money. It continues to bleed and edge lower! What a great pick it became. I think its headed below $20 if it can break the resistance.
Finally the Japanese Shorts are paying off! Took a month but they are all declining nicely if you have a short position
GLUU has been a GREAT buy and trade. Pick up shares in the $3.65 range if it dips. Its a solid company and people have been trading in and out.
Remember always use your Stops!
Friday, April 29, 2011
Oh how I MISSED THE LITHIUM Debacle - Still a Trade
All the Short Sellers were screaming to short LEXG.OB last Wed....and they were right. I tried and tried to pick up shares through various accounts to short at over $10 yesterday...
Although LEXG and LTUM are up, If you can short these, both are still headed south after the shorts cover...wait for another "break" in the stock to get in...I REALLY believe LEXG may be under $1 soon. Definitely will see $2-$3 again. Its a TOTAL FRAUD of a company with 1 employee and yet they pumped the stock to over $10.50 (and a $300MM market cap). LTUM isnt much different.
If you like shorting and use "Interactive Brokers" or SOGOTRADE, you should be able to short these. Good luck
Although LEXG and LTUM are up, If you can short these, both are still headed south after the shorts cover...wait for another "break" in the stock to get in...I REALLY believe LEXG may be under $1 soon. Definitely will see $2-$3 again. Its a TOTAL FRAUD of a company with 1 employee and yet they pumped the stock to over $10.50 (and a $300MM market cap). LTUM isnt much different.
If you like shorting and use "Interactive Brokers" or SOGOTRADE, you should be able to short these. Good luck
Wednesday, April 20, 2011
A couple of Pump Picks
Hope you enjoyed BERX before the drop. I enjoyed a nice, nearly .50 Gain on it.
Now a couple more pumps that you probably should take about 40% on....
AVVC- Avatar Adventures. Anything under $1.50 is a good entry right now. I think its going to $1.80 before it runs out of steam!
Looking at SGLB- Loads of shares, but its fighting at the bottom with a rumored pump coming. Could be a good 20% with higher risk.
Use trailing stops as always!
Now a couple more pumps that you probably should take about 40% on....
AVVC- Avatar Adventures. Anything under $1.50 is a good entry right now. I think its going to $1.80 before it runs out of steam!
Looking at SGLB- Loads of shares, but its fighting at the bottom with a rumored pump coming. Could be a good 20% with higher risk.
Use trailing stops as always!
Friday, April 8, 2011
Sorry for the Vacation- More Picks
Been neglecting the updates lately! I am back....Got some good ones to:
Exiting EVSI- This one has seen better days. Made some nice profits here....moving on
Go for GLUU-
Video game developer Glu Mobile is generating huge interest as it adds venues for its gaming output. While the big news earlier this year was its partnership with NVIDIA (Nasdaq: NVDA ) , the real catalyst for growth will be simply that it's not Zynga. You're not going to confuse Glu's Contract Killer with Farmville. There's a reason Call of Duty is such a huge hit on bigger platforms: It's a lot more fun than milking a cow. Adding that excitement to iPhones or Android-based devices ought to attract a big following to Glu's offerings.
Again with it down in the 3.80's this is a GREAT entry point.
Took position in BERX. Yeah its a pink sheet but looking for a quick 40 cents. So far so good with my position at 1.22 last Friday.
Exiting EVSI- This one has seen better days. Made some nice profits here....moving on
Go for GLUU-
Video game developer Glu Mobile is generating huge interest as it adds venues for its gaming output. While the big news earlier this year was its partnership with NVIDIA (Nasdaq: NVDA ) , the real catalyst for growth will be simply that it's not Zynga. You're not going to confuse Glu's Contract Killer with Farmville. There's a reason Call of Duty is such a huge hit on bigger platforms: It's a lot more fun than milking a cow. Adding that excitement to iPhones or Android-based devices ought to attract a big following to Glu's offerings.
Again with it down in the 3.80's this is a GREAT entry point.
Took position in BERX. Yeah its a pink sheet but looking for a quick 40 cents. So far so good with my position at 1.22 last Friday.
Friday, March 25, 2011
3/25- Short Play Ebix
Shares of insurance software vendor Ebix (Nasdaq: EBIX ) were minding their own business on a humdrum day, until all hell broke loose and the stock fell more than 26% on truly massive trading volume in the early afternoon. So what: This stock suffered an entirely inexplicable fall a couple of weeks ago, but this time there's a real driver behind the action. A scathing three-part article that eviscerates Ebix for being overpriced and possibly fraudulent hit the news feed just as the panic-selling started, showing that investors were taking that message to heart.
People invested in Ebix are panicked. This is PRIME TIME to short. Normally I would watch to see if a stock like this settles in..but, after hours we got the news of an investigation being launched...this should only add gasoline to the fire.
I love the fact that the stock is WAY UP from its lows this year (400%) meaning a lot of people will decide to take their gains while they can adding to the selling.
Action: Short as many shares as you can get in the mid 22's and use 10% trailing stops in case some major short suddenly covers or they release good news to curb the bleeding. I think we could see another 10-20% tomorrow.
People invested in Ebix are panicked. This is PRIME TIME to short. Normally I would watch to see if a stock like this settles in..but, after hours we got the news of an investigation being launched...this should only add gasoline to the fire.
I love the fact that the stock is WAY UP from its lows this year (400%) meaning a lot of people will decide to take their gains while they can adding to the selling.
Action: Short as many shares as you can get in the mid 22's and use 10% trailing stops in case some major short suddenly covers or they release good news to curb the bleeding. I think we could see another 10-20% tomorrow.
Tuesday, March 15, 2011
SHORT NOW- How the Japanese Crisis opens trading opportunities
Had a few people ask if I am short anything due to the horrible crisis in Japan. I am not, since no one company is shaping up to be the focus unlike BP with the oil spill disaster.
However, there are some great trades if you like taking short positions...Here they are from least to most risky:
The Japanese Yen (YCS)- Its been weak, and the only reason it hasnt crashed further is buying support from major Hedge Funds and the Japanese government.. Shorting it around $16 is still a safe bet.
Dennison Mines(DNN) at 2.55 , Uranium Resources 1.60 (URRE) and UraniumEnergy Corp (UEC) at 3.75 I think are pretty safe bets right now. DNN and URRE could see their 52 week lows.
Again use 20% trailing stops and STAY on top of it...if its dropping keep moving your stops to lock in gains.
Good luck.
However, there are some great trades if you like taking short positions...Here they are from least to most risky:
The Japanese Yen (YCS)- Its been weak, and the only reason it hasnt crashed further is buying support from major Hedge Funds and the Japanese government.. Shorting it around $16 is still a safe bet.
Dennison Mines(DNN) at 2.55 , Uranium Resources 1.60 (URRE) and UraniumEnergy Corp (UEC) at 3.75 I think are pretty safe bets right now. DNN and URRE could see their 52 week lows.
Again use 20% trailing stops and STAY on top of it...if its dropping keep moving your stops to lock in gains.
Good luck.
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