3 Chinese Stocks to trade NOW!

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!

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!

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

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!

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.

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.

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.

Tuesday Morning Watch-EVSI

LEI- Oil was down slamming all the running oil stocks. Could continue. Too risky now... Volume tapered off and I would look to short this before going long.

STVI- Sideline watching for now. I like this one for many reasons, but it needs some volume!! Could be a nice one to catch on an up move.

ROYL- This one is only up because of a pump that was fortunate to have oil spike right after it started....cooled today, Look for a short into panic if it starts dropping.

EVSI-  Took a position again today. Rumors are of another round of promotion coming...this should catch the strong short action as of late in a squeeze. Could be a big runner over the next couple weeks.

Good Luck

What is Naked Short Selling

In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail").

Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.

Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board, 5 as there may be few shares available to purchase or borrow at a given time.

What is a Threshold Security? Threshold securities are equity securities that have an aggregate fail to deliver position for:

- Five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));

- Totaling 10,000 shares or more; and

- Equal to at least 0.5% of the issuer's total shares outstanding.

Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies"). Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.

Regulation SHO

Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:

Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.6 This "locate" must be made and documented prior to effecting the short sale.
"Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
Temporarily suspending Commission and SRO11 short sale price tests12 in a group of securities to evaluate the overall effectiveness and necessity of such restrictions. The Commission will study the impact of relaxing the price tests for a period of one year.13
Creating uniform order marking requirements for sales of all equity securities. This means that orders you place with your broker-dealer must be marked "long," "short," or "short exempt."

Pink Sheets- Finding a Gold Nugget in the TRASH

Let me make something VERY clear....... Pink Sheet stocks are pure GARBAGE. At least 99.9% of the time...and Im being generous. Pink sheets are non reporting, delisted companies, that can basically do what they want until they get delisted.
Think of Pink Sheets as a prison....sure there is a guy or two that are innocent, a few thats probably gotten a bad deal and doesnt deserve to stay there, but its pretty safe to say most of the individuals in there should be in.

Originally pink sheet exchange was created in to help people trade out of delisted stocks. Before 2000 delisted stocks were printed out on Pink paper by the National Quotation exchange, I think they wanted to use RED but couldnt read printing on it. (Before this you were out of luck if your company you held stock in was delisted. ).
With the surge in online trading and discount brokers some smart gentlemen created the pink sheet quotation market in 2000.  Since then they have added tiers to separate the outright scams (Grey Market) for halfway decent and even some solid companies. (There is a Grey market, but for all intents and purposes you should NEVER, EVER even consider these...EVER...did I say NEVER? and I am not against risk)

Pink Sheets do have their place. Because of regulations, its an easy place for big foreign companies to trade here in the US (in addition to the broader markets).  There are some high profile companies that trade on it, and even NESTLE does...yes, THAT Nestle.  Louis Vitton, and Mercedes (Diamler) has a portion trading on the pinks. Not to mention chinese companies no one has heard of like the worlds biggest bank (by market cap) at over a quarter Trillion ( IDCBY.PK) !! Any of these pinks I have no problem recommending to the moderate risk taker...just not my style.

Pinks are also great to Short-Sell under the right circumstances, and on VERY rare occasions you can find a decent start up here.  As a general rule however most of the pinks that get press are hiring stock promoters to pump their stock and defraud the average investor. This is why you should not buy any pink sheet that you read about without putting it through the ringer. Not even ones mentioned here :-)

I like to look into pinks for two reasons. Good short sell opportunities and to look for one of the few major US companies that get delisted and sent here, that although they deserve it, they may not be here long...(meanwhile their share price tanks)! This presents some nice opportunities for us riskier types! Now I must be clear, just because it is/was a big company, doesnt mean its a buy on the pink sheets. ENRON ended up a pink sheet after going from $60 to under $2...but eventually after it was clear that they were completely bankrupt, it went to a sub penny! In fact if you invested $10,000 in ENRON when it was $1 hoping it would recover to $2 or $10 (pipe dream by the way, but MANY did) and didnt sell for 2 months, your $10,000 investment was then worth...drum roll....$20...and eventually $1. Not the type of return Im looking for.

But for Every 10 Enrons there is a solid company like GSI Group...this is what I look for.

GSI Group- This major Laser maker was de-listed gem from the high profile NASDAQ that once traded over $25 and  bottoming out at under $1.50. As they got their act together, this stock could be purchased for under a $2.50 a year ago! Suddenly with rumors of a impending re-listing....the stock sprang back to life and by September 2010 it was back to $7. Although trying to catch these waves early is very difficult and should be your focus, it was at this point when things where looking up. It wasnt until December when I took note of this with the impending re listing.... at under $9 it was a solid LOW risk buy. Not easily said of pink sheets. Now back on the NASDAQ, I would still recommend it under $13, with a 20% Trailing Stop.

So after all this I am not going to recommend a pink sheet??? Nope, not yet. I think the education is important at this point however since I have my eyes on a few future Pink sheet trades!
Hope this helps, and stay tuned...

Happy Weekend! Watching a few for Monday

After a great week of gains here is a few I will be considering Monday.... Hope you all killed it in LEI today...remember to stop loss those gains.

Now the Buy list....
EVSI-  Think this one has consolidated again in the mid .70's...rumor is there might be some buying coming in next week...keep your eye out.

LEI- Im hoping to get in this one after some correction. I think if it consolidates on Monday morning we could see some legs. This one could go "ROYL" (Royal Energy) on us. Im looking for a down open with the profit takers to open the window to get back in.

SONS- Sonus networks- Keep an eye on this one ...in the news and always been a good runner...Like this if it dips.

STVI- Been watching this for a month or so since now its in the black(as of last filing) with its financial s and took a big bounce and didnt drop...needs more volume to create liquidity but a good one to watch.

Shorts list:

Royl- MONEY has been rolling and and lots of short sellers are getting hammered. This one is being MAJORLY pumped. Shorts are getting squeezed but they dont give up that easy. Dont try and time this one. Its okay to jump in a little late and take less risk. When this breaks, I think it will be fairly sharp...wait for a 15% drop before jumping in...

CXLT - Another pump that I am returning to.... Could be a great one to get in on!

There you have it, now Its time to take the weekend off...see you next week.

NEW TRADE- LUCAS ENERGY LEI

Oil is burnin  HOT right now...especially small cap oil, and the best time to buy is when you can ride the hype is...  SO...
Just a heads up:

Im looking at taking a buy position on Lucas Energy.

LEI- $3.12
Out of all the small caps, this one looks best because it seems to have legit news:

The independent oil and gas company announced the completion of the Hilcorp Energy-operated Eagle Ford horizontal well. The well is expected to be put on production in a few weeks and Lucas expects it to meet or exceed expectations of 500 barrels of oil per day. That will increase its net production, cash flow and net produced reserves significantly, the company said.

Basically they buy old wells and use modern technology to side drill to get the oil out...apparently the old way they did wells, as much as 50% of the oil in the well! So these old wells are basically useless until this technology was employed....LEI gets cheap wells no one wants, wells that produced, side drills and makes money! Sorry, dont want to sound like a pumper, since I will be in and out on this one..

Also it a nice low float. A couple weeks if this news is solid, news that could increase their revenue dramatically, this could be a quick double up or more! If news is bad or non existent then the hype from now should at least net us a little gain...If I can pick it up under $3 trending north, I think im in.

Remember to always use a stop loss  ...

Working on a portfollio Tracker through Covestor

Some of you may know of Covestor.com. It is a great way to see verified trades. I have actually had an account with them since early 2008 on one of my old Etrade accounts. Right now I am trying to re establish a account with my current Etrade  account so its more accurate.

If I can get this done, then you will all be able to see I am not "blowing smoke" because it allows me to show you my complete positions in those accounts.

If I get that set up, then naturally I will link my other accounts if it lets me. Etrade is very ineffective when it comes to shorting pennys since they rarely have the shares. (Etrade borrows shares from the same place as Ameritrade, Scottrade and others). Because of this I use other DB's.

Hopefully I can have this up to verify all my trades soon enough...for now, youll just need to take my word!

Short Selling Watch List

EVSI cracked the other day, and luckily I had taken the rest of my profits over .80! Average ROI for that was over 80%! Not bad, Not Bad at all.

There are a few GREAT short selling stocks right now that we need to look at....
Now for my Short selling list:

ROYL- $7.80 (Royal Energy)
 This stock is on a massive run in only in the last WEEK, its up over 300%. Looking at the company and financials, this will be a blood bath when it cracks as well. Ive found lots of pumping of this dog, and the offices are a rent a office space pretty close to me. Yesterday it traded 50% over its FLOAT alone. Lots of traders in there trying to beat each other down . Still might have some legs, but once it cracks...say 15% loss or more interday, then it should be a very solid short!

BDCO- 8.20 (Blue Dolphin Energy Company)-
     Oil prices are running up these energy micro caps and BDCO is no exception. If for your Valentine you bought this at $2.40, you would be sitting fat at over $8....but every pump must end sometime and this one will be VERY soon in my opinion.... Wait patiently for the crack and you might be able to turn a nice profit as people panic to lock in their huge gains...

Im working on some others, but trading is about to begin...
More to come...

Energizer bunny like...EVSI is Still going!!

Got to love it when a stock just keeps running. Took out nearly half my position today and locked in some beautiful gains!! Its pushing through some major selling which is a great sign. Going to let it run a little and see where we get!


Follow me on Covestor.com

Envision Solar overcoming short selling-Still Going

Overall markets are volatile, but not Envision Solar (EVSI).  has been on a monster run. Im currently up nearly 90%. Although I nearly pulled out of half my position of EVSI at .68, I decided to hold since it absorb what appears to be an enormous amount of short selling only to claw higher. Volume is through the roof and its maintaining very solid support levels leading me to believe this has some solid backing....

 While its currently trading .75 x.76,  Im looking for .90 now unless the support crashes.  Keep an eye out :-)

Updates:
as suspected, CXLT was a FANTASTIC short.
COUGF is still running , man this is going to hurt when it breaks. Still potential short.
Salesforce  and Google were solid buys
Amazon I am still strong on, although it will take more of a hit than Salesforce if we have a market correction.

EVSI- END to an AMAZING week..PLUS CXLT!!

Envision Solar is looking terrific. Heard some talk about a lot going on, and we are finally seeing it. I was looking for .70 to .80 and I got it a little early. As you see in my earlier posts Im up considerably, in fact almost 100% since December on EVSI.... now its time to bracket out of it and lock in these enormous gains.

That being said we saw a MASSIVE increase in buying today on news that was good...but not the rumored news that I have been hearing buzz about. It would be a great time for the company to fire all guns next week, and Im banking on it...Ill be looking to see what happens Monday and possible Tuesday before making any major sells.
   I definitely want to get out BEFORE the break when it wont be as liquid....if you are in...cautiously hold/buy...if you havent bought, be careful, Its not a trade at this point. You need to plan on riding out any dips. Day traders,  Look for a chance to short...

Speaking of which, I found a lovely GEM for shorting....CXLT NET SAVINGS LINK INC
(formerly Calibert Explorations Ltd.)

Opened up today and by the time I caught wind it was up 300%! It didnt stop there, but blasted to well over 600% on the DAY! Has nice volume so unless your trading $100k, you should be able to stay liquid.

Going to do some research but so far this is a company that bleeding cash, just increased its shares by 50% and JUST started trading....I love companies like this! Look for a break and then jump in....should be able to get an easy 10-30% gain on it if you stay on top of it.

Ill let you know what I find :-)...for now stay on top of EVSI!

Update- EVSI - Continues to be Strong

Envision Solar has really strengthened as of late. After a ton of buying coming in, level 2 shows that EVSI remains much stronger on the buy side than the sell side. I received an email yesterday from a company that has the latest trending software service. With a little research I found that its pretty dead on. I plugged in EVSI out of curiosity and look what came up....

If you read through this you will see that they are projecting a continued strong up trend. This was yesterday at just under .59!

In fact they give EVSI a +90 out of 100, on the uptrend.
   Interesting, but I still remain optimistically cautious. It will be very easy for me to take my profits so I may begin to scale out slowly.

Strong Week on EVSI

If you havent been following EVSI, then you might want to. Last week marked a signifficant change in volume, followed by a nice steady increase in price. The week ended up yet again. This week should be tremendous for the stock and may be an excellent time to exit with gains. Some of my early buys are up over 45%, but the way the stock has been picking up stream , it looks like something is ahead in the near future. I wouldnt doubt it if we see .75-$1 this week! Its been consolidating and the support level has grown to a solid wall. Sure this can reverse if the stock cracks, but for now its trending up hard. With such a low float (last 2 days its traded over 20% of the float) and massive volume, something is going on.
Be wary of short sellers if it spikes too much so get ready to protect those gains. This should be a beautiful 90 day double up plus for me.

Pump and Dumps- They can be your enemy or your friend!

Where most people get burned on the penny stocks is what is called a "Pump and Dump". Everyday millions get stolen from hard working individuals that fall prey to it. Sometimes they come from a friend or colleague recommendation, or more likely by email or in the regular mail. These can look professional (and often are) and are telling you why "XYZ" is the GREATEST stock EVER. 

What Does Pump And Dump Mean?
A scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price. This practice is illegal based on securities law and can lead to heavy fines.

The victims of this scheme will often lose a considerable amount of their investment as the stock often falls back down after the process is complete.

I want to use a few examples, since I get TONS of emails that with about 10 minutes of due diligence I can pull apart as a Pump and Dump.

Ill also call out someone, just because its fun...

Eric Dickson from Breakaway Stocks is what we like to call a "Stock Promoter". Its no different than any other promoter, but if you think for one minute this guy actually believes in these companies than I got some Ocean front property in Vegas I am dying to sell you....

Is Eric a bad guy? Not necessarily. He might not be the one outright promoting but just riding the coat tails. But let me show you the problem about his picks (Sorry Eric,)
Lets start with this promo material: Stock Advisor

The best part is this promo material was over a year ago...11/12/09 to be exact....lets look how this has done since he said, and I quote...

"Just 36 months from now, you could be sitting on one of the biggest investment gains you'll ever see. The kind of killing most investors dream of making, but never do.

The stock is called GC China Turbine (GCHT), and while it may be low-priced at the moment, all that will likely change very shortly. This company is about to report its first profitable year (thanks to spectacular rise in sales), and is on track to grow its sales by 265% a year for the next three years at least. Very shortly, I expect the share price to begin a climb that could take it as high as 51X its current level."

All these stock promoters sound the same dont they? Im willing to bet Eric doesnt own 1 share of this pig today...lets look at what its done since he said it was a STRONG BUY at $2.50

On the bottom of the chart is the volume of shares trading. Notice during the "Pump" of November 2009 the volume was surging. The stock climbed and reached a high of around $4 before it broke sharply....some are a lot sharper than this and it was more gradual. Just means share holders were hanging on. Today it sits around .50 cents.Rather pathetic huh?  51x your money in 36 months? Yeah thanks Eric.

Bet he didnt tell anyone to sell ...and THATS the problem. Everyone will tell you to buy. Most of the time when guys are screaming BUY, they are selling free shares that the company gave them. They just need suckers to help create enough liquidity to sell to. You are just a way for them to make millions. 
What was the last line of the newsletter From Eric? 
"Let me stress. This may be a small company now, but in three years it could easily have a market cap of over $1 billion. It's the kind of opportunity that doesn't come along every day, and I really think you should take advantage of it. Contact your broker now, and if you're lucky enough to find GC China Turbine (GCHT) selling for under $5.50 a share, buy some quick!"
If your lucky enough???

Now how can a pump be useful ? You have a weapon here...we have short selling at our disposal! Eric stock picks are breaking sharper cause quite frankly, the short sellers are on to him...his last recommendation?
HHWW:

Notice you get a sharp break in the price ...all in one day. Now he was pounding his chest at around a $1.50 screaming its a buy...and then he takes credit for his stock pick going to $3.25, but neglected to tell you if you were not sitting by a computer and saw the break and got out immediately, you probably LOST money...dont worry, Im sure he got out. 
(I love the STREET SWEEPER take on this company BTW)

Since then he has also had another one FCPG...(he likes the china companies) This one was one that burned a lot...Spiked on the 9th of Dec. at over $5.60...yet it OPENED the next morning at just over $2.30, and dropped to under $1.50..ouch...

Here he is again screaming about his latest buy (or gift of free stocks and $800K to promote the company) of ... KNKT. This one being a non reporting company... (a PINK SHEET)
Eric Dickson is saying this could be his best ever, saying and I quote "Leaping from $1 to $52.92- GET IN NOW"... This company is a little .50 stock that began trading early December. First thing the company did is hire themselves a promoter and now we are over $1.20.

Given his track record, this is beautiful, cause I really like going short on this one. Its already had one "Crack" in its price dropping from $1.43 down to $.95 in one day, but then the pump resumed and its made its way to 1.21. Watch for a spike again in volume. Its been trading about 1MM shares lately, so if you are a few hours from closing bell and its over 1MM and trending down its primed for a snap. Timing is everything and its better to short late and get out before bottom than to miss the boat and have a short squeeze.

Its very tempting for a company like this to start dumping shares as well. This only adds to the panic. Right timing and you can make a killing here....

Now the one question I must answer.... "If he is pumping it, and I get in early, should I buy?"
Easy answer...nope. These types of pigs will nearly always break sharply. Its a much, much easier short.

Hope this helps you in understanding the Penny Stock markets....

For Honorable mention take a look at on of my older posts to short  COUGF on Street Sweeper.  Ive probably gotten 10 newsletters on it, another beautiful short.

Monday Overview- Envision Solar-EVSI

My biggest (current) small cap position is in EVSI and SCLW.  Socialwise and their Bill My Parents product line we will explore later, since lots is happening with it, but right now this week (or two) will be focused on Envision Solar.
EVSI (Envision Solar)
 I am very pleased with my EVSI position so far up 31% in a short amount of time. I took my first position less than 2 months ago and I am continuing to add.  My last buy was the 21st at .47.
I can hear it now, "Lock in gains...its 31%"...sure this would be important if we were talking a mid or Large cap, however pennies are different...

Typically with a jump on a penny stock, its either its a pump and dump, an outright fraud,  or I believe in this instance, a decent company thats doing everything right and starting to attract attention as a start up. (this is rare and I would say represents less than 1% of penny stocks).

Here's what I like about Envision Solar:

First the big three:
1) Real company with a real product and employees...this actually is a lot more rare than you think in penny land .

2) No outright stock pumping can be found  at this point

3) Solid Management

Followed by...
- Low O/S (outstanding share count)
- Very low float
-  Already had a nice correction and is moving up again (in July)
-  We are finally seeing the 30 daily trade average creep up...this is what you want for steady gains. - It also has decent technicals, but really for a penny stock that doesnt mean a lot. Its more who and what you know :-) If you hear a big player or fund is moving into a stock, that will trump any technicals with a stock that is thinly trading.

I am looking to add to my position under .60, since the buzz and my research is telling me my short term target price is .80-$1.00+.

Side Note:
 Although I am not long, some people might be tempted to stay in after doing their Due Diligence on Envision Solar. 
I didnt see any outright really nasty dilution contracts, but I am not in this for the long haul so its not important to me. If you wanted to stay in a penny, then this is a must. I would read and re read every filing looking for that hedge fund or Angel investor with the nasty convertible dilution contracts...AKA the death spiral.

(Below is a screen shot of my Etrade account EVSI position)

Could we be headed for another Stock Market Crash 2011?

If you follow the Technicals, one thing screams out, and that is that this market is severely OVERBOUGHT. 

Several experts whom I have followed and respect for more than 10 years and called the last crash (and made their follows money during it) are expecting a large correction , soon, very soon. 

  One of my favorites is Dennis Slothower  who runs Stealth Stocks is saying a large correction is imminent and asking his followers to move into cash. 

Dennis is generally spot on

In November 2010, Marketwatch.com had this to say about Dennis:

“(He’s the) advisor who dodged the Crash of 2008…a particularly striking performance.”

And the fiercely independent rating service, Hulbert Financial Digest, has rated Dennis’s service as the second-best – out of 145 services tracked – in terms of risk-adjusted returns.

This is why I am against the typically IRA. If your serious about retirement using the markets, you MUST have your money with a fund that will fiercely protects your gains. It was IRA's that wiped out a lot of retirements in 2008.

If you are trading on your own, I would advise moving forward with caution at this point.  Since the last correction was so recent, I see this time being a lot sharper. That is because all those traders that held in 08 and got burned, are NOT going to let that happen again. 

Now the good news:

There might actually be some great opportunities to short sell some majorly overbought stocks. I'll be looking to pick up some cheap shares of companies such as  GOOG (cheap being $500), which could see a drop of 20% or more if its a sharp enough correction. Other companies like Amazon and Salesforce that I am following will definitely take a bath as well. 

On the flipside look to short the grossly overbought stocks.....

I welcome any opinions :-)

January 2011 Stock Picks

As I set up my incubator fund I want to begin to go over some trades that I have made and continue to make. Typically I look for small caps with big up or in a lot of cases, downside (short selling). For Big companies, I look for undervalued and under the radar picks...

Picks for 2011 

Positions Already held

Socialwise inc- (SCLW) My Average $.54
Current Price: .50
Target: $5-$10
Been in this one awhile but it will see a huge upside. Unfortunately I rode this up to its glory days of $2.88 and planned to sell at $2.50, but held for moral reasons.
Bill my Parents teen debit card is up and running and already has 10K+ users. The holders include a Billionaire, and several celebrity athletes without massively diluting contracts.  Now that the advertising campaign kicks off, Its no longer "If" but when. Definite acquisition target, and Jim Collas isnt selling cheap.  $5 is a fair target based on other company aquisitions.

Envision Solar(EVSI) My Average $.41 (Held since Dec 2010)
Current Price: .53

Target: .80-$1 Short Term     Envision Solar has a solid business plan and product already being touted and is a rare penny stock company doing things right. Robert Noble appears to have his ducks in a row and rumors abound that big contracts are just around the corner. Im looking to double up in a short period, but may hold a little long term.

Long Range Big picks:

Google (GOOG)
Current Price $600
3 year Target:$1500 (may split)


       Loved GOOG out of the gate at $200 when it IPO'd and even loved shorting it at $600 the first time it hit, but things have changed. How computing is done is changing....going are the days when we have PC's. Soon everything will be stored and downloaded from online....companies are saving millions by moving online...called "Cloud Computing"    Google is the top of this list...and if you thing there isnt room to move and you missed the boat, think again! Google is a great buy under $600


Salesforce (CRM)
Current Price $125
3 Year Target $225    
This is another "Cloud Computing" company that is growing by leaps and bounds. Fortune 500 companies are jumping on board and so should you...at least on the stock. The average company increase in sales using Sales Force is 17%.... if you are a company, why wouldnt you use them? Its companies like this that are great to jump on and ride the wave.

Amazon (AMZN)
Current Price: $180
2011 Target: $220
    Yet another "Cloud Computing". Yes this may be a little like the Tech bubble, but right now its early. Even another giant like Amazon has lots of room to grow as they expand their online presence.

A little advice here on ALL my picks. I always lock in gains. Aside from penny stocks, it is vital you lock in your gains. Always keep a "Stop Loss" order in about 10-20% of your buy price, and update it weekly as the stock moves up (never move your stop loss down!).

 
Short Selling :
  Short Selling has long since been frowned upon in the investing community. From the 1800's till now people see it as "Negative".  This is FAR from the reality. With so much fraud out there, Shorts actually balance the tables...without short selling, ENRON and its likes would defrauded the investment community of billions more. If there is something wrong with a company, you short it...just like if something is right, you buy it...

If you are not short selling, you are missing out on a large part of what should be your strategy in the markets.  A great example is BP. When the oil spill hit, as an investor the window was open to speak your mind and short the companies stock. Had you done it right away, you would have doubled up your money quite quickly.
   Typically aside from the BP situations, I short "pumped" penny stocks. They are easy to find and short...

Day Trade Stocks:
China Telephone Group (CHTL)
   Short .44 Covered today .21
     Pump and dump schemes are alive and kicking....and for the short seller, this is great news...here is a classic pump and dump stock....

Evergreen Energy (EEE) Shorted at 2.63 and Covered at 2.33
  This pig may still have wings but they are grabbing some support from somewhere...pumpers and probably covering shorts. I love shorting companies like this that are bleeding cash, have tons of shares hitting the market and bounce from .50 to nearly $3 in one month on pumps. Keep an eye out, might be some room here to jump in again on a Dead cat bounce.

On the watch list to short.. COUGF. This will be a bloodbath...

Making 50%-200% on your money on some picks can be achieved, mix in a few losses and you still end the year up nice.
Hope this helps.