TIM Portfolio: Magnificent Monday

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• CYGT
• Expos

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TIM $13,973 (up $1,175 on the day, up $1,558 or 12.55% in one week)

Today, was a great day for TIM, all due to little CYGT breaking out of a multi-month base, finishing up a staggering 65% to 14 cents. Buyers are definitely anticipating the debut of their new ticketing technolo

gy tomorrow at IAAPA (an expo in FL I’ll be attending on Wednesday and Thursday).

TIM sold all 50,000 shares at 11 cents this morning (after buying them one week ago at 8 cents) for a nice overall gain of $1,440. Shocked? Don’t be—outside of TIM, me, my family, and my not-so-happy hedge fund investors still own nearly 2 million shares of this little guy (mostly restricted stock). And while this was a nice gain for TIM, it’s definitely not the normal type of trade (TIM preaches liquidity and volatility aka I’d much rather trade a stock from $8 to $11 with millions of shares traded (it’s much safer)) so I sold my shares in an attempt to be more disciplined in my trade selection.

If the commissions hadn’t hurt so much, I probably only would’ve sold ½ my position, but as it is, this round trip cost TIM $60, which definitely cut into my $1,500 original profit. Judging by the closing spread between the bid and the ask (11 cents x 16 cents), I shoulda coulda woulda had more patience and held, but as usual, my timing was off. And you know what—I don’t care because I’ve shown you how it’s possible to profit on these speculative kinds of plays, even if you’re not a very good trade. All you need is an upcoming catalyst, trading volume and poof: an exploitable self-fulfilling prophecy. I still expect big things for this company (I don’t use price targets so don’t bother asking), but it’s much safer to sell in anticipation of an event, rather than risk the event falling short of expectations. I wouldn’t be surprised to see CYGT come out with a customer win or two, but those PRs could take weeks and TIM doesn’t have patience. Don’t worry, I’ll report everything I see at the expo and now since TIM isn’t invested, I’ll probably be more objective—LOL—we’ll see…

It’s fun to get ahead of ourselves and annualize weekly returns—my 12.55% weekly return comes out an annual return of 652.6%, or a year end closing balance of $81,020, waaaay below the $119,507 balance I finished with for the year ending 1999. Gotta get to work! (IN CASE YOU DON’T GET THIS, THIS IS THE ABSOLUTE WRONG WAY TO THINK!!!!!!)

The rest of the day went by slowly—there was an amazing dichotomy to the market as it held positive for most of the day, even as all the highfliers were getting crushed. I saw JRJC down near 25% and even though it was a perfect technical break of $30 (which it’d always held onto over the past few weeks), I bought 100 shares at $25.40 in the late afternoon, thinking I could scalp it for $2-$4/share over the next few days. Idiot. As it did indeed bounce $1, I thought about selling, but remembered I couldn’t day trade until Tuesday (or else I’d be flagged as a pattern day trader and restricted) so I decided to hold. Bad choice.

As the overall markets finally gave in and JRJC continued to tumble, I found myself down near $2/share—but I went out for a walk because I knew I’d have to hold it overnight. Luckily, it bounced $1.50 into the close, but chances of a gap down look high and it’s likely I’ll take a $1-$3 total loss at the open (I can’t risk holding or doubling up because I have to go to the airport at 11am).

Stupid trade—this is what usually happens with me, whenever I make a good trade, I try and press my luck because profits make me feel special. Who woulda guessed I’d be 100% dead on about CYGT, the stock that killed my hedge fund—afterwards, I felt as if I might actually understand the markets. Wrong. Now, I’ll probably give back ¼ or 1/5 of my CYGT gains. Even if JRJC does manage to bounce and I somehow make money on the trade, I still should never have bought because I knew my flight was at 11am. TIM Lesson: You can’t try to fit trades into your schedule; if you know you’re going to be away from the computer for part or all of the trading day, exit all positions ahead of time.

Warning: TIM has a position in JRJC…Timothy Sykes and the Easter Bunny have positions in CYGT.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider some of these stocks to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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