PennyStocking Profile: Mike The Machinist Up $300,000 Over The Past 5 Months!

While I have no way to confirm or deny whether or not Mike actually has gone from $50,000 to $350,000 as he says HERE (and I had to really beg him to put a dollar figure on his gains), I, along with many others, have been in his chatroom several times when he’s made too many incredible calls to recount here…okay, maybe a little, stuff like THIS $14k day, and posts like THIS where he takes snippets from his chatlog to prove his abilities. A great deal of his success stems from buying stocks making intraday highs, taught to him by Muddy, but he freely admits he learned short selling from me so his accomplishments make me damn proud!

Add Mike’s remarkable success to that of grad student Tony Ellis who’s now up over $80,000 in the last few months and you might begin to understand why I have such determination to spread this strategy far and wide. Especially since students of my DVD PennyStocking know that I close my presentation by saying you can do better than me…might as well just call me Archie Manning…well maybe only in a few months when one of my students surpasses $1 million in earnings.

(And I feel perfectly comfortable saying that cuz these are real people making real money…not fake testimonials from fraudsters. Don’t believe us? Gooood. You shouldn’t trust anybody in this game, but be sure to stick around cuz this is just the beginning and you can see everyone posting their picks and plays day in and day out…viva la revolucion!)

Mike’s kind of a shy guy so we have no pic of him…the photo below is just what I imagine he looks like:

1. What’s your background?

I’m 48, worked as a machinist for the last 14 years, got laid off before
the start of 2008. When I got laid off from my job, I contacted my old
friend Muddy
whom I had kept in contact with over the years after meeting him in a
bookstore in the investing section of that store.

I told him I was finally going to try and get serious with his approach.
Up until then I used the same old same old stuff most everyone uses
and I basically stunk at trading that way.

So I asked for a huge favor in that after reading through his blog a
few times and trying to get the gist of it, would he mentor me for a
few weeks since we live so close.

He said he’d be glad to and his stuff absolutely turned my trading
around to where I am today. He also turned me on to you Tim, and
shorting the low priced ones.

2. Inspire us all with the story of your journey over the past 5 months!  

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Why These 6 Alternative Energy Stocks Are Like Strung-Out Junkies

Whenever a sector has big winners, cheap, poor and greedy people are gonna look to get in on the action by buying and hyping bottom-of-the-barrel-companies that trade for less than $5/share. It’s science.

Take alternative energy—the rise of superstars like First Solar, Inc. (FSLR) and Energy Conversion Devices, Inc. (ENER) have paved the way for runups in industry laughingstocks Capstone Turbine Corporation (CPST) and SatCon Technology Corporation (SATC), Quantum Fuel Systems Technologies (QTWW) and Hydrogenics Corporation (USA) (HYGS). Worse yet, no matter the rising tide theory, the sector’s true embarrassments, Plug Power Inc. (PLUG) and Beacon Power Corp. (BCON), still can’t even rise much! (laughing at them truly does make you feel better about yourself, try it!)

This kind of gutter trash is my specialty—I’m not even gonna get into the fundamentals—or lack thereof—cuz no matter how bright a future these companies say they have, fancy accounting they use to prop up their numbers, etc. you really gotta think of them as junkies shooting up heroin (or alternative energy) in an alleyway. Message board posters, longs, naïve fund managers (themselves drug addicts…seriously, you have no idea how bad it is, pathetic that nobody talks about it openly) and ANALysts propping up their near-carcasses, feeding them one good meal and dressing them up to go to a big charity event to make themselves look good, only to ditch them later after they’ve gotten credit for doing a good deed (profiting form hyped up prices).

Overly cynical? Nope. 900 out 1,000 of these manure-esque companies will fail within a few years, 950 will fall back waaay below these spiked up prices and 990 of them will trade lower than what they’re at right now. These are just estimates based on industry fact and my decade-long experience and if you think you have the talent to profit from that 0.10% of successful companies, go right ahead.

On the other hand, all you odds-loving, drug-despising people, my bros, my students, my comrades in profit, join me in stalking their charts, patiently waiting to profit from their near-inevitable fall from grace, back to junkie stock prices, that being under $1 and $2.

In order of least disease-ridden junkie to Amy Winehouse:  

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A Rising Tide Lifts All Boats: 7 Lesser Oil Stocks That Are Gushing Higher

Still watching all the energy stocks from yesterday too…this post will be comment-free as my recent performance/utter disregard for disciplined short sellers brings me down to typical industry scum/ makes me unworthy of your time

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17 Hot Energy Stocks aka Soon To Be Great Short Selling Plays

PennyStocking DVD students understand worthy trading opportunities only come about every so often—all the normal daily stuff is just too random/unpredictable—so by focusing on these few truly predictable situations, your profitability increases exponentially. If you can keep a cool head when everyone else is going crazy around you, this game gets much easier…that’s right, you 90% of trader losers out there, now is the time to try to recoup your horrific losses! (I’m talking to you, you sad little ETers)

I’ve been posting about PDO, MXC and FPP the past few days—even taking quick losses totaling $400 shorting FPP and MXC too early (wisely as it turned out, as those losses would now be pushing $5,000!! Uhh yeah $5k in gains from the long side, if I had any talent whatsoever doing that, which I don’t)—but only after we’ve gotten 3 strong up days are they prime for potentially predictable reversals, the extent of which we’ll have to wait and see…by now you guys should know the signs fo what to look for.

Since we’ll surely be missing them when they’re gone soon, I gotta link to every other site that’s featuring them HERE, HERE and HERE.

MXC ($10 to $43 vertical action, but its got some fluffy news)

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Trading The Latest Hot Beverage Stock: Skinny Nutritional (SKNY.OB)

Skinny Nutritional (SKNY.OB) (oxymoronic?) just launched the latest zero calorie water brand, Skinny Water, lured in some third-tier Coca Cola executive to serve on their board, basically entirely for his title (giving him 2mil shares–and many others many millions more–while unsuccessfully / humorously / amateurishly trying to ticker spam that announcement to get included in the Yahoo! news of Coca-Cola bottling (COKE), Pepsi (PEP) and of course Coca Cola (KO) (silly pumpers, for some strange reason, you guys haven’t read my book An American Hedge Fund, if you had, you’d know ticker spam is for kids…back in 1999-2000!), all the while trying to pitch themselves as the next Vitamin Water.

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I’m Travelling But Who Cares, Here Are Some Hot Penny Stocks

Gonna be traveling all day to my U of M speech so considering how good some of these plays are looking, I’m gonna miss out and inevitably get some emails sayin’ I’m a failed trader, but that’s a small price to pay to get the expected 150+ students to think cynically about the financial industry freakshow! Here’s the microcrap landscape…cheers:

PDO just keeps it goin, showing why THIS trade was actually pretty damn good, at least for a short seller—as I preach in PennyStocking, shorting, while ultimately correct considering how shady these companies are, is much tougher, I really want you guys to learn to play these from the long side (something which I could never really master)…as for when to short, don’t stand in it’s way, this is a full fledged Supernova! Just sit back and let all the early shorts kick, scream and ultimately panic cover—that’s when I’ll start looking’ to enter

HDY is another sketchy oil and gas play that puts out exaggerated PRs, spikes and then does nothing…last 7 spikes have all been good short opportunities, their PR firm is Investor Awareness Inc whose business—judging by their other clients—is to take a few thousand dollars/month and do little to nothing offering up excuses like “it’s tough to get any upside in a market like this” and “no microcraps are doing well right now”. Too bad HDY doesn’t hire somebody scummier/more unethical so this stock can actually pumped like it should be!  

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The SmallCap Pump & Dump Capital Raising Game: AgFeed Industries Inc. (FEED)

What’s the ultimate goal of publicly-traded smallcap companies? They sell shares when their stock prices surge to raise the most capital possible. This morning, recent high-flyer Chinese pig-farmer (FEED) did just that, becoming the latest victor in the smallcap pump and dump capital raising game, raising a cool $10 million, selling shares at $16, less than 10% below their closing price of $17.40. What are they gonna do with this newfound capital—buy more pig farms of course!

You can look at this two ways—it’s great for the company that they could raise so much $ at such high prices—usually these financing deals are done at much bigger discounts, think 25%+. The capital gives them a shot at true business glory, even if the odds are still decidedly against them. Then again, it’s dilution below market prices—the rich get special deals—so this stock should open lower as poor people sell their shares—wondering how to buy stock 10% below market prices (hint: you either need to give the company a lot of $ or convince them you and your connections can and will pump up their stock price)

Don’t get me wrong, agri stocks are hot and this is a clear chart breakout so I have only two concerns:  

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Travelling Most Of The Day But Here Are 5 Hot Penny Stocks To Watch

Can you guess what my take is on these ? That’s right Pinky, it’s the same thing we do every night–short sell hyped up pump and dumps when they go negative on the day right before the market close. Of course they have to be up enough first, otherwise we just stalk. And remember, (SMI) is news-related and (BEXP) is a hardcore breakout so those really have to surge more / fade perfectly to tempt me…I’m no hurry on any of these, I’m gonna let them come to me…

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The Supernova Chart Pattern Strikes Again

TIM $14,616, Up $212 on the Day, Short 1000 COINZ @ $3.43

Good thing my trading addiction made me make a trade during my layover as COIN tanked perfectly along with the rest of the market. COIN probably would’ve taked anyway due to the perfection of its chart pattern. COIN is now at the exact same price it was trading at before their CNBC mention, while other agri plays like SEED, MON, MOS, NOEC are all 20-30% lower (bodes well for me).  

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Wow, Anybody Short COIN?

I’m sitting in the Minnesota airport, watching COIN and this market get annihilated. Anybody lucky enough to short COIN? This is why traveling sucks for traders–who knows if I could’ve even gotten any shares to short, but just watching it drop 20% inside of an hour (which was completely predictable once it cracked $11.50, as I’ve posted numerous times) is fun enough.  

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Shady Is As Microcap Does, Say It With Me Now, It’s All In The Chart

TIM $14,404, Up $17 on the Day, No Positions, Traveling All Day Tomorrow

Like 99.9% of the civilized world, this guy just doesn’t understand microcap momentum—he tries to uncover how shady the company is. FYI buddy, every microcap is shady, start likin’ it! See my comment at the end of his “article”.  

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What A Day For A Big Time Screw Up And Redemption

TIM $14,387, Up $536 on the Day, No Positions

What you can learn from Cynical Exaggerating Opportunists (CEOs) (hey, they changed my title, can you guess what the original one was?)  

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COIN Just Cracked Perfect Sideways Action

As usual, I shorted waaaaaay too early pre-market at $11.80, but as those of you tracking my trades on Covestor know, I just doubled up (don’t try this at home kids–I’m just incredibly bored at the moment not being able to day trade freely and will probably fund my account to get over $25k so I really have nothing to lose here) by shorting 1,000 COINW at $4.393.

This should be it for COIN’s run for the time being, as those of you who’ve bought my DVD know, this is the beginning of the end for the supernova chart pattern, stock’s at $12.30 now, let’s see how far down we can go!  

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One Of The Worst Trading Days Of My Life

TIM $13,851, Down $766 on the Day, No Positions

If you continually break your own rules and thanks to SEC imprisonment you have limited opportunities, this is what happens. Read on and learn from mistake #2837283828…  

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