Where The Volatility Is, aka 5 Potential PennyStocking Plays
Posted by timothysykes on Tue 4th of Mar, 2008 09:33:45 PM
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Sten Corp. (STEN) is the latest microcrapper to go exponential. It’s a thinly traded, low float debt laden ($9mil) $10-$15mil company (depending on whether the last price was at the bid or the ask!) up on “strong earnings”. Who really knows what’s going on with the company’s business—with companies this small, one little sketchy deal could be the turning point. I’ll look to short if it spikes again $2+ in 10 minutes like it did this morning. Who knows if I can even find shares to short.
Valence Technology (VLNC) is another PennyStocking runner that makes me wish I was also good at buying on the way up, instead of just shorting on the way down. Oh well, today was a big turning point in the chart, but the stock moves so slowly, I doubt I’ll short since it’ll tie up my cash for too many days all to possibly go down another 50 cents.
Another strong stock with a big down day today, Stillwater Mining (SWC) has had a very VLNC-type gradual run-up. It bounced off its intraday lows a bit, so I’ll look to short if and when it takes those out, right at $20, a nice big fat round number, a likely spot for naïve investors who’ve been taught to be disciplined with their stop losses. Take out $20 and watch it go to $19.50- $19 or maybe even lower within minutes/hours.
The Finish Line (FINL) has some settlement/merger termination, I don’t know and I don’t care—the chart isn’t interesting enough for me to research it further. Looks like a nice bottom put in and it’s not up enough to start shorting…
And last, but certainly least—business, ethics and probable long-term-value-wise—we’ve got everybody’s favorite pump du 2008, Converted Organics (COIN). Another “guru” bought today, just as the first “guru” lowered his position due to a rise in price caused by the first “guru’s” own mention of his position in Vince McBarron’s reality-newspaper (Vince McMahon in the sense that Barrons is as useless / entertaining as the WWF, reality in the sense that it’s staged as a reality TV show)(and for you wannabe “gurus” out there, you gotta love selling into your own pump, even if you probly will go to hell–isn’t that right Garty? Yes, you should be ashamed of yourself for pumping a $60 million company in an article in which the smallest other stock was $900 million).Even though I am firmly against this company, I bought and profited yesterday—remember just focus on the charts—and ‘twas a good thing I sold before my meeting today because just as I suspected, there was a morning spike followed by a nasty $1.50 intraday dump. I’d never hold this stock if I wasn’t watching every trade because it is one slippery sucka. Buuuuuuuut it did impress me by rebounding and finishing higher, doubly confirming this weird ass breakout. Pumpers, suckers, hypersters and “gurus” united against the rational shorts, this thing might have the ingredients needed to take it over $20—and god forbid $25, 30—if they can put out some more fluffy PRs and squeeze those early short sellers! (Hate these companies as if they’re your worst enemies in the world—they probly are—but def. play this game because there’s nothing else like it.)
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| Nov 20 | STXS | $3.21 | $3.48 | $813 |
| Nov 18 | PERY | $4.68 | $5.00 | $640 |
| Nov 11 | IIJI | $2.79 | $2.95 | $442 |
| Nov 6 | CVI | $4.42 | $4.70 | $530 |
| Nov 5 | MECA | $3.68 | $3.95 | $490 |
| Nov 4 | CVI | $5.18 | $4.94 | $472 |
| Nov 4 | CVI | $4.83 | $5.01 | $333 |
| Nov 3 | NAK | $3.30 | $3.37 | $157 |
| Oct 31 | IDAE | $2.18 | $2.18 | $20 |
| Oct 30 | HSNI | $7.37 | $7.86 | $561 |
| Oct 29 | EVC | $1.97 | $2.70 | $1439 |
| Oct 28 | HSNI | $6.92 | $7.30 | $540 |
| Oct 28 | HSNI | $6.20 | $6.00 | $320 |
Total: $35,854 (189%)
I WARNED YOU REMEMBER NOW YOU LISTEN HOW FUNNY IS THIS YOU KNOW IM THE BEAR TRAPPER AND THE COINZMASTER WHO ARE YOU I SAY LATE TO THE GAME AND YOU LOST BIG ONCE ON COIN LOL YOU STUPID SHORTER NOW GO LONG PLZZZZZZZZZZZZZZ P.S. YOU COULD BE UP MORE THIS YEAR BY TRADING COIN HARD DID YOU NO!!!!!!!BUY 1000 OR MORE SHARES NOT 300 LOL
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Dude, stop polluting my boards with your crap, we play patterns here, we don’t give into the BS being spouted by pumpers like u. COIN’s a solidly bullish pattern, congrats, just dont forget to take your profits
Tim,
you the man..thanks for the stock picks….3 for 3 last 4 days from your stock picks. Got lucky with COIN today..I thought it was moving side way..then it dropped so much..then came up as market bounced late afternoon.
I really like the look of SWC chart, but how do you know it is not gunna go higher? Looks like a tough chart to pick a good place to short. I dont think 20 is the place to enter on this stock. Also I like FINL long. Looks like it could jump back up. Tim what do you think of qbik.ob ……. BTW I just finished your book and who is the best trader in the world you mentioned you saw at that hegde fund investment place at the beginning of your book?
any idea on when covestor will remit fees for stock picking?
Inverse H&S on the major indices?
swc $20 is just 1 potential pivot price that usually works well for shorts, who knows and who cares if its gonna go higher before then. qbik is too boring illiquid for me. best trader was stevie cohen
covestor, who knows probly will take a while
You wished you were good at buying VLNC and riding up. Just wondering if there is trick, or way to find out these craps, before they move up like STEN or DARA or IDMI? If somebody knew, he/she would become instant multi-millionaire or even billionaire. COIN has been good for me to double dip, short when it starts coming down and go long when it starts squeezing shorts out.
u can buy them on the way up, into a strong close on the first day of the runup, at my current asset level, i just can’t risk any excess capital/trades on those less reliable setups…once i get over 30kish i can take on some of them
Why don’t you like COIN? i mean getting paid to receive essentially landfill waste, getting paid again (selling carbon credits) converting this waste to a usable product that they will get paid for again in a very high margin business(organic fertilizer). And then getting paid again by selling these waste recyling units (first one to Folsom State Prison last month) and then i’m sure getting a cut on the end product of this again. there must be 10,000 prisons out there that could all be potential contracts, tens or hundreds of thousands other universities and hotels. Why not a plant in every major city to recycle this usable product into something good!? the potential here just seems staggering, Seems like an entire industry could be forming here with TerraCycle also becoming a player and supposedly to IPO this year…
Then you have guru’s like Dennis Gartman, why would he waste his time on a 60mil market cap company if it didn’t have absolutely one hell of a story behind it. if you look through his positions its one of very few straight up stocks (not ETF’s etc). you think a baller like this is interesting in a 2-3$ move on a stock? I would bet he’s looking for a homerun. With a 3mil float, anything could be possible here, could be the next TASR right in front of our eyes, or it might not be, but i have personally never seen such an intriguing story in my short trading career, and would love for someone to find a better smallcap story out there!
hahah too funny! PR guy is shady, along with all these pumpers. and there’s a million stocks with great stories, like i’ve said 5030594934 times, only 2 of these microcrap momos have ever remained above $50. actually business is not as easy as most people expect. read my damn book and u’ll see that. oh yes, i got suckered once by a company with a seemingly bright future. that said, i think there’s a lot of shorts that are too early so i hope they do get squeezed, will make for some great volatility.
TIMMY GETS PAID FROM ALL THE HITS COIN GIVES YOU SO YOU MADE OUT I GUESS LOL
10 BEST REASONS TO GO LONG OF COIN.
IN SIMPLE TERMS
1.BIG,BIG GROWTH POTENTIAL AND ONE WORD NYC. GREEN/AG/ORGO/FERT/RECYCLE PLAY +10 OR MORE PLANTS MAYBE.THE COST OF CHEM. FERTS HAVE NEVER BEEN SO HIGH WHICH MAKES COIN PRICE SEEM MAYBE THE SAME OR CHEAPER NOW.MARGINS ARE GOING EVEN HIGHER!
2.SEEMS THERE NO-SMELL IN VESSEL PROCESS IS THE BEST FROM MY DD.ALSO WITH THE BUYOUT IN WEST COAST WOW WILL BE GREAT CUSTOMER BASE!WILL SELL IT ALL QUICK WITH THE 3 DAY COMPOSTING METHOD.TECH/PATENTS THEY ARE THE BEST.IMPORTANT IN CITIES TO HAVE NON-OPEN COMPOSTING.
3.NO ONE WILL COME CLOSE TO COIN SINCE THEY’RE 1ST DO GET PLANT RUNNING IN NYC AREA OF THIS KIND.EVEN THERE PACKAGING IS THE BEST.MODEL HAS BEEN PROVEN IN OTHER COUNTRIES.BIG INTEREST IN PLANTS THAT DONT SMELL.GREAT MANAGEMENT,LOTS OF GOLF COURSES IN L.I. NY.
4.ORGANICS FOOD/FERTS ARE GROWING FASTER THAN EVER NOW AND COIN MARGINS WILL BE BETTER THAN YOU CAN IMAGINE DO DD.EPS IS GOTTA GROW FAST WITH ALL THE RECENT DEVELOPMENTS!COIN WORTH EVEN MORE NOW!STORY GETS BETTER EVERY DAY.
5.IT IS A MUST TO START GOING ORGO AND STOP THE FISH KILLS,POLUTION,HEALTH RISKS,GREENHOUSE GASES ETC, AND BECOME SUSTAINABLE.COMPOST IS AKA BLACK GOLD!OLDTIMERS LOVE IT.BETTER THAN CHEMS!!!ALSO HELPS WITH FUNGUS/PESTS PROBLEMS
6.PR/NEWS IS DAYS GIVE OR TAKE AWAY.ALL BIG MEETINGS/CONVENTIONS ETC. ARE NOW 4 ORGANIC AG/FERTS
COIN GETTING BIG EXPOSURE MAYBE ORDERS.BIG THINGS?IM THINKING SQEEZETIME TO BASHERS!TECHNICALS ARE UNBROKEN!
7.GOV’T BACKS COIN WITH TAX CREDITS AND LIKES THE IDEA FULLY.NOW LAWS ARE PUSHING ORGO ONLY FERT NEAR WATER.ALL GREAT FOR COIN AND OUR PLANET EARTH.COULD GIVE GRANTS TO COIN ?
8.LOW LOW FLOAT STOCK AND IS SO STRONG SINCE THE RUN UP WHICH IS A GREAT SIGN.SHORTS ARE BASHING BECAUSE THEY WANT YOUR SHARES CHEAP TO COVER WE HAVE A GOOD LONG STRONGHOLD ON COIN!WORST MARKET START IN HISTORY 2008 NOT FOR COIN LOL
9.BE LONG WHEN THE STOCK FLYS TO FAIR VALUE/SQEEZE.I SAY 20-25 MARKET SAYS LOW TARGET 17-18 DO DD ON MARKET CAP AND EPS 4 COIN.WILL RUN HARD TRUST ME.ALSO GRAB COINZ TOO!YOU STILL GET THE SPLITS!
10.MARKETPLACE IS HD,LOWES,WHOLE FOODS,WALMART,GOLF COURSES,LANDSCAPERS,NURSERYS,GARDEN CENTERS,ETC…I CAN’T WAIT TO GET SOME PRODUCT THIS MAY OR SO!!!THEY WILL LEAD CAUSE THEY DO LIQUID/DRY/COMMERCIAL/HOMEOWNER FULL PRODUCT LINES.LOOK AT THAT POS TERRACYCLE COMPANY THEY MADE $$$COIN WILL EAT COMPETITION FOR BREAKFAST!
OK DO YOUR SELF A FAVOR AND DO YOU DD AND THEN GET IN THIS INVESTMENT IN OUR GREENER FUTURE.
P.S.SORRY I WILL CALM DOWN NOW THAT SHORTS ARE DONE I HAD TO ROAST EM AND PLZ KNOW THIS IS NOT A SCAM MY POST MOSTLY HAD GREAT INFO IF YOU READ!!!ALL CURRENT TOO.PEACE TO ALL LONGZ HERE.
-COINZMASTER-
ill stick to tim and look for a short when time has come.
btw, get your news nonsense out of here. we read this post so we can learn about the beauty of patterns and not the BS of microcap news!
I loved this quote:
“IT IS A MUST TO START GOING ORGO AND STOP THE FISH KILLS, POLLUTION, HEALTH RISKS, GREENHOUSE GASES ETC, AND BECOME SUSTAINABLE. COMPOST IS AKA BLACK GOLD! OLDTIMERS LOVE IT. BETTER THAN CHEMS!!! ALSO HELPS WITH FUNGUS/PESTS PROBLEMS”
Black gold! Amazing. Black gold that doesn’t smell, oldtimers LOVE it, and it helps with fungus/pest problems. What’s not to love?
Nice post as always, Tim - what do you think about all the chaos with Tessera (TSRA) today? Will it recover if the macro doesn’t look as bleak (and since Bernanke will keep his mouth shut tomorrow) or was this massive selloff warranted, likely to continue? Crappy stock by any means, but I wanted your analysis anyway.
Just food for thought– now looking back when coinw dropped to 1.32 on jan. 22, and if I were to invest in 18,000 shares- and sold yesterday around $10.60 I would be sitting on $190,800 in the spand of 42 days…. less than two months…. damnnnn
yes but the odds of predicting COINW to go up tenfold are slim. u could make that play with dozens of microcap warrant plays and just about every time, u’d lose all your or most of your money. don’t start thinking like a penny stock sucker, just focus on small high probability gains
can’t find any STEN to short, damn, anybody else?
SWC really pathetic open, took out $20, but only went to $19.70, i’ll probly avoid.
COIN, nice morning spike but buyers just can’t hold gains
Tim,
Ok, learning issue?!? Yesterday you stated that you were not at all interested in STEN. Due to low market cap
i’m not interested in shorting STEN at current levels, but i gotta be prepared for a $2ish spike cuz then i would take a small short position of 500 shares or so and look to profit $300-$600. buuuuuuuuut i can’t find any shares :(
Tim,
Ok sweet!!!
I’m also having trouble finding any STEN shares…
Don’t you wish you didn’t have pattern daytrader rule? COIN is a great trader!
I keep an eye on PRXL.
Yesterday, it was the payable date for the split. Usually, the following days it is more bullish.
nah i wouldnt be scalping COIN anyway, u know how bad a timer i am, i need $2+ price swings to comfortably profit 50-75 cents/share and going for 15-40 cent/share profits is tough work, aka it sux! its really too expensive for TIM unless it makes it a big move, which it seemingly can’t
Don’t speak too soon! I’m impressed it held 15.
Barber, you out of AGIX yet? Or did you short at the open?
XIDE…anyone watching?
xide would be nice if it didn’t have a loooooong history of double and triple tops.
COIN $16, c’mon momma, gimme a bigger spike than that!
I mean even STEN is up 25% today!
Ameritrade can provide you to sell short STEN, but you have to call, can not do it online. Zecco or Scottrade don’t have STEN to sell short.
Tim,
Do you ever short stocks that gap up on merger news….PKTR? Quick in and out maybe?
Damn Coin- is crazy! I should have played it again this a.m
avoid merger plays, very little volatility, no edge
A few questions..
1. Why is it hard to find shares to short? Is it that so many people reserve them at such a high limit order price just in case they want to short later.. then just change it.. or is it issues with your particular brokerage?
2. SWC is certainly a commodity play since they mine platinum/paladium. Gold has dipped down a bit which accounts for the loss yesterday.. if you are in it for the long term and are optimistic about the prices of precious metals coninuing to rise would this be a good play? Its not your typical spike and short play.
3. I read some of the Gartman today. What influence does Gartman have over COIN? Can you explain this and how gurus such as him can influence the movement , ex: if people like him reduce position will it fall? Maybe this is the only thing keeping the stock from crashing miserably.
4. How high can STEN reeeeaaaaly go?
thanks
stand do me a favor and copy that into the forums, no point in me repeating myself since i get those questions a bunch
Do you think that COIN will move higher than today’s high ( as of now 16.26)?
thanks
I’m thinking if PDLI drops below 11 again it might keep going tawards 10. It’s down a lot already though
who cares what i think coin will do today, focus on the pattern don’t take my word for it. as i said in the post, i have no idea how high this thing goes, i will only play it when it displays a predictable pattern
Tim, why the penny stock? Get into day trading things with some good volatility, you can make way more money pal. Dude, short C for Chrissake, its a $15 dollar stock by mem day
JMAN, i have a decade of experience in this niche, i know it, i’m gonna get others to know it. my plays are volatile, much moreso than crap like C, the odds are just better down in the gutter, trust me, u’ll see that if u give me a chance
Does your broker have shares of COIN. Scottrade and Etrade don’t. I’m not going to short just want to know if this is heavily shorted. I have a feeling that shorts are getting to comfortable and soon when this makes a new high it’s not going to come back down!
Tim,
I shot you an email but I figure you’ll get this quicker.
What’s your take on the VISA IPO? My online broker just sent me an email saying they will be issuing shares for the IPO. Just want your take on what this company should be valued at (I know this isn’t your niche but I respect your opinion none the less), and if people getting in on the proverbial ground floor will see a good upside? How does VISA compete against Mastercard (who is doing very well at the moment)
Alright agreed, I will keep an eye on your system, see whats what.
Got some STEN short at 5.41 from Etrade
if u were to play COIN will the Z shares - COINZ be better since its like 2 times more volitile and like nearly 10 bucks now.. so not so cheap as it were before? probably more available?
plenty of COIN to short at thinkorswim, no COINZ or COINW though
ask visa question in the forums, under what do u think about this stock, getting too many emails about it
congrats on the STEN borrow, 5.41 not a bad entry either, good risk-reward there but could still spike
I KNEW COINZ COINW AT 1$ WOULD GO TO 18$ LIKE ASTIZ JUST WATCH I GET ALL IN COINZ AND IM RICH TIMMY COULDA PUT 5000$ AND GOT $50000+ SO YOUR TRADING ACCOUNT IS NOT REALLY UP THAT MUCH DUDE?YOU MISS THE TRAIN I WARNED ABOUT ALL YEAR AND NOW YOU PAID 4 BASHING COIN!!!!!!!!!!!!GO BIG OR GO HOME WITH 300 SHARES LOL