A TIMer’s Dozen: Recent And Current PennyStocking Plays

Posted by timothysykes on Thu 6th of Mar, 2008 08:20:54 PM

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TIM $16,075 Down $105, Dumb trade wastes $40 monthly gift from Thinkorswim

I’ve written about these stocks before, but every day brings new data (of course, the data rules most plays out, aka ideal trades happen rarely). Remember, you’re not trading based on business performance, you’re trading based on stock performance (two very diff. things, the biz is usually just a front to raise capital/issue more stock anyway!), as if you betting on horses. (one very applicable old/hard-to-find book is Secrets of Professional Turf Betting) Like horses, each stock has specific characteristics—some are fast spikers (DARA, SHZ, IDMI, SOIGF), some breakout gradually (SWC, CTUM, GEOI, GENC, damn you COIN!) and most just suck/can’t hold their gains (over time, all of the above).

Let’s start with those from which you can still profit:

SOIGF—Sir Spamalot, an oil play that loves sending out spam claiming to be the next Exxon. As I posted HERE, spam stocks are scary to buy into, so I hesitated and missed a big runup. Nows its off its high, but maybe they’ll start the spam up again…

0soigf A TIMer’s Dozen: Recent And Current PennyStocking Plays

COIN—the clear play du now, when it stops nobody knows, out goes Y-O-U (you short sellers that is) C’mon, don’t you wanna go out with a bang? C’mon be a good microcrapper, yes you are, yesssss you are, who’s a good boy, yessss you are! Hopefully the overall market/financial collapse doesn’t get in the way of destiny.

0coin A TIMer’s Dozen: Recent And Current PennyStocking Plays

COINW—moves based on COIN, just somewhat exponentially…can’t find any shares to short, can anybody else?

ocoinw

CTUM—responsible for my loss today, not the stock’s fault—my fault. I pledged to wait to buy into a strong close that would signal a morning spike tomorrow, but I jumped the gun at 3:20pm, buying 2k shares at $2.345, expecting a close around/breakout of $2.40

TIM Lesson: Wait for the breakouts, don’t anticipate them

Impatient as ever, I fell in love with the variables—acceleration of the daily uptrend, solid volume and story (they’ve patented tissue welding, potentially revolutionary as there’d be no more need for sutures, stitches, staples, but shady shady website) (shady is good short-term, if stock promoters do their jobs correctly), but didn’t wait for the most important one of all, the strong move into the close needed to seal the deal.

Unfortunately, the overall market tank accelerated, scaring out a few weak hands, including me, as I sold at $2.31 and $2.30, not wanting to risk a big tank into the market close (as happened on 2 previous spikes last month without the help of a national financial crisis). I was right to take my losses quickly (closed 10 cents lower), wrong to be involved in the first place.

octum

SWC—despite its nice double break of $19.80, hesitated in shorting it since it’s a metals play…no guts, no glory…B aggressive, B-E aggressive

oswc

GEOI—hesitated in buying the breakout at $10.50 because it’s a commodity play, certainly won’t be the last one I miss…

ogeoi

CPST—hesitated buying the breakout at $2-ish cuz it’s not volatile enough for the infinitely impatient, good avoidance

ocpst

Perfect PennyStocking plays of weeks’ past:

SHZ—down $2+ since my cover last week—coulda woulda shoulda held

oshz

DARA—down $1.75 since my buy to cover last week—coulda woulda shoulda held (common theme with these)

odara

IDMI—bouncy little sucker, too scary to hold

oidmi

CEGE—too picky in my entry, never shorted it, gotta needta haveta profit from this kind of pattern!

ocege

STEN—never found shares to short, gotta needta haveta profit from this kind of pattern!

osten

Sooooooooo, I will continue stalking as usual…

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Related Reading

Some Potential Plays But I Also Need Your Help February 13, 2008
A Scary Perfect Short Into A Slumping Supernova March 9, 2008
Oops, I Did It Again, I Got Scared Out Of My Trade Too Quickly March 12, 2008

Mike T

Nice post Tim. Some good charts as always.

I paper traded DARA and SWC since I spotted them on your blog. Followed and agreed with your opinion on shorting SWC if it cracks $20ish (shorted at 19.80ish) and shorted DARA at $4.75, cover at $3.55. 28% returns in a week for that paper trading account (using mostly the pennystocking strategy you are trying to teach us all). So far so good and when I'm satisfied with practicing this strategy enough I'll start using to for real profit making, Good work Tim and I hope to keep learning more on your proven strategy!

Mike T

P.S. unless it's just my browser, I can't see the 1st post under each blog page (including mine above)

GaryG

Yeah Tim, you need to have your web developer test your site in IE and Firefox. Site works fine in firefox but not so well in IE and since IE is the dominate browser you should probably makes sure it works for your site. For instance in IE the fourms screw up the alignment of the ads and you have to scroll down below the left banner to see them or the left banner overlaps it. I know you just spent a whole bunch of time/money redoing it and this makes it look amatureish.

BTW thanks for the STEN headsup yesterday, TOS got me 500 this morning.

Tony Ellis

EGO... Impressive breakout. Think it can go anywhere from here?

timsykes

eog has several things wrong with it, the news was fundamentally good, its tied to gold prices and its too actively traded. no edge whatsoever

Adam

I was able to short STEN (very small position) and am looking for it to hit $3ish before I cover. I wanted to jump on SWC but no shares were available. Although its a big capper, DHI has been a fantastic short- beautiful double top just under $18.

ETQT

do you really think it will hit $3?

I have a short position @ $4.4

Raman

Wassup Tim, don't know if you know, but theres a company called Sykes Enterprises. Dont know anything about it, just thought it was kinda funny. Keep up the good posts. Peace.

timsykes

yah i know SYKE, i use to want to buy shares to make it look like insider buying...lol

Adam

I think it will get down to $3.5 at least although $3 is not crazy.

Sykes Ent.-- If I remember correctly I believe he recommended it on last years CNBC Million Dollar challenge and it was a nice short squeeze.

admin

To everyone here with browser / page layout issues, please contact me directly at ADMIN@TIMOTHYSYKES.COM with site issues and your browser info (name and version number). We're working on making TimothySykes.com more IE6 friendly.

James

Hey Tim, what are your thoughts on CPST?

timsykes

i talk about CPST in the post!

Joseph

Today might be your day Tim. (COIN)

timsykes

no COIN available at TOS!

lmsmith

Getting ready for my Morning buy of Coin......and then 10 minute dump.

timsykes

your little morning COIN buy pattern worked cuz the shorts were being squeezed during the runup...now that the stock is on th flip side, do not be fooled into thinking its a sustainable pattern. trust me, i am the pattern master, i've tried them all

puma

coin down 0.69 in afterhours/pre-open

timsykes

awesome, found some COINW to short, just gotta keep trying, sometimes shares open up

puma

tim, did you reserve shares or do you actually have a stake in shorting coinw right now? can you highlight the difference over COIN in shorting COINW?

lmsmith

You have to LOVE COIN!!! play the game folks coming on Timmy!!

lmsmith

Tim- bout 600 shares at $15. 50...... I haven't sold yet but will soon

lmsmith

I also bout TMA- 4000 at $1.39 despite what you said- already up.....

timsykes

oh don't get me wrong, u can have plenty of gains buying other patterns, u also just risk disaster. TMA could stop trading, COIN could go in a multi-$ plunge. but posting your entries and exits is meaningless...these are lesser reliable patterns and people lie (nobody on Elitetrader loses $ LOL)....

just reserved the COINW shares, gotta wait and see if todays the day or not

lmsmith

understandable tim------ I know the risk..... but it's the reward I am after.. besides both stock will be out my portfolio before you can respond...

timsykes

Shorted 125 COINW at $12.45, damn partial fill, waiting on my 175 other shares

timsykes

a couple of mistakes by thinkorswim chat window guys, some correcting, some commission free trades and presto I'm short 300 COINW at $12.345. i can't say it enough, those guys rock!

Andrew

Hey Tim can you see live future prices on TOS?

lmsmith

I am out of COIN- at 16.75- but TMA I am still holding- this one is aiming for the stars.....

timsykes

i dunno, i dont care about futures, i stick to the niches i know, overnight i can't but help check cme.com to watch the futures

coinzmaster

COIN IS THE BEST!!!!!!!!!!!!!!!!!! ITS GOING TO 25!!!!!!! WATCH!!!!!!!!!!!!!!!!!!! HA HA HA HA HA HA HA HA HA HA HA

Stan

why did you close to short COIN today? fading volume? being flat since yesterday??

timsykes

those of u emailing me why i'm short COINW--first of all its a play on COIN, i just couldnt find any COIN shares to short. yes i, and u, should usually wait til the afternoon to short these runners, but the spread on COINW (usually 25 cents) and the $1.5 morning surge off its low on COIN (which still only made it slightly positive on the day) added to the fact that the run ended just below yesterday top (double-top?) all leads me to believe i want to be short rather than later (even if it held those gains, it'd still be a bad day for the momentum folks because with this strong a breakout, the stock should be up $1-2 daily) (if it doesnt hold its gains, it'll be down on the day--students of my DVD know to short on the first down day--so monday theoretically should be ugly). so i'm a bit early--as usual--but my 300 shares at 12.35 make it only a $4k-ish position, so i can afford to hold a bit.

30 min into the trade COIN has cracked back negative on the day, COINW is trading at 11.80 x 12.20 (ridiculous 40 cent spread) and I'm up $150 or os (if i cover at the bid, which i'd probly only get a partial fill anyway, and i want a bigger $ gain)

Stan

sorry - why did you choose*

Matt

Plenty of COIN available to short at scottrade

timsykes

hey, scottrade finally has some shares to short, welcome to the party!

coinw, coin, coinz, u can't miss, just wish i had those pics of their crappy operation to rub some salt in the wound

The Barber

Hey Tim do you know how to find out when coin reports earnings?? thx..

The Barber

coin is looking very weak by the way after bouncing off 17 again.... shorts r going to have a ball with this thing today and into next week...........been waiting all week for this one!!!!!!!!!!!

Matt

Tim, since you along with others shorted COIN, COINW, COINZ whatever they got, it now time to post COIN's articles and post you mentioned yesterday?

timsykes

oh baby up $250 on my COINW short right now, TIM $16.3k

i hope COIN reports ASAP, maybe we can get a SEED-like report!

Funterpwave

Testing $16.....

The Barber

nice! hold it.. u havent seen nothing yet

COINZMASTER

YOU BEEN BEAR TRAPPED LEARN TO VIEW LEVEL 2 PLZ

Funterpwave

According to my level II, no large buyers at $16..

lmsmith

Great! Tim- can't wait until you get to the 25k mark- I am routing for you.... after my large gain on TMA I will be there shortley....

timsykes

COIN tanking PERFECTLY, wow my timing was actualy good for once, now the question is do i hold or take my 10% profits? hmmmmmmmmmmmm, good problem to have

ETQT

wow...

I really wish my broker had shares
first time they havent come through for me

maybe monday

The Barber

HOLD INTO NEXT WEEK

The Barber

HELLO CORNZMASTER

timsykes

I'm out at $11.34...probly too early, but I just don't trust COIN, every dip has been followed by a surge, this time could be different by only a 50/50 chance, not good enough for me. $300 profit and an 8% gain in 2 hours IS good enough for me...TIM $16.4k...lesson taught...time to catch up on this week's emails

mike

Tim, you should have waited!!!!

COINZMASTER

AFTER TAXES A MEXICAN DAY LABORER MAKES MORE AND DOES NOT RISK ALL HIS LITTLE CASH TO MAKE IT LOL!!!!

timsykes

COINW down $1 more in 10 minutes...hahaha welcome to my life....alll i can do is laugh...i'm very good at understanding all the variables and have a general idea of where to enter/exit, but i ALWAYS underestimate how quickly profits can double and triple

Matt

COINZMASTER, you suck!! You probably don't even made a penny, you lost your ass off. COIN will tank!!

lmsmith

If coinzmaster was in since the stock was at $4- he probably made a good 100k plus depending on how much he bought and if he sold........ he still has time to sell

mike

he gets paid by pumping COIN in various Mbs, the guy lies right in your face and thinks he's god.
If i see him in real life, i would probably beat the crap out of him.

Matt

I don't care when Coinzmaster was in, he is just stupid, can't read a chart.

be-the-ball

lmsmith,

if you believe he was in at $4, I have some Enron stock to sell you, cheap. Gtd to go to $1,000 a share in 1 year or less.

timsykes

COINZMasterbater--u just don't get it, i have plenty of cash to live on while TIM is so low, but there's simply no way to teach people who have small accounts from me trading a big account. serves no purpose other than putting too much emphasis on ym trading gains and not enough on teaching. its good for me to make so little, makes me teach more to make more from my book/dvd/website.

and its gonna be soooo sweet to repeat my feat, smack in the faces of ignorant people who hate and refuse to learn the details. i have no problem with haters, just make sure u come at me with facts, not just your uneducated opinion

COINZMASTER

MY MONEY WAS IN COINZ SOME IN COIN 85%IN COINZ REST IN COIN SO I MADE MORE CAUSE A PAID $1$ FOR THE COINZ AND TRADED A FEW TIMES SO I REALLY PAID NOTHING LOL COIN WAS 4$

Al

ZQK up on analyst rankings

Matt

Seems like COIN is going to go leg down if it breaks down below $15

lmsmith

be-the-ball

Rightttt....

Lisa

Timmy!!!! you missed another dollar profit!!!!
gotta work on your exit strategy man
anyway, good job.
i love your honesty!!!!!
hate those wall street liars

Matt

Sweet, COIN dropping further down! Thanks TIM.

Gary

Not happy with Etrade...the past few time I have tryed to short they have nothing.

anbody get any off Etrade???

timsykes

COINW now down another $1.50 from my cover, $450 left on the table...you readers bet be up more than $450, then i'll at least feel better!

Matt

Ready for another leg down to $14?

timsykes

awesome now $2, its trying to secure its place as the most perfect short all time

Matt

I have an account with TD-Ameritrade, Scottrade, and Zecco. Tried all three in the morning, none of them had COIN to short but right after TIM's post shorting COINW, tried again and Scottrade gave me as many as I wanted. TD-Ameritrade said COINW is not allowed to short even with my own money, ridiculous!!

Matt

Sweet, COIN hit $14, I am covering for now. It probably will bounce back to mid to high $14 to close, but looking at the chart, there isn't another support until around $13. We shall see. Anyway, Thanks Tim!

Stan

is this the full blown crash we were expecting for so long? no chance of any more rebound?? it seems for the past 2 or 3 weeks mondays show a huge rebound

Funterpwave

BTW, meantime SHZ is all the way down to $5.30.....

Funterpwave

Covered 1000 COINW at 9.15 and another 200 at 9.05.... Unfortunately I am still stuck with 750 and dont really konw what to do with them. Tim, what do you think?

Matt

Like Tim said above, Monday could be a real blood bath for COIN, if it rebounces back upto $15+ level by the closing, I will short more and hold it over the weekend. What about you, Tim?

timsykes

I think I'm glad u guys made more $ than me, monday could be a bloodbath or a rebound day, i take my 10-20% gains and don't look back. usually u can re-enter

Funterpwave

I would love to get rid of them but am afraid no more shorts are available for later... Any luck my Scottrade friends?

Matt

Scottrade still has shares to short. Seems like COIN can not even hold $14. Where is it going to go to stop, if it can't hold $14.

The Barber

THE BARBER PULLED A NICE 11000 PROFIT.....THANX FOLKS!!! HAD TO COVER SCARED OF QUICK POP...TOO MANY PEOPLE ARE SHORT THIS ANIMAL.. THANX CORN Z MASTER.. GOING OUT TO DINNER ON YOU TONIGHT..

Stan

sounds like a possible short sqeeze then if thats the case?

The Barber

Big buy blocks coming in be careful shorts

Stan

we saw this before... now its really gonna come back real hard and hit 20 next week.

The Barber

no way all down hill next week. It broke down very bearishly today. crazy to buy this on the dip............

Matt

Anybody shorting or buying COIN at closing?

Stan

i think u gotta buy. from a technical standpoint, every dip like this has resulted in a major seurve.. forthe last 2-3 weeks after lackluster or losing fridays they have come back on monday and tuesdays to reach new highs. the pumpers are still working this stock

Matt

Looking at the chart, it seems like it is going to drop further down before it can return. I am taking a short position. Have a great weekend ya'll.

FitTrader

I don't know how you're getting stocks to short. I think this thing has fizzled, I would be careful on any buy position over the weekend. Mon. morning will tell all, as Tim says, let the price action dictate your next move and jump on for the ride.

The Barber

TREND IS YOUR FRIEND...COIN IS TRENDING DOWN AND IS GOING TO MAKE ME EVEN MORE MONEY NEXT WEEK... THANKS TO ALL YOU ORGANIC JUNKIES OUT THERE!!!!!!!!!!! IM NOT EATING ORGANIC THIS WEEKEND IM EATING WAGU BEEF!!!!!!!!!

Adam

i couldn't get it though e-trade either, missed swc as well. tim- is tos the best way to go as far as share availability goes?

timsykes

yes TOS is def. the best discount online broker for borrows. thats why they're my choice!

Alan

I tried shorting SWC around 20, but etrade said that they didn't have the shares to short. I have run into this problem many times. Any suggestions. What brokerage will allow me to short when I want?

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Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

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TIM Trades

View All

Date	Stock	Buy	Sell	Net
Nov 19	AENY	$2.80	$3.02	$1148
Nov 18	NLST	$4.16	$4.40	$947
Nov 18	IMGG	$1.42	$1.64	$2094
Nov 17	NLST	$5.04	$5.59	$2195
Nov 13	VRMLQ	$21.50	$22.97	$2901
Nov 11	EONC	$2.61	$2.80	$687
Nov 10	EONC	$2.74	$3.36	$9784
Nov 6	QXM	$4.31	$4.80	$1936
Nov 4	COT	$8.66	$8.88	$642
Nov 4	QXM	$4.61	$4.89	$822
Oct 30	DDRX	$25.70	$26.53	$812
Oct 29	CTDC	$4.00	$4.42	$781
Oct 26	AWSL	$3.24	$4.10	$2516
Oct 23	RODM	$5.27	$5.23	$301
Oct 22	AMLM	$2.69	$2.97	$820
Oct 22	USEG	$6.12	$6.09	$85
Oct 20	CBOU	$8.93	$9.06	$243
Oct 16	VRMLQ	$16.79	$18.65	$2773
Oct 13	YONG	$11.05	$11.66	$1202
Oct 13	NPHC	$0.59	$0.71	$583
Oct 12	IMGG	$0.60	$0.70	$682
Oct 9	ZAGG	$5.50	$6.10	$2380
Oct 7	GVBP	$0.03	$0.27	$702
Oct 1	NPHC	$0.70	$0.85	$1482

Total: $98,094 (681%)