Fun Times With A Stock Up 700% In 1 Month: Action Products International, Inc. (APII)

Posted by timothysykes on Wed 13th of Aug, 2008 05:32:50 PM

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Just cuz my latest trade/TIMalert proves my mastery of this pathetic little stock market niche, I’m gonna do this blog post in reverse chronological order…half to mess with you and half to expand your brains. I’m short 2,000 shares of APII overnight form $3.30, so I’m loving life right now…enjoy!

8/13:

5PM News comes out about APII’s latest acquisition, see PR HERE, basically for 500k restricted shares or approximately $1.5 million…I dunno how to interpret this, all I can think about is how this news makes APII’s 700% runup reek even more of manipulation–since the deal is definitely being pushed forward fast (close by end of August?!?!?) to take advantage of these inflated prices…and considering the stock has been dead for years–and is probly related to this acquisition somehow aka some “unrelated” third party gets the price up in order to dole out less shares to this new company they’re acquiring…color me cynical, I’ve seen it happen too many times.

4:30PM: Chart is so beautiful, it brings a tear to the eyes of short sellers everywhere, as we practically KNOW it’s the beginning of a massive reversal:

reversal Fun Times With A Stock Up 700% In 1 Month: Action Products International, Inc. (APII)

4:30PM Bid $2.91 Ask $3 Big sellers everywhere, longs scareddddddd, subscribers lovin’ TIMalerts again! I fully expect a drop to the $2.60-$2.80 range tomorrow, maybe even lower, not even sure I need to cover right away considering this stock is up from 50 cents in 1 month and these earnings are bankruptcy-type stuff. Disaster potential aside, this is the first down day, pattern is a near lock to short into, especially with this negative news pressuring bitter longterm shareholders who will be clamoring to take some off the table ASAP.

4:16PM Earnings news hits screens: APII Action Products reports qtr ended June 30 EPS of ($0.18) vs ($0.05) a year ago; revs declined 21% YoY to $1.16 mln (3.19 -0.25)

4:05PM First TIMalert two testimonials of the new trade (notice gains swallow previous losses):

Profit of $378. Realized profit on the day of $70. I still have 2100 shares short. - Reaper

$340 profit!! haha yes!
-sorin

3:46PM APII reports laughably horrid earnings, revenues down 20%+, expenses up, current assets of $4.2m vs. current liabilities of $3.1m, all of which you can laugh at HERE…whewwwwwww!

1:30-3:30pm Stock has dipped to the same $3.10-$3.20 range, even to the low $3.30s, but buyers always fizzle and big sell blocks gradually become more aggressive…very happy holding my short with this price action.

1:32PM As I see big block sells pushing the bids down, I reshort 2,000 at $3.30 this time around, sending out this TIMalert:

yes the volume has faded, yes its finally red on the day, yes, it just took out the day low, but this is dangerous with earnings coming out tomorrow. i prefer to live dangerously. but that’s just me. no idea how long i’ll hold, could be 1 hour, 1 day, 1 week, i am aiming for a crack ofyesterday’s lows as that would make me feel very comfortable holding overnight, but we’ll see…the key is to judge these plays by price action, enter when you’re comfortable, exit when you’re not, always try to minimize losses.

Morning: APII jumps a bit back to the $3.40-$3.50 range, but volume is waaaay down and never really has a shot considering all the big block sells above

8/12:

All night: lots of talk whether I “pumped and dumped” this stock, somehow I don’t see it, I thought it was the top, was proven wrong–albeit slightly–covered for small gain in order to live to fight another day…

4pmish: Lots of testimonials–most small losses, which I proudly display here cuz trading isn’t about being perfect, it’s about minimizing risk/losses:

I covered for a $44 gain.
-Reaper

shorted at 3.2 covered at 3.3…lost $100, be sure to add that to your testimonials Tim ;-) If I hadn’t had to call in to AMTD would have made a couple bucks…
-BTB

Lost $38 with commissions
-evan

just under a $100 loss after commissions for me
-YG

$135 loss for me. My entry was bad.
-TP

4PM: Stock squeezes into the close $3.40ish

1-3:30pm: APII has dropped a bit to the $3.10-$3.20 range, but it’s still up big on the day, so I decide to play it safe, covering at $3.25, sending out alert that I covered at $3.25 for $300ish profit with 30 minutes to go before market close

1:05pm: After waiting for a wall of sellers and seeing the bids cracking a bit, I shorted and a TIMalert goes out saying I shorted 2,000 APII at $3.40

12:34pm: I alert subscribers to potential trade, shorting APII, here’s my reasoning:

understand i havent shorted yet, the price action hasnt broken down today…yet…in fact its trying to breakout very gradually….so theres a risk of a big squeeze later today/tomorrow…here’s my research to get us prepared:

since this would be a riskier trade than usual, let me start first the bad news: lots of early shorts means further short squeeze is possible, stock hasnt had a big down day in weeks, its a gradual, seemingly manipulated runup, company has had PRs saying their changing their corporate structure to be more of a “diversified portfolio company” whatever the hell that is (i don’t like too many possibilities), only 1,300 shareholders as of march (meaning not much selling pressure possible), this is only a $20 million company meaning it could surge much more, they report earnings in a few days so thats a risk they could announce something great and most importantly the price action today has been rather strong and as my PennyStocking DVD preaches, its bad to short before theres any crack in price action, usually signified by 1 down day…

the good news is todays buying is probly the result of vector vest pumping it, even if there is good earnings news, the stock is up 700% from 50 cents in just one month and in 20 years, this sleepy retail product company has had a few spikes, none past $5ish and each one has been a great shorting opportunity…and oh yes, i dont short randomly strong stocks–thats how short squeezes are created–but the volume has really spiked the past 2 days and when it does that, that usually means it cant hold…also just spent all morning trying tobreak $3.45, when it did there were huge sell blocks at 3.46, 3.47, 3.48, and 3.50–aka nowhere to go

long story short, i’m just stalking it, infinitely better to short AFTER a short squeeze has occurred

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Related Reading

The Latest Monster TIMalert Victory: Action Products International, Inc. (APII) Down 45% Since Alert To Short August 15, 2008
Short Selling Games: How To & Not To Short A Morning Spike June 25, 2008
A Short Selling Chart Patterns That Led to $1,000 For Me & $3,000+ For TIMalert Subscribers April 28, 2009

Reaper

I should correct myself from my testimonial: I am currently short 2600 shares, not 2100. If this had better volume I'd love to be short it more. Maybe I'll get a morning spike to short into. I'm probably holding for multiple days.

patelt78

Well, I'm back in. Shorted 500 shares at 3.00 in the aftermarket. I was skeptical pre earnings announcement, but now there is no way this turd of a company stays above 3 dollars.

getshorty

APII just released an update that they are going to acquire a company and that they are going to pay with 500 000 shares. Doesn

patelt78

i was thinking dilution as well. Where are they getting the 500K shares?

timothysykes

its not dilutive to tradeable shares, they're reistrcted

getshorty

Previous post before reading tim's post (ain't I a lazy son of a gun??)

well, 1000 shares of apii short at an incredibly, amazing, amusing, unbelievable, astonishly stupid entry point of... 3.20 you said..... 3.15?3.08???......NO !! I shorted 1000 shares at exactly $3.00. GOod thing this turd doesn't have a chance to bounce back now, and if it does I'm shorting more.

DIEEEE !!!!!!!!!!!!!!

Fantom

Ah, the thoughts of stocks rallying in the morning brings a smile to the Joker's face, Hah.

That's great Timmay! Keep it coming, the empire grows stronger by the minute.

I know you don't like real companies, but I have a problem. Some of them are just bigger frauds. Built big off credit and little revenue. Puck 'em!

Short the bastards.
My skills grow stronger every day.

lcc, pdo, kde, v, eln, nwa, s, and wb = 1,380 profit in 8 days.

Hey vets, I'm learning.

The Fantom is back!
Is that my Visa in your wallet?

timothysykes

everything has a chance to bounce back, its not won yet

getshorty

On a different note.... TOS has really good service, but this guy really got into my nerve, after the chat he called me on the phone and he yelled at me !!!

Don't take shit from any representative

my complain email to TOS

Hi Phil

THanks for your help

So far I have been very happy with the service of TOS, However I want to complain about a very offensinve conversation that I have with Joseph today.

10:21 dingo907: Hi, please short 500 shares of rtk at a limit of$3
10:22 dingo907: hi Joseph
10:23 Joseph: cant short stock under 3$ sorry
10:23 dingo907: short it at $3.20 then
10:24 dingo907: Then how is it possible for me to be allready short 500 shares of rtk?
10:27 dingo907: JOseph ?
10:31 Joseph: i see how you manipulated the order
10:31 Joseph: please buy it back now
10:31 Joseph: I know you know the rules
10:32 Joseph: you tricked Ross into putting in an order for 5$
10:32 Joseph: then changed it

He came out at me making a statement that I have in purpose tricked the system, I found this highly offensive to make this kind if affirmations without having any proof. I indeed place an order for RTK at $5 and then changed it after as a way of getting reserved the shares, as have been instructed by other representatives in the past.

After this chat, Joseph called to my phone and make the same statements shown in the chat and affirming that i have breached the trust of the representatives.

I am a righteous person and a serious client and will not tolerate this type of offences.

Please escalate this complain to whom it is appropiate.

It is a shame that such a good experience with TOS is damaged by one person.

Sorry to bother you with this, since you, and the other representatives, have always been very helpful and respectful.

Sincerely

YngvaiMalmsteve

And yet we have another reason why the PDT rule sucks.

I closed my O/N APII short position this morning. I wanted to re-open a position for another O/N hold. However, I couldn't without violating the rule.

Why?

Because I would be buying and selling the same security in the same day...despite the fact they would be both overnight positions!!!!!!!!

This is flat-out one of the most ridiculously retarded rules known to mankind. The only "protection" this rule gives me is protecting me from making profits.

getshorty

Given my extremely dull shorting abilities that bounce would definitely hurt me but wouldn't surprise me, considering that I shorted 1500 shares yesterday at 3.17 and covered them today at an average of around 3.35 today (at least i didn't cover at the panicky 3.52)

If this one hurts me again, I'll quit trading and just keep on watching stocks. I definitely have to wait on being more selective, one good thing is i subscribed to stockfetcher and run the mike 13th 40 day ranger scans, and it even has an option to display a page with the graphics of all the stocks that have been ranging 10% per day on average for the last 10 days. That way you can look for supernovish charts at a glance.

YngvaiMalmsteve

Getshorty, that day-ranger scan is awesome!

I've got some other scans that are good for finding supernovas if you'd like them.

getshorty

Yngvai, you just remind me, I got over the limit today on IB, they labelled my account padt so I won't be able to trade there until I have $25 000 there (reaper, do you have any spare change that you can give this poor shorty).

So unless they reset my account as i requested (don't know, since they already reseted it in april) or reaper looks to me and throw me some change, I will only be trading with tos from now on, hope that gets me more picky on my trades.

getshorty

Bring them on Yngvai!!

YngvaiMalmsteve

Getshorty, here's my "Supernova" filter:

Close gained more than 50 Percent over the last 5 Days
and Volume above 90000
and Close below 20
and Close above 1

Here's my "Bull" filter:

Close reached a new 1 Month High
and Close below 30
and Open above 0.01
and Volume above 100000
and Close gained more than 10 Percent over the last 1 Days

Here's my "Red Floater" filter:

Upper Bollinger Band(20,2) below Open
and Upper Bollinger Band(20,2) below Close
and Volume above 100000
and Close above 1
and Close below 20
and Open above Close

and finally my candle UBB piercing/vol increase/RSI2>90 filter:

Upper Bollinger Band(20,2) below Close
and Upper Bollinger Band(20,2) above Open
and Volume reached a new 1 Month High
and RSI(2) above 89
and Close below 20
and Volume above 100000
and Close reached a new 1 Month High

getshorty

Thks a lot Yngvai.

will start playing with them tonight.

SamuraiRat

Yeah cool filters, thanks for Sharing.

younggunz

Yeah I am ready for some revenge on APII from yesterday. I am really hoping for a nice fall tomorrow. Would be nice to get an ANALyst to downgrade the stock as well muhhuhhaha >;)

getshorty

I just fell in love....

Here are the results of the supernova filter for today....

LNG
DFR
CHC
POWR
NOBL
AVNXD

I see leaves of green, red roses too
I watch them bloom, for me and you
And I say to myself, what a wonderful world
I say to myself.....
What a wonderful world......

bestdeception

Funny trading video.

http://www.youtube.com/watch?v=wU1pD4xPe2M

Fantom

Tim you've trained us well, soon the short force will be complete!

Fantom

Great video, Rock ON!

Tony Ellis

Getshorty, FRom what I've learned from TIM's DVD I don't think any of those qualify for Supernova status.

Fantom

Here's my favorite, http://www.youtube.com/watch?v=ss-lOYeuhIg&...

Tim, we need a commercial, with you in it.

getshorty

Tony, can you ellaborate a little about what CHC and POWR is not supernovish?

THey don't have the progressive increase in volume as truly ideal supernovas, nor the xfold increase, but they still very shortable at the right time to me.

That said, you have made a truck load of money and I haven't, so you MUST know something that I don't

Tim, we neeed some dvd after sales customer service here. Your take on POWR and CHC not being supernovish.

timothysykes

r u serious getshorty? watch the dvd again and see what a 300-500%+ increase looks like, forget these 50% gainers

YngvaiMalmsteve

Shorty, I called that filter "Supernova" simply because it filters for stocks that have had large price increases in a short period of time. But that doesn't mean every stock (if any of them) that comes up in the filter is a Supernova, or even a good short. It's a just a filter to help narrow things down. I use some of the other filters I mentioned as well. With that combination of filters, I pretty much come up with just about every stock that Tim blogs about. But you still have to take a close look at the charts, look at why the stock is up, etc.

M

Tim, what do you think about ZYXI as a potential short?

Seems scammy to me. Up 250% in the last 45 days. No significant earnings, no equity value, trying to get listed on the AMEX. You'd think if they wanted some credibility they'd at least try to get listed on the Nasdaq or NYSE. It's an OTC stock which may pose problems borrowing shares, but it looks like a good potential short to me.

Tony Ellis

Shorty, I wasn't trying to be critical or imply those weren't worthy of trading. I don't want people getting confused about Supernovas. Supernovas are truly perfect patterns combining greed, euphoria, fear(early shorts), hype, perfect emotionally charged explosive breakouts. I consider MXC and PDO to be recent examples. Even if they were commodities plays. GETG was a great one .20 to 4.50.

Reaper

Hmm, my best ask order got hit after hours and I am now short another 800 shares at 3.10. Woot!

Mike_13th

Getshorty,

Stockfetchor rocks!

Only 9 bucks a month,the only thing I pay for!

Keep up your posts,enjoy them.

Brian D

Called this 2 days ago and was told that I was out of my mind by a poster here, glad to see it's good enough for tim. As for myself I went long on DVD at 4.87.

ptramsey

yo shorty, so will tos let you short under $3 stocks normally?

pumacom

Shorty, your customer service emails are tremendous. You should hear the arguments I've had with Scottrade reps and their "restricted list" bullshit... who the hell do these clowns think they are trying to babysit me with my money???

investorslive

Brian D - Long Tim's DVD or Dover Motorsports Inc. (DVD)??

haha!

Avarice

Hey Timmay when you cover APII, are there going to be any big plans for getting above 25K? Free dvds to TIMAlert subscribers? Free month of alerts? Good luck on the short. I can't wait to short when I get my TOS acct funded.

getshorty

Thks Tim and Tony, I should have made clearer that I didn't thought these were supernovas exactly (powr and chc) but have a similar shape (that's why I mentioned supernovish) and it looks like supernovas may be spotted with this one in the future.

Maybe I should get less excited and keep on scanning stocks until finding true supernovas.

younggunz

Latest AH trade of APII is under $3.00 now at 2.96 and 2.95

investorslive

great trade

MARC

PLAB breaking down. How low will it get?

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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)

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

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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).

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TIM Trades

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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%)