15 Stocks I’m Looking At Short Selling, Potentially, Only Potentially
Posted by Timothy Sykes on Wed 26th of Nov, 2008 11:24:30 AM
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Sent to TIMalert subscribers early this morning:
Again a ton of potential shorts today, setups are ripe heading into the holidays, a time known for beginner day traders to try their luck, now people are desperate for fast cash so it’s gonna be easy pickings as these fools actually believe message board hype and buy into surging Penny Stocks…hopefully it happens again this year as it’s fun to take $ from dumb people:
BIDZ is a double off its $2ish lows, classic dead cat ounce, will look for signs of reversal to possibly short
RDNT is also nearly a double off its lows
CSUN reported bad earnings, but was probly priced in considering the stock jumped big, no w a double off its lows in just 3 days…I don’t like earnings plays, but I’m watching.
JRCC is also a double off its lows, just a stock that’s gotten wrecked, no other reason, potential short.
SRI was a great short for a 15% gain, $1,700 profit, detailed post coming, now the stock is dead to me.
STXS looked like it was gonna roll over yesterday, spiked last few minutes, support everywhere so shorting doesn’t look too good.
PRST up from $1 to $2 after a death spiral, potential short
FMD is waaay up off its lows but its also a finance company, no thanks
NCT is another finance place, ow with solid intraday support everywhere, no thanks, I need spiking action, much more likely to reverse!
KFS is a finance spiker, but only its first up day, watching it
TWB had its first up day, $2 to $3 after being in a yearlong death spiral, please oh God let there be a further squeeze.
LNC is a finance company that was trading at $50 just a few weeks ago, no thanks
YGE is like CSUN, alternative energy bouncer, almost a double off its lows.
YRCW continues squeezes shorts, I won’t be one of them.
SSW is up a bit off its lows, but it’s a real company, no thanks.
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TIM Trades
View All| Date | Stock | Buy | Sell | Net |
|---|---|---|---|---|
| July 2 | KIRK | $10.60 | $11.53 | $1377 |
| June 30 | ISRL | $107.97 | $118 | $985 |
| June 24 | LZB | $4.53 | $4.81 | $1240 |
| June 17 | GWSC | $1.86 | $2.76 | $2679 |
| June 15 | SHZ | $1.66 | $1.83 | $280 |
| June 15 | SPNG | $0.11 | $0.18 | $630 |
| June 12 | JAZZ | $2.84 | $3.26 | $380 |
| June 12 | MAPP | $9.68 | $10.07 | $565 |
| June 8 | HEB | $3.00 | $4.18 | $334 |
| June 3 | GROW | $8.64 | $8.96 | $740 |
| June 3 | SYMX | $1.21 | $1.11 | $940 |
| June 1 | USCN | $0.55 | $0.86 | $260 |
Total: $65,674 (421%)
This will be a great short in 5 to 6 weeks.
Coal is the Future, Gasification of Coal. Rentech (RTK) Significant Announcement on the Horizon
Company: Rentech
Ticker: RTK
Company Snapshot: Rentech is composed of two business segments each focusing on a major global issue, alternative green energy and fertilizer production. Rentech’s alternative energy segment is one of the world’s leading synthetic fuels technology and development companies. Over the last twenty-five years, Rentech has developed and patented the Rentech Process, an advanced version of the well-established Fischer-Tropsch process. The Rentech Process can convert a wide array of carbon-bearing materials, including green resources such as biomass and municipal solid waste, into ultra clean fuels and chemicals ranging from jet fuel to diesel gasoline. Rentech’s objective is to help the world reduce its dependency on oil and lower emissions, including greenhouse gases. Rentech’s second business segment is their fertilizer plant Rentech Energy Midwest Corp. -REMC-, located in East Dubuque, IL. REMC is one of the country’s largest nitrogen manufacturers producing nitrogen-based fertilizer products and industrial nitrogen products.
Recommendation: Buy
Recommendation Date: Friday, November 21, 2008 at .50 cents per share
Recommendation Results:
** Friday, November 21, 2008: UP 8.00%
** Monday, November 24, 2008: UP 12.96%
** Tuesday, November 25, 2008: DOWN -1.72%
** Since Date of Recommendation: UP 20.00%
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On Friday, November 21, 2008 we recommended Rentech (Ticker: RTK) with a buy rating at .50 cents a shares. Since then a few positive and significant developments have taken place.
* November 22, 2008 Indiana and Illinois announce they are pursuing major clean coal power projects. Illinois Attorney General Lisa Madigan has announced a measure that will create 2 clean coal projects including a $2.5-billion plant near Taylorville, Illinois.
That plant comes in the wake of another $2 billion coal gasification project in southern Indiana.
http://www.wthitv.com/dpp/news.....0811212155
* November 22, 2008 Baard Energy has received its final air permits from the Ohio EPA which in turn allows them to build a coal to liquid plant in Wellsville along the Ohio River. One of the first of its kind. The permit is the third and final state environmental permit necessary for Baard Energy to proceed into final design and construction of the 53,000 barrel-per-day coal/biomass to liquids plant at the Columbiana County Port Authority site in Wellsville. Baard has yet to release who will supply their Fischer-Tropsch technology.
http://www.reviewonline.com/pa.....l?nav=5008
* November 22, 2008 President-elect Barack Obama reaffirmed his support for alternative energy. This includes Rentech’s Fischer-Tropsch technology that converts biomass, natural gas, and coal into liquid fuels ranging from jet fuel to diesel gasoline.
http://news.yahoo.com/s/ap/200.....A1tl0Gw_IE
* November 24, 2008 The US Air Force concluded analysis of the effects of using a natural gas-based synthetic fuel with its Lockheed Martin F-22, as work to trial the technology accelerates through its trainer, transport and fighter fleets. The office of the assistant secretary of the air force for installations, environment and logistics is expected to select a private partner during December to develop a Fischer-Tropsch production facility at Malmstrom AFB, Montana.
http://www.flightglobal.com/ar.....rials.html
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As of Friday, November 21, 2008 for an Aggressive short-term trade we like Rentech at these current levels. Rentech will release fiscal year 2008 financial statements December 16, 2008. Rumor has it these numbers will be very positive.
Rentech’s stock price has been down significantly along with everyone else:
15 days down –43%
45 days down –62%
65 days down –79%
The last time Rentech hit .46 cents a share was October 27, 2008 and the stock proceeded to rally .43 cents to .87 cents. An 89 percent increase in 7 days. Since March of this year a 40 to 80 percent fluctuation in price has been common and we look for this type of volatility to continue. Rentech could easily exceed a $1.20 per share before year-end based on a number of reasons.
Rentech’s management is currently in a pickle. The stock has dropped significantly and the officers of the company need results ASAP if they want to be able to justify their year-end bonuses. In addition, all stock options are underwater including those belonging to the board of directors. As we have seen in the past, Rentech actively manages their stock price by issuing press reports before releasing their latest financial numbers. Only to be followed with additional press releases over the coming weeks, all in an attempt to influence the stock price. One news release could easily move Rentech’s stock price .50-.60 cents like it has done so many times in the past. Two or more press releases could be very significant.
Press releases for Rentech’s alternative energy segment could focus on:
* Technology licensing partnerships = Revenue increase
* Revenue and cost sharing relationships = Revenue increase and cost decrease
* New business strategies and directions = Shareholder assurance
* New product sales revenue generated by their Product Demonstration Unit -PDU- leading the way to future business opportunities as companies discover value in Rentech’s numerous gas to liquid products = Revenue increase and shareholder assurance
* Continued process improvements at their Product Demonstration Unit -PDU- facility in Commerce City, CO = Shareholder assurance
Rentech’s fertilizer plant, Rentech Energy Midwest Corporation -REMC- located in Dubuque IL, is an extremely valuable asset that generates a tremendous amount of cash. The value of this plant alone creates a support at current levels helping to reduce downside risk. Rentech currently has 166 million shares outstanding and their fertilizer plant alone is valued between 120-210 million. A quick back of the envelope calculation, 122/166 and 210/166, suggests a stock price between .73 to $1.27.
Rentech recently reaffirmed EBITDA guidance for their fertilizer plant and there’s a good chance Rentech will post a net income, something they haven’t done in years. Moving from a net loss to a net income would be a significant event and I think the street HAS NOT priced this into the stock. Last quarter Rentech successfully completed their Product Demonstration Unit -PDU- that converts natural gas into various petroleum based products like jet fuel and diesel gasoline. The completion of the PDU means a reduction in expenses. Combine reduced expenses with record fertilizer sales revenue, coming from greater demand for corn that is used in the production of ethanol based fuels, could translate to a positive earnings per share. Management needs a homerun if they want to justify year-end bonuses; there’s an incentive for them to be aggressive. Shareholders are less likely to be pissed off when they hear about seven figure total compensation packages when the stock is trading at $3.15 versus .50 cents a share. Again, management has a strong incentive to move this stock and all stock options are currently underwater.
Press releases for Rentech’s fertilizer segment could focus on:
* Record fertilizer sales revenue growth for fiscal year 2008
* Very favorable EBITDA guidance for 2009
* Favorable asset valuation discussion of their fertilizer plant
As reported at Mutual Fund Facts About Individual Stocks -MFFAIS- the overall number of institutional owners has recently increased 20 percent from 81 to its current level of 97. This is very positive.
Institutions adding to an already existing position include:
Goldman Sachs added 825,221 shares
Vanguard Group added 5,662,885 shares
Barclays Global Investors added 1,918,971 shares
Credit Suisse added shares
Putnam added shares
Oppenheimer added shares
Northern Trust added shares
Bank of New York Mellon added shares
Bank of America added shares
Wells Fargo added shares
There’s a large short position, I believe 8-9 million shares and it’s probably a safe assumption that these sellers are in the money since Rentech is currently near 52-week lows. If Rentech’s stock price does move quickly, press releases and an overall market rally, we could see short sellers add to the buying as they lock in profits. This 1-2 combo could move Rentech’s stock price in excess of .40 cents a share.
Because of a crisis in confidence the major indices, DJIA and S&P 500, have seen a record setting retreat in the last 30 days, especially in the last 7, and the market is due for a 1,200-point rally. This alone could move Rentech’s stock price .30 cents a share.
new post:
http://timothysykes.com/2008/1.....next-week/
There is a push for clean coal technology. They are calling for massive spending on ctl and co2 capture. It sounds like they are bashing the coal companies and pushing for new technologies and investment.
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I am submitting TMEN.ob (ThermoEnergy)
A few things to point out 1st.
The DOE (Samuel B.) appointed TMEN scientist to the National Coal Council.
There is also a MOU with them and Babc-ck Power.
http://www.thermoenergy.com/
This is from Babc-ck’s website in regards to this:
http://www.babcockpower.com/in.....;Itemid=56
49% insider ownerhsip
Low float
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Increased institutional support:
http://www.nasdaq.com/asp/hold.....titutional