Why I Shorted Casella Waste Systems Inc. (CWST) & Made My Subscribers $5,000+ In One Day
Posted by Timothy Sykes on Sun 4th of Jan, 2009 08:45:28 AM
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PEople dislike my strategy because stocks are tough to short and illiquid…CWST is neither and yet it fit the pattern that’s made me millions perfectly!
CWST is the hugely indebted—think $600 millionish—carcass of a company—just look at the longterm chart:
…one I shorted 4000 shares at $4 and $4.01 in the mid-afternoon Friday after it tried and failed repeatedly to not stay negative on the way around $4.10 (hellllo, ideal intraday play based on sideays price action, barely red on the day, looking like it wanted to fade after some perfect sideways price action
….OBVIOUS for anyone who’s ever watched any of my DVDs or attended my seminars, like these fine people:
I am short from 4.01 long before alert
-nojo
I got in $3.90ish this morning when it first cracked $4
-tbohen
Got in about 15 minutes before alert at $4.01…keep on going!
-youthful investor
Lots of DVD students anticipated this pattern before me since it was my #1 potential short in my premarket watchlist (emailed to TIMalert subscribers each and every trading day)—aka if you didn’t consider shorting this EASY TO BORROW stock, you suck since its an ideal case of my strategy working PERFECTLY…stock price dropped to $3.50 within a few hours of the alert, not due to the alert, due to the pattern!!!!–I was away from my computer or else I’d have taken that 10%+…a few of you don’t understand that when stop losses get taken out, all hell can break loose for a few minutes…be ready to take profits…watch PennyStocking Part Deux for more detailed info on intraday patterns..one guy Pat did extremely well:
Ended up shorting 14.6K shares average price $4.04. Covered 5000 @$3.52 and then covered up to $3.88 towards the end of the day, covering in 1000 share increments. Haven’t figured it all out yet but I think net of $3500-4500. Thanks Tim
My average share price was $4.08 for the short, more than I thought. Realized gain was $4993.00.
-Pats4P
Of course a few TIMalert subscribers got stopped out after the rise from $3.50 to $4—why I have no idea, the stock was still red on the day but many of my “students” are newbie’s/scared/conservative, whatever, I wouldn’t have/didn’t get scared of my trade because it didn’t go green on the day into the market close (even though it tried)!
Judging by the great negative close on Friday after coming all the way back to $4, this is a beauty…I still expect the low $3s Monday but only if it can take out Fridays lows…we’ll see, but I like the first down day of the pattern (ideal), failure to hold above resistance in the $4s (ideal) and most importantly, the repeated late day failures to crack above $4 and finish the day solidly down even though the overall market was strong.
Maybe a few people were expecting my negative post, did the research and similarly concluded this company is all but dead already or more likely the pattern just played out perfectly and the stock is up too much with too many bitter shareholders to hold a 100% gain in 2 days on nothing but hype/hope.
No matter what happens Monday, this was a great trading setup, a great 10% win for anybody prepared and a trade I’d/I’ll make again and again.
You can either signup to TIMalerts and get notified within seconds of my trade or you can get my instructional dvds and anticipate my trades…I hold nothing back, this game is easy if you learn to play it.
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Timothy Sykes
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%)
