6 Penny Stocks Du Jour You Should Be Watching

Posted by Timothy Sykes on Wed 11th of Feb, 2009 12:50:04 PM
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The following was sent to TIMalert subscribers early this morning:

Those who haven’t read my main blog TimothySykes.com in a while, I’m telling you LiveStock returns this Friday the 13th from 1-2PM EST…you can tune in HERE….ask any questions, rant what you like/dislike about TIMalerts, this show is for you guys!

Here are some plays to watch today:

BBX dropped 22%, glad some TIMalert subscribers banked shorting that one, was too quick a drop for me, now it’s dead to me.

STSA was another big winner for some TIMalert subscribers, check it out:

$307 profit on stsa, thanks Tim! –G.P.

Held onto STSA for an 18% one day profit, I love this game -jesse

$846 today Tim, thanks! -RJM

HEB has doubled from 40 cents in 2 days, look at its chart, it always spikes and then drops, I mean, always, just be careful not to short wildly, I’ll wait for momentum/volume to fade a bit.

MTL dropped 18%, perfect pattern, couldn’t find any shares to short, could any of you?

ARNA is the one I’ short 2000 shares overnight from $6.15, amazing how well it held up in a bad market…scary actually, resistance at $6.30, then $6.35, then $6.40, so maximum loss is about 25 cents/share or $500…gotta protect against potential major spike…thought it would take out $6 to the downside when it went negative on the day yesterday, that didn’t happen, this is what happens when you short before key support levels get taken out….the good news is that there are soooooo many sellers as their fundamental business is horrendous and we won’t know about FDA approval until late March….if I have to take a loss, I might even re-enter, frustrating, but safe trading is frustrating.

JRJC also finished higher yesterday, making me happy I stuck to my rules about not shorting a stock that’s already dropped big…now there’s great support in the $10.80 range, once that cracks, straight shot down to $10…that’s the level I’ll be watching for a potential short.

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  • PatentThat4aDolla
    Just wanted to say thanks. I was looking at all the online brokers who allow uncovered options for about 20% equity. I couldn't decide which was best, so I took your advice on ThinkorSwim. I know you're still keeping an eye on them for negative repercussions of the buy out, but so far (a month) I'm very happy with them.

    None of your products would work for me, so sorry to be a free-loader but thanks for the good rec from your site.
  • Evan
    Tim- we both broke our rules on ARNA. I'm still in short at 6.45, but it still hasn't had it's first down day. We should know better:)
  • Mike
    Evan Shhhh...

    How is Tim suppose to artifically inflate his performance numbers if you keep calling out his trades on the comment board.

    Besides do you both know you shouldnt be trading stocks that have more than 100,000 share a day volume and worth more than a nickel. How are those faxed stock tip scams going to work on liquid stocks....
  • ha inflate my performance #s? mike you're even dumber than i thought, please play more penny stocks, my subscribers will be able to take more $ from u
  • PatentThat4aDolla
    My understanding is that covester is pretty secure (i.e. cheat-proof). Mike, I'd love to hear a theory on how someone could artificially inflate performance numbers and have it not show up on covester.

    (Truthfully, as someone who cannot use the methods taught here, I feel like I'm missing out on some semi-easy money, so without wishing fellow investors ill-will, from a selfish standpoint, I'd like believing it's hype. Though I can't given the evidence.)
  • Mike
    PatentThat4aDolla - do you understand what front running is?

    Tim has x subscribers. He enters a position before he sends out an alert. x subscribers jump in and follow his trade sending the stock in the direction he alerts because it is an extremly thinly traded stock that no one even cares about. Voila your performance is strong. Illegal but strong. Just ask Bernie.
  • Mike
    Actually a very interesting stat that Tim could put out would be winners vs losers and avg volume. My bet is winners would have a much thiner avg volume then losers.

    Also compare number of subscribers trend vs his performance trend. When you go to covester notice the performance is much stronger later. Hmm subscribers probably didnt start coming in till a little later in the game as well.... Coincidence?
  • PatentThat4aDolla
    Well, that's a theory. No offense to Tim, but regardless of how thin the volume is, I really don't think he has enough active subscribers to move the price. Also, I don't know how that would work, as he sends his alert out before the market opens. Granted I don't know all the ins and outs of the exchanges, but it seems like that means he can't ensure he trades before his subscribers. What I do know though, is there's nothing illegal about picking a stock and saying it's up for no reason so you should short it. That's not stock manipulation, it's a reasonable opinion. Now if he said "this stock is up because they got a patent on X, but" then lied saying "the patent is under re-exam and will be held invalid, sell sell sell," then illegal, but he just spots fluff stocks and encourages readers to ride the fluff down with him.
  • if i really influenced prices, i'd be winning more now that my subscriber base, not less...all BS, the patterns are all detailed in my DVDs, same exact patterns
  • and if i had time to detail all the volumes of the stocks i trade, my biggest winners are actually the most liquid!
  • Mark
    Mike Skeptic, I've been reading the blog since last December "when he hadn't started Tim alerts yet" ; ) and he would post just one or a few stocks he would play next day and a lot of them had volume. He actually prefers decent volume. lol
  • Mark
    "Hmm subscribers probably didnt start coming in till a little later in the game as well…. Coincidence?"

    if your going to be a skeptic atleast read his blog...he started under PDT. makes sense doesn't it now
  • HopeSolo
    Mike: Front-running? Maybe so, if Tim was a broker. Do you realize front-running applies to brokers or brokerage firms? "Go ask Bernie." Do you even know what Bernie did or what a ponzi scheme is? Because it's nothing like front-running.
  • mark
    didn't see the forum CYPW looks suspic
  • Mike
    HopeSolo - you are an idiot.

    Front running doesnt only apply to brokers. Front running can mean you buy a stock before news or larger buying/selling momentum takes place in a stock.

    You every watch boiler room - surely you have. There are shops all over long island that buy crappy penny stocks then have a bunch of "brokers" cold call people and mention the stock is about to explode. If you get enough people to buy in on your "tip" it can move a stock in the direction you encourage. ESPECIALLY WHEN IT IS THINLY TRADED.

    Do you understand this is a very simple thing to do if you have enough people think you know what you talk about. That is why Boiler rooms focus on OTC and penny stocks - comprende?
  • HopeSolo
    Mike, again you're wrong. Look up the definition please, you said it was illegal. Yes, it is illegal, if you are a BROKER taking the position before telling your clients to BUY. Tim is NOT a BROKER, get it through your thick skull. thanks.
  • Mark
    you watch to many movies Mike. Why would someone get involved with brokers when it's 2009 and you can just email 50,000+ people or spam. think about it
  • osti, it must be tough for u to be so much smarter than everyone else, huh?
  • PatentThat4aDolla
    Even me Osti? But I can read good!
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TIM Trades

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Date Stock Buy Sell Net
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: $92,304 (644%)