Details On The Stock I Bought Friday…
Posted by Timothy Sykes on Sun 12th of Jul, 2009 11:30:09 AM
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This is what I sent to TIMalert subscribers late Friday:
Bought 2000 APWR at $8.20ish…they announced their biggest deal ever today, stock is up only $1/share (first up day and breaking recent trading range) after getting their biggest contract ever today…methinks shorts will get nervous into the market close and hypesters will do all they can to spread the word of the big–and we’re talking $1.5 billion–contract on message boards, chatrooms, you know all the typical penny stock hype routes…potential gap up to the high $8s…not huge reward here, but also low risk, downside risk of 20-30 cents/share, upside of 40-70, good risk/reward for a Friday afternoon short squeeze/Monday gap or morning spike play
As you can see from the chart below, after double-bottoming intraday perfectlyyyyy at $8.10, we already got a partial Friday afternoon squeeze to the intraday resistance-filled $8.40 area in the last hour of trading:
….and several TIMalert subscribers have already banked:
In and out for $450. No interest in being long this turn over the weekend. Looks like a nice trade though.
-Reaper (who looks like THIS)
out at $8.42 thanks for the easy $136 profit
-wallie
+$90
-sillyguy
lovely Trade! out with quick $400+. the weather is just too nice outside for me to watch candles.
-soko
Now the question is how much of a gap up/Monday morning spike is possible…let’s do a little digging into this trade setup.
First of all, my buy at $8.19 was entirely predictable because I simply followed the rules I teach in my PennyStocking Part Deux DVD, because the stock was breaking out of a multi-week base on a very positive piece of news, which the major media, in this case Reuters, had already picked up saying:
“The contract is a big positive. It is by far the largest contract that A-Power has ever had,” Raymond James analyst Pavel Molchanov told Reuters.
It is a sign of confidence in A-Power’s ability to pull off a project of this magnitude, Molchanov said, adding that the economics should be “very significant” in the long run.
While the news (read the press release HERE) is nice, I highly doubt APWR will be able to pull it off and even if they do, the profit margins and their typically misleading press releases and lack of true business transparency (as is the problem will ALL Chinese companies, especially Chinese Penny Stocks) will undoubtedly do them in.
But I bought the stock based on what kind of predictable emotional buying this news will have during a very specific time period as bottom pickers and alternative energy nuts will unite to get craaaazy about this setup over the weekend.
Just like most of my buy alerts to TIMalert subscribers, I like there to be some positive catalyst helping to influence buyers to get in ASAP (VRAL was being promoted on national TV when stock promoters bought airtime….RINO got NASDAQ listing approval….LZB was a perfect technical breakout…)
JUst like those other companies, I think APWR is a piece of crap, but for the next few days, this contract news should have a lasting effect that helps attract buyers and squeeze short sellers. All I want is $8.75 and I’m out, so this one has a low risk with decent rewards and judging by those TIMalert subscriber testimonials, this latest pick has already made me peeps some decent cash!
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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%)
