Posts Tagged ‘Supernovas’
How I Broke My Rules And Lost Short Selling A Fraud, Cannon Exploration Inc (CNEX)
Just about everyone and their mother understands Cannon Exploration Inc (CNEX) is a an outright fraud. Whether you look at PinkSheets.com displaying a skull and cross bones with the tagline “Caveat Emptor” next to its stock quote, its now $470 million marketcap (at $7.25 stock price), the blatant pumping by all the usual suspects and the fact that this company has no business of any kind and has now septupled (7x) in price in 5 days all due to a fluffy PR announcing a new website and a sketchy letter of intent to acquire a seemingly real business, no doubt in exchange for pumped up shares.
Knowing all that, you might understand why I shorted 600 shares yesterday at $6/share half expecting it to go higher—with the goal of averaging my cost basis up too—but never excluding the possibility of a quick $1-2 drop in price.
That’s all well and good, but as a PennyStocker, I have no excuse and my $760 loss (I just covered at $7.20), including commissions, is well deserved. Because while this company is scummier than most, it’s just the latest pump and dump that can—and often do—run further than anyone thinks possible so I still should’ve played by the rules I myself created! Rule #1, don’t short randomly strong penny stocks, you gotta wait for the price action to concur with your thesis. Usually it’s best to short into the market close of the first down day of a big runup, but sometimes that’s too late, so shorting in the afternoon when this kind of a stock goes from positive to negative often opens the door to a big afternoon dump.
10 Stocks In Play: Where Do You Fit Into The PennyStocking Spectrum?
Remember: just cuz I suck at buying breakouts—patience and actually being around to buy-wise—doesn’t mean you’re gonna suck at it too. It’s much much much easier to buy these suckers on the way up than is it to short sell cuz it’s more fun to party than it is to inform everyone that the bar is closing and that the strippers all have STDs….that’s basically what it’s like to short these dirty scummy stocks. Below you see a wide range of PennyStocking 
patterns from which you could and should profit…really just gotta get grounded in my DVD course so you can understand all the variables at work so you can adapt to all the evolving patterns…obviously.
LGDI
VRML
Plummeted bigtime/nicely…despite my $1,000+ in gains between LGDI and VRML, holding one week longer coulda woulda shoulda been an extra $3,000 in profits at yesterday’s closing prices! Are you beginning to understand that as long as you short these turds just as their absurd Supernova buying firestorms appear to fade, even just a little bit, there’s a whole lot of $ to be made? (and despite my 56% return over the past 6 months, anybody who has a decent grounding in PennyStocking could should would be up 100%+ (See TIM results and Supernova slide above to better understand)
NNVC
PSTI
Already began to fade…missed NNVC, thanks a lot Chuckieeeeeeeeee, PSTI so gradual, anybody find any shares to short?
Contest Time: No More BS Guessing Games, This Is PennyStocking!
The popularity of last week’s entertaining but inevitably useless contest got me thinking–I wondered how many people would enter a contest where they might learn something, meaning they’d actually have to do a little work? So, I give you NT Holding Corp (NTHH.OB), a sketchy sketchy sketchy stock that decupled (10x) in price last week on some surprisingly not-so-insignificant trading volume.
What caused this staggering price surge and do you think it will continue? I’ve done my research, but let’s see what you guys got–whoever posts the most in depth research–as judged by me–wins a copy of that soon-to-be-called classic book you should all have read by now! Deadline for entry is Monday morning 8am, winner will be announced at 8:30am. Let’s see if you’ve got what it takes to be a PennyStocker!
Feel Good Friday: Nailing A Perfect Short Sale On Vermillion, Inc. (VRML)
Was I bitter that a stupid mistake cost me between $750 and $1,000 in missed profits the first time VRML squeezed the shorts (as I posted helping other, not knowing I was already short!)? You bet I was! Was I going to let it influence my future trades on that stock or any other? Hell no!
So, after surging pretty much straight from $1 to $5, back down to $3 and then squeezing a few over confident shorts to $4 in a few days all on an ill-researched media story, on Wednesday, I posted how I shorted 1,300 VRML (all I could find) at $3.75, a little too early, but I was confident since I knew this thing would be volatile and shorts would be aggressive.
A few hours into my short, when it was a typical 25 cent profit (as you know I take too many of those) in the $3.50 range, I posted how I was gonna have patience on this one and cover under $3 cuz it was one of the few truly ideal PennyStocking Supernovas to pop its trashy head up in the past few months, even if as I also noted that this was the 3rd great shortable penny stock action in as many days (LGDI which I made $350 on and VRML round one, where I screwed up and lost $180, even while calling it perfectly for readers!)
Is Dennis Gartman A Classy Pump And Dumper? You Be The Judge
Let’s see what you guys think: after I labeled him a “classy pump and dumper” in THIS post, Dennis Gartman, the man himself, was kind/brave/classy enough to post this comment under that post:
Tim,
I take rather strong exception to your comment referring to me as a “Pump and Dumper.” That is simply not true. I know of no one in the industry who puts forth his positions in the funds managed or the personal trading accounts run that are as transparent and as clear as are mine.
Rather than “pump and dump” COIN last time, I bought it and ended up losing a goodly sum of money… Indeed, that was the largest loss I’ve had this year, although I remain up 7% for the year-to-date, and was up a bit more than 22% last year, and nearly that same amount the year before that, and the year before that. Oh, and the fund I manage in Canada is up 29% from its inception last April, so clearly I have some modest abilities in the arena of investing/trading.
At any rate, I have indeed bought back into COIN; the company intrigues me. My position is small, and as is always the case, I’ll add more when my initial positions proves profitable and has been insulated from what I perceive to be random market noise.
Warm regards,
Dennis Gartman
Dennis, thanks for your reply, I never meant to offend you—it’s nothing personal, it’s just business—tracking pump and dumps is my business. When Barrons publishes a list of your stock picks and COIN a.) is the only microcrap listed, b.) the company not only has a shady past, but is directly connected/managed by people with shady pasts and c.) you admit to selling into strength just a few days after that article, strength that was directly caused by your article, something ain’t right.
A Decent Profit From The Airport Lounge, Now I’m Up 50% In 6 Months, Jewww Yahhh!
First time around shorting sketchy-100-year-old-oil-company-that’s-watched-the-world-go-by PDO, I barely made anything before it spiked hardcore and proved itself to be a full fledged Supernova, squeezing those stubborn short sellers who didn’t purchase my instructional DVD PennyStocking (or else they’d have cut their losses quickly) and putting the stock on my back burner as a potential short. So why today—when I knew I’d be hopping all over the place on planes, trains and automobiles during market hours—would I look to trade this sucker?
Simple: cuz I’ve got years of experience trading while traveling and considering this is the 3rd day short-squeeze-induced runup inside of a larger 8-day commodity-related runup, the odds favored an intraday breakdown of some kind—large or small would be determined by stop losses, fear, commodity prices and volume.
I’m Travelling But Who Cares, Here Are Some Hot Penny Stocks
Gonna be traveling all day to my U of M speech so considering how good some of these plays are looking, I’m gonna miss out and inevitably get some emails sayin’ I’m a failed trader, but that’s a small price to pay to get the expected 150+ students to think cynically about the financial industry freakshow! Here’s the microcrap landscape…cheers:
PDO just keeps it goin, showing why THIS trade was actually pretty damn good, at least for a short seller—as I preach in PennyStocking, shorting, while ultimately correct considering how shady these companies are, is much tougher, I really want you guys to learn to play these from the long side (something which I could never really master)…as for when to short, don’t stand in it’s way, this is a full fledged Supernova! Just sit back and let all the early shorts kick, scream and ultimately panic cover—that’s when I’ll start looking’ to enter
HDY is another sketchy oil and gas play that puts out exaggerated PRs, spikes and then does nothing…last 7 spikes have all been good short opportunities, their PR firm is Investor Awareness Inc whose business—judging by their other clients—is to take a few thousand dollars/month and do little to nothing offering up excuses like “it’s tough to get any upside in a market like this” and “no microcraps are doing well right now”. Too bad HDY doesn’t hire somebody scummier/more unethical so this stock can actually pumped like it should be!
We Are The Three Amigos: 3 Natural Gas Plays & Some Other Banditos
(MXC) The fist of 3 spiking AMEX microcrap nattie gas amigos with under a dozen employees…you wanna talk about the worst companies out there, well, here you go, hardly any business at all…but that won’t stop them from spiking because nattie gas has been soaring and people loveeeee speculating on these POS…couldn’t find any shares to short, too bad…
(PDO) The 2nd of 3 amigos, recognize this chart pattern? I’m short 700 shares @$6.20 because it faded gradually into the market close yesterday and I’m looking for it to take out stop losses at $6, so I can cover in the $5.60-$5.80 area…it’s a small position because I truly hate these AMEX commodity plays, you remember how KOG went!
When Timmayyy Is Dead Right: Manipulated Stocks Go Boom!
For the 3 most recently manipulated microcraps—CNOA (pumped by a CNBC “reporter” who mistook paid-for stock promotion for credible research, probly the result of majoring in theatre studies in college (seriously)), EDEN (agriculture product pumped by a TheStreet.com “journalist” who forgot to read the quarterly report mentioning they sold off that division!) and TIGR (I don’t wanna know the evil lurking behind that pump, possibly some SEC counter-intelligence subdivision trying to draw out fellow manipulators) I have been dead on. These are opportunities from which you can profit because I’m not talking about variables that indirectly affect stock prices (ie earnings, the economy)—no, these catalysts have a direct impact on the supply/demand of shares and consequently the stock price.
Since my expose when it was at $1.80ish, CNOA has dropped 30% in a few days—longs, don’t blame me or say “I don’t get it, it had all the trends going in its favor, I guess penny stocks really are just like gambling?!?!” Hello no, this kind of price action is the precise opposite of random, it’s motherf$#@en PennyStocking—learn to play the game or suffer the consequences!
Short Selling Penny Stocks: Decent Profits But The Mistakes Remain
Late Wednesday, when I posted this article predicting a 25% drop in (PSTI), I thought it’d be over and done with by Thursday. But that move didn’t complete itself til today, my baaaaaaaaaaaaaad!
Can’t believe I covered my short above $4, too much of a lil bitch to hold this sucka. Sure, hindsight is easy, but look at the eerily similar price action after the last spike…probly more downside Monday. How about this, I’ll just go on predicting, you guys handle the trading, deal? :)
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May 13, 2008Somebody's making $$$$ off my strategy and wants to share it with everybody!
May 13, 2008Lost a bunch on CNEX, serves me right, the rules are there for a reason!
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no pre-market volume on TAYD, guess no promoter cares enough :(
May 13, 2008Watch TAYD today, China earthquake play, just look at page 161 of my book to see how it fared during the Asian tsunami, or scroll down on THIS page and look at its chart then
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