We have just released a new research report on a company that is a real midget, with a market-cap of around $15 million. This is a $50 million company trying to walk on its knees. Only a matter of time before it gets up and people realize what is at hand. All the angles are [...]
This article also published on TheStreet.com Every bull market cycle has them, a few stocks that defy gravity and smash expectations. Frustrating both bears who consistently make attempts at shooting down these high-flyers and overanxious bulls, who find themselves pulling the sell trigger prematurely. NFLX is the most recent company to take home the title [...]
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1. AAPL – DAILY CHART FROM 1/24. BEARISH. 2. NFLX – WEEKLY CHART FROM 1/25, BEFORE IT EXPLODED UP. VERY BULLISH. 3. AAPL – WEEKLY CHART FROM 1/23. BEARISH
1. APPLYING POKER THEORY TO SPECULATION IN THE FINANCIAL MARKETS 2. LASR (GSI GROUP) ANALYSIS AND BREAKDOWN OF WHAT WENT INTO OUR DECISION TO BUY LASR 3. THE THOUGHT PROCESS BEHIND A NEW STOCK WE’RE CONSIDERING
(Some of the prices that appear below are pre-reverse split prices) We initiated our position in LASR during the first quarter of 2010 at 2.55 per share. It is trading close to $12 as of 1-28-11. We have been scaling out of the position throughout January. The following is the research, reasons and facts that [...]
“Today’s thoughts” is something I send out nightly to our members. It usually involves the performance of our current holdings or the performance of the markets. This is tonight’s “today’s thoughts”. I thought it would be good read for everyone: You know, I haven’t always been a penny stock or micro-cap investor. It’s actually something [...]
This is now considered a completed investment. We initiated the position almost exactly one year ago, when most thought the end result would be the shareholder equity in the company being dissolved in the bankruptcy. We have been in the process of liquidating for the past few weeks after a 400% gain in the stock [...]
January tops following a bullish year in the past year are not a common occurrence. If the market wants to begin a topping process, it will typically retest and exceed a January top in February or March and then begin the painful period of correction. This market is no different as human psychology and pressure [...]
NFLX is the popular guy around campus this morning. Let’s take a look an updated chart. In case you missed it, please read the analysis of NFLX from 1-25 in order to understand this chart better: (click chart to enlarge)
Never underestimate the power of round numbers on market averages and individual stocks. This is lesson I forgot coming into this week, as I wasn’t expecting the type of upmove we have seen here recently. Round numbers act as a flashing billboard…it’s the single best advertisement for the markets there is. It serves as means [...]
A couple charts for your viewing pleasure: (click to enlarge)
Just to give a little background, after I closed down my hedge fund, I really didn’t know which way to go. I knew I didn’t want to go back to Wall Street type job. Those few Wall Street jobs that I would have considered, I didn’t have the pedigree for. I had played poker in [...]
So we’re taking more of our technology bankruptcy (now well out of bankruptcy) play off the board here. It’s moved down to a small – mid sized position. Not because I am bearish on the company at all…but rather it has become too large for us as our niche is companies trading under $50 million [...]
True to form, as this rally progresses it becomes more confusing in nature. We have a number of indicators and leaders in the market that are clashing with each other at the moment. Making it difficult to gauge whether we are coming up on a substantial period of trickery and mental mind games imminently or [...]
Minyanville today posted the following research detailing the vast amount of fundamental data (provided in a link within the article) that supports an economic supercycle. The report itself cited everything from demographics in the BRIC and Sub-Saharan African countries, to demand for commodities, to modernization of infrastructure within countries that are catching up to their [...]
Given that we’re in the midst of researching a potential new stock for investment, I thought now would be a good time to detail some of the thought process. As any of you who read this site in detail know, our stock investments come in the form of special situations. Special situations, for those of [...]
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Had a nice push on our oil/gas spinoff play, with it ending the day up 5%. Volume was light, however. Our technology restructuring play, biotech restructuring play and subprime restructuring play were more or less unchanged. Yawn. Sideways was only fun when it was made into a film. Glad its the weekend. Tennis, gym, friends, [...]
Option expiration Friday’s used to be fun. Actually, they still are fun once in a great while. However, the fever with which it used to whip traders into a frenzy is for the most part gone. A function I think of institutions having a better handle on it than individual investors, who have become a [...]
Some charts to think about as we head into trading. Bottom line: Gold and Silver in trouble. 2004 correlation? Possibly, but not as treacherous. (click charts to enlarge)
I just sent our members some new research on our oil/gas spinoff. It was a comparison of the market caps of companies that are drilling in the same region relative to the market cap of our oil/gas holding. It made my head spin with excitement. I admit, I drank some coffee tonight before I started [...]
The market continues to fall in line as it should. That’s bad news for bulls, at this very moment, as giving respect to the leaders means further weakness. I outlined yesterday how well the market was listening to its leaders towards mid-day…and here we are at mid-day with the market showing similar respect. With all [...]
Having a lot of visions of January of 2004. It’s a period of time that I think about probably more often than any other time in my trading career. And January of 2011 is reminding me a lot of that period of time. Why are memories of that period a chronic condition within my mind? [...]
If you listen to the market closely, as I tend to do, that is exactly what the market was screaming out during the selloff today. It’s apparent that the bull market is tired of being steady eddie, and wants to rebel for a bit. The more the bulls attempt to force it into a disciplinary [...]
This is an important point to remember. The leaders of the market have thus far been technology, led by the semiconductor names. SMH today is down over 1% as of mid-day. S&P is down only 10 points, but is beginning to realize that it can’t do the work without the leadership of technology. It surely [...]
Remember several years ago, when everyone was in some way affiliated with the financial business? It wasn’t stocks, mutual funds or annuities, mind you…it was real estate. A good percentage of the US population was either a real estate broker, mortgage broker, appraiser, assistant to appraiser…the list goes on and on. As with any good [...]
When you want peace and quiet amidst all the hustle and bustle that is the life of a capitalist grinder, you get away to the mountains…climb to the top and look at the world from afar. It puts things into perspective when you zoom out. Same thing with monthly charts of various indicators and indexes. [...]
AAPL, IBM both crushed it afterhours today. The reaction afterhours, given the scope of the crushing, has thus far been of the “factored in” variety. In case you missed it, I wrote earlier today how the structural integrity of the current bull market becomes compromised with every point we gain from this point forward. The [...]
I made a post on Twitter earlier saying the following: “we’re at a point in this rally where any further gains will only serve to make the coming correction/consolidation more violent & unpredictable”. I want to explain the logic behind this analysis. Over the weekend, I made a blog posting demonstrating why the bulls need [...]
With all the house cleaning the bulls did last week, getting all the “earnings are baked in” bears out of the way, there may not be much in the way of bids to hold this market up in case of a gap down tomorrow morning. The shorts were cleared out all of last week, especially [...]
It just gets brighter and brighter for our oil/gas spinoff, which is already up 350% since we initiated the position in October of 2010. I love talking stocks…and I love sharing picks. I’ve been doing it since the late-90′s after I left my job as an institutional trader for Bank of America Investments. I am [...]
Thus far into 2011, our portfolio has been flat. I’m not necessarily disappointed, as our two largest holdings were both up in excess of 300% in 2010. I expected there to be some selling during the first quarter of the year, until these names resume their uptrend, which I expect they will in a big [...]
I always wonder if a majority of these investment banking firms are on a campaign of misinformation for nefarious reasons that will revealed by Wikileaks in the coming months or years. Perhaps it’s just that the fundamental research guys that come up with recommendations to buy equities, as they did today, are not allowed to [...]
It’s party time if you’re a bull. The drinks are flowing, the girls are dancing, and the bulls are eating it all up. But, as the wise amongst us know, the party lifestyle is fast moving and runs over you before you’re able to run over it. The bull market that we are experiencing here [...]
You know, I have to admit, I never really got this social networking thing. I am one of the only people born in the 70′s without a Facebook. I never had a Myspace. I’m just not a big fan of telling people what I drank at Starbucks in the morning or that my wife just [...]
This slow, steady climb is surely causing the “earnings are baked in” crowd to reluctantly throw in the towel. This was very necessary in order for the markets to begin responding to the numerous indicators that have been telling us of the fact that things are getting somewhat overheated and we are due for a [...]
Investor sentiment – retail investors have abandoned the financial markets like at no point in recent history. Wall Street is seen as a group of criminals in suits, which isn’t entirely incorrect…but when retail investors actually begin seeing the truth…it creates an enormous amount of sideline money, that will come back into the market as [...]
The Dow has essentially been in a 100 year plus uptrend. Marking the ascent of the United States and western civilization as a whole. It hasn’t been a steady climb, however. There have been periods of volatility, decline, and mania. The fundamental human emotions of fear and greed have insured that periods of drunken shaking [...]
It’s a crowded trade boys and girls…the current pattern is screaming “get off my back…I’m carrying too much weight..and I’m about to buck you off”. Hope you’re a cowboy. Click on chart to enlarge:
A few more charts here. We have the new high-new low ratio, which is a contrary indicator. When it’s moving to the top of its range it acts as a more reliable version of an overbought indicator. Same with the other chart, which is the % of stocks above 200 day moving average. It’s another [...]
Bull markets always have leaders. Those names that are leading the charge forward…sectors that shine just a little brighter than all others. A majority of bull markets over the past 15 years or so have been led by technology. It is very true that when tech is shining, the bull feels that much more frisky [...]
Um..yeah, we do that. Our micro-cap research is our bread and butter…that’s where a majority of the money is made throughout the year. Keep following us and you’ll understand why we feel the need to put our opinions on the general market out there for everyone to see. After doing this for as long as [...]
If any of your senses were active, this rally shouldn’t have come as a surprise at all. Come on…do I need to list all the factors begging for a move up? – Tech leading the rally…and not pulling back with the S&P, Dow. Bullish. – Commodities, which have been correlated to the equity markets, consolidating [...]
This………… Click on chart to enlarge:
Look guys…it’s really simple. You have a massive amount of newsletters that focus on the micro-cap/penny stock sectors that do nothing but pump names…try to extract money out of the market by, in effect, running a ponzi scheme of buy…alert your subscribers…start feeding them stock and then the last one holding the egg basket gets [...]
Our technology reorg bankruptcy play hitting a new 52 week high today. About as pretty a pattern as one could have in a portfolio position. Very little day to day volatility. An absolutely stunning upward trending channel, with very little deviation. Still a double from here to make up for the unnecessary misery that was [...]
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1. Find opportunities in micro-cap or penny stocks that are undergoing some form of reorganization. Investor’s have a consistent habit of overlooking these stocks. Institutions, on the other hand, DO NOT. But here’s our edge: Since institutions are, for the most part, unable to trade in the penny/micro-cap marketplace due to their large size…we are [...]
