Net-Net IFON Trade

I'm glad I learned technical analysis because it really helped me out with IFON. Actually, the way it is going right now it may have been the difference between a nice gain and tiny profit or loss. I used that red trend line(in my platform though) to see that the bull run was still alive after it had fallen back to $1 and slowly started creeping up around the same trend line. After I longed it at $1.58 all I did was watch it continue up the line. As it approached the $1.99 resistance from the other week(first red line) without breaking it strong intraday I saw the potential for a double top and pull-back. Not worth the risk of loosing the profits because of that possibility so far into this run it has had. I actually sold it yesterday at 1.92 before that last red day on the chart which is today's action. This exit looks about perfect right now because yesterday IFON only hit a high of 1.96. And right now it is looking like that was the end.

It very well could get a push over $2 but there is just something about those round numbers. Notice it never traded at $2. And I noticed that the buying has been coming every day and that had to end eventually. Drew that with a black circle. I was also thinking about the valuation. No longer in net-net territory here and not the kind of net-net I know well enough to run past that valuation. A buy right around $1 off that pull-back would have been sweet in retrospect because the technicals were there for it to be had but I'm happy with this trade. I had a loss today chasing a momo penny stock so this is offsetting the loss.



full disclosure: no position

Net-Net in Play, Stock Daytrading Watches

I noticed these two net-net's awhile back because of the nice uptrend they were in and just longed one of them. I longed IFON at $1.58 because it is doing what I wanted to see. I wanted to see a bull flag with a good signal like I mentioned in that other post.


Well, I've missed a lot of this move off the flag but I feel good here because there were some big blocks of shares coming in today. Not to mention this is a tech name and a net-net play to boot. Thing is this is a high beta stock so it's probably just going to ride with the market good or bad like it has so far. I've got my exit scoped out and it will be if it breaks below this trend line it is in right now probably. I might also think about stopping out if it cracks below 1.20 because this is more of a key area right now.

LDIS is holding up well and just got a flurry of big volume days recently. I longed that one in this portfolio tracker I'm going to be tracking my net-net performance with. I had to enter a symbol to start up the account. I would have preferred to buy LDIS right here at .73ish on whatever fill I could get. From here on out I will always make a post before I place a buy in that tracking portfolio. I think this should be viewable by anyone even without an account there. Let me know if you can't view that page. I put up a great watchlist for daytrading and even some swing trading on my twitter page. It has been really good past couple days. http://twitter.com/StockPursuit


















full disclosure: long IFON

Festival of Stocks at Modern Graham

Check out Modern Graham and the festival of stocks for some investing articles. My post I did on IFON and LDIS is there. I just took off my IFON for a gain of 20%. Post coming up on that and on my 2009 net-net performance.

Net-Net FSI International FSII On Move

I was looking through some scans and this chart stuck out. I drew the resistance line for the range it has been in.














This breakout looked interesting so I checked out some fundamentals. The stock happened to be a net-net. I think it actually rings a bell as a perennial net even though I don't scan for net current asset stocks as often as I used to. Unfortunately, it is a semi and I hate the history of its fundamentals. The fact that someone is buying this here on more than its average volume and taking it up is interesting. I'm thinking that someone may be coming in late? I've noticed some micro-caps like PXG would get accumulated after the bigger companies in the sector all got rotated into. I guess that would make sense because naturally the street is going to go after the Microsoft's first because of the liquidity then when that is exhausted and they still have money to put to work the only place left is smaller market caps.

Hard to find much good going on here. This is possibly better. "The Company intends to manage its operations with a goal to end fiscal 2009 with greater than $10 million in cash, restricted cash, cash equivalents and marketable securities." There is no long-term debt but there has been declining revenue growth and income for years.

Not very excited with the little info I have on the company fundamentally. Just watching this one right now. This isn't a good stock to invest in surely. To trade. Possbily. The technicals point to more potential upside with this rounding bottom and breakout if it holds another day or so. I've been up as much as 6% or so so far in net-net IFON. So far the stock is holding up well.

full disclosure: no position in FSII, long IFON

My 2009 Net-Net Stocks Performance & Going Forward

I went back through the blog starting with the first day of 2009 and crunched some numbers on my net current asset stocks pick performance. This assumes one bought them the next day after finding them on the blog this year. If it was on the blog in 2009 and less than net current assets I used it. Looking through the 2009 list there are some that I posted on earlier than 2009 like HHGP which is a -20% loser since the initial post pre 2009,TUES +58% gainer and HKN -35% since its December post when it was less than tangible assets however. I think PARL was on the blog in 2007 or 2008 to but I didn't go back that far and a search didn't turn it up. It would be a looser from then. The rest were fresh for 2009.

This might sound a little weird but I think I've said this before. I really had no idea what I was doing with net-nets before around mid-2008. In 2007 when I started following them and most of 2008 I was just feeling them out. From mid 2008 on there are a lot of winners to though of course.

These returns below were calculated with the potential buy-in starting the day after it was on the blog in 2009 because I didn't always post during market hours. These returns assume one bought that next day and sold at the stocks high afterward. The likeliness of selling at the high is not highly likely but had one decided to protect the potential profits and sell on the way up it would have been very possible to have come out with a good chunk of the bulk of those profits. About all of these I calculated about 3 weeks ago so some of them are probably up a lot more since then. SMRT hit 10.50 for example. The ones with technicals next to them were ones that technical analysis had a major role in.

25 winners
4 losers

Winners
PIR 1,600% technicals

SMRT 670%

SWIR 285%

TUES 236%

PXG 293% technicals

MSON 178% technicals

VVTV 194%

HHGP 156%

CACH 150%

AERG 100% in 1 day technicals

ANAD 96% technicals

GSIG 77% technicals

NLS 58% technicals

MLR 48%

CALL 45%

PARL 42%

HURC 40%

FSII 40% technicals

LDIS 28% technicals

JOB 26%

AEY 17%

SPAR 20% technicals

IFON 19% technicals

HKN 18%

IVA good run .50 to .70 but I think was to illiquid

NSTR .05%

Losers
CDCO -5%

ADGF -19%

RFIL -25%

QLTI -53%

SKX -46% stock crashed after post. Maybe a little to hard on this one because if doubled down off March lows it went to 14 as of now.


I'm going to start tracking the performance of my net current asset stock aka net-net picks better from here out. For it to be a pick I'll do a post on it and say it is a buy at such and such price. I'll also add it to this portfolio here. I'm pretty sure this can be viewed by anyone. I may also add none net-nets from time to time. I'm not liking Tickerspy so far because I haven't figured out how to even sell a position with it. I started a Marketocracy portfolio to which I think I like better but the $1 mil it gives me to manage is a bit much to just show how I can trade these net's.

If you've been paying attention to my net-net posts, for months now I have only been putting a net-net up if it is worthy of an actual buy very soon me. Since 2007 I have put up a lot of net-net's as potentials with my thesis on them but didn't always pound the table on them as a buy that day. I'd usually run through the good I saw and the bad. I was good then but I am even better now.

From here out my skill with stock picking will be a little more on display be it turn out good or bad. Some time in the future I may switch it over to Covestor.com. Covestor actually taps into your broker so with them there is the most complete transparency possible. For now though I feel like posting on them around the same day I trade them will do. I put up FSII ahead of time because that set-up was so good I wanted put out a heads up. I think the bulk of you that read my blog are here for net-net's and value plays. It's not always easy for me to post up an entry for a net-net trade in real-time on the same day so I might just do these watches. I don't keep as close an eye on net-net's and deep value day to day as I do my other watchlists. I trade a lot of different strategies.

I brought up earlier that I want to start charging a yearly or monthly subscription for my net-net picks. If I go that route it will still be months off. You will also have the opportunity to track my progress better before deciding if $5-$8 a month is worth it. As you can see since 2008 it has been going well and I've actually even stepped up my proficiency lately.

I've only been following net-net's since 2007 and have made really big progress since just 2008 in them. I have kind of gotten in a groove on which ones to drill down on with the fundamental analysis and focus on. Incorporating technical analysis as a tool in my various strategies has also been very significant. I am a very different investor and trader with net-net's and approach them differently than most investors who work in them. I believe that has really helped me identify some of the best performers better.

full disclosure: no positions

My 2009 Net-Net Stocks Performance & Going Forward

I went back through the blog starting with the first day of 2009 and crunched some numbers on my net current asset stocks pick performance. This assumes one bought them the next day after finding them on the blog this year. If it was on the blog in 2009 and less than net current assets I used it. Looking through the 2009 list there are some that I posted on earlier than 2009 like HHGP which is a -20% loser since the initial post pre 2009,TUES +58% gainer and HKN -35% since its December post when it was less than tangible assets however. I think PARL was on the blog in 2007 or 2008 to but I didn't go back that far and a search didn't turn it up. It would be a looser from then. The rest were fresh for 2009.

This might sound a little weird but I think I've said this before. I really had no idea what I was doing with net-nets before around mid-2008. In 2007 when I started following them and most of 2008 I was just feeling them out. From mid 2008 on there are a lot of winners to though of course.

These returns below were calculated with the potential buy-in starting the day after it was on the blog in 2009 because I didn't always post during market hours. These returns assume one bought that next day and sold at the stocks high afterward. The likeliness of selling at the high is not highly likely but had one decided to protect the potential profits and sell on the way up it would have been very possible to have come out with a good chunk of the bulk of those profits. About all of these I calculated about 3 weeks ago so some of them are probably up a lot more since then. SMRT hit 10.50 for example. The ones with technicals next to them were ones that technical analysis had a major role in.

25 winners
4 losers

Winners
PIR 1,600% technicals

SMRT 670%

SWIR 285%

TUES 236%

PXG 293% technicals

MSON 178% technicals

VVTV 194%

HHGP 156%

CACH 150%

AERG 100% in 1 day technicals

ANAD 96% technicals

GSIG 77% technicals

NLS 58% technicals

MLR 48%

CALL 45%

PARL 42%

HURC 40%

FSII 40% technicals

LDIS 28% technicals

JOB 26%

AEY 17%

SPAR 20% technicals

IFON 19% technicals

HKN 18%

IVA good run .50 to .70 but I think was to illiquid

NSTR .05%

Losers
CDCO -5%

ADGF -19%

RFIL -25%

QLTI -53%

SKX -46% stock crashed after post. Maybe a little to hard on this one because if doubled down off March lows it went to 14 as of now.


I'm going to start tracking the performance of my net current asset stock aka net-net picks better from here out. For it to be a pick I'll do a post on it and say it is a buy at such and such price. I'll also add it to this portfolio here. I'm pretty sure this can be viewed by anyone. I may also add none net-nets from time to time. I'm not liking Tickerspy so far because I haven't figured out how to even sell a position with it. I started a Marketocracy portfolio to which I think I like better but the $1 mil it gives me to manage is a bit much to just show how I can trade these net's.

If you've been paying attention to my net-net posts, for months now I have only been putting a net-net up if it is worthy of an actual buy very soon me. Since 2007 I have put up a lot of net-net's as potentials with my thesis on them but didn't always pound the table on them as a buy that day. I'd usually run through the good I saw and the bad. I was good then but I am even better now.

From here out my skill with stock picking will be a little more on display be it turn out good or bad. Some time in the future I may switch it over to Covestor.com. Covestor actually taps into your broker so with them there is the most complete transparency possible. For now though I feel like posting on them around the same day I trade them will do. I put up FSII ahead of time because that set-up was so good I wanted put out a heads up. I think the bulk of you that read my blog are here for net-net's and value plays. It's not always easy for me to post up an entry for a net-net trade in real-time on the same day so I might just do these watches. I don't keep as close an eye on net-net's and deep value day to day as I do my other watchlists. I trade a lot of different strategies.

I brought up earlier that I want to start charging a yearly or monthly subscription for my net-net picks. If I go that route it will still be months off. You will also have the opportunity to track my progress better before deciding if $5-$8 a month is worth it. As you can see since 2008 it has been going well and I've actually even stepped up my proficiency lately.

I've only been following net-net's since 2007 and have made really big progress since just 2008 in them. I have kind of gotten in a groove on which ones to drill down on with the fundamental analysis and focus on. Incorporating technical analysis as a tool in my various strategies has also been very significant. I am a very different investor and trader with net-net's and approach them differently than most investors who work in them. I believe that has really helped me identify some of the best performers better.

full disclosure: no positions

Some Quick Charts: Metals etc.

Last week the high beta stuff was back in play. The rare earth elements and metals. Oh, and don't forget the shippers. If I've been right about anything lately it was that the shippers had bottomed. DRYS is very correlated with the index. It's a good one. One of the stocks I've had my eyes on lately is former net-net Infosonics IFON. The stock is usually very thin but a few days ago I noticed it was in-play as the volatility and volume suddenly appeared. So it's no longer in net current asset territory, however, it's moving lately. They got a notice of failure to maintain the Nasdaq'a minimum price per share above $1. Other than that I don't know of any significant news around the time the surge began.

Another flag is starting as it consolidates from that huge run the other day.

ENG is consolidating and this looks like a long flag here. The stock is up so much over the last 6 months that it seems like buying would be chasing. This is just such a perfect flag here that any break above it could get some good follow though I would imagine. We'll see though. ENG has a nice balance sheet.

Tasman Metals TAS is a junior resource company engaged in the acquisition and exploration of rare earth elements and tungsten in Scandinavia. TAS has a great chart going. It's in a nice slow uptrend and just tested trend support and held on volume. This is going higher. Over 1.10 soon.

Deep Value NCAV Penny Stocks

I found a few interesting stocks below net current asset value the other day. A couple of these I know from the past as being volatile. In other words they just didn't trade super thin for months and years, rather, they have been scooped up by institutions before.

Qiao Xing Mobile Communication Co.(QXM) does handsets in China and is really beaten down here. I found it off a screen and when trying to double check to make sure it is sub NCAV if that's a major criteria for you. I didn't see a recent filing on the SEC website and don't want to put a whole lot of time into DD so do your own DD in this regard.




Infosonics Corp. is an old favorite because I made 20% on it last year over a few days and got out near the top. They distribute wireless handsets in Central and South America and distributes high-end products under the Verykool brand name. Off the balance sheet there is $25 mil in NCAV and a $16 mil market cap.

I just got filled finally today on this one at $1.13 and am long.




Seanergy Maritime Holdings SHIP

This is a dry bulk shipper and is beaten down but the technicals indicate it might be bottoming short term.

EF Johnson Technologies EFJI

I really nailed this one awhile back and called the top later on it too.

Unfortunately I don't think I bought it. But, anyway it is back below NCAV of $38 million. It might be bottoming out here. If I play it I might pick it up at mid $.90s so I have a clear stop loss on the breakdown signal.



clean technical bottom so far



full disclosure: long IFON for a trade

Stocks I'm Watching

I think the next couple days price action will be telling on net-net ADPT on whether or not it can push more. Back in May it double topped right at $3.00 and so far it has already held over that resistance level. Simple market mechanics at work here. Buyers who accumulated in the high 2.90s will be tempted to sell for break even here or new fundamental forces in the eyes of investors will propel the stock higher. People could be selling here and new buyers will come in anyway. There is just a better chance it will run if a couple possible sellers get shaken off and buyers show they can take the stock to higher levels. All this is not entirely significant though because the stock has resistance way higher to.

Electronic Game Card EGMI
With some hesitation because it trades on the OTC this EGMI I will say has very good fundamentals and valuation going for it. They grew sales 76% from 2007 to 2008. They grew earnings 81% in that same period. From reading some of the 10-k their product seems to be a hand-held electronic card that keeps track of winnings at casinos, bingo halls etc. The description was kind of vague to me but I think that is what it is. They have two patents in Europe and Japan and are working on one in the U.S. This card seems similar to me to the type of cards International Game Tech IGT developed to keep track of customers chips electronically in Casinos. It seems pretty interesting, "The shape of a pocket GameCard is flexible to clients’ needs but is currently approximately the size of a credit card, operated electronically by touch and incorporating a microchip and LCD screen showing numbers or icons."

Crunching Some Numbers
2010 EPS is expected to be $.20 going off of 1 analyst according to Yahoo Finance and Zacks.com. This is growth of 42% year over year. Here is what I like. The stock trades for $1.65 so the current years PE is only 12 and the forward is around 8! That is just totally out of whack with their growth rate of 42% for next year. A PEG of around .3. Over the next five years the expected growth rate in earnings is 35% per year.

If I'm conservative here and slap on a 30 PE multiple the stock is worth $4 this year and based on next years earnings growth worth $6 a share. This stock is at $1.65 right now. They've got a ton of cash. $9.6 mil in cash quarter end March with just $1.3 mil in total debt with none of that long-term.

As much as I take faith in SEC filings this is an OTC stock. I am very cautious and skeptical of anything on the OTC or Pink Sheets. My game plan if I even decide to trade this is to just catch a quick trade in it if it breaks out here or maybe buy a move off trend line support or a flag similar to my IFON trade.

















CHCI is a homebuilding stock that can be extremely volatile. If it runs again tomorrow it looks good for a quick trade but if it doesn't just a watch if even.















SUF is holding it's trend line nicely.















I think this could potentially turn into a bull flag here and the stock could continue higher. Rounding bottom formation. Price action at $1 might be key.

A Short Biased Watch

I posted IFON on the blog not that long ago when it traded at 1.54. It is now at 2.92 incredibly. I have another short sell watch. The same kind of setup as CDTI that I posted on awhile back. The ticker is GFOX and the company is Grey Fox Petroleum. It trades on the OTC and I'm not sure there are currently any shares available anywhere to short. This is a good short setup forming though. It is up this month from $.80 a share to $2.24 currently. It barely even traded any shares before November. It also has zero revenue. Buy volume is getting exhausted.