August 14, 2020

PRTS Performance, Longterm Plays

 PRTS has now become my best performer ever with over a 1,000% return. I've been posting that one on Twitter for awhile. I believe initially it was around net tangible asset value when I found it in the $1 to $2 range. I noticed it as a turnaround play with focused management. 

Awhile back for long-term positions I bought Carnival (CCL), Hotel (SOHO), RIG. More recently I added online education plays EDUC, TWOU, XOM for the dividend, gold/ silver via CEF and Smith and Wesson SWBI. 

January 18, 2020

How I Trade Momentum Stocks: The Process Part I

I always only invested in stocks and funds until around 2006-07. The financial industry indoctrinates you to only invest and "stay the course." Rightfully so for most people as all they should and can do is invest. I was lucky enough, driven enough and a little crazy enough though to try and learn to trade and daytrade US equities. Like I talked about in my bio I first learned from reading Tim Sykes' blog in 2006. He was posting every entry and exit on his blog. He and the chat room I was in later both traded momentum small-cap or penny stocks.

When I say penny stocks I mean like $0.50 to $10. The range of penny stocks is actually more like $.0001 to around $5 or so. I prefer the $0.50 to $10 most of the time. In 2008-09 a lot of "penny stocks" were actually mid and large caps that were just that beaten down though. So that's how I got into the low priced momentum stocks. There are many other things and ways to trade. It just made sense to me also to stick to a niche that has less big institutions competing against you. The stigma of penny stocks keeps people away too. it takes more resources and intellect to trade large-cap stocks against the big guys. More "edge" I think.

I scan for stocks in Stockfetcher with my custom scans I've accumulated over the years. I have 36 scans on there. Some are just new 52 week highs combined with other criteria and simply uptrend charts etc. Most days I will go through only a handful. Still to do it right I have to look at atleast 100 charts. When one scan is working I keep going back to it. Some pick up on sector rotation well and I want to be in the hot sector most times.

I have just been looking for long setups for awhile but I scan for short selling setups too. For long setups I have a keen eye for bull flags, high bull flags, long bull flags, trading range breakouts and triangular formations. I strictly use candlestick charts with a white to red contrast on the bars. White for positive, red for negative. The same goes for volume at the bottom of the chart. It's incredibly important for me to know which days were positive and which were negative.

For my first example I will use a recent runner PTI that I alerted on Twitter back in December. This is a high flag or high bull flag. It's characterized by a strong up day followed by only a couple or so sideways consolidation days. This one had 5 days until the big spike. It's still a high flag because price never moved down much all those days. It just hangs around the breakout area. It's a very strong momentum pattern. Notice the lack of any major selling volume on the bottom of the chart where I circled. If there aren't sellers it's still being accumulated. Another thing about flags is the consolidation days or rest days have to have low day range or volatility. It can't drop 20% then come back up and still be a flag. It's a battle between buyers and sellers and price stays about the same day after day.A high flag can be an ascending triangle formation. See the lines I drew to show the flag? Some high flags just consolidate downward after the run day for a couple days and don't look exactly like this one. High flags to me have a short consolidation period of 2 to about 6 days. Usually closer to 2 to 3.

momentum trading

January 7, 2020

Net Tangible Asset Play AQMS

I found AQMS Aqua Metals in a scan. I calculated rough net tangible asset value at $51.8 mil. The current market cap is $46. Looks like a property fire beat it down quickly but it was down regardless. Balance sheet looks ok. Current ratio is above 1. Seeing revenue guidance from Zacks and Yahoo at $39 mil to $42 mil next year. Up from about $5 mil this year. Earnings misses are narrowing. Seeing 1 or 2 analysts. It is not profitable but it's trying to bottom out here. A clear bull flag off unusual high volume the other day.


October 5, 2019

Coffee Holding Company (JVA) Deep Value Play

Coffee Holding (JVA) is back around deep value territory after spiking to $7 a share earlier in the year. It's now below $4 a share and I calculated net tangible asset value at $21 million or about $3.77 a share. Net current asset value is not much lower at $18.7 million or $3.35 a share. To me $3.35 to $3.77 roughly is the floor for the stock at such a discount. It's a crazy discount because this company is profitable, growing and in a good industry. I have a small position and will be adding if it continues to dip below NTAV and NCAV.

September 5, 2019

I Started A Patreon Page

Hello my loyal followers. I just set up a Patreon Page. Become a Patron here!

 If you aren't familiar with it I will tell you a little about it. You can also read about it here. It allows content creators like myself to run a subscription membership. It takes donations that are recurring and billed monthly. That said I will not be changing anything I have been doing or going subscription only at this time. My intent on setting this up is to simply take donations for my continued work on this blog and Twitter. I am very active on my Twitter and continue to post a lot of great alerts. All of my posts and everything will stay public and by donating monthly you will simply be supporting my efforts. At some time in the future I may start cranking out a ton of content on a paid membership only tier that I could post value stocks on like I used to do with net current asset and net tangible asset value stocks and another with trading alerts.

July 18, 2019

Gold Play Setting Up

I've been posting on Twitter about the technical setup forming on gold. I'm long some GLD I picked up a couple weeks ago or so. I'm going to buy more gold via an ETF or maybe even a leveraged ETF or mining ETF if gold starts to breakout again. I suspect if the FED cuts rates at all gold is going to rocket and not look back. I'm watching the futures themselves to see what happens of this triangular bull flag. The physical trust ETFs and some gold mining stocks are really running already. JNUG is a big breakout. Lots of breakouts like on CEF, AG, PSLV etc.

February 16, 2019

Long Opportunities Keep Working

I've been posting most of my entries and exits on Twitter lately. I have a lot of core positions I have had for months and years. Some of my favorite stocks with great fundamentals I hold include Planet Fitness (PLNT) which I am up 197% since buying at the IPO. I sold most of my shares of it pretty recently to protect profits. I intend to keep holding my remaining shares for a long-time. One of my new favorites I've been holding awhile is Innovative Industrial Properties (IIPR) which is a cannabis/marijuana REIT. Not only does it have a great dividend being a REIT but it is also performing exceptionally well this year. I also have held Canopy (CGC) and Aphria (APHA). I'm down on Aphria with a $15 cost basis. I recently took a trade in gold with UGL. Bought MITK, APPS, BBBY and CDE. Took a loss on QNST. These are just some of the stocks I hold and have been trading.

August 30, 2018

Cautiously Long

I have a bunch of long positions on in my account. I'm as lean as I can be though with about 50% in cash. I am short XRT Retail with EMTY but other than that I have about 15 to 17 long positions. More than I would like to have but if the setups and opportunity are there I take them. I just put a buy stop order to snag SPY short with the 3X ETF SPXS if SPY actually tanks tomorrow. If I traded options I would be looking for some additional protection. The more the markets quickly go straight up the more likely they are to come down just as fast or faster. When the complacency becomes standard mild to severe crashes can happen. I feel like we are due another algo driven flash crash. Maybe it will be 10% higher in the S&P but it seems inevitable. Corrections are healthy. There is nothing wrong with them and no reason to not be prepared.

 I've been brainstorming what individual companies I would like to buy for the long-term the next time a major correction or bear market comes. I'll do another blog post on this soon.

August 28, 2018

Found a Net-Net

I found a deep value net-net (net current asseets - total liabilities) this week. The company is O2Micro International (OIIM). It has net current asset value of $53.7 million and a market cap around 1.95-2.00 a share of $50 mil. I found it the other day below $2.00 a share with a $50 mil market cap. It's around a $53 mil market cap now which is still a good value given the rich valuations in the overall market. OIIM's past two quarters have been profitable. The chart has good momentum as the stock is near 52 week highs. Disclosure: I have a position

August 10, 2018

Follow Me On Twitter

I'm very active on Twitter these days. I've been onto some great small-caps lately with BGSF and CVSI I alerted at 2.00 recently. I have been laying out my maco thoughts on inflation and what sectors and commodities I think it will effect. Follow me here.