This is a classic microturd pump job story. Ocean Power ($OPTT stock) announced yesterday the signing of a $975,000 lease for their experimental wave power energy-generating buoys by a large Japanese ship builder. This was OPTT's first step towards product commercialization. However, in March the company already announced that this Japanese ship builder was going to sign a lease for their products. The stock popped a lot already in March on that news. It's old news except the dollar amount of the lease. No terms were disclosed in the public release so I emailed OPTT investor relations and they replied back that they cannot reveal the terms of the deal to "ensure competitive pricing for future projects and contracts". I wanted to find out how long the lease agreement was for to figure how much revenue the company has gained annually. No disclosure of deal terms by company = pump job.
We shorted $OPTT as it was rising and added more as it went up to the stratosphere. The stock was up around +300% for the day at the intraday highs yesterday which was just plain ridiculous. Lots of the dumb long chasers fail to comprehend the news so it is our job to take advantage of their stupidity. And what did we get this morning from the company? ... an announcement of a secondary offering of shares! Classic PUMP & DUMP. Scam stuff right there.
We held the position overnight and covered all the way down into weakness. Net profit: $5,696. All trades called out live in the MookTrader stock chatroom.