YRD trade for 8/25/2016
China announced new lending rules for China's P2P (peer to peer) industry, which is the main business for $YRD (Yirendai stock). The new regulations provided a severe negative headline for momentum longs to dump $YRD stock as the stock ran up from $6 to $42 in the past 6 months.
After doing some due diligence reading $YRD's F-1 filing, we found out that the average loan size $YRD provides its customers was well below the RMB200,000 max limit amount, as well as the amount investors were willing to lend out to customers (which we tweeted about yesterday). And today's follow-up news stories provided us more clarity into how the new P2P lending rules would affect the main players in China like $YRD. Most have commented that they would actually benefit from the restrictions as many already comply with the new requirements and the chop shops which don't/can't would go under. In summary, the news was just a negative headline but something that shouldn't affect $YRD materially.
We loaded up on $YRD stock once again after the opening bell weakness and added to the position once we felt a buyer(s) was working an order to accumulate shares. Shares went down -20% yesterday and another -10% within 30 minutes from the open today all on the unwarranted negative reaction to the P2P regulation we talked about above. The initial plan was to swing the long position on oversold conditions but we had to sell once it made an upside para-like move when the stock turned green on the day. Unfortunately in hindsight, it turns out we got shaken out as the stock rose another three dollars within an hour from our exit!
All trades are called out live in the MookTrader stock chat room as they happen. Trade with us! We offer a 1-week risk free trial.
Net Profit: +$7,505
LCI trade for 8/24/2016
Lannett ($LCI stock) was a long swing favorite of ours around $20 earlier this year when anything biotech-related got smoked. In just a few months time it has risen almost 100% since our position trade in the chatroom. $LCI reported great earnings and raised guidance for the year yesterday after the close. We felt this was going to be an opportune time to take profits in the name by big fund holders who bought on the dip back then so we decided to get short today into strength.
We shorted 1600 $LCI at $39.39 and covered on the way down like clockwork. Easy trade for sure! All trades done in the MookTrader stock chatroom are called out live as they happen so that members can watch / learn / shadow them for big gains.
Net Profit: +$2,940
REN trade for 8/16 – 8/17/2016
Oil driller Resolute Energy ($REN stock) has been on a tear the past 2 months ripping from $3 to $20. We have been watching the price action on this stock like a hawk the past week. Patience is key in shorting small cap runners.
After the past 7 trading days, we felt it was time to initiate our short position in $REN. There was excessive bearishness from almost every stock trader on Twitter saying they are going to short it (or was already short) so we had to stay cautious as stocks usually move against the majority sentiment.
We shorted $REN at $19.50 and added to the position on weakness as it descended. Our timing was spot on and we swung the position overnight into today as we expected more profit taking tomorrow morning as the stock did not close very strong. Covered pre-market as well as during the first 15 minutes of trading for extra gains.
Net Profit: +$4,674
OPTT trade for 7/20 – 7/21/2016
This is the third time we took a short position in $OceanPowerTechnologies ($OPTT stock) since June. Once again clueless long chasers, sheep who cannot read nor understand a financial balance sheet, ripped this stock up to stratospheric levels making it a prime target for a short swing trade.
We started shorting OPTT in the $10s and kept adding to the position as high as the $15s. Why add to a losing position most of you will ask? It's because we have done our due diligence in this stock and all their SEC filings scream red flags. They have virtually little cash on hand, there are 2 SEC investigations into the company's dealings, the company has lost over $140 million dollars since its inception and has never made a dime, the company has not set aside reserves for any pending lawsuits they may lose which will make them insolvent, and finally their energy generating water buoys make a great investment story but their products at this stage are too early in the R&D game to be deemed effective and cost efficient for anyone to buy. Bottomline, OPTT is a money losing turd. Short more with confidence when you know a stock is just a pig with red lipstick!
Reality finally set in and this garbage stock starting falling losing its irrational upside momentum. The company announced in an 8-K filing today afternoon their intent to dilute shareholders with a best efforts equity raise (which we anticipated would happpen this week) and made this short a slam dunk win.
Covered into weakness but made the mistake of covering a majority of the position when we turned green in the trade, after being down over $17,000 in it at one time. All trades are called out live in the MookTrader stock chatroom as they happen.
Net profit +$9,360.
TYPE trade for 7/21/2016
Today Monotype Imaging ($TYPE stock) announced a dilutive acquisition of $150M. Stock got slammed late in the day -31% at the intraday lows. We starting bottom picking this name in the $19's. Sellers were being very aggressive and eventually slammed the stock down to $17's in 5 minutes. We took this opportunity to load up and rode the stock back up as we believed the extreme weakness was way overdone.
Even an analyst Ladenburg Thalmann only cut their price target on $TYPE by only -$2 to $27 with a BUY rating because of this acquistiion but the stock tanked almost -$8! This reinforced our conviction that the stock was way oversold and we added heavily into weakness. All stock trades are called out live as they happen in the MookTrader chatroom for all our members to follow / watch / learn.
Net Profit: +$6,241
LEDS trade for 7/7 – 7/11/2016
This pump and dump is hilarious. $LEDS (Semileds stock) announced last Thursday that some no name Chinese investor (Dr. Peter Chiou) was willing to purchase around 20% of the outstanding stock in LEDS at $5, when the stock was only trading at $3.30 the previous day of the announcement. Sounds fishy? Heck yes! Who is Mr. Chiou? Our google search found no one reputable in the LED business. So then we checked his home residence address and it was a $700,000 house located in Carlsbad, California according to the address listed in the 8-K filing. This guy supposedly has MILLIONS to invest but only lives in a $700k house? Bunch of baloney to me especially since he is Chinese. Any wealthy Chinese businessman values a nice piece of property to call home so you would expect a man of this stature to have a multi-million pad if he can afford to waste so much money into a turd stock like LEDS.
We shorted the pump as it went all the way up to $11! Covered into weakness and swung the position a couple days for some easy fast money. All live trades are called out as they happen in the MookTrader stock chatroom. Come trade with us!
Net Profit: $4,550
TRCH trade for 7/6/2016
When stocks make huge moves on no news it gives us an exciting time to make some quick money. Today nanostock $TRCH (Torchlight Energy Resources) made an insane +200% move to the upside from $0.58 to $1.74 in just 70 minutes.
We started our short position in TRCH at $1.48 and then added to the position as it was falling. Financials told us that the company has virtually no money left to burn so it must be a pump job rip that will eventually fade, followed by a huge secondary offering in the near term.. Rode the turd back down below $1 and covered it all into weakness. We usually trade 1/10th our normal dollar position size in these microcap stocks just to be cautious if these things run against us. All live trades called out as they happen in the MookTrader chatroom.
Net Profit: $3,085
MTOR trade for 6/28 – 6/30/2016
Brexit fears earlier this week provided many attractive opportunities for us to bottom pick some US-based stocks. One of the ones we decided to get long on the vastly oversold dip was $MTOR (Meritor -- a truck parts manufacturer with 20% of its revenues coming from the EU).
On the 3rd day down from the Brexit vote (an extreme -20% stock price fall), we scooped some $MTOR up at the lows and rode it up for a couple days. Easy long swing trade for +11% gains. Trade with us in the MookTrader stock chatroom for big gains!
Net Profits: $5,114
WLL trade for 6/27 – 6/28/2016
Oil was getting hammered due to Brexit fears and a rising dollar. $WLL (Whiting Petroleum stock) declined -31% the past 3 days and decided to start bottom picking this E&A name on short-term oversold conditions. $WLL has de-levered its balance sheet and is now considered a good strong oil services name in our opinion making it a great overnight swing candidate.
The stock market opened up nicely today and we sold out of the position premarket to lock in all gains to focus on other oversold Brexit plays. All stock trades are called out live in the MookTrader chat room. Come trade with us!
Net profit: +$4,046
HMNY trade for 6/7 – 6/10/2016
Nanocap stock $HMNY (Helios and Matheson Analytics) released news regarding their acquisition of privately held software company Zone Technologies on Tuesday June 7th with no deal terms disclosed. In other words if you read in between the lines, the company was bought dirt cheap and probably has worthless products. Note that $HMNY received a NASDAQ notice of delisting or failure to satisfy a continued listing rule or standard in November 2015 and also a failure to meet terms of the extension last month. The company is garbage basically.
Helios and Matheson stock went from $1 to $17 in 2 days on this Zone Technologies acquisition news! Yes, it meant that a lot of dumb sheep were buying and pumping this stock up for no reason. $HMNY bought Zone Technologies for their iOS app called 'RedZone Maps' -- an app that displays real-time (as they say) crime data on a navigation map. Taking a look at the reviews on the Apple iTunes store, it looks like an app that hardly anyone downloads and an user-unfriendly app that is not updated with real-time crime data as advertised. No wonder terms of the deal were not disclosed!
We shorted it on day 1 but did not add to the position on day 2 of the run-up. The stock finally cratered starting on day 3 and we covered into weakness. We know we should have held the short position another week as we believe the stock should tank all the way back down to $1. But content with the profits and wanted to move on we just took the money and ran.
All live trades are called out as they happen in the MookTrader stock chatroom. Come trade with us!
Net Profit: $6,360