Thinly traded low-float stocks usually have exacerbated moves to the upside or downside when material news hits the stock. Genco Shipping & Trading ($GNK stock) went up around +75% today at its intraday peak on news that it sold $125 million worth of preferred stock to investors. This deal may have alleviated some of Genco's liquidity issues for the short-term however it didn't solve any of the company's money losing operations or reduce any of the company's massive debt (which measured around 18x its current market capitalization).
We felt that an insane run-up of +60% for $GNK stock on this news was unwarranted and initiated a short position. We confidently added to the short as the stock climbed up. Blind long chasers who do not know how to comprehend Genco's horrible balance sheet were at work trying to move the stock to the upside. These sheep always lose at the end as the artificial rise in the stock eventually crumbles and goes back down to where it should belong. Covered the short position into weakness and made some easy bucks. All stock trades are detailed out live in the MookTrader chat room to all our members as the trade happens real-time. Follow us in the trade or simply watch the daytrade unfold to learn how we consistently take money out of the stock market daily.
Net Profit: +$3,415
