OPTT trade for 7/20 – 7/21/2016

Posted By JM on Jul 22, 2016 | 0 comments

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.


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