Penny Stock Watchlist 8.11.10. RMX HSWI LQMT BIOS AAU
RMX
Went completely parabolic from 2.23 to 4.20 when the company announced an enormous cash dividend of 1.32 per share. once people began to question how this company could pay the dividend since they technically have no business operations at the moment the stock retraced to the 2.80’s. There is no doubt in my mind this company is looking to score big before they most likely liquidate. Shady? Yes, but you can pick up some cash on this. If you understand this is a very short term play. God Bless America. I’ve seen similar situations like this in the past and here is what happens. When companies announce dividends their stock gets bought up, especially a 1.32 per share dividend. Short sellers are hesitant to short because they will have to pay the dividend, which in this case is huge. Therefore this stock will probably get a lot of publicity tonight and tomorrow and could explode to the upside. I will look to buy tomorrow
HSWI
Is trying to reinvent itself here but they are not fooling anybody. This is one fantastic short with one gargantuan problem. Nobody can find short shares. If you are one of those people, caress those shares like they are a little baby. Pull the trigger and then reward yourself. Send me an email so I know that somebody made bank on this heap.
LQMT
When the news was announced that AAPL needed something LQMT has the stock goes skywalker. I got in this trade long at .64c and then again at .80c. For full details view my Trade Recap Video here. However, I can’t take credit for this one as the traders in the Tim Alerts Chatroom were the ones to tip me to the stock. Sometimes you get a gimme here and there. The good part to the story is most traders have yet to catch on. As soon as Joe/Jane Lunchbox gets a hold of this news I think they will buy this madly. So, one more up day is in the cards. Then watch it closley as after the run is done this could be a great short.
BIOS
Another trade I took today. This was one of my top longs that is about ready to turn into my favorite short. I do believe this bullish bounce is becoming fatigued and it’s beckoning to get whacked. Ideally I would look to short after a morning spike providing there is one. If there is slight weakness or flat conditions I will take a shot. Resistance is 5.50’s. Short area is in the mid 4.80’s
AAU
No play on this for me now but who knows what Wednesday will bring. The daily chart looks parabolic and stretched but the stock is only at a buck fifty. I will have to wait until tomorrow to see if there is any upside left but somewhere in the next day or two a short opportunity should emerge