Category: Watch List

Gosh, I sound like a penny stock promoter with these hyped-up titles. Some interesting stocks, but my trading week will probably finish boringly tomorrow.

TIV – nice breakout, but it is a commodity play.

PLUG – Nice big volume break. Should be good for more upside. Long on green.

MMG – Yep, another miner. Ignore.

LIZ – Beautiful breakout above resistance at $6.30. A little over-extended for me to play it long. Also tends to trade choppily.

ENMD – Crappy biotech up 50% on no news? Buy on green, $0.95 is meaningful. Short on red.

LUNA – Spiked hard on rumors of a contract win. Even stocks with “fat-fingered shorts” charts that are up on rumors usually fade. I thought about shorting, but this would have been a higher-risk trade. No play now.

ZMTP – Spinoff or new incarnation of ZOOM or something. Crazy chart, could still have another day of crazy spiking in it. Long on green, but trading it long here would be very risky.

APCVZ – A great history of failing on every single spike. I tried to short today but it was not shortable at IB until it had already dropped to $0.63. It should drop tomorrow but the risk/reward is not great.

Disclosure: No positions. I have a disclosure policy.

Investors are going ga-ga for radio stocks. ROIAK, RGCI, CMLS are all radio stocks. It pays to know industry groupings and to know how different industries trade.

ROIAK – This is the most interesting to me due to its big volume big move. Long on strength, short on weakness.

RGCI – Has a much smaller ADR.

CMLS – Again, a much smaller ADR.

MIC – Nice breakout appears imminent at $9.50 – $9.58. Has a history of runs of white candles, although its ADR is not large.

QSFT – Nice breakout. Had an upgrade and a new product notice, not sure if there will be continuation. Long on green, otherwise I’ll ignore.

Disclosure: No positions. I have a disclosure policy.

GSAE – Hot pink sheet stock with a huge move on ever-increasing volume. I like this as a long on strength or short on weakness. My prediction last night of a 30%+ gain today was correct and I nailed it for 22% (I also tweeted my trade). Tomorrow it should fade. There will be no shares to short, though.

ASTC – Up on earnings and its desire to “explore strategic alternatives” (it is putting itself up for sale). It held strong just above $3 most of the day. A break below $3 (hmm, a whole number …) would make it a nice short. Otherwise it may be a decent long on strength for follow-through from today’s momentum.

RODM – Nice 52 week highs today. Way too slow and choppy for my taste.

MSHL – Top short watch that may actually be borrowable. It spiked big this morning but closed below its open and right above $1. Will be an easy short on the break of $1.

Disclosure: No positions. I have a disclosure policy.

It is not very common that I see so many good stocks on short watch for one day. Here are my top four, all potential shorts, though two could be decent buys if they exhibit continued strength.

VeriChip Corporation (NASDAQ:CHIP) – Tim Sykes thinks this company sucks and that is good enough for me. $3.00 is important support and it will be a good short if it breaks that.

Emergent Health Corp (Pink: EMGE) – The pump and dump du jour. Had its first red day Friday (which I messed up big-time trading) and more downside is likely. Short aggressively on red.

Luna Innovations (NASDAQ:LUNA) – Up from $1.20 to $2.20 in one day on no news and insane volume in one day. It hit an intraday high of $3.30. This will move big one way or another. It will be a nice buy on green or a short on fading and red.

Dataram Corporation (NASDAQ:DRAM) – Up from $2.20 to $3.97 in two days on huge volume and no real news. It was a beautiful technical breakout as it broke $2.40 and it broke longer-term resistance at $3.20. This could go either way, but I am short-biased. It should be traded like LUNA.

Disclosure: No positions. I have a disclosure policy.

Let us say there is a little crappy bank, on the verge of death, that agrees to be bought by a publicly-traded SPAC. The deal appears to be a done deal. The shares of the crappy bank do not budge for over a month. Then, with no news, the bank’s shares jump 100% in two days. The shares of the SPAC barely budge. The bank on the verge of failure is Frontier Financial Corp (Nasdaq: FTBK) while the SPAC is SP Acquisition Holdings, Inc. (AMEX: DSP). SP Acquisition Holdings will give shareholders of FTBK 0.053 shares of DSP and .053 warrants (exercisable at $11.50, over 15% above the current market price) for each share of FTBK. This translates into a value of under $0.70 per FTBK share.

Here are their charts

There are two potential ways to play this. A trader could play this as a reverse merger arbitrage and buy DSP while shorting FTBK. I will look to play this as a daytrade by shorting FTBK with gusto when it goes red tomorrow or the next day. The risk either way is that somehow another buyer will come quickly and buy out FTBK at a higher price. I think that highly unlikely but the huge volume today could be indicative of some corporate raider taking that route. If DSP shareholders do not approve the merger and there is no other buyer, FTBK will likely be forced into bankruptcy.

VeriChip Corporation (NASDAQ:CHIP) -Up on news yesterday, but this move looks a bit overdone. I will look to short on green/red. The move is news-based so I won’t be very aggressive.

BSD Medical Corporation (NASDAQ:BSDM) – Big move today on news. It should be a good mover tomorrow, likely to the upside. I would be a buyer on red/green or a strong open as long as it doesn’t gap up much.

Gray Television, Inc. (NYSE:GTN) – After the last real news, earnings around August 7th, this stock was under $0.50. Now just under $3, this is an easy short on green/red or on a break below today’s lows. It was a good short for me today on green/red but it closed near yesterday’s close. Perhaps tomorrow will be its big down day. If it doesn’t do much tomorrow I’ll remove it from my watch list.

Disclosure: No positions. I have a disclosure policy.

SSN – long on strength, huge volume Friday, no news.

AMIE – up on debt restructuring, long on strength.

TIV – filed amended annual report Friday, long on strength.

CNWI – crappy pump, IB had shares Friday, short on weakness, too risky to buy now.

VRMLQ – the Q means it is bankrupt. So why then skyrocket 2400% Friday on news? This is a crazy stock and I’ll avoid it.

INHX – still short-biased on weakness.

Probably the most interesting of the above to me are TIV as a long and INHX as a short.

Disclosure: No positions. I have a disclosure policy.

EXXI – long on red/green or $1.50 cross, up big Friday on earnings release, could keep running

GTN – long on breaking $1.14, can run, sector is still hot

JAZZ – could be a flipper. Big technical break Friday but ran big already. Short on weakness, buy on strength.

BONU – promoted crap. Short on green/red. Shares likely unavailable everywhere.

NVTL – could be decent on red/green or break of $11.37, not a great history of running though. Tends to gap instead.

IVAN – buy on break of $1.85 or red/green

Disclosure: No positions. I have a disclosure policy.