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Re: jimbojones post# 21327

Saturday, 05/14/2011 12:42:24 AM

Saturday, May 14, 2011 12:42:24 AM

Post# of 92567
Welcome new investors! Here's all the DD! I say new because most people do not realize how many EYES we've added WORLDWIDE with SFIO just today--and I am sure many of you new faces have been Googling all weekend long to find this information AND WELL luckily you've found the right post! Let's DEEPLY elaborate on some tell tale numbers that will give you a very accurate prediction of where to expect SFIO this coming week of Monday May 16th to Friday May 20th.

As any investor with more than just a couple years experience should know, there are three things that are King in the penny/OTCBB/Pink sheets stock world that drive PPS:
1.) Momentum aka Momo, i.e. Patent News, Reverse Mergers, etc.
2.) EYES i.e. how many people know of the stock, this is important for both liquidity (how easy it is to get in and out of the stock unnoticed) and volatility (how fast the stock moves up and down). This is usually noticeable by looking at volume.
3.) Short sale squeezes i.e. too many people are trying to short and because of the EYES above they are unsuccessful because too many people know about the stock and thus owners of the stock refuse to sell it for the bid price causing shorters to have to buy to cover in order to not lose all of their borrowed shares (very very expensive common mistake).

So let's start off with Momo:

On Thursday May 5th, SFIO announced that, "the long waited worldwide distribution contract for the filter used by SFIO has been executed at last in favor of SFIO as its exclusive distributor worldwide. This exclusive contract coupled with our excusive patents, together with the revised regulatory positions relative to e-cigarettes, sets the stage for this month’s internet launch of our products into the U. S Market." http://www.smokefree-innotec.com/press-releases/filter-manufacturer-signs-exclusive-contract-with-smokefree-innotec This resulted in the very first MOMO SURGE to an over 300% jump in price (high demand) from 0.002 to 0.007

The stock continued to rally, in hopes of news that the RE/AL Smokefree cartons would be shipped. Investors got their wish. On Wednesday May 11th, SFIO announced that, "shipment of the Company’s RE/AL e-cig has arrived and is clearing customs in time for next week’s product launch.. Additional shipments have been prepared to back up the anticipated response to its introduction for sale in the company’s web site shopping cart." http://www.smokefree-innotec.com/press-releases/smokefree-real-cartons-shipped-and-awaiting-customs-clearance Before news even hit the stock rallied to 0.02 SFIO then promptly went to work on their shopping cart mid-day in anticipation of the coming week. By this time the stock had already rallied to over .08 and was very volatile as the chart for today showed.

Which leads us to the next section, EYES:

You could say SFIO is "quite a looker" with the number of EYES that have grown on it. It had a closing volume of 43,243,099 on Tuesday May 10th and 154,640,665 today, Friday May 13th. That's a whopping 358% jump in volume! As the saying goes: volume preceeds price. Infact, short volume was close to 50% today of the entire volume for just this Tuesday! This leads to a highly liquid stock allowing people to get in, get out, get back in, get out & get back in and get out again unnoticed. This unexpected volatily completely obliterated the accounts of shorts who only were able to take the stock down -2.68% As the famous words of Timothy Sykes go: "Never try and short a stock that is firing up on momo!"

That leads us to the complete wreckage of short positions this week:

Today, Friday (the 13th--how ironic) shorters brought volume of 36,159,902 out of 154,640,665 shares traded (23.38%) only to have a -2.68% dip--which is a 500% gain from Tuesday (you can imagine the tears that began to follow) http://regsho.finra.org/FORFshvol20110513.txt

Yesterday, Thursday (the 12th) shorters brought volume of 34,480,348 out of 130,782,191 shares traded (26.34%)http://regsho.finra.org/FORFshvol20110512.txt but as unlearned from the previous day had to cover and lost a ridiculous amount of money.

On Wednesday (the 11th) shorters also brought volume of 33,251,889 out of 121,602,027 shares traded (27.34%) http://regsho.finra.org/FORFshvol20110511.txt and had to cover once again losing A LOT of money.

On Tuesday (the 10th) shorters then brought volume of 19,636,087 out of 43,243,099 shares traded (45.41%)http://regsho.finra.org/FORFshvol20110510.txt and had to cover losing even more money.

Finally on Monday (the 09th), shorters brought volume of 21,038,240 out of 77,211,869 shares traded (27.25%) http://regsho.finra.org/FORFshvol20110509.txt and had to cover losing their first loss OF MANY.

What do you notice about these numbers? That's right, the % of short interest is slowly declining each day as many many new traders learn that you never short against a strong momo with EYES. You'll also notice the volume increasing EXPONENTIALLY with its highest volume just today! With the average short interest around the same it's been all week, Monday will continue the trend of shorts having to "buy to cover" along with new EYES which will be sure to drive the PPS (price per share) above .10 a share--wait until the next PR, by that time the fun will really kick in.

What does this tell us?
Those who chose to short lost money--LOTS OF IT, we're talking hundreds of thousands of dollars BORROWED. We can only hope this painful lesson will be remembered for the newbies :( sad face.

Even more EYES have set upon SFIO:
1.) http://www.daytradingstockblog.blogspot.com/
2.) http://www.stockstobuy.org/ #1!
3.) http://www.thehotpennystocks.com/ #1!
4.) http://www.emailwire.com/press_releases_by_company_profiles/3401/OTCPicks.com #1!
5.) http://www.onlinetradersforum.com/forumdisplay.php?s=f29270847d87416b79f8482e063b20bd&f=47 #1

That's right, #1 on 5 boards and that's just a random search on Google and Twitter! Enjoy this great DD and if there has been a lesson learned it is this: when you have MOMO, patents, news, EYES & publically available information on how many shares are being shorted--stay the heck away from a bull market! That's all folks, and remember--as long as you DON'T sell at the bid, you win every time.

STICKY? YES PLEASE!