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Another ugly day for stocks as there are 431 new 52-week lows on the NYSE and 1,135 new 52-week lows on the Nasdaq. I will be looking for some gems among the wreckage.
And the flush continues today with another 679 fresh new 52-week lows on the Nasdaq. Someone is probably making mucho dinero shorting these money-losing companies. It's really hard to time the beginnings and ends of these trends, though.
AMC $18 - $2.57, has been getting crushed lately, and the insiders have been just unloading:
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000019/xslF345X03/primary_doc.xml
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000018/xslF345X03/primary_doc.xml
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000017/xslF345X03/primary_doc.xml
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000016/xslF345X03/primary_doc.xml
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000015/xslF345X03/primary_doc.xml
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000014/xslF345X03/primary_doc.xml
https://www.sec.gov/Archives/edgar/data/0001411579/000141157922000013/xslF345X03/primary_doc.xml
It's definitely nasty out there for the companies not making any money. There are another 663 new 52-week lows on Nasdaq so far today.
Yielddude, that's a good question. I really don't know why I'm paying $4.95 as opposed to $6.95. I think this particular account I was looking at came over from Scottrade in the merger.
I would call them and ask for the lower rate.
I'm seeing $4.95 commissions on otc stocks on A-trade from at least 2019 to present, so I think they never went free commissions on the otc stocks.
A-Trade is charging $4.95 for the otc stuff (eom)
Another 455 new 52-week lows on Nasdaq so far this morning. The pharma, biotech, and general all-around money losers continue to get hammered.
She will probably want to add some GME now that they are purportedly entering the crypto and NFT markets! The stock is up $31 in the pre-market.
Speaking of unprofitable Nasdaq high flyers, there were 617 new 52-week lows on Nasdaq today and another 184 on the NYSE.
SOGU - another interesting ETF I just noticed on the new 52-week highs list that goes by the name The Short De-SPAC ETF.
https://www.nasdaq.com/articles/short-spacs-with-this-etf-2021-05-21
Pretty lucky on the timing there. I still have the portfolio setup on finviz where I scanned for the positions. It would have gone down an additional $5.1k from yesterday's close.
Congrats on your gains, researcher. A nice way to start the trading year. It's definitely much easier to hold on with conviction when you have well-researched positions. No diamond hands with my tax-loss portfolio!
Thanks, cliff and jtomm. I shouldn't complain. I was just expecting better. It seemed like a pretty good setup going into the new year. I envisioned holding on for more than two days! I thought some momentum might develop and possibly being able to hold on for the better part of the month.
That's the beauty of working for yourself: You can try all kinds of crazy stuff, and you can't get fired. You may lose your house and have your car repossessed, but you can't get fired!
$100K Tax Loss Counterpunch Portfolio - Final Results
All positions were sold this morning.
Portfolio Cost: $100,877
1/3/2022 Value: $107,360
1/4/2022 Value: $105,739
Daily gain/loss: ($1,621)
Total gain/loss: $4,862
I was surprised that the upward momentum in the portfolio didn't continue today. Most of these stocks have just been brutalized in the recent past. At one point this morning, the portfolio was up about 2k from the prior day, and then it folded like a house of cards. That's all I needed to see to close this thing out.
It turned out to be a profitable venture, but still disappointing, as I thought there would be a much greater rebound from these stocks.
$100K Tax Loss Counterpunch Portfolio - The End
All positions were sold this morning. The morning started out well, but then it seemed like a lot of the positions were rolling over, so I unloaded every single one of them. Luckily they were very easy to sell for the most part. Today was definitely a losing day for the portfolio, but the overall results should be positive.
I will post the final return later today.
I agree, jtomm. I think the low hanging fruit will be picked fairly soon. Plus, I don't know much about most of these companies anyway, so long-term investments they are not!
$100K Tax Loss Counterpunch Portfolio - 1/3/2022 Results
Portfolio Cost: $100,877
12/31/2021 Value: $101,497
1/3/2022 Value: $107,360
Daily gain/loss: $5,863
Total gain/loss: $6,483
Positions hitting new 52-week lows today:
APM
I'm seeing the same thing. The pressure from the end-of-the-year tax-loss selling has finally lifted.
$100K Tax Loss Counterpunch Portfolio - 12/31/2021 Results
Portfolio Cost: $100,877
12/31/2021 Value: $101,497
Daily gain/loss: $620
Total gain/loss: $620
And, they're off!
Listed below are 22 of the 49 positions that continued to hit new 52-week lows on the last trading day of the year:
AEZS
APM
ASLN
BKYI
COCP
DPRO
EDTK
ENVB
GLYC
GNUS
GRAY
HUSA
INDO
ISR
KERN
NDRA
OBLG
PRPO
SINT
SYN
TNXP
ZYNE
$100K Tax Loss Counterpunch Portfolio - Sales and Correction
All positions will have GTC+extended hours orders placed for half the position at +50% and the other half at +100%. There will be no re-buying.
The portfolio is subject to being sold in its entirety at any time.
The total portfolio cost was erroneously reported at around $100,300. The more accurate number is around $100,877.
AFI - Nelson, congrats on that piece of news. AFI seems to be the turnaround that never quite happened.
The company is bleeding red ink and has been for quite awhile now. In the first quarter they sold one of their properties in California for over $40M.
Market cap before yesterday's news was $43M. They still own quite a few properties. I have no idea what they're worth, though.
This should be very interesting to see what happens going forward. The company is losing all kinds of money on an operating basis, but probably has some valuable assets. Tangible book value is about $8.72 a share.
I think this one has a decent chance to make some money, but you never know about these things. There should be some coiled springs in this portfolio ready to let loose.
Introducing The $100K Tax Loss Counterpunch Portfolio:
This portfolio was constructed to take advantage of the horrific beating many stocks have taken lately probably due to end-of-the-year tax-loss selling. I screened using these parameters:
1. Price under $3.00 (leverage, more lively, speculative issues)
2. Current ratio over 2:1 (financial strength)
3. Long term debt to equity ratio below .30 (financial strength)
4. Price no more than 3 percent above 52-week low. (as close to the 52-week low as possible)
All positions were bought today including some in the pre-market session. There are a total of 49 positions in the portfolio. I attempted to make each position's starting value close to $2,000. Some positions were purchased at prices a little lower than anticipated and some at prices a little higher. Purchase prices were rounded. Total portfolio cost is about $100,300.
I haven't formulated the sell methodology yet, but I will figure that out this weekend. This is intended to be a very short term experiment. I will update results daily.
Here is the ticker list with price and number of shares:
AEZS - $.37 - 5400
AKTX - $1.38 - 1500
APM - $1.55 - 1300
AQMS - $1.24 - 1600
ARAV - $2.29 - 900
ASLN - $1.11 - 1800
BKYI - $2.19 - 1000
CALA - $.63 - 3200
CLRO - $1.29 - 1600
COCP - $.66 - 3100
CRBP - $.63 - 3300
CRDL - $1.86 - 1100
CRNT - $2.56 - 800
DFFN - $.31 - 6500
DPRO - $1.65 - 1200
ECOR - $.60 - 3300
EDTK - $.96 - 2100
ENVB - $.97 - 2200
FLGC - $1.74 -1200
GENE - $1.91 - 1100
GLYC - $1.46 - 1400
GNUS - $1.09 - 1900
GRAY - $1.70 - 1200
HUSA - $1.41 - 1400
IMV - $1.19 - 1700
INDO - $2.80 - 800
ISR - $.38 - 5300
IZEA - $1.32 - 1600
KERN - $1.81 - 1100
MBRX - $1.67 - 1200
MEDS - $2.36 - 900
NDRA - $.72 - 2800
OBLG - $1.00 - 2000
OCX - $2.04 - 1000
ODT - $1.38 - 1500
OGEN - $.48 - 4700
OWLT - $2.55 - 800
PRPO - $1.62 - 1300
PULM - $.41 - 5000
SINT - $.64 - 3300
SND - $1.75 - 1200
SYN - $.28 - 7200
TNXP - $.37 - 5600
TRX - $.36 - 5600
WINT - $1.42 - 1400
WKSP - $2.46 - 900
WWR - $2.19 - 1000
ZKIN - $1.33 - 1500
ZYNE - $2.90 - 700
CULP - I own a little bit of this one. Collecting the dividend and waiting patiently for things to turn for them. Wouldn't mind buying more if it continues down.
MFIN and Ichabod’s Cranium - Fraudulent activity???
https://www.marketscreener.com/news/latest/SEC-Charges-Financial-Company-and-Its-President-with-Engaging-in-Fraudulent-Schemes-to-Boost-Stock-P--37436361/
I guess there's a reason for that saying that tells you not to believe everything you read!
So far today, there are 243 new 52-week lows on the Nasdaq. Lots of low-priced stuff and warrants on the list.
TCS - Thanks, Researcher. I bought a little. We, Americans, are a bunch of pack rats as you can see from this link:
https://www.statista.com/statistics/984719/self-storage-inventory-usa-vs-rest-of-the-world-2018/
I've noticed some of the self-storage companies hitting new 52-week highs recently. Seems like an inside-the-home storage company like TCS should prosper as well.
CVU - You can't argue with success! (eom)
CVU - Noticed that this morning. It's actually their March quarter, so they are still behind in their reporting. Stock has come down recently, though. Was trading around $3 a month ago. I think they are trying to set a record for restatements.
SLNHP - I think it might be an interesting speculation at this price. The last balance sheet looked great sporting $16M in cash. This last offering will only add to that balance. They also have the LOI for the legacy business which if consummated will only add more cash. If the whole crypto space doesn't implode and they keep making progress with their operations, I could foresee these dividend payments being made for a long, long time.
That said, I think cryptocurrency is the greatest mass delusion ever, so that gives me pause.
That is correct:
https://www.nyse.com/markets/hours-calendars
Congrats on your stick-to-it-iveness on WSTG. Sometimes sitting on your hands is the best strategy instead of scalping a few dollars here and there on a well-researched stock.
When I enter a scary, white knuckle trade, I don't sweat it because I use Old Spice Danger Zone:
SLHNP - I was wondering about that one, also. I'm currently reading a book on preferred stock investing. It's actually pretty interesting. I'm a pretty swinging guy!
I agree. I am thinking of whipping up another experimental portfolio of beaten, bloodied, horsewhipped, shamed, and otherwise traumatized stocks going into the new year.
The weak continue to get punished. The carnage continues this morning. Thus far, about an hour into the trading day, there are 429 new 52-week lows on the Nasdaq.
TESS - The board's answer:
December 14, 2021
Mr. Ari Levy
Lakeview Investment and Trading Company, LLC
Dear Ari,
Thank you for your recent correspondence.
The Tessco Board has met and has carefully considered your letter -- including your purchase offer -- as well as Tessco’s current business plan, balance sheet, and prospects. In our view, and consistent with our response to your prior private approach to us with an almost identical proposal, your proposed purchase price of $7.50/share still does not adequately value Tessco at this time.
To reiterate publicly available information, much of what we recently reminded you of privately:
· From a financial statement analysis, we observe that Tessco’s shareholders’ equity (or “book value”) as of September 26, 2021 was $75 million, or approximately $8.37 per share based on 9 million shares outstanding as of the same date. Thus, Tessco’s book value of $8.37/share – on its own - exceeds your proposed purchase price. In addition, the carrying value on Tessco’s balance sheet of some of its assets, particularly real estate assets, may be understated in relation to their true fair market value. Any unrealized appreciation in the value of Tessco’s real estate, as well as the value associated with prospects for future positive earnings and improved cash flow, would, of course, be additive to Tessco’s book value.
· The Tessco Board is evaluating all options (announced and unannounced) available to it to maximize value to our shareholders. We are always willing to consider any reasonable alternative to achieve this result, including a sale to Lakeview or any other potential purchaser. Should you (or they) make a firm offer at a price that reflects Tessco’s overall value and prospects, the Board will give it due consideration and, if appropriate, would engage with you (or them) with regard to a potential transaction.
The Tessco Board, like most boards of directors of public companies, regularly considers strategic initiatives, including sale, merger, and/or acquisition activities. Like most boards, however, we generally avoid public announcements of this activity: public discussion (especially of inadequate proposals), stands to create substantial and unnecessary concern and confusion in the marketplace amongst our customers, suppliers, and employees. Instead of being able to focus on the execution of our turnaround plan, or the pursuit of more viable strategic initiatives, our employees become distracted, and our management team is forced to spend time addressing the concerns and confusion, and considering and responding to these letters and proposals.
You indicate that our turnaround plan has failed to achieve any tangible results; however, during fiscal 2022, Tessco’s management team has achieved the following:
· A 22% increase in revenues for the second quarter of fiscal 2022 as compared to the same quarter last year;
· A 15% increase in revenue for the first six months of fiscal 2022 as compared to the same period last year;
· Overall sales bookings growth of 38% for the first six months of fiscal 2022 compared to the same period last year; ?and
· An improvement of $4.6 million in adjusted EBITDA for the first six months of fiscal 2022 as compared to the same period in fiscal 2021.
Turning to just some of the other matters discussed in your letter, two of our Board members have served for four months and two Board members have served for eleven months as of the date of this letter. One of our current Board members was chosen from among a number of candidates specifically recommended by Lakeview, and two others were specifically recommended by Tessco’s largest shareholder, and elected with your support to replace directors you helped to remove less than one year ago. The Tessco Board currently has the following expertise represented by its outside Directors:
· A sitting Managing Director of a Fortune 100 company
· A former Chief Financial Officer of a multi-billion dollar wireless provider
· A former Chief Information Officer of the nation’s largest security provider
· A sitting Chief Executive Officer of a private telecommunications firm, and a seasoned corporate Board member, and
· A sitting Chief Revenue Officer of a multi-billion dollar software company.
In addition, the outside directors of the Tessco Board are receiving no cash compensation for their services; all of us have elected to take our compensation in restricted stock. Our management team also elected to receive a portion of their bonus opportunity in performance stock units in fiscal year 2022. We have taken every step to ensure that the Board’s and management’s incentives are directly aligned with shareholder returns.
In short, the Tessco Board strongly believes that our actions have been the antithesis of “reckless and naïve.”
In closing, threatening a highly competent Board with replacement, only months after you fully supported a similar exercise which ultimately resulted in the seating of most of us (four new outside directors out of five), is not enhancing shareholder value. This Board, compensated solely in Tessco shares, was elected to turn Tessco around and to improve shareholder returns. And we are turning Tessco around. Rest assured that the Tessco Board will continue to explore every avenue to maximize shareholder returns – with the knowledge that improved operating performance lies at the foundation of any of these strategies.
Best regards,
The Board of Directors of Tessco Technologies Incorporated
Scary details of the carnage:
JWN -8%
DDS -7%
BGFV -6%
M -7%
DKS -9%
KSS -7%
PLCE -5%
Lots of retailers getting whacked today. It's definitely not just BGFV.