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The Junk Portfolio 2/10/2021 results:
Portfolio cost: $52,021
2/9/2021 value: $62,569
2/10/2021 value: $64,712
Daily gain/loss: $2,143
Total gain/loss: $12,691
20 sell orders were executed (half in extended hours trading)
9 at 20% level, 11 at 40% level.
2 buy orders executed.
I find it interesting the percentage of executed sell orders that occurred in extended hours trading:
2/8/2021: 29.4%
2/9/2021: 41.7%
2/10/2021: 50%
There is just an incredible amount of speculation in these low-priced issues right now. An additional 16 sales have been made already this morning in The Junk Portfolio.
The Junk Portfolio 2/9/2021 results:
Portfolio cost: $52,021
2/8/2021 Value: $57,423
2/9/2021 Value: $62,569
Daily gain/loss: $5,146
Total gain/loss: $10,548
24 sell orders executed (quite a few in extended hours trading)
17 at 20% level, 4 at 40% level, 3 at 100% level.
0 buys orders executed.
Thanks, Nelson. I see the difference now between the stocks with a Dec fiscal year and the odd ones. I'm scratching out the wrong months on the left side for the odd ones. I don't why they felt the need to make that "improvement".
Michael, I just called them. I left a voicemail regarding how the new Revenue/EPS page is very much inferior and confusing compared to the prior version. I have no idea what they were thinking when they came up with the new format.
Did anyone see how they totally screwed up the Revenue/EPS page at Nasdaq.com? Someone definitely has to be on drugs.
https://www.nasdaq.com/market-activity/stocks/amrk/revenue-eps
FSI - I bought a little on the news this morning, but it pretty much just sat there for a long time. Then all of a sudden it just takes off. Strange.
Teomax, I'm not finding much I think is undervalued in the micro space either. I've been selling and selling for a long time now. I just checked my IRA, and I am almost 83 percent in cash. That has to be a record for me. It's really tough to time the market. I think it is best to just buy stuff when you think it is cheap and sell when you think it becomes fully valued. In this market you will probably leave some money on the table, but you never know when the music is going to stop.
This Junk Portfolio experiment is just a way to try to take advantage of the extreme level of speculation going on right now. I would hazard a guess that most of the stocks in the experiment will be long-term losers at their current prices.
Interesting results for sure. I think it is a testament to the extreme amount of speculation in the market right now. I never remember so much liquidity in the low-priced stocks.
Perhaps the stock market has become the new Las Vegas for some people.
If a young person is just getting started in the stock market, they probably don't have much capital. I would be inclined to think they would rather buy a few hundred shares of a low-priced stock instead of just a few shares of one of the marquee names. It's a lot more fun with the leverage.
That's what I thought about Bitcoin about $40,000 ago.
The Junk Portfolio 2/5/2021 and 2/8/2021 results:
All 52 positions were bought in the last hour or so of the trading day on 2/5/2021, so to say it was a rush job is not an understatement. All orders were put in at the offer. Many orders were filled somewhere between the bid and offer. Most spreads were pretty tight with a lot of these stocks trading millions of shares a day.
Portfolio cost: $52,021
2/5/2021 Value: $51,805
Daily gain/loss: ($216)
2/8/2021 Value: $57,423
Daily gain/loss: $5,618
Total gain/loss: $5,402
17 sell orders executed: 13 at 20% level, 4 at 40% level
0 buy orders executed
I will update the results daily, but I can tell you it is off to a good start so far.
The minor problem is that almost everything is overpriced right now.
The Junk Portfolio sales methodology.
This is not just a theoretical experiment. Real money is being used, so trading gains/losses will be the barometer of success or failure.
Each position will start off with GTC+extended hours sell orders for 25 percent of the position at +20%, +40%, and +100% levels. The last 25% of the position will be sold at my discretion. As an example, for a position of 1000 shares purchased at $1.00, the sell orders would be as follows:
Sell 250sh at $1.20
Sell 250sh at $1.40
sell 250sh at $2.00
In setting the sales levels, I was trying to balance capturing the inherent volatility of these types of stocks with being able to participate in a parabolic move. I would like to be able to hit a lot of singles, but still hit the periodic home run.
As sales are made, buy orders will be re-established at the previous buy levels. All buy orders will be good for the day only in case bad news comes out pre-market or after hours. If market futures are sharply lower in the pre-market, all buy orders may be cancelled.
This experiment will attempt to take advantage of the volatility of low-priced stocks and the extreme speculative nature of the current market.
I will update the daily gain/loss and the total gain/loss each day.
There is a good reason it is called The Junk Portfolio. In a nutshell most of the companies that comprise the portfolio are junk!
We're Cadillac brothers. Of course we're going to pick the same stocks! There's nothing nefarious going on here. We both just have a discriminating eye for great companies!
Either that, or I've finally gone round the bend.
Those are great returns, and it just validates how crazy the market has become lately. Huge daily price swings in some of these low-priced stocks is getting to be commonplace.
Introducing The Junk Portfolio for today's market:
This market is about as irrational as I have ever seen it. There seems to be a ton of capital sloshing around. The liquidity in the low-priced stocks is really something. Stocks are rocketing up for anything and nothing.
This afternoon I decided to conduct an experiment. I ran a stock screen for listed stocks with less than a $50M market cap and a price of less than $2.00. The screener spit out a list of mostly junk including scammy companies based in China, serial diluters, reverse splitters, bio dreams, overpromisers, big money bleeders, etc. I did throw a few companies out for various reasons. There are some on the list that are actually decent companies. Most are crap, though.
I purchased approximately $1,000 worth of each of these 52 different stocks for a total investment of $52,021. I haven't decided on the sales process yet, but I think it will be pretty mechanical. I will work on that this weekend. This should be a pretty interesting experiment with all the liquidity and rampant speculation in the market. I will update the results periodically. The list is below:
AIKI $1.51
ARTL $1.22
BDR $1.75
BGI $1.88
BHAT $1.37
CETX $1.90
CJJD $1.23
CPHI $0.82
DXF $1.68
DYNT $1.24
EAST $1.62
ENTX $1.65
FAMI $1.33
GVP $1.80
HNRG $1.82
HSTO $1.35
IFMK $1.18
IMAC $1.98
ITP $0.84
JOB $1.44
KIQ $0.87
LMFA $1.84
MSN $1.64
MYSZ $1.56
NAOV $1.35
NEOS $0.90
NSPR $0.84
NVCN $1.36
NVIV $1.43
NXTD $1.21
PLIN $1.06
POAI $1.36
PXS $1.16
RAVE $1.24
RETO $1.08
RIBT $1.05
SDPI $0.92
SEAC $1.27
SFET $1.77
SGRP $1.54
SLRX $1.62
SNCA $1.47
SNGX $1.65
SPCB $1.82
SSY $1.76
STAF $1.11
SXTC $0.78
SYN $0.91
TLGT $1.04
TMBR $1.38
XELB $1.85
XPL $0.75
CTHR - I've been trading it this morning with a bias to the long side. I agree, with everything else flying, why not this one with the nice earnings report.
PDEX $26.26 - $7.04, good analysis on this one. Nice shorting opportunity this morning. The just announced earnings were lousy, plus this from the CEO doesn't sound encouraging for the short term:
Mr. Van Kirk continued, “We believe this will be a year of transition, as we complete the build-out of our new building and continue to make investments in facilities, personnel, and engineering projects to expand our foundation and allow for continued growth.”
Ditch the wife. I say go with the sex doll and the moissanite ring. Much cheaper in the long run.
FRANQ - Common holders slated to get nada. From today's 8-K:
The Company anticipates that there will be no proceeds from the Asset Sale available for distribution to the Company’s common stockholders.
https://www.sec.gov/Archives/edgar/data/1399935/000110465921011546/tm215008d1_8k.htm
AVNW - Bullish SA article out this morning. I'm not in it, but for those interested:
https://seekingalpha.com/article/4403303-aviat-networks-buy-hands-on-impressive-q2-results-and-likely-conservative-guidance
I like the strategy of getting at least a small position in an undervalued stock that has already made a big move. If it moves down, you can accumulate a regular-sized position at lower prices. If it continues up, at least you have some.
Researcher, I think that strategy makes some good sense:
"I think it's a mistake to completely exclude buying an undervalued stock just because it's already had a big run .... I can understand not wanting a full sized position, but at a minimum I take a small position with the intent of adding on a pullback, if there is one. Valuation takes precedence over RSI."
Not a bad idea. Very dangerous trading conditions.
Etrade - Anyone else not getting execution confirmations?
Nice job, otc, marrying a girl with a big bag of silver! I wish I would have thought of that.
A lot of people believe it is the reddit bandits running up the price of silver. I personally think it is the ghost of Nelson Bunker Hunt taking another stab at it.
AMC Completes At the Market Equity Program
Business Wire - Jan 27 12:08 EDT
LEAWOOD, Kan.--(BUSINESS WIRE)-- AMC Entertainment Holdings, Inc. (“AMC” or the “Company”) (NYSE:AMC) announced today that it has completed its previously announced at-the-market equity program.
In its 8-K filing with the U.S. Securities and Exchange Commission on January 25, 2021, AMC announced entry into an equity distribution agreement with respect to an additional at-the-market equity program relating to 50 million shares of its Class A common stock.
That program has now been completed. Together with the remaining shares under a prior program, since the Company’s January 25, 2021 announcement, the Company has sold in aggregate 63.3 million additional shares of its Class A common stock for additional proceeds of $304.8 million.
About AMC Entertainment Holdings, Inc.
AMC is the largest movie exhibition company in the United States, the largest in Europe and the Middle East, and the largest throughout the world with approximately 1,000 theatres and 10,700 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, web site and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming.
CAPC - Trading at .03 last month and now in the .70s. Could it be their new magic mirror product?
I welcome the Robinhooders with open arms! They are paying tuition to attend the Hard Knocks School of Stock Market Knowledge.
I think Robin Hood would rather have all their traders profitable or at least treading water since the more they trade, and the higher their cash balances, the more money Robin Hood makes.
Unfortunately it will probably end badly for a lot of these new traders/investors. That's life, though.
Speaking of Robinhood, I noticed a whole lot of TV advertising for them recently. I guess it makes sense with stimulus checks going out and probably more on the way.
Is it a matter of bringing equity ownership to a wider swath of the populous or bringing more lambs to be fleeced?
TCCO getting delisted. Yikes!
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On January 14, 2021, Technical Communications Corporation (the “Company”) received a delisting determination letter from the Listing Qualifications department of the Nasdaq Stock Market (“Nasdaq”), notifying the Company that because the Company had informed Nasdaq it would be unable to provide a plan to regain compliance with Listing Rule 5550(b) (the “Rule”) within the required timeframe, trading of the Company’s common stock will be suspended at the opening of business on January 25, 2021. Nasdaq also indicated it will file a Form 25-NSE with the Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on the exchange.
Previously on December 31, 2020, the Company received notice from Nasdaq that because the Company failed to maintain a minimum of $500,000 in net income from continuing operations in the most recently completed fiscal year, or two of the last three fiscal years, and since the Company did not meet the alternatives of market value of listed securities or stockholders’ equity, the Company no longer complied with Listing Rule 5550(b) for continued listing. The Company subsequently determined it would be unable to regain compliance with the Rule within the specified timeframe and informed Nasdaq on January 13, 2021 that it would not be submitting a compliance plan.
MXC - In April of 2008, it was trading in the 4s and bolted up to $55 the next month. All that's needed for a repeat is my shorting it!
These low floaters are very fickle characters......
NSYS - I bought some after the company announced that the CEO and CFO had established 10b5-1 trading plans to buy the stock. It didn't move soon enough for me, so I sold.
I guess I hit the trifecta with selling TCCO, JAN, and NSYS too soon!
IKNX $13.20 + $5.60 flying this morning and currently halted. The insanity continues.....
JAN - Michael, for some reason I don't think this is my lucky day. I sold out of all those low floaters before the close!
I first screened for stocks with a float of 2M or lower and a price of less than $5. I didn't find enough, so I increased the float to 3M I think.
I figured in this crazy market some of them would take off. They are overall profitable so far, but not making a killing.
Here's the list of low-floaters that I bought yesterday AH:
AEHL $2.47
IMTE $3.95
JAN $4.30
KBSF $2.74
LLIT $4.81
MDIA $2.90
MDJH $4.50
NCTY $3.67
NTN $2.35
OPHC $3.30
USEG $3.83
WAFU $3.75
Hoping to see some fireworks!