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Read "Extraordinary Popular Delusions and the Madness of Crowds". The section on bubbles and financial manias gives a historical context to the never ending series of manias that investors get swept up in. You are living in the middle of one right now - MJ stocks. One of the defining features of a bubble is that no one knows how big they get or when they pop. Some of the most brilliant thinkers in history have lost huge amounts of money in this type of mania.
Fortunes can be made in bubbles, just make sure you are only trading in the direction of the major trend, for FSPM, the major trend is up! Get out when the trend turns down. Never average down, or you can lose everything you made.
Even a short biased trader like me is willing to state that a close above$8.00 today is very bullish!
Disclosure - flat but will re-establish a short position when the trend on the daily charts changes from up to down. I have no idea when this will happen, I have no expectations, I let the price action speak.
P.S. I am embarrassed by the posts of fellow short biased trader Piper, I expect he is blowing out his account this morning ...
Brad, I think you are seriously confused about what a MM can and can not do. Their role is to add liquidity to the market. They do not have to borrow shares to establish a short position, because they are Market Makers! I suggest you do a bit more research on this subject.
If a retail trader wants to establish a short position, the broker must find a source of shares to borrow. At the moment, Interactive Brokers is showing that there are shares of FSPM available to borrow.
I don't believe that placing a GTC sell order on your position will affect the ability of a broker to borrow your shares. It certainly won't affect the ability of a MM to establish a short position.
At least one trade was me covering my short, too early in the day, unfortunately...
Mitch Lowe seems to be attracted to scammy OTC companies. He was recently appointed as a director to NTEK, a company subject to recent pump and dump activity. The NTEK appointment resulted in a short lived price increase, but within the week the stock was below the pre appointment price and had resumed its decline.
Past performance is no guarantee ....
As compared to other companies that usually only issue negative press releases?
Go FSPM!
Last time I looked, FSPM did not have enough money in the bank to hire lawyers for a patent defence. A patent is only useful if it can be defended. In any case patenting a configuration of commonly used growing equipment and HVAC is problematic. A patent normally requires an "invention". It is difficult to argue that FSPM has invented anything.
A pharmapod is simply the integration of standard indoor growing systems with standard HVAC components within a refurbished shipping container. In the city I live in, there are a number of small engineering / fabrication companies who would be capable of doing this, and already have production facilities and the financial capability to start up design and production.
Sorry you are right. I stupidly relied on iHub news functionality, which is obviously imperfect.
The difference between FSPM and the companies you name is that I can't pick up the phone and get a local company to build me a search engine that does what Google does with delivery in 1 month. There are a number of small manufacturers in town that can easily build me a pharmapod equivalent because the product is simply an integration of indoor grow and HVAC equipment. The fundamental issue with FSPM is that it's technology is easily replicable, and a company with deep pockets can drive them out of the market very quickly.
There are many ways to determine when an up trend starts. From the way I determine trends, the uptrend resumed yesterday. Today's decline is noise compared to the main trend signal.
Five years from now, the current hot MJ sector stocks will be left in the dust by legitimate corporations who have hundreds of millions in cash to invest, established supply chains, etc. Check out who was still standing when the dot com bubble burst. There were huge amounts of $$$$ made shorting the entire dot com sector once the hysteria ended. Same will happen with .MJ stocks. No one knows when the bubble will burst... Tomorrow or next year ???
Technically, I am bullish over 6, as breakouts are by definition bullish until the price action says otherwise. From a fundamental perspective, I am bearish until FSPM reports real revenue growth that justifies the current share price.
Based on the chart, swing traders and investors should be long right now. If not for my fundamental concerns, I would be long too.
It would be insane to hold a short position in this volatile market when the price trend is up.
I am a little concerned for those on this board that think that the earnings soon to be released will show any kind of big increase. The financials will be for the fourth quarter of 2013, and will NOT include the "potential" sale of $4 million to a company for which Dittman is a director, or any sales resulting from recent state legislative changes. There were no PRs that announced any sales at all during the last quarter.
Disclosure - flat (boxed) but long term bearish due to significant over valuation of the company, even taking significant revenue increases into account.
Tim Sykes issued a dip buy alert this morning. His followers are almost all day traders, so watch out below when they all head to the exits!
COOL $VEND is up $1/share since my dip buy alert at $3.10 for http://t.co/FhOepkEGe5 students, CLASSIC #5 in this DVD http://t.co/HOvVZhA1MX
— Timothy Sykes (@timothysykes) February 27, 2014
I agree, if he keeps buying the dips, the insiders dumping shares will send him a thank-you card and a free live deal coupon to a restaurant that closed three months ago.
My GTC order at IB picked up a small number of shorts on Friday and Monday. I boxed them up and unboxed when it was clear to me the dump was on.
Impressive! You only missed by $0.05.
Looks like rumor could be true - promoters ran out of paper to sell.
If $VEND rumors are true and promoters ran out of paper, much greater likelihood they walk away, stop mailers etc vs continued WDCO support.
— Fraud Research (@FraudResearch) February 25, 2014
The dump phase of the pump and dump is now underway.
Everyone has their own trading strategies. I am basically a trend trader. I only trade in the direction of a trend on the daily charts. For FSPM, a close < 4.50 would to me signify the resumption of a down trend. A breakout above 6.00 would be a signal to go long. A breakout above the recent high would be super bullish. Until then, I am waiting for the price action to tell me what to do.
I am not an investor, day trader or short term momentum trader, so my trading ideas would not apply to everyone.
Plan you trade and trade your plan!
Interactive Brokers has 15,000 shares available to short. The total short interest as of Jan 31 (most recent short interest stats released by FINRA) was 208,000.
In the long term, this stock has about as much potential as Bonanza Goldfields... But in the short term, FSPM will have lots of trade able volatility. Just make sure you don't hold too long...
I expect that when they publish their financials, I assume as part of their annual report, they will include a section on subsequent events, which should give some details on the new contracts that are in the works.
I agree, with the low float and really good revenue, the price could rally spike upwards. But don't forget, the financials will be for 4th quarter 2013, and a lot of the big MJ legal moves by states will not have had time to turn into real sales for FSPM. So I am not expecting much of an increase in revenue.
Third quarter revenues for 2013 were less than third quarter revenues for 2012 (check their financial reports filed at otcmarkets.com). Maybe they will do better in the fourth quarter.
So far, they have only announced new sales to a company on which Dittman is a director. Not very positive.
Oops, should be
ZDPY do dah
ZDPY dart ...
Go ZDPY
ZDPY do dah
ZDPU dart
My oh my what a wonderful chart
Go FSPM!
Disclosure - boxed, will establish short position when there is weakness on the daily chart.
My read of the daily charts is neutral, so my position is flat (boxed). I don't try to predict where the price will go next. If it starts a new uptrend, great, but I will remain flat as the history of the company include scam stock promotion as BBYB (previous ticker). If the trend turns down, I will re- establish my short position.
Any previous post linking FSPM to BBYB has been deleted, let's see what happens with the cheerleaders absent today.
Interactivebrokers.com is where I short overvalued OTC stocks.
The only way a stock can never trade again is if it is delisted by the SEC. I believe there was a case during the dot com boom of a stock that was suspended and then delisted before it started trading again, but this would be very rare. Having a short position in a stock that gets delisted is a short sellers dream! Your position will be closed out (covered) at $0.00. The only drawback is having your funds tied up while waiting for this to happen.
Disclosure - short.
The presence of ALL-IN888 on an iHub board is my favorite indicator of upcoming volatility. Longs will make money on the spikes up, shorts will make money when the price collapses.
GLTA longs and shorts
The MJ sector is very hot, and most stocks in the sector are very overvalued. When stocks are overvalued, insiders dump their free trading shares, which creates downward price pressure. My guess is that FSPM insiders are more impatient to sell than insiders on other MJ stocks.
Disclosure - flat (boxed), but will go net short when the trend on the daily chart turns down.
Countdown to the deletion of this post by the moderators who are dumping stock 3,2,1 bye-bye....
Given that FSPM has no intellectual property and their business is easily replicated, what multiple of book value do you think a large corporation would pay to buy FSPM? Even an extremely generous multiple would put the pps way below what it is trading for today. Do the math for yourself!
Disclosure - flat (boxed) but waiting for a down trend on the daily chart to re-establish a short position.
For old times sake, can you give us a "The 24's are here!!!!!" at the appropriate time? I missed that over the last few weeks.
And who is providing financing to FSPM so that they can provide financing to their customers? Their latest balance sheet says they don't have the cash. Perhaps they have arranged notes convertible to shares at say $0.25 per share? I am sure this will be disclosed in the upcoming annual report!
Although if you check their financial statements, you will see that year to date revenue at the end of Q3 2013 is LOWER than for the same period in 2012!
Not at all. Short biased traders need the price to go up first before the price can come down!
I want the price to go "to da moon" so that I can short it all the way back to earth.
Disclosure - flat (boxed), patiently waiting for evidence that a new downtrend had begun on the daily charts.
Wow, impressive gap up. There are a huge number of momentum day traders scanning for the "hottest" MJ stock in the hot MJ sector. My guess is that a lot of money will flow in today. Unfortunately, when these momo players pull out, there is usually a significant price drop. Trade the price action, don't get married to the stock - it doesn't even know you exist!
Disclosure - flat but short biased in the long term.
Assuming you are talking about the trade about ten minutes ago, Marker Makers can trade OTC pink stocks in the pre market session. If you have a broker like SpeedTrader that let's you route directly to a specific MM, you can attempt to execute trades at their bid or ask during the premarket session. They are under no obligation to execute these trades until the regular session opens.