Introducing The Low Price/Low Float Portfolio Experiment.
This experiment will try to take advantage of the current rampant speculation and extreme volatility in low priced/low float stocks. This experiment is being conducted with real money. I screened for listed stocks under $5 with a float of less than $5M. Forty-nine positions of approximately $1,000 each were purchased today during regular market hours.
Sales Methodology:
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 some crazy moves. 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.
I will update the daily gain/loss and the total gain/loss each day.
Position and Price Paid:
AAME - $4.37
AEHL - $4.00
AMS - $3.05
ANPC - $4.35
APOP - $3.87
APWC - $3.82
ARTW - $3.83
AWX - $4.70
BAOS - $3.33
BGI - $2.38
BOSC - $4.64
BRN - $2.57
CLWT - $4.08
CTIB - $2.65
CUEN - $4.00
CYAN - $3.03
EFOI - $4.26
EVK - $2.68
GROM - $3.92
HGSH - $2.00
HIHO - $4.28
HUDI - $4.70
HUSN - $3.44
IKT - $2.67
JP - $1.52
KBSF - $4.12
LIXT - $3.25
LMFA - $4.48
MARPS - $4.83
MTSL - $3.94
NTEC - $3.34
NURO - $3.54
NVFY - $3.71
OCC - $4.33
OSN - $4.59
OXBR - $3.31
PHCF - $4.05
PPSI - $4.04
QH - $3.53
RCON - $3.63
RSLS - $4.21
SSY - $2.50
STRR - $3.65
TAIT - $4.93
TC - $3.39
USEG - $4.16
WHLM - $4.94
XTNT - $1.67
ZIVO - $4.20
I have seen lots of $1 stocks with strong earnings and solid balance sheets triple, quadruple and more, but I have yet to see one go below zero.
