3SOF

8 Sept, 2005

Thanks Ramsburg. Today the portfolio was almost unchanged. I did some selling: gone are SMTX and SFP. Also, I have trimmed SVA from 2x to 1x. Now 48% in cash. I am eyeing NWRE, EGHT, CTE and TIBX.

I am nearing my portfolio goal and may like to sell more but at the moment I need some good performers to take me there. Thanks shaw I will be taking a look at them.

Goodluck all.

Hi, stocky:

  You may look at my "momentum study" (in the same thread) to select some stocks for your trading.

  Any suggestions welcome!!!

  Tech on fire this week!!!

  My whole portfolio (about $200k) has gained 15% in last three days.

Gainers are SYNA, RHAT, SSTI, AMD, ...

9 Sept, 2005

Bought HYRF, SQUM, EYII, WWAT and NWRE. Reduced HQSM to half position. I will add more later.

Now thats called penny madness. But if its helping you achieve your portfolio goals its great. Today marks the first month of my diary and I have achieved a personal portfolio goal. All that while giving only half an hour to market daily. I am pleased and happy. As I said as soon as I get my portfolio goal I will be selling drastically. The first one to go will be the big penny movers. But for now I will be taking my wife to dinner and shopping [now you may know why I have to get my portfolio goals ]

Thanks shaw, I hope everyone makes tons of money at 3SF. But it will be unfair to attribute SQUM to me. I picked it up from eliteG and have to give him atleast 5 applauds for that.

Goodluck all.

HYRF: open 0.58 high 0.89 today

Last few days of data:

date   close vol
09/02 0.24 565k - first break-out!!!
09/06 0.32 3.2 million
09/07 0.34 1.7 million
09/08 0.48 4.9 million
09/09 ?

Volume today so far (11:40am) 4 mil (10 times average).

Company is involved in water treatment.

News: Signed agreement with Chinese manufacturing.

Good pick.

I should have historical data on OB stocks.

Give applaud!!!!

SQUM:

  opened $0.32 and high $0.43,  38% gain so far today.

  vol so far 1 million 3x normal.

  News: bio software delivery (09/06)

  Another good pick.

  It seems that OB stocks provides more big gainners than NASDAQ.

  Its first big volume and gain is on Aug 3 vol 1.0 mill from 0.1 mil, price gained from 0.1->0.16 (60% gain)!!

  now at 0.43, it is almost 300% gain in one month.

  I usually am talking about 100% gain in one year.

  Good work and will do more study on OB stocks.

  Thanks for your picks again.

10 Sept, 2005

Now sitting on 36% cash. I have found over time that waiting for right opportunities is lot better then buying blindly. Since I trade cash only account it has the restriction of settlement date. Which more and more requires wiser deployment of capital.

Winds are blowing North and have to see what best I can do. Will add more later.

I spent the whole weekend to build my OB database.

I bought 8 years of OB stock data (1/1/1997->9/9/2005) and will download daily data everyday.

I will use the same scan to find out the OB stock picks.

I prefer to look for two types of stocks:

1. In uptrend and have pulled back to ascending trendline support level in low volume;

2. Have built a long flat base and finally break-out the base with big volume.
    If the break-out gain is too big (> 20%), may wait for pull-back before taking a position
    In general, I prefer not going to have a rush-buy.

3. Must have fundamental support, have real unique products, real revenue,
    not story stocks.
    BCON, SYNX, ALTI ... are story stocks their run cannot last. Buy with caution is OK.
    VPHM, HYRF.OB, AOB, ... are undervalued stocks and is much safer to own.

One more thing about penny stock investing:

If you have a big account ($1 million for example), you have to put 90% of the money into main board stocks because the market size for penny stock is quite small. No enough shares to buy.

For example, HYRF.OB at  $0.20/share, 100K shares only cost $20k and 200k share is
hard to get. Liquidity is also a big problem. If things is not what you expected, it is hard to sell.

Any opinion about it?

11 Sept, 2005

Shaw, thats very true. Its not just liquidity its also the high degree of risk that is associated with these penny monsters. However, if you are in the gambling mode then you can successfully jump along the momo and do some quick trades. Infact most of the time its sound strategy. Makes sense to take home 30% with less risk then to wait for it to become 10 beggar. Another way, especially if you have large position, is to sell part of what you have along the way.

With $1 million in account, I think its better to invest then to trade. David is on his way to covert $1k to $1M. Goodluck to him. Its tempting to follow but one may loose ones shirt if the person is putting more at risk then they can afford to loose. So if you have absolutely free $1k then its good to play the $1M lotto. I will call it speculation to the extreme.

For my portfolio I am going to do the balancing. High beta stocks are on the go but I think 20 Sept is going to be the important date for equities. If Fed gives break to the interest rate raises then it may have some going effect. However, I think S&P above 1250 is about to go into the mega bullish teritory. Dont like to make bullish or bearish calls but will be watching this unpredictable market. For a while will stick with whats working.

I will be watching Gold through GLD. Thanks setravis. Infact I must say that I need to watch your posts to make more bucks.

I am eyeing starting one or two positions [lets see what 3SF new pick will be on the block on Monday]. Also I will be selling some positions in early morning strength.

I hate to hold SNUS now down about 9% from my cost avg. If it closes below 4.20 on monday, I will sell it on next open. I have been less patient with laggards and will be protecting my profits aggressively on SVA, HOM and the penny brigade, if the need arises.

The euphoria in Japan after the election may bode well for Japanese stocks. Lets see what market has in store for us tomorrow.

Goodluck all.

Great work Stocky!
I Will have to check out Stocky's Diary more often to make sure that I am not
missing out on anything......Like some good buys!
Keep up the nice work...I will be checking back in from time to time.

Applaud........

12 Sept, 2005

I am watching USGL[gold] EWJ [Jap ETF] DRC [oil services and new highs] CFK [oil] TGA [oil] AOB [another VPHM?].

Back from work Can add now.

Today I bought AOB @ 4.44, sold 1/3 BRVO @ 0.68, SQUM @ 0.47 and SNUS @ 4.51.

The big rise in NWRE, AOB, HOM, and SVA [fundamentally strong] was spoiled by equally or worst drops in BRVO, WWAT, EYII and HYRF [pennyland]. The no go stocks for me were VPHM and HQSM [seems both are deciding which way to go, and I am getting impatient]. So at the end of the day I was marginally down from yesterday level. Which meant I have to again push for my portfolio goals.

Cash 42%. I have been comfortable holding cash in the past and would like to raise even more cash. But I am reluctant to sell pennyland and fundo strongs. Will see what I can do with VPHM tomorrow.

I have NEXM, AQA, USGL and CY on my watchlist for tomorrow.

Goodluck all.

13 Sept, 2005

Bought NEXM @ 2.08
Sold WWAT @ .545
Doubled HYRF @ .6
Sold VPHM @ 16.85

Back from work. Sad to part with VPHM but may be back if the circumstances are right. HQSM decided to go up so happy about it. Massive profit taking HYRF and EYII and thus holding both bitterly. But I intend to add more.

Other stocks did fine and I am ok holding them for a while. However, still would like to raise some more cash. At the moment 48.4% cash.

14 Sept, 2005

I am watching NXXI, CTLM, TMY. But I am turning more and more bearish and my portfolio goal is again very near . So will be looking to sell some stuff here.

SOLD:    NWRE, HYRF, NEXM, HQSM, EYII

HOLDING:    AOB, HOM, SVA, BRVO

Back from work. The selling in AOB, HOM, SVA was quite nasty today. I did not sell. Why? Because I dont want to buy them back high. I see the trio to do well once the triple witching week ends. Said that I will be on the guard for further losses.

Holding 72.6% cash.  1x AOB, 1x HOM, 1x SVA, 0.7x BRVO

Gold is king now [both technically and speculatively]. I hope I can buy some tomorrow. But wont like to play gap up. I'll be watching USGL, GG, NEM and GLD. In addition, if NEXM retreats to my previous buy level, I may be interested.

15 Sept 2005

As always selling VPHM proved to be not a very good idea. Stock is up a lot in premarket. Not sure how gold stocks will react to the todays economic data. Bought half position in USGL and full position in GG.

Back from work. Dont like action in SVA and AOB.

Gold is on the run and there is no doubt about it. Any retreat in USGL and I will be adding more.

16 Sept, 2005

On the hunt for more gold.

Bought DROOY double position
Sold SVA
Doubled AOB position

A golden week. I see gold stocks going higher from current quotes. At the moment about 40% of portfolio in gold related stocks. Also holding about 50% in cash.

Again made it to my portfolio goal. As I said few days back I will be recklessly selling once I get there. I will be analyzing the markets and see what strategy to adopt. Once you are riding winners you usually gets complacent and throws cautions to wind. I would rather have something in pocket then watching 'potential' gains.

My holdings and how they are doing:
---------------------------------------------------
HOM      x1       +45.15%
USGL     x0.5     +21.67%
AOB      x2        +6.75%   
GG        x1        +0.89%
DROOY  x2        +0.68%   
BRVO    x0.7      -3.01%