HQS

[robt]

Well, I think you shouldn't be overloaded in one single stock, period. I have a simple money management rule of fixing a maximum percentage of capital to allocate to a single stock. On the 3 Stocks on Fire Portfolio it is 6.66%. On the 3 Pennies on Fire Portfolio it is 10%.

Diversification is key for long term results, in order for an investor to make profits over the long run, he can't lose much of his equity. Preservation of capital is the first goal of a professional trader.

I agree absolutely. I maintain diversification; "overloading" for me means going from a 5% position to 10 or 12%. I do this only when I feel on very firm footing, as with HQSM and DESC, and the money for overloading comes from my cash reserves or occasionally from margin for very short terms and targeted purposes, seldom for more than three or four trading days.

I won't let go a stock solely in order to add to another (though sometimes it will be a small factor in a decision to sell).

For the same reason, I like to maintain carefully-chosen short positions as well as long, which often provide some green on those days where everything seems to dump...not only sectors, but the market itself demands diversification to preserve capital.

[dhiraj19]

I agree with David and robt about overloading. I lost 30% of my total investment in IFLB when it tanked couple of pennies. Diversification is good bet..

[David Randolph]

For the same reason, I like to maintain carefully-chosen short positions as well as long, which often provide some green on those days where everything seems to dump...not only sectors, but the market itself demands diversification to preserve capital.

I believe that's wise robt, maintaining some short positions on the portfolio will help you reduce your portfolio's market risk. Possibly in the future the 3 Stocks on Fire Portfolio will follow your strategy and add some short positions to the Portfolio, thanks for disclosing

I agree with David and robt about overloading. I lost 30% of my total investment in IFLB when it tanked couple of pennies. Diversification is good bet..

Yes, it actually increases the profit expectation you can have for one year of trading. I guess something in between of holding from 10 to 20 different stocks is the right option. But more important than the number of stocks is the percentage of capital allocated to each one of them, it should never exceed 10% of the trading capital.

Concerning HQSM.OB, fundamentals continue to be awesome and now technicals are giving an hand too, I will continue holding the stock for the foreseeable future.

[robt]

Nice intraday so far and I expect it will hold.

Here's why I view this "China play" as equally a "Gulf play" --

http://www.suburbanchicagonews.com/beaconnews/top/AU03_SEAFOOD_S1.htm

we know that HQSM farms shrimp, prominently mentioned in the article. Tilapia is closely related to snapper, and the taste is similar as well.

Also keep in mind that the most recent release regarding the Seattle office indicated that they will act as importers for third-party seafood products, as well as HQSM product.

[David Randolph]

Thanks for the interesting info robt 

HQSM.OB closed above $0.44, which was a mildly resistance level. The technical target of the breakout is $0.61, so I expect that in the coming weeks. But I won't sell at the technical target, as I've said, I'm looking for at least 2 bags on this holding, if nothing on the fundamental side changes.

I just saw that the company has increased the number of authorized shares from 200 million to 210 million which is allright.

[David Randolph]

We've had a minor pullback today on HQSM.OB, but the stock still managed to close at $0.44 which is a mildly important support level.

I will continue to hold this penny stock, no news out today.

[la-onda]

FYI:
HQSM Roadmap Update
Thursday October 6, 8:20 am ET

Acquisition and Expansion Strategy

SEATTLE, WA--(MARKET WIRE)--Oct 6, 2005 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB:HQSM.OB - News)

Dear Shareholders:

Since my last communication in August, HQ Sustainable Maritime Industries Inc., has positioned itself to execute its growth strategy.

Funding:

Loan Guarantees: The relationship with Amalgamated Resources Holdings Inc. ("Alps") has been extended to mid-October and the loan guarantees are available in support of traditional bank loans as well as debenture issues by the company. The debentures will benefit from a double A plus Standard and Poor's shadow rating as the Alps Bank guarantees will benefit the purchasers of HQSM debentures. The use of the guarantee facility will extend over time and be in increments of USD 10 million for a total of as much as USD 70 million. The proceeds will be used to expand the company's branding, vertical integration and production. The guarantee will not tie up HQSM assets as the founders will pledge a block of their shares for the five-year loan guarantee period. Management believes that this means that HQSM is assured of a "full tank of gas" for the years to come with minimal dilution, and maximum accretive benefits. The first draw dawn will take place in the coming weeks.

Expanded Shareholder base: HQSM has successfully expanded its profile to Europe as well as the United States through expanded sales of product and shares to investors as far away as Russia, Holland the UK and France. Since the lifting of the European ban on exports of frozen Tilapia and shrimp products from China, HQSM has increased exports to Europe which further increases awareness of our company and its capabilities in turn attracting more investors. Management believes that this base supports the company's increasing market cap and share liquidity. This is beneficial for the company for matters ranging from costs of borrowing to qualifying for migration to a larger Exchange. Recently, Market Wire has initiated coverage of HQSM.

Production:

Aquaculture products: HQ's unique approach to zero toxin production has attracted expanded markets and higher margins. Europe is consuming vast quantities of Tilapia filet (referred to often as St. Peter's fish as the biblical reference is to Tilapia) and we believe that European clients have chosen HQSM for its superior quality. With the completion of the feedmill later next year will come the acquisition of additional production facilities. Branding initiatives will further define our niche as a specialty supplier of premium products, increasing profitability.

Nutraceutical and Health products: HQ's feed supplements and health products are selling well. When acquired, the primary focus of the facility was to produce the nutraceutical additives for the new feed mill which we believe will be completed next year. Given the sensitivities of HQSM's American public, the acquisition excluded the seal related products. The company still sells shark liver oil and shark cartilage products. The raw materials for these products are sourced from the local fishermen who catch non-endangered shark as a by-catch for other fisheries. Sales of these products continues to expand. The Company has a direct marketing network which has attracted the attention of a major North American Direct marketer. The laws in China for direct marketing have been recently defined and represent a huge growth potential especially for North American and European players intent on piggy-backing on existing operations such as ours.

Feedmill production: In 2006, we believe our feedmill will be the sole producer in Hainan Province of more efficient floating feed for aquaculture. Fish filet uses only one third of the fish. The other two thirds will be processed by our feedmill to produce toxin-free feed for shrimp (replacing the ocean sourced fishmeal component in the feed). This low toxin shrimp will further benefit from nutraceutical additives in the feed produced in our nutraceutical plant. HQSM will make the profit flowing from sales to its cooperative farmers. This will improve the product and further enhance profitability.

Branding and Marketing:

Branding: HQSM is in discussion with one of the most celebrated sustainable product marketing companies to kick off its new branding initiative. This campaign will dovetail with America's "war on obesity." Zero toxin Tilapia and shrimp products provide low cholesterol protein sources without depleting the oceans or exposing consumers to Ocean toxins. The Gulf of Mexico fishery has been devastated by natural calamities and shrimp exports from HQ can help meet the shortfall. Responsible aquaculture, using HQ's methods, provides a long-term stable source for American quality protein needs. The new HQ brand roll-out later this year will build on the positives in this message, further enhancing market penetration and profitability. The CNBC Platinum Plus documentary is being expanded to include this initiative in the light of recent events and will be completed in the coming weeks.

To Seattle and Beyond: The move of our corporate offices to Seattle in the coming weeks is an endorsement of that community's recognition of quality in seafood products. The Pacific North West is a hub of seafood imports and home to a young mobile health conscious buying public intent. This same public understands and supports public companies with our profile and we intend to grow together. Having our corporate office there as well provides us with direct investor relations for US investors many of whom are from this region. The lessons learned in this region will help the company fine tune its message for other markets in the US and abroad.

Sustainability and Fair Trade: "Doing well must lead to doing good." Higher margins for a differentiated product mean more incentive to improve production and the means of production;

--  Motivate workers through proper pay, decent working conditions,
    uniforms and on-the-job training, as well as training and monitoring of
    cooperative aquaculture farmers and a stock option program

--  Equal pay for equal work, promoting women in the work force to levels
    that other companies do not allow

--  Environmentally friendly, plant waste processing to International
    standards and farming practices where waste water from farms is used in
    vegetable farming as an inexpensive and toxin free fertilizer, is part of
    respecting the communities in which we live

--  Socially responsible investors see in HQSM a force for progress in our
    business for developing regions such as Hainan, where a large minority
    population has suffered from years of neglect and most recently the effects
    of typhoon Damrey.

We welcome any questions or concerns that you, our investors, might have concerning our plans for growth and our partnership with you. Please contact us at [email protected].

Lillian Wang, Chairman
HQ Sustainable Maritime Industries, Inc.

[gmarc66]

Ummmm...is this good news?

How will this affect the stock price today?


thanks very much,

julia

[David Randolph]

Thanks for posting the news la-onda 

Let me leave the link too: HQSM Roadmap Update - Acquisition and Expansion Strategy

Some highlights:

- "This is beneficial for the company for matters ranging from costs of borrowing to qualifying for migration to a larger Exchange."

Then the CEO says sales are doing well across the world, specially in Europe.

I guess these are good news, but nothing new 

I'll continue holding the stock since this is a long term investment on the 3 Pennies on Fire Portfolio.

[eggman11]

The press release is good news. It basically says they have secured a credit agreement without issuing stock. The owners put up their own block of shares as collateral.

[David Randolph]

The press release is good news. It basically says they have secured a credit agreement without issuing stock. The owners put up their own block of shares as collateral.

I really don't understand your message eggman1  I guess this was about WWAT.OB, not HQSM.OB, right? Thanks 

HQSM.OB is suffering from the same short term problem as HYRF.OB. It is making a correction after a rise due just to a research report, not a fundamental development of the company.

I will continue holding it though.

[David Randolph]

Friday wasn't a kind day for HQSM.OB. I truly believe in the fundamentals of this company and I think its shares will rise a lot with time. I want to hold it for as long as the market agrees with my thinking, so I set up a long term indicator to help me, in a simple way, to know for how long I should hold this penny stock.

That indicator is the 121 period TEMA indicator (Triple Exponential Moving Average).

For today it stands at $0.33, so I will continue holding HQSM.OB.

[Amarens]

I'm not selling this stock with less than 100% profit.

David,

Does the bearish market make you change this thinking?

Look forward to a reply when you have time  .

Amarens

[David Randolph]

No, it didn't change my thinking in terms of upside potential, but I always need to have a safety net just in case things don't go as expected. I love the stock's fundamentals, but we never know, and if it really starts trading down it's because something's fishy.

With this kind of plan I pretty much make sure that I will be in if a great bullish move develops (as I think it will, given the fundamentals) and at the same time I limit my risk if it doesn't happen, if, instead, the stock goes down.

[David Randolph]

Friday wasn't a kind day for HQSM.OB. I truly believe in the fundamentals of this company and I think its shares will rise a lot with time. I want to hold it for as long as the market agrees with my thinking, so I set up a long term indicator to help me, in a simple way, to know for how long I should hold this penny stock.

That indicator is the 121 period TEMA indicator (Triple Exponential Moving Average).

For today it stands at $0.33, so I will continue holding HQSM.OB.

What a tumble at HQSM.OB, coming down to exactly touch the ascending trendline. The stock did rebound some on the rest of the session and ended up closing above my TEMA indicator, so I held HQSM.OB.

For today TEMA stands at $0.334, if HQSM.OB is set to close below this level I'll have to sell. If not, I'll continue holding it for the medium term.