IIJI

[anthony420]

David,

     Based on your expert commentary, I bought some puts the morning you sold. They are the July 10 puts, bought at .80, should I be selling them today or do you think there is more downside to come

[catrader]

if you bought at 0.80, they are now about 3.10 so you tripled your money.  always ok to take some profits when they are available.  maybe you can sell half or more and let the rest ride.  it all depends on what you think the stock will do from here.

[anthony420]

Thats why I asked David the question. Since the stock started at $ 4.00 before all of this hype, I have a feeling it may trade close to the $ 4.0-5.0 level. If that is the case, I would hold. Would like to hear what David has to say

[David Randolph]

Take your profits and forget about options or warrants. Never touch them again is my advice.

Good afternoon, I'm not really at office, just passing by ... I'll be updating all my holdings after the close.

[talonz]

Thats why I asked David the question. Since the stock started at $ 4.00 before all of this hype, I have a feeling it may trade close to the $ 4.0-5.0 level. If that is the case, I would hold. Would like to hear what David has to say

Remember the earning reports released around the same time the IPO was announced.  Fundamentals are stronger then before, we will not see under 5, IMO.  6s, maybe.  But I would sell them ASAP.

[eulogia]

David,

What do you think of IIJI now?  It is technically interested to jump in again to me.
It has been oversold already.  The %K has crossed over the %D already.  Volume went up.
Is is going to test the resistance of the 8.44.  MACD was also up.  Any comments from others are most welcome.

[David Randolph]

I wouldn't touch it from the long side, at least. Management has deceived investors, this white candle is a «three line strike», a bearish continuation pattern. I believe IIJI will be $2.50 in a few months time.

U take care 

[eulogia]

Thanks David for your advice.
I will be more cautious on this ticker.

[fill_the_gap]

Bought in pre-market. 

On the move.

[Melf Elf]

Bought in pre-market. 

On the move.

fill the gap,

Nice one...IIJI was up 25.83% yesterday.  Applause.  Even if this is a bear flag rally, it looks like it wants to "fill the gap"  at 10.08. (See chart below...sorry, you have to use the horizontal scroll bar at the bottom of the chart to see current activity).

You're getting alot of help from the huge naked short interest in the stock, and from an article in Motley Fool that picked IIJI as one their four stocks that they thought might double again (the other 3 are GPIC, ISRG and SIRI).

Here's a quote from The Street.Com regarding the short interest, if you're interested : 

"What's more, the stock has been the victim of so-called naked short-selling, or selling short shares that aren't borrowed in time to deliver them for settlement. IIJ shares have been on Nasdaq's Threshold List since June 9. Stocks appear on an exchange's threshold list when a short-seller fails to deliver shares to the buyer within the standard settlement period for five straight trading days.

The Securities and Exchange Commission's Regulation SHO, which took effect last January in an effort to combat naked short-selling, requires broker dealers to buy out failure-to-deliver positions in stocks that have been on a threshold list for 13 straight trading days. IIJ shares have been on the Nasdaq list for 17 straight days.

Tom Ronk, who keeps a list of threshold stocks on his Web site, Buyins.net, says a stock will often pop up around the time broker-dealers are required to close out failure-to-deliver positions. Sure enough, on June 27 -- IIJ's 13th day on the threshold list -- the stock shot up 23% and volume rose nearly sevenfold to 10.2 million shares.

In the case of IIJ, it is evident that the stock's own volatility created the naked short position in the first place," says Ronk. "The fact that IIJ is an ADS could make the shares even more difficult to locate since U.S. brokerage firms may have to go overseas to request to borrow shares against short positions on their own books." So, why is IIJ still on the list despite what appears to be an attempt to close out the position? Stocks routinely stay on the threshold list for five days after delivery failures have been cleared out. Also, new delivery failures may have appeared in the meantime. Or, it could be that the exchanges are lax in forcing broker-dealers to actually close out the positions. Ronk notes that out of 299 companies on threshold lists, nearly half have been on those lists for more than 13 days. Short-selling, of course, isn't illegal. And as the SEC points out in its Reg SHO explainer, naked short-selling isn't necessarily illegal either. Market makers, with the SEC's blessing, often sell shares of illiquid stocks without borrowing them, if they see a sudden surge in buying demand. What is illegal, the SEC makes clear, is abusive shorting. "Short sales effected to manipulate the price of a stock are prohibited," the SEC says on its Reg SHO page. "It is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others." So, what happened with IIJ? Its delivery failures started in late May, after the company said it moved from a loss to a profit in its fiscal 2005 and further announced plans to list its shares on the Tokyo Stock Exchange. IIJ's stock had rallied from $3.08 to $4.50 in the three weeks prior to that announcement, but afterward it surged further, topping out at $13.90 on June 13. So IIJ, a fairly illiquid ADS, experienced the kind of sudden demand that could force its market makers into legitimate naked short-selling. But there's still something that smells fishy about the stock's trading throughout June, and it's just the kind of smell that gets regulatory watchdogs sniffing around. Reg SHO doesn't require any disclosure of the number of shares that went undelivered, or who the seller was. Whether and when IIJ's stock falls off the threshold list, however, should go some way toward showing why they weren't delivered. If it was merely market makers who were forced to sell IIJ shares to meet demand, the stock will disappear from the list shortly. If not, it's a pretty good sign that whoever didn't like IIJ last month hasn't learned to love it in the meantime."    



   

[Melf Elf]

IIJI is trading up $0.67 at 10.12 in pre-market, right at that 10.08-10.12 area in the chart above.  More "naked shorts," covering 

[jorgegr]

This one is very active today. Is it a delayed reaction to PRs

jorgegr