SPEX

[David Randolph]

Good morning !

You know I'm down 3.09% at the December edition of the 3 SOF Fast Portfolio. Today I'll place a risky bet, I'll buy 33.33% of the Fast Portfolio (as always) in a stock that rose 195% yesterday.

Here's my motives:

1) There were big news for the company: "Spherix's Naturlose Phase III trial gets FDA green light  (SPEX) By Carolyn Pritchard
SAN FRANCISCO (MarketWatch) -- Spherix Inc. (SPEX) said Tuesday the Food and Drug Administration has cleared the way for the company to conduct a Phase III clinical trial of Naturlose to treat Type 2 diabetes. A successful Phase III trial would allow the Beltsville, Md.-based company to file a New Drug Application for Naturlose with the regulatory agency, the final step before marketing."

2) There was no buy the rumor, the stock was at a low point:



Well, just a little bit, notice the volume increased just a bit before the spike up. But most people bought yesterday.

3) Despite the enormous 1 day advance, market cap is just $45.36M (I've checked with the SEC files, and on a dilution basis), which is too low for a Phase III trial approval for a diabetes treatment.

4) The stock will open lower, I'll buy at the open (approximately $5,000) and I'll sell it, let me see, if I get a 30% instant profit I'll take it, if not I'll continue holding it for tomorrow.

Wish me luck  

[KCScott]

This scenario is new to me.

What is type of history have you seen with a stock that doubles overnight?

How much retracement on the previous day's gain is average?

Down 10% now -

[poorman1]

Great pick Randolph, got in at $3.21.  The selling point for me was the market cap. You're right, the company is actually financially sound and entering Phase III trials, the market cap should be at least $100-150MM.  Applaud


Out @ $5.30 for a 65% return in 3 hours.  Thanks David

[akclide]

What a pick David,
                         It was moving faster than my EKG.Excellent

[das317]

Hey!  Great pick.. in at 3.34, out at 4.41..32% gain in less than an hour..hard to beat!

[bikerhead]

Thx. David, its really a good pick. in at 3.47 and out at 4.3. 

[la-onda]

Good morning !

4) The stock will open lower, I'll buy at the open (approximately $5,000) and I'll sell it, let me see, if I get a 30% instant profit I'll take it, if not I'll continue holding it for tomorrow.

Wish me luck 

execellent job appluad
cheers
OLIVER

[rodri59]

  Great quick in and out on this stock bought 3.40 out at 4.42 - nice 30% in about 30 minutes...

Thanks for the tip on this, would love to hear more about the strategy on this one, David.

Cheers!

[Ramsburg]

Thanks for the tip on this, would love to hear more about the strategy on this one, David.

Hi rodri59,

(congrats on your fast profit )

David doesn't make intraday updates, thats why he always give the strategy in advance:

4) The stock will open lower, I'll buy at the open (approximately $5,000) and I'll sell it, let me see, if I get a 30% instant profit I'll take it, if not I'll continue holding it for tomorrow.

Wish me luck

As you can see on the 3SOF Fast Portfolio, we bought @ $3.76, which was the opening price today, and we'll try to sell it around $4.88 today acording to the plan, otherwise we hold it for tomorrow (if that's the case, you'll be able to see the next update before tomorrow's session).

best regards !

[LiveLife]

Once again, nice pick!  Diabetes is global health issue and this is big.

[puenthouse]

Wow in the 6 hours i was asleep, this baby was bought and sold.  I cant touch this one now.  GJ to those that did.  Must be nice

[David Randolph]

Did you sweat when the stock was down 15% after the open? Well, I did, that's why I love this game 

Sold a few moments ago at $4.90 for a nice 30% profit, that took the 3 SOF Fast Portfolio into the green 

Now I'm just going to answer a few e-mails and then I'll head home to watch Benfica-Manchester United for the Champions League (though my team is Sporting Lisbon).

It was a good day today ... but no motive to be  , because if I were to lose 30% in one day I wouldn't want to be  . Just business as usual.

Have a nice day 

[bocasva]

U the man David!!!  Yet another nerve-racking victorious trade. Enjoy your Futbol game.  I myself wll be watching the Mexican play-offs later on today.

[shawFund]

Great & great pick.

Chcked the history, each time such news announced, the stock will go up several days and may reach to $13.00!!

I am all in this mornig and may hold for few days.

[rickjust]

wow!!