There has been a bunch of low floats float spikes over the past couple of weeks. These stocks have the ability to be manipulated up 100% to 200% in a day. But over the next month or so, the sp will most likely return to where it came from. None of the stocks listed below had either a reason for the increase in share price or a very poor reason.
I have decided to short a bunch of these low floats. Very small postion, I won't lose sleep even if they return to their previous highs. Over the next month or so I will aim to cover each stock on a a 25% to 50% decline.
OPHC - Mangement are unaware of any reason why the share price has surged.
GTIM - announced it has appointed a financial adviser to review strategy. Days later the share price goes crazy.
RCON - 'rumor' of contract.
CLNT - Mangement are unaware of any reason why the share price has surged.
None of the stock moves are because the underlying business is improving, it is all manipulation and often coincides with a NASDAQ letter saying they will be delisted if their share price stays below $1.
one week later...
I wrote the above a week ago, the strategy has been a disaster.
OPHC - bought in at cost, gave back profits.
GTIM - s/s 1.67 now $4!
RCON - stopped at cost (post GTIM incident)
CLNT - small profit (post GTIM incident)
I didn't have a stop, I just had a really small position. But this really small position has grown into a fairly sizy loss.
Shorting low floats without a stop - getting burnt yet again. When will I learn!
Open Trades Short
VRML, MBLTY, GTIM, HUSA
Open Trades Long
CHTP, UNIS, CLDX, HZNP, ALXA, SVVC
April Returns, -3.5%