College Stock: Penny Stock News

The Dean has discovered more reasons why IVOB is on the brink of something big!  Patented worldwide and with CE MARK approval, the INVOcell has officially… gone global!

Not only is IVOB’s device priced at a fraction of the cost compared to alternative technologies, the company is franchising INVO clinics throughout the world!

FRANCHISING – The concept that made “McNuggets” a household name.

In South and Central America, 17 INVO Centers are now open, thanks in part to Dr. Elkin Lucena, a man renowned for training doctors on in vitro fertilization (IVF) but who now trains them on INVOcell!

In Pakistan, 8 new INVO clinics just opened in April. With over 160 million people and the highest infertility rate in the world (21.9%), it stands to be a very lucrative position!

In India, a population of 1.2 billion people, IVOB works with physicians like Dr. Hrishikesh Pai, Chairman of the World Congress on infertility throughout India.  Dr. Pai owns 5 of the 30 IVF centers in the country, yet he’s positioning himself to be the profiteer throughout all of India on INVOcell!

In Europe, IVOB partnered with Dr. Peter Kemeter and Dr. Wilfried Feichstinger, two pioneers for IVF 20 years ago, who are now talking all about INVOcell!  Aside from building a training center for fertility specialists throughout the continent, Kemeter recently indicated that he plans for INVOcell to replace IUI (artificial insemination) in all of Austria, which would equate to $18 million potential revenue for IVOB!

In Canada, INVOcell just started making an impact in January, where the device is going for $400 per unit with a cost to manufacture UNDER $15!  Can you imagine the revenue that kind of profit margin is going to produce?!

And IVOB’s just getting started!  The company has now expanded to Switzerland, Spain, Italy… the list goes on!

What I want my students to realize is exactly what physicians worldwide already have – the potential for IVOB is too incredible to ignore.  Only 1% of the world market (150 million infertile couples) equates to $660 million in potential revenue!  ONE PERCENT! With the buzz surrounding this company growing at an exponential rate, it is staggering to imagine the possibilities.

Want real life examples of how The Dean’s SuperChirps are the best value on the internet for an embarrassingly low fee of $9.87 / month?

On July 15th The Dean sent a “SuperChirp” to 109 Honors Students. The message read:

“TheDean: I’m on the phone with $IVOB shareholders talking about an advertising campaign coming up soon.”

At the time of the initial SuperChirp, IVOB was trading at $0.10 and today the traded to $0.38 for a gain of 280% within 3 weeks.

What are you waiting for? Go now to Honors Student Signup on Superchirp.com

NVAX has way too much resistance at $2.80 and I’m short selling this poster child of all swine flu stocks. You see just like I said the other day there are plenty of ways to trade these swine flu plays.

Especially after the 8K released yesterday afternoon, I’m confident this swine flu stock has a very limited upside. Yesterday’s 8K disclosed a financing package whereby 2.04 million newly issued shares were granted to existing debt holders in order to extinguish 4.75% senior convertable notes. If management willingly sold shares at $2.50 to extinguish low-yielding debt than I like my odds short selling this swine flu stock at $2.80.

NVAX has been trading sideways all week and hasn’t yet proven its ability to trade anywhere near Monday’s High of  $3.88  (along with the entire list of swine flu stocks).  I anticipate that existing shareholders will become frustrated with the lack of movement and sell on the belief that the hype virus is contained.

I just shorted DDRX at $6.91 because it’s had a monster run up and today was its first day in the red. Originally I wrote about DDRX as a long on The Dean’s List 4/21/09 because the company released great earnings… but in my opinion since then its way overbought.

During the past 8 days DDRX has gained 235% and that kind of growth just isn’t sustainable regardless of how good their earnings were. Therefore I believe the tide is about to turn and the way to play DDRX is to go short.

The Dean isn’t the only trader who sees a change in the trend below. There’s other short sellers anticipating a big sell off…. many of whom learned this pattern by watching instructional DVDs on Short Selling.

This morning I wrote about LNET trading up 133% on quarterly earnings news and that i’d be looking for opportunities to buy on the dips.

Less than 60 minutes later the typical profit-taking/panic-selling kicked in and LNET tanked from $4 to $3.40 within minutes. I bought shares at $3.55 once it found short-term support.

Between 3:00-3:30pm EST the stock sold off again and I got lucky with fill’s @ $3.01.

So right now i’m long LNET at an average price of about $3.19 and if these recent  earnings plays continue to surge than I’ll profit handsomely.

So Lebed.biz released their “HUGE NEW PICK” @ 9:39am and the symbol is CLXS. Within 60 seconds I had bought 20,000 shares at an average price of roughly $0.196 (fill’s at .19, .195 & .2).

It took CLXS just 5 minutes to reach its intra-day high of $0.22 per share from the time Lebed.biz released their first email alert. Lucky for me I spend about 10 hours/day in front of a keyboard because I literally had to be that quick to make money on this stock promotion.

Once CLXS dropped back to $0.20 I got into “asset protection” mode and immediately entered a sell order for $0.21. I  was able to liquidate all my shares at that price for a return of 7.6% and it took just 11 minutes from start to finish  so I’ll take the quick return and happily move on to the next paid pump.

Below is a zoomed in chart of the morning volume for CLXS. The upward price action was even faster than I anticipated… so it’s tough for me to recommend anyone doing this without super quick fingers.

I sold my SPNG today $ 0.027 and almost went short right away at $0.023. I was only able to borrow 20,000 shares but its more of an educational lesson for ya’ll in Penny Stocks 202: Following the Tide.

Not only did I make a cool 202% on the way up from my original SPNG entry… but I also think there is another 25% profit to be made on the short side. Like I said SPNG is hard-to-borrow and I could only find 20,000 shares but i’ll take every penny I can get in the Great Recession.

My initial buy was right after a 41% spike on no news. SPNG was in the dumpster so I figured there was a lot more upside so I took a chance. Looking back I should have sold on 4/3 (first down day) but I got stubborn and didn’t sell until today (down 11%). Now i’m looking for SPNG to crack below $0.02 and free-fall back to $0.01-$0.015. I’ll cover if SPNG shows the slightest signs of strength to the upside.

I’ve been shorting COF on the rallies all day ($38.65 @ 12:30EST) and ($39.38 @ 1:40EST) and I will continue to short COF on signs of strength.

Check out the 5-day chart below. It’s very obvious (at least to me) that COF will eventually re-test the $33 intraday low set on Friday Oct 24th. I believe COF’s recent run to $38-$40 is a Trick that will turn out to be a Treat for smart investors playing the short side. It’s like stealing candy from a baby a few days prior to Halloween!

I’m shorting Capital One Financial (COF) @ $40 and feel confident the stock will re-test lows set on 9/15 ($30.56), 10/9 ($30.88) and 10/24 ($31.16). Once everybody on Wall Street sobers up and returns to reality (bear market)…. credit card stocks will be next in line and everybody shorting COF @ $40 could be making a very smart move.

I had $180 sell order GTC for SKF (Ultra Short Financials) and it got filled about 3:40pm EST. I started buying SKF in late August @ $120 so it feels nice to lock in a 53% gain during one of the biggest sell-offs in Wall Street history.

I still own my SKF call spreads which are now 100% in the money.

The blog hasn’t been updated as much as i’d like recently. Rather, i’m spending most of my time looking for the best short-opportunities… which i’ll be releasing soon. (HINT: The Dean hates consumer goods stocks).

I bought Toyota (TM) @ $65.39 and also purchased some April 2009 Calls w/ $90 strike price @ $2/contract. I’d love for TM to fall below $60… than i’ll place a much bigger call options bet (maybe April 2010 calls to give TM plenty of time to recover).

Once all this “Chicken Little / Sky is Falling” Hysteria dries up, I’m expecting a big flight towards profitable manufacturers who sell high quality, reliable products worldwide. Like I said HERE, “the sky may be falling but Toyota never will.”

TM is trading below book value (total assets – total liabilities) and thats very rare to find among leading manufacturers. TM has $16/share in cash and the last time their P/E was under 7 was back in 1993.

Here’s a pre-market play that I think is long overdue. Research in Motion (RIMM) met the street’s earnings guidance last week, but forecasted for a weaker 3rd quarter. Their conference call also suggested a nervous attitude towards competitors who are slowly gaining market share on the once, unstoppable BlackBerry device.

In order to properly play this out, I feel you should go short Research in Motion (RIMM), but go long Palm (PALM) at the same time. The idea would be to take into account the market inefficiencies between the two. Palm is slowly gaining back market share in the phone industry; with the $99 Centro being such a hot ticket right now, it overshadows such devices as the BlackBerry, AT&T Tilt, and ever-so popular iPhone. With such an uncertainty in the market place, and with a market that’s well oversold, I feel going long Palm would be the best way to negate any rising affects in Research in Motion’s stock. This is a long term play, so take a look at the technical’s before you put in an exact order.

Well that 51 min trade goes straight into the books as one of the quickest 13% returns ever for The Dean. It didn’t really take rocket science to find a cracking point in a stock up +100% before noon in such a fear-driven market. I timed it almost perfectly too… intraday high was $3.80 & intraday low (after the spike) was $3.18. So I guess the ideal trade is an 18% gain but i’ll take my profits and move on. If patience was one of my finer qualities, I could probably bank even more $ by waiting till next week.

This makes 2 successful trades in a row locking in 13% returns each time. I still hold some open positions but I’m confident in my reasoning.

I was able to borrow Indevus (IDEV) shares and just shorted the stock @ $3.71. IDEV is up 121% intraday after announcing an improved FDA timeline. IDEV is a pharmaceutical company developing Nebido, a long-acting testosterone injectible. Today’s news is great– they can use existing data and resubmit their FDA application in 1Q 2009 and won’t be required to develop new clinical trials.

But who really cares? The new drug won’t be out until at least 2009 and IDEV stock looks like a dog with fleas. We’re at the start of a major bear market, and The Dean believes the best way to profit is to short the rallies.

I really hope students are reading all my SKF blog posts. There’s really no excuse for losing money when you’re being spoon-fed directly from The Dean.

I bought Randgold Resources (GOLD) this afternoon in after hours trading @ $44.30. GOLD is trading in the middle of its Bollinger Band entry and exit points, but in a deflationary atmosphere, gold and related industries tend to be a flight to quality buying opportunity. Look for a 20% increase in the weeks to come.

Wow, was the Dean ever right yesterday with his instinct that financials had lower to go.

The Fed intervened to stop the collapse of AIG, by lending money at an excruciating (for the shareholders) LIBOR+850 interest rate

If you have a long SKF call spread on like the Dean does, you are sitting pretty today. I am not dumping these calls yet – maybe tomorrow. I did sell the 100 shares of SKF that I bought at 130 and change yesterday. If you are in September financials puts, now is the time to sell them.

Look at the TED spread, hich I discussed in Monday’s post. It has screamed up to a new high, indicating severe distress in the financial sector.

The TED spread spikes to a 6-month high. The TED spread can be used as an indicator of credit risk. This is because U.S. T-bills are considered risk free while the LIBOR rate reflects the credit risk of lending to commercial banks. As the TED spread increases, the risk of default (also known as counterparty risk) is considered to be increasing. We could be looking at an all time high later today or this week. The TED spread is a measure of liquidity and shows the degree to which banks are willing to lend money to one another.

CNBC claiming that Warren Buffett may be interested in investing in AIG. CNBC’s Buffett buyout rumors over the last 2 years are 1 for 22.

Just sold COF short and hedged by selling an equal amount of October 35 puts.

What I can’t believe today is how little the market is down – only 25 S&P points on a day when two investment banks cease to be independent entities and we find out that the nation’s largest insurer is desperate for cash.

This is actually good for those of us who are net short because it means people are still stupidly bullish even in the face of a financials meltdown.

In fact, the financial system is so troubled that the Fed is now going to “let Wall Street firms post as collateral much riskier assets — including equities, junk bonds, subprime mortgage-backed securities and even whole mortgages — in exchange for emergency loans through the Primary Dealer Credit Facility.”

What am I doing today? Not buying any puts – that would be unwise on a day like today. I covered my LEH short (average price $17, bought back for $0.20). I remain heavily long SKF call spreads that are now showing a healthy profit. Also I am looking to increase my HOG and PIR shorts and buy more HGT.