Well, today was a normal day - S&P is down -0.2%, while PennyStocks is up +0.8%. I liked todays' penny stock action. We liquidated Level 3 (LVLT) in our portfolio with an "okey" gain of 15% since last month entry and this was a part of our clean-up program I mentioned yesterday.
But not only LVLT makes me happy today. ASUR and DSCO - two symbols with a decent weight in our portfolio showed nice action. Especially ASUR. In the morning we sold 2/3 of total ASUR for 38 cents and this is 50% profit from the entry price. In the end of the trading session, we sold 1/2 of what was left for 46 cents and it is 70% profit!
DSCO is meeting with FDA tomorrow and nice pop in price in the morning looked like scared shorts are covering positions. We reduced DSCO by 1/2 for $1.22. Later, DSCO retraced back to 1.10-1.12 which means we were probably right about a little short squeeze in the morning. 50% profit and rebalancing at the same time - best rebalancing I can imagine :)
During the day I was posting intraday alerts for 'Buy' positions on our trading log with a brief explanation why we initiate a particular position. Here is a summary of what we got today:
PTN - excellent news in the morning. Nobody gonna invest $5M in a company without clear understanding how and when this money will be used, especially these days. Expect more good news from PTN
ACAD - pharma with big problems, but it's too early to discount ACAD. They have products, pipeline, and what is most important - cash, just equal to the current share price. A single good news about ACAD will trigger a short covering and nice green rally. Do you remember when DSCO was traded just 3 weeks ago? 40 cents! After news that they are meeting with FDA (just meeting, nothing else), DSCO rallies 70% in premarket trading and today we sold it for $1.22, while meeting is to happen tomorrow. LOL. ACAD was $6 not so long ago... Take a guess where it may go after ANY good news :)
LOOK - very good fundamental picture. Below cash! I don't know why they are still so low. Probably someone knows something... etc. But that's the beauty of our strategy. If we are wrong with LOOK, we will be right with ACAD, if wrong with both - there are 138 other holdings that help us to forget about losses and move forward... Anyway, LOOK looks really good. We are doubling our LOOK position.
LBIX - we had core position in LBIX, 22% profit since entry and when it popped last time we didn't sell. As I mentioned before, positive EPS is share repurchase plan is very tangible stuff. Very few penny players below $1.00 can claim positive EPS. With 140 positions in the portfolio I don't have much time to do research for every stock symbol. But news like positive EPS and stock repurchase plan make we feel warm and comfy - these guys are not going out of business for the next 6 months, so why not to invest a bit more :) Doubling position in LBIX
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