I took a nice 20% profit on ACTG today. FONR and ALT are both having good days.

I have a sell in on FONR at $1.65.

I hate these penny stocks. Maybe FONR is better than most, but all day long you see these guys on message boards pumping and dumping. I would be happy to make my $500 and get the hell out of Dodge.

That is about what I spent in TJ yesterday.

Yeah, why invest in stocks where you can realistically double or triple your money in a short period of time, when you have the chance to make 5 to 10 percent gains on larger companies?

'Yeah, why invest in stocks where you can realistically double or triple your money in a short period of time"

Uh Kendrick’s,

It seems to me if you could double or triple you "realistically" in short periods of time every body would buy these penny stocks. I must admit that stock does have a good, no great story, but FORN has a history of poor management and poor earnings.

We have been in a very good market over the past few months and most people (other than Ldvee) have been making money.

Perhaps you are the second coming of Warren Buffet (Jimmy's brother) but I think you will find your strategy will have a day of reckoning.
I truly hope I am wrong and you make enough to retire young, healthy and wealthy.

I like Plantronics (PLT) No debt with a great future. That company makes money!!!

Also I do think FORN could possibly be a buy out company. My gut feeling, no facts to back it up.

hey I'm up 8% since I bailed out of SURE (about 3 months).

8% a quarter is fine with me

I should be getting that $14K check next week.

A fuckfest is definitely on the agenda. A buddy and I are going to tour TJ, Ensenada, and Mexicali for a few days.

In a motorhome?

Check out the vineyards.

I bought a bottle of vinegar, oops I mean wine, in Santo Tomas once.

A putamobile is not a bad idea.

Not sure of the itinerary. TJ, Ensenada, TJ, Mexicali, TJ, San Diego?? Ensenada to Mexicali is a tough one unless I take the highway across the mountains towards San Felipe and then head north.

The drive from Tecate to Ensenada through farms, cattle ranches and vineyards is very nice. Very rural and probably hot at this time of year. At least three of the vineyards have stores and tours.

Below is a wedsite and I am sure there are others.

The drive takes maybe1 1/2 hours and the road is hilly with a lot of curves, but two years ago the road was in very good condition.

http://mexicanwines.homestead.com/news.html

http://www.sdro.com/cotucoeda/winery.htm

"It seems to me if you could double or triple you 'realistically' in short periods of time every body would buy these penny stocks."

There are a number of reasons why I believe this analysis is flawed.

1. Obviously, not all low-priced stocks have arealistic chance of doubling or tripling. Just the good, solid companies who have been kicked in the nuts, and are getting back on their feet. Finding these companies is the trick.

2. The "everybody would do it if it were good" argument carries no weight with me.

If it were true that you could go to Tijuana and easily get laid by a beautiful woman with little to no hassle and little money, wouldn't everyone do it? Not the guys who are afraid to leave the US, who are afraid to nail hookers, or who have bought into the bullshit propaganda about how horrible Tijuana is. Look at the shitheads on the Cialis board who couldn't even believe your stories were true, for example.

I am still fine tuning my selection and trading methods, but I do think that buying the stocks of debt free companies with excellent future prospects, while they are selling for extremely low prices relative to their true value, is a winning formula.

Of course, this is too much work for "everyone" to want to go through. Since many stocks that have been beaten down do rise dramatically off of their lows, though, I doubt I am the first person to ever figure this out.

Kendricks,

If you could go to the General Motors pension plan and show them that over long periods you could deliver 12% per year, they would pay you millions.

I have a friend that thought he could make 30% per year selling options om his stock. He based his belief on his investment experience of the mid 90's. He retired at age 53. He is now back to work.

I have a client that bought 10,000 shares of UDW for $3054.00 on July 17. He sold it for $4850 on July 23. Today the stock has been as high as .89.
He bought it strictly because he saw it was being actively trade on the bottom of the screen on CNBC. He didn't even know what the company did as a business.

As I said, I wish you the best, but buying penny stocks is usually a way to eventually lose your money. In thirty something years in this business I have seen many bull and bear markets and these cheap stocks with a poor history of earnings and management may go up in a good market, but when the market reverts, these stocks fall rapidly. The bullshit on the message boards can only hype these things for so long. Why do you think they are selling for $1-$2 dollars?

I don't want this to sound to personal, but I have noticed a weakness about you on this board and that is that you think you are smarter than most, if not all others.

I think you are a very intelligent person, but nobody is smart enough to consistently double and triple their money over short periods of time. It defies all the fundementals and history of the stock market.

Bumped my sell order on FONR to $1.67 today as yesterdays sell order did not fill

You are misunderstanding my statements.

I do not think it is possible to consistently double or triple an entire trading account over short periods of time, without incredible luck and substantial risk.

However, it is more likely that amounts invested in stocks like FONR, ENWV, or ALT (at 1.37) will double in a short period of time, than the big crusty blue chips.

I also think I can have better results in my own trading account than I could for the GM pension plan, as the stocks I am trading couldn't withstand trades big enough to make big gains in GM's account. The comparison is not worthwhile.

My belief that I am smarter than most people is based upon decades of interaction with other people. However, I am not so arrogant as to believe I am smarter than the people who design microchips, space shuttles, programming languages, etc. In other words, I do recognize that there are some people who are smarter than me, but they are an elite minority...

I bought 1,000 shares of ISSX this morning, and sold the Sep 12.5 calls for .6. Since ISSX is debt free, selling near its all time lows, has insituted a share buy-back program, the chance of my losing money on this trade long term is virtually nil, since I will continue to sell call options until the stock is finally assigned.

Brilliant, I know....

Ben picks 9300 for next week.

Ldvee-9250 next week

Kendricks-9151 for me


T_Bone-Dow 9047 (late as usual)

The logic of a cheap stock doubling or tripling is one of the main reasons people buy these penny stocks. The volitility works both ways and they can easily lose 80-90% of their value.

Look at ENWV from Jan-Dec 2002. The stock went from over $5 down to .95. Now if you are smart enough to time the market you can get in and out at the right time, but I have yet to meet the person who can time the market consistently.

"the chance of my losing money on this trade long term is virtually nil"

Brilliant

Just notified I sold 500 shares of FONR at $1.67. Another 4500 shares to go.

I am out of FONR at $1.67.

I hope you get a double or triple.

THANKS KENDRICKS

Fonar Corp.
Options Account

Price
Date Description Price Per Share

7-22-03 Bought 5000 Shares of FONR $7,704.00 $1.54

7-25-03 Sold 5000 Shares od FONR ($8,300.00) ($1.66)

7-25-03 Net Profit ($596.00)







If Shares Are Called on , 2003

Net Profit From Stock $596.00
Net Profit From Options and Dividends $0.00
Net Profit $596.00
Percent Return 3 Days 7.74%
Annual Percent Return 928.35%

FUCK FUCK FUCK!

You're welcome, Ben. Just think, if you hadn't sold early, I'd be getting a free steak dinner, too!

The only saving grace of selling at $1.67.

By the time I bought you your steak FORN would probably be at $10 and I would have to watch you eat your steak while I ate crow.

Actually I will still buy you the best hotdog in TJ anytime you are available.

(Message edited by ben on July 25, 2003)

Kendricks,

I told you about this stock about a year ago(I think), but you said they had too much debt.

http://biz.yahoo.com/bw/030723/235227_1.html

BEN WINS, BEN WINS!!!!!!!

Ben picks 9100 for next week.

I can't remember the last time I had this good a day, week and month in the stock market. It is really kind of scary.

Time to share the wealth.

Congrats on the win, Ben. I am glad I passed on NYB - that stock would have dragged down my percentage of gains for the year.

"C" students might get excited about getting a "B", but "A" students consider getting a "B" to be a personal failure... 8-D

I am up 75% in a year. The dividend and earnings just keep on growing. I will get $460 in dividends the next quarter while I wait for future dividend increases and an opportunity to sell more options.

Call me after 12 months of buying these fuckin losers and tell me I have hurt yot return.

Geez, man, no need to get touchy! I was just kidding around with you. Obviously, NYB was a good stock and a great play. Congratulations.

That is not the kind of stock I understand, though. I think you even said that yourself - you never invest in something you don't understand.

In all seriousness, you are obviously good at what you do. I do think you have some tunnel vision, but that's ok, since you are obviously successful at the kind of picks you excel at.

If there is any disagreement I have with you, it is your insistence that all low-priced stocks are garbage. My theory is that some good companies can get kicked in the balls, and the trick is to catch them as they are getting back on their feet.

I'll continue to post my trades, and we see what happens as it unfolds. If nothing else, you can't accuse me of bullshitting about the success I have been having, as I have posted my plays as I make them.

Until proven wrong, I maintain that buying low priced stocks in companies with little or no debt, that are selling for a cheap price and have good earnings or earning potential are the biggest potential gainers in the market, and in an entirely different class from penny stocks with negative book values and a foot in the grave.

Kendricks,

You've asked the question why look for a small return when you can get a higher return?

I think it's true that risk and return go hand in hand, high return, high risk, low return, low risk. In my particular case a low risk, low return strategy will accomplish my goals. Why increase the risk of not having enough to get more than I need?

You've also stated that you're smarter than the average bear (as in Yogi bear) and therefore you're going to be a winner.

Well, the market as we know it has been around for at least 100 years and there's been plenty of extremely smart people trying to make a high return. The general wisdom that by far most fail.

So, I'd say set realisitic goals based more upon need than want and devise the lowest risk strategy for achieving the goals. Therefore I'm invested in over 60 companies whose names are recognizable by most people, and who produce essential products that result in a profit. Many of them also pay dividends so even if their share price goes down I'm generating cash that I can re-invest.

Do you still think you're Yogi bear smart?

I sorta agree with your theory. The problem is not their cash position and cheap price. It is the reason they sell for a cheap price.

The cheap price is usually a reflection of some major problem. It could be pending litigation, poor management, but most likely it will be poor earnings. It is very difficult to perdict the earning or outcome of litigation.

Part of sucessful investing is not losing money in the first place and I find the bigger companies with more reliable information(there are exceptions of course)and proven track records of earnings and management usually over the long haul make you more money.

That being said you have done very well and I do appreciate the fact you put your money where your mouth is by telling up front what you have invested in and then later telling when you sell.

Anybody can claim after the fact what they have bought and sold.

Thanks again gor the FONR and the $596 profit in three days.

Sugar Pie will be pleased.

Of course Kendricks, the quick buck is as attractive to me as the next guy so I am going to gamble a bit with the insurance payoff, and it appears you have a quick buck strategy based upon a good understanding of stock market dynamics. I should have the money in a week or two. Keep letting us know what you're doing.

Ben,

First, looking back at some of my previous posts, it is obvious to me that my sense of humor on certain days can come across as arrogant and obnoxious. That wasn't really the intent, so I apologize for any misunderstandings.

I would be interested in learning from you how you pick stocks like NYB. Obviously, a stock that goes up gradually over time, and produces great dividend and option income is an excellent find.

However, most of the stocks I see over $20 look as if they are overpriced due to popularity, which could cause a huge drop in price should they fall from grace. What am I missing?

Ldvee,

The conventional wisdom is that risk and reward go hand in hand. Conventional wisdom aslo suggests that the market is efficient. I am not convinced that conventional wisdom is always correct in either circumstance.

The stock market is populated by human beings, who will often run a stock into the stratosphere on hype and excitement, and bash a stock to far below its value on fear and panic.

I humbly suggest that the stock bashed to below its true value offers both less risk, and higher potential return, than the stock which has already shot to the moon due to optimistic momentum players.

My quest is to find the anamolies which offer greater than average expected returns, and lower than average risk.

Also, don't pay too much attention to my occasional claims of how smart I am. On other days, I look back at my life, and can only conclude that I am a complete idiot. Much like the prices of volatile stocks, my opinion of myself fluctuates greatly on a daily basis...

"The stock market is populated by human beings, who will often run a stock into the stratosphere on hype and excitement, and bash a stock to far below its value on fear and panic."

That's true, and even more so with advent of online trading. OMG is currently my favorite example. Look what happened back in November. Completely irrational.

http://finance.yahoo.com/q?s=OMG&d=c&k=c1&a=v&p=s&t=1y&l=on&z=m&q=l

"My quest is to find the anamolies which offer greater than average expected returns, and lower than average risk."

I can't find it now but there's a page on yahoo that shows the stocks with biggest decline, among other things, everyday. Good initial source for finding stocks that have been oversold irrationally and may have a quick recovery in the immediate future.

Ldvee, OMG is a great example, and one of the stocks that got me thinking about this. I remember almost buying it on the day of the collapse, and then not doing so.

tradingday.com also gives a good list of the day's big winners and losers, which I love to look at.

Ben picks 9200.

9287 for me.

FONR up another 17% so far today!

I also opened new speculative positions in MWY, FCGI, HQNT, and ICTS, for those of you playing at home.

If I could only pick one of these to buy, it would be MWY. It may take some time, but I think it is nearly certain to move up from these levels.

Just my opinion, of course...

I think I am going to throw up.

Embellishment,

It is only up 15.4%

Gag Gag

Just checked FONR and was going to report but I see you guys are on it already. Where is my 14K???
Was also going to pick 9250 but the rich gambler made a strategic pick that cancels that idea, so let's see....

9287 + 50 = 9337 for me

I am going to shoot myself.

Ben picks 9200.

Kendricks-9287 for me.

Ldvee-9287 + 50 = 9337 for me

Up to 1.99 now. I wonder if FONR will be able to break 2 today?

Dow 9148

FONR closed the day at 1.97. Not bad at all.

It's about time, now we can place bets on which religion will prevail. Christian? Jew? Muslim? Place your bets caballeros.

http://www.policyanalysismarket.org/

I am going to shoot myself.

T_Bone-Dow 9148

Ben picks 9200.

Kendricks-9287 for me.

Ldvee-9287 + 50 = 9337 for me

FUCK! MWY earnings suck ass. Much, much worse than expected.

Here is a very useful article on how to pick winning stocks. Obviously there are other considerations, but this article is a good starting point.

Where's the article, Ben?

It will be interesting to see how MWY trades tomorrow. I guess that when you play with enough fire, you have to get burned sometimes. Fortunately, I am well diversified enough, and doing well enough on other stocks, that I'm not even worried about it. I may just tuck this one away, if it looks like there will eventually be a turnaround.

Man getting old is the shits!

I use to be so damn sharp.

Alcohol, women and old age is not a good combination for keeping the brain active.

http://moneycentral.msn.com/content/Investing/Startinvesting/P56525.asp

About time the damn market is starting to turn around. I don't really play ... but I have 3200 shares of a POS that went from 8 to 89 to .32 and is now back in the 10 range.

Keep going baby. Superman luv's ya.

Yes, I'm a bitch for not selling at 89 like my loser friends said to. Yes, I'm a tuff guy for holding the shit through the goddamned depression. Feel my power.

Thank you. I have no further interest in this topic.

-Superman-

Just think, if you had bought 10,000 more shares at .32 (for $3,200) those 10,000 shares would now be worth $100,000.

Superman's story inspired me to hold my MWY shares that tanked this morning for the inevitable (I hope) turnaround.

I added a little to my MWY position. It looks like it is at or near its lows, and will trade higher in the future.