Registered User
Joined: 3/15/2010
Posts: 54
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I find it strange that noone around here has even mentioned anything about ABK in the last couple of days - that is market days.
ABK is over 200% since last Thu on improved fundamentals. Well it actually went from $0.60 on Thurs to currently over $2. The volume has more than triple from an average of 16,000,000 to over 42,000,000 shares.
Like I said I find strange that this type of activity is not mentioned around here.
Take a look.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I find it odd no one mentioned RPC.
After all most in the know realize that big money
specializes in penny bio-tech companies
that move 100% or more in a single day.
By the way I keep count.
There are 7101 securities that haven't been
mentioned here.
(there was 7102 until you brought up ABK)
Thanks
diceman
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Registered User
Joined: 7/1/2008
Posts: 889
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QUOTE (tdmartha)
I find it strange that noone around here has even mentioned anything about ABK in the last couple of days - that is market days.
you just mentioned it. mission accomplished.
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 Gold Customer
Joined: 4/10/2006
Posts: 954
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Small potatoes, but its profit
| 4/12/2010 |
Buy |
2,000.00 |
ABK |
AMBAC FINANCIAL GRP INC |
$1.29 |
-$2,588.95 |
* |
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Hey how come no one mentioned BTH either?
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Bunch of slack-jawed #&#%%?$$ around here......
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Registered User
Joined: 6/6/2005
Posts: 1,157
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Nice trade, WW -- good for you.
Nice move on ABK.
I've been noticing the following on low priced stocks -- happens just as frequently as breakouts and may offer a more attractive RR:
The high volume, single day fakeout. The low of the fakeout produces an excellent stop-loss. Moves aren't always this dramatic, but they do seem to be pretty sharp as the turn occurs.
This pattern can happen over a few trading days as well, but the most dramatic results seem to be the single day fakeouts.
As always there's a downside -- the fakekeoue-fakeout -- LOL -- price turns -- you think fakeout -- and crashes lower via GAP DOWN. Low priced stocks are nothing if not volatile.
I'll post more of this pattern if I see it popup. I think there was a penny stock thread somewhere that I may have to breathe new life into.
David John Hall
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Registered User
Joined: 6/6/2005
Posts: 1,157
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That was supposed to read "fakeout-fakeout" above. But it might be more aptly named the fakeout-takeout.
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Registered User
Joined: 7/1/2008
Posts: 889
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penny stocks can obviously zoom, or go the other way, but the problem is that they are too volatile to put any serious amount of capital into without blowing out your risk budget. So at the end of the day I allocate 3% of my account to a penny stock and it goes up 20% in one day then it feels like a home run., but if I put 20% of my account into a big liquid stock like AMZN or AAPL or PCLN, and it goes up 3% in one day, then the result is the same, but I would MUCH MUCH RATHER be in that big liquid stock, since its moves are less likely to be completely erratic and random.
institution investors don't screw around with most penny stocks...so think about who you're trading with most of the time...a bunch of fickle, nervous traders.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I actually bought 400,000 shares of ABK a few days ago.
However, last time I mentoned results I was accused of bragging.
Thanks
diceman
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (ben2k9) penny stocks can obviously zoom, or go the other way, but the problem is that they are too volatile to put any serious amount of capital into without blowing out your risk budget. So at the end of the day I allocate 3% of my account to a penny stock and it goes up 20% in one day then it feels like a home run., but if I put 20% of my account into a big liquid stock like AMZN or AAPL or PCLN, and it goes up 3% in one day, then the result is the same, but I would MUCH MUCH RATHER be in that big liquid stock, since its moves are less likely to be completely erratic and random.
institution investors don't screw around with most penny stocks...so think about who you're trading with most of the time...a bunch of fickle, nervous traders.
Very well stated Ben.
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Gold Customer
Joined: 4/10/2006
Posts: 954
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Let's party.....
I'll bring the potatoes.
Dice you bring the caviar.
BYOB
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Registered User
Joined: 10/7/2004
Posts: 2,181
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PMI, BEE, MPG, SOMX, ITMN, ARWR, CPWM, PCBC, AERG, TEAR, CIGX, BANR, BGP, FIGI, ZANE, SSN, CPE, LEI, PURE, RNN, FCH, RPC, PCGR, CCBD, SMTX, NMTI, ZQK, WNC, NANX, ACFC, GENT, XFN, SIMO, GOLF, CALPW, MMG, CPRX....all over 100% within 30 days. Now start mentioning these, OK?
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Registered User
Joined: 3/15/2010
Posts: 54
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QUOTE (ben2k9) penny stocks can obviously zoom, or go the other way, but the problem is that they are too volatile to put any serious amount of capital into without blowing out your risk budget. So at the end of the day I allocate 3% of my account to a penny stock and it goes up 20% in one day then it feels like a home run., but if I put 20% of my account into a big liquid stock like AMZN or AAPL or PCLN, and it goes up 3% in one day, then the result is the same, but I would MUCH MUCH RATHER be in that big liquid stock, since its moves are less likely to be completely erratic and random.
institution investors don't screw around with most penny stocks...so think about who you're trading with most of the time...a bunch of fickle, nervous traders.
Dear Sir, this is absolutely not true.
Would you really think that a stock trading over 16,000,000 shares on the average, and as of late over 42,000,000 would be held or manipulated in any way by retail traders.
It is a well know fact that since the market drop in 2007 the participation of individual retail traders / investors in the markets is minimal - under 5%. So with that in mind and with the factual data in front of us you can see now that ABK is mostly if not all held by INSTITUTIONS (please look at the data below - it is public domain).
There are many stocks currently in the market trading at very low prices that fit this profile - there easy to find too.
Allocation of funds to this type of stock is also a much less risky proposition as with little money you can buy lots of shares. Per example if your account shows for about $200,000 and with just 1 % you can buy as many as 2000 shrs - you can afford to play big without much to worry about. Much bigger if you play its options.
So YES institutional investors "screw" with penny stocks, and NO "fickle" and "nervous" traders do not have a say on the outcome. I see this everyday - I think I introduced myself on my first posts on this board.
Lastly to say, that a stock trading over 16,000,000 on the average has no liquidity problems of any kind. ABK happens to be as well an optionable stock.
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Registered User
Joined: 3/15/2010
Posts: 54
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QUOTE (tobydad) PMI, BEE, MPG, SOMX, ITMN, ARWR, CPWM, PCBC, AERG, TEAR, CIGX, BANR, BGP, FIGI, ZANE, SSN, CPE, LEI, PURE, RNN, FCH, RPC, PCGR, CCBD, SMTX, NMTI, ZQK, WNC, NANX, ACFC, GENT, XFN, SIMO, GOLF, CALPW, MMG, CPRX....all over 100% within 30 days. Now start mentioning these, OK?
Can you please tell us the volume in which those stocks are traded?
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Registered User
Joined: 3/15/2010
Posts: 54
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You must realize and understand the following:
ABK announced last week that quarterly net income was $558.1 million, or $1.93 a share, compared to a net loss of $2.34 billion, or $8.14 a share, in the same period a year earlier. Results included a $472 million tax benefit after legislation passed allowing it to carry 2008 and 2009 operating losses back as far as 2003. The tax refund went toward bolstering capital at the company’s insurance unit.
While Ambac’s earnings numberd sound good, nothing has truly changed. ABK has said it has “insufficient capital” to finance itself past the second quarter of next year and may need to file for bankruptcy.
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Registered User
Joined: 7/1/2008
Posts: 889
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hi BigBlock.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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tdmartha; I'm completely bamboozled as to the point you are trying to make. Would you mind clarifying?
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Gold Customer
Joined: 11/22/2006
Posts: 100
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tdmartha. Thanks for posting the institutional holdings of ABK. It really made me feel warm and fuzzy all over that I was able to participate in that big pop by owning an index fund. I bet I made $5 on that move. Since I indirectly own a piece of ABK, I won't feel compelled to buy more. You gotta love owning an index fund.
Thanks for your post.
william
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Registered User
Joined: 6/6/2005
Posts: 1,157
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I think the points TDM (or bigblock) is making are valid -- but that that might just be because I am biased toward low priced stocks. From the post I got that all low priced stocks are not created equally, that there is a lot of volume and institutional support in quite a few low priced stocks and that nervous, or jittery retail traders would not be able to move them. From my own research, I have seen that there are about 30-40 low priced stocks that can hold real volume.
As far as only putting 3% in a position, I'm not sure that's the limit. I find there are tradable and untradable charts at any level. What if you can enjoy the volatility of lower priced stocks and the tradability of higher priced stocks with enough liquidity to create a sizable position?
Low priced stocks are not synonomous with thinly traded OTC stocks or pink sheets stocks. And yes, some low priced stocks are all over the place. Also, many high priced stocks are all over the place and can also suffer from 1 day price shocks as well. Surely institutional investers can get jittery as well. In fact, I just read the part in O'Neil's book (How to make Money in Stocks) where he cautions against stocks with too much institutional support because when it's time to sell they will all sell together.
Part of my mission with the Zanger Challenge is to see if large positions can effectively be taken in lower priced stocks without increasing the risk of ruin. Sure, the simulation doesn't buy real shares at the market, but I'm mainly looking at the volatility here and if it is managable under only a few positions.
Anyway, I think it all comes down to what you see as opportunity, what you see as risk, and which stocks match your personality.
David John Hall
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Registered User
Joined: 2/21/2007
Posts: 797
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However, last time I mentoned results I was accused of bragging.
Thanks
diceman
[/QUOTE
OK; BRAGGART How's that? When's the book coming out?
PLEASE , don't take that as personal insult, tongue in cheek. Just didn't want you to have a paranoia attack and start cursing at me.              take your pick
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Registered User
Joined: 3/8/2010
Posts: 63
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QUOTE (tdmartha)
I find it strange that noone around here has even mentioned anything about ABK in the last couple of days - that is market days.
In the couple months that I have been reading this message board I have noticed roughly 20-30 regular posters within this specific forum. On busy weeks, I would estimate maybe 10-15 new stocks are discussed. On slower weeks usually less than five.
I personally find it more strange that someone finds a trading message board and immediately assumes the members should be discussing the one stock that is on the top of her mind.
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Registered User
Joined: 2/21/2007
Posts: 797
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Tim: all you need to do is to go back intime and read the threads with the most posts and then you should be able to figure it out.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Tim, first I have to tell you that "Her" is actually just Bigblock in drag. Second that has always been her... I mean his mind set. If we are not all sitting at the round table singing his praises then you are considered stupid.
I am reminded of Mel Brooks from "Blazing Saddles”...The governor (Mel Brooks) is giving a motivational speech on how all his members need to do something in order to protect their phony baloney jobs. After he is through talking they all applaud him loudly and each in turn gives him a "Harrumph". He points to a passive member and bellows out - "I didn't get a Harrumph from that guy".
You maybe are not privy to Bigblock antics. Just do a search of his name, grab some popcorn, gather the family and enjoy.
PS: I play a staring role in many of his films....
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Registered User
Joined: 3/8/2010
Posts: 63
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Sorry guys I apparently am not in the know due to my lack of history here.
I read Martha's profile and post history and noticed that she/he/it tends to constantly write trolling type posts condescending everyone on the site and it was odd to me given her short length of time here but if she has a longer history it makes sense then I gues....
Some people really have nothing better to do with their time....
I will leave you to wage the war and will go back to watching from the sidelines....
Happy trading this week!
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Registered User
Joined: 3/15/2010
Posts: 54
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ABK has continued to be a popular trade among many trading desks even after the momentum pic5ked up on the news. In the chart below you can see easy swings on an intraday basis. An easy and over 10 % swings during consolidation is a very attractive proposition.
That alone makes it a favorite, but add the volume and low price of this stock, and you have intraday nirvana.
My initial post was to bring this activity to your attention as oportunity to your trading desk (if there is one).
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Registered User
Joined: 7/1/2008
Posts: 889
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my prime brokerage sources have told me that ABK is a trading favorite at this trading desk...
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Registered User
Joined: 3/21/2006
Posts: 4,308
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I have always wanted to see bigblocks trading station. It is just as I imagined it would be......
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Registered User
Joined: 10/7/2004
Posts: 2,181
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What a fabulous idea!
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Registered User
Joined: 2/21/2007
Posts: 797
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QUOTE (tobydad) What a fabulous idea!
Right on Tobydad, to have TDM offer his excellent insights about trading. I'm sure that many may profit from TDM's observations. Nice to have a new insight on market situations. Seems like TDM has a vast knowledge of the market and much trading experience. Good to have TDM aboard.
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Registered User
Joined: 3/8/2010
Posts: 63
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QUOTE (tdmartha)
ABK has continued to be a popular trade among many trading desks even after the momentum pic5ked up on the news. In the chart below you can see easy swings on an intraday basis. An easy and over 10 % swings during consolidation is a very attractive proposition.
That alone makes it a favorite, but add the volume and low price of this stock, and you have intraday nirvana.
Intraday Nirvana? Seriously?
This has to be the most boring annoying stock I have tried trading in my trading history. Don't lose money or gain money on it. Just watch lots of trades go by without any voliatily.
I am not sure what type of "intraday trader" you are, but I guess if you like watching your money sit and not move up or down this is the stock for you! If this is Nirvana no wonder Kobain killed himself from boredom.
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Registered User
Joined: 3/15/2010
Posts: 54
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QUOTE (timsilverline) QUOTE (tdmartha)
ABK has continued to be a popular trade among many trading desks even after the momentum pic5ked up on the news. In the chart below you can see easy swings on an intraday basis. An easy and over 10 % swings during consolidation is a very attractive proposition.
That alone makes it a favorite, but add the volume and low price of this stock, and you have intraday nirvana.
Intraday Nirvana? Seriously?
This has to be the most boring annoying stock I have tried trading in my trading history. Don't lose money or gain money on it. Just watch lots of trades go by without any voliatily.
I am not sure what type of "intraday trader" you are, but I guess if you like watching your money sit and not move up or down this is the stock for you! If this is Nirvana no wonder Kobain killed himself from boredom.
Ok, lets go back just to the last trading day (Friday). If a $0.25 swing in a 1.70 stock as of the beginning of Fridays trading is a boring swing? - well you tell me. That is almost 20% within a couple of hours.
Making money is not about fun, and I am not saying that trading this stock is not, I just showed you the activity last Friday. The question is where were you then? Position is everything.
Different eyes see different things.
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Registered User
Joined: 3/15/2010
Posts: 54
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nice activity today in ABK. About 30% move in an orderly, and exciting intraday frame.
I hope u are still following. There is plenty of room to play this cheap stock.
Check out the activity at your own leisure.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I know, I keep telling everyone.
I tried to tell them.
What about ABK.
Thanks
diceman
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Registered User
Joined: 3/15/2010
Posts: 54
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QUOTE (diceman) I know, I keep telling everyone.
I tried to tell them.
What about ABK.
Thanks
diceman
Yes sir, thank you for your hard work telling everyone.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I was strolling thru the park one day.
Thought Id pick-up some shares of ABK.
I was taken by surprise by my growing account size.
In the merry, merry month of May.
Thanks
diceman
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Registered User
Joined: 2/28/2005
Posts: 825
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AVGO is next
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Registered User
Joined: 9/25/2007
Posts: 1,506
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ABK ?
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Registered User
Joined: 2/13/2005
Posts: 368
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OK, after reading this thread I put in a market order for 100,000 shares of ABK at the open tomorrow. Hope I don't hosed... no one better front run me. fingers crossed.
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Registered User
Joined: 2/21/2007
Posts: 797
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hope it was a conditional order. Or you got hosed. Diceman can pick up the tab.
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