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Saturday, February 8, 2014

Buying 10,000 Shares of $WPCS or WPCS International (NYSE:WPCS) at the market open on Monday

I am buying 10,000 Shares of WPCS International. WPCS International is RIPE for a trade

I Still Believe WPCS International (WPCS) will go much higher. $WPCS is a STRONG BUY (TRADE ONLY)

A Major Firm Has Taken a Significant Stake We have learned that Blackrock (NYSE:BLK) has taken up a position in the company. In a filing, we learned that Blackrock has a 5.3 percent stake in the company. This tells me they could be looking to acquire more shares and get someone in on the board. Possibly, it is looking to make a huge profit off of a swing trade as I have suggested. Right now, the 5.3 percent passive stake is an interesting data point the supports the bull thesis. I suspect we will hear more about this in the coming months. An Epic Short Squeeze As of January 15, there were over 800,000 shares sold short. That represents a massive percentage of the company’s total (albeit growing) float. On February 3, 2014 we got a tasted of what happens when the shorts are under pressure (figure 1). Figure 1. Price Action in WPCS International in the Last Five Days
As you can see, as shares began to rise, it created momentum of buying and much of this may have been short covering. It was up 5 then 10 then 15 percent. A few minutes later is was surpassing 20 percent, leveling off at about 25 percent appreciation. Once the momentum plateaued in WPCS, I am willing to bet more short positions were reinitiated. These types of stocks are vulnerable to incredible short squeeze rallies. Once the first piece of positive news is released, don’t be surprised to see the stock move 30 percent, 40 percent, and even 50 percent in a single session. I Missed the Move I had an open buy order at $1.35. The stock didn’t get there and I missed this huge rally. That said, I hope it comes back down so I can try and catch the next leg up. The shorts will likely pressure this stock, so I will look to enter at approximately $1.55. Sometimes you just have to say, “I missed this one.” However, now the company has a large position shareholder in Blackrock and is setting up for another epic short squeeze. Don’t get caught short this stock.

Could An Opportunity In The E-Cigarette Space Light Up Your Portfolio?

Vapor Corp (OTCQB:VPCO) is at the forefront of an emerging business in the sales of electronic cigarettes and product derivatives and is the only fully reporting, public traded e-cigarette company in the United States. The company is flush with cash, has turned from losing money to booking gains, has expanded into major retailers product offerings. With the ever growing number of traditional tobacco smokers switching to these healthier alternatives, a future buyout is likely should they take market share from major tobacco companies. A large 15% pullback has offered a lucrative entry point following a wise reverse split decision by management giving investors the moderate risk, high reward play. In this article I will discuss some of the business highlights of Vapor Corp., a leading supplier of electronic cigarettes (e-cigs) with a diverse product portfolio that includes the most recognized brands by both retailers and consumers in the industry. I will briefly discuss recent quarterly performance, a promising conference presentation and then the impact of the just announced reverse split of shares. Thus far, VPCO is the only fully reporting, publicly traded e-cig company in the U.S. Vapor's leading brands include Krave, Fifty-One, Green Puffer, Americig and Vapor-X, among others. To my knowledge, VPCO is the only.......READ MORE

Sunday, February 2, 2014

American Capital Agency: The Bottom Is Here And Risk Is To The Upside

Anything can happen in this market. 2013 saw the mortgage real estate investment trusts (mREITs) just get creamed. That said, thus far 2014 is telling a different story. The mREITs are showing some signs of life. Now, I realize that anything can happen to quickly derail this momentum. A natural disaster in the U.S. could send global markets spiraling. Continued mediocre earnings from individual companies could send entire sectors into the red and take your investment value right down with it. Not so hot economic data like we saw this morning (1/23/14) could weigh. What does this mean for one of the bellwethers in the space, American Capital Agency (AGNC)? Believe it or not, the fundamentals and the technical chart are both improving, at least for now. My favorite combination is when we have technical support on the side of the fundamentals. Take a look at figure 1. Figure 1 shows price action in the last three months for AGNC. During the summer and Fall of 2013, where the chart begins (end of October 2013), AGNC's management team took a ton of realized losses in its mortgage backed securities investments. They simply liquidated a huge section of toxic assets to preserve the company's future and raise some cash. This in turn crushed net income in the third quarter, which I will discuss below, and took the stock down another 15% in a few short weeks. This selloff and negative momentum is.....READ MORE

Double your money with WPCS International (WPCS)

Nearly everyone has heard about it, but not many really know what it is. I'm talking about the mysterious digital currency known as Bitcoin. I have always been a gold and silver guy person myself when it came to currencies/stores of value other than the US Dollar. But, with more and more demand, I think Bitcoin deserves a further look. There is literature available widely and I will share with you the highlights that you need to know. Then, I will discuss a play in this space that I think is setting up for both a nice short-term trade and a long-term investment. At its most basic level Bitcoin is an Internet-wide distributed financial ledger. You can buy into it by purchasing one of a fixed number of slots, either with cash or by selling a product and service for Bitcoin. You sell out of it by trading your Bitcoin to someone else who wants to buy-in. It's available to anyone with an internet connection and often there are no or very low fees, though this may change as Bitcoin becomes more mainstream. Bitcoins themselves are simply slots in this ledger. That may be a bit technical so what you need to know is that Bitcoin is simply a kind of payment system on a global scale. Any individual can pay another any amount of value of Bitcoin. It simply means they are transferring ownership of the corresponding Bitcoin slot in the ledger and in this sense Bitcoin is a digital bearer instrument. It is a way to exchange money or assets between parties. If you have the money or the asset, you can pay with it; if you don't, you can't. Unlike credit cards, there are no chargebacks; this is novel as such potential has never existed in digital form before. Thus, Bitcoin is a digital currency, whose value is based directly on speculation on future use of the payment system. Current use has some impact, but like many things in the finance world, it's about expectations for what's to come..Right now.......READ MORE

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