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EverydayInvestor (< 20)

May 2008



Ten Little Banks

May 29, 2008 – Comments (0)

A bit morbid and not the best, but still good for half a laugh. Courtesy of a post on a G! Finance message board.  [more]



Who's your daddy now?

May 29, 2008 – Comments (1)

Who’s Your Daddy Inc. investors may be thinking that the company’s name is a taunt to them after its stock price has fallen over 95% in the past year (graph at Google Finance). The maker of King of Energy™ energy drinks now has a market capitalization of under $2 million and its stock price is at $0.17. Who’s Your Daddy has a stockholder’s deficit of $3.8 million (that’s a negative book value, folks) and a loss of $335,000 on sales of $103,000 in the most recent quarter. The company has under $2,000 in cash and $61,000 in accounts receivable. Unless the company receives a cash infusion quickly it will likely go bankrupt.  [more]



Reggie Middleton on shorting bank stocks

May 28, 2008 – Comments (9)

Reggie is awesome. Visit his blog now.  [more]



Do not go chasing white whales: narrowly avoiding a trader's armageddon

May 28, 2008 – Comments (13)

"Now that lilacs are in bloom
She has a bowl of lilacs in her room
And twists one in his fingers while she talks.
“Ah, my friend, you do not know, you do not know
What life is, you who hold it in your hands”;
(Slowly twisting the lilac stalks)
“You let it flow from you, you let it flow,
And youth is cruel, and has no remorse
And smiles at situations which it cannot see.”
I smile, of course,
And go on drinking tea."



All hail the hypnotoad

May 27, 2008 – Comments (11)

I feel like licking it profusely after my portfolio's massacre today. 



GRDB: Memorial Day pump & dump (with emphasis on the dump)

May 25, 2008 – Comments (9)

Over the last five days, the stock of Global Roaming and Distribution (OTC BB: GRDB) has dropped 70% on no news. To those familiar with pumped penny stocks, this is unsurprising. The pump and dump scheme is quite simple: a company or a large shareholder pays a publisher to print amazingly optimistic advertisements for the company that are sent out to hundreds of thousands if not millions of investors via mail, email, and fax. The information published about the company is either absurdly optimistic or downright false. The SEC never gets involved unless the statements are verifiably false, so the publishers usually stick to insanely optimistic predictions (which are protected speech, no matter how absurd). While the stock soars, shareholders of the company sell their positions at inflated profits.  [more]



Citron Research Vindicated Again

May 24, 2008 – Comments (3)

Those of you who read this blog probably know about Andrew Left. He is a well-known short seller of penny stocks who has successfully identified multiple frauds. I admire his thorough research although I do not always approve of the inflammatory language he uses (and I certainly do not approve of the garish design of his website).  [more]



CongressCritter gets forclosed upon

May 22, 2008 – Comments (5)

This is blatantly stolen from abitarecatania's blog. I thought as many people should know about this as possible. My comment on this: is it any surprise that it is a democrat? I know both parties are evil (especially Don Manzullo, a hypocritical money-whore), but I would never trust someone who can't manage their own money with the huge federal budget.   [more]



Ener1: Stock Dilution is Not the Solution to Pollution

May 14, 2008 – Comments (14)

Ener1 (HEV: $6.80 +7.42%, market cap: $633.7M) is in the exciting business of developing safer and more powerful lithium-ion batteries for use in hybrid gas-electric cars and in other applications. This is a laudable goal. From a business standpoint, however, there is a lot of risk. There are a number of other companies pursuing similar products at various stages of research, development, and production. A123 Systems is a private company that is already supplying Black & Decker with batteries for portable power tools as well as supplying test batteries to GM for possible use in the Chevy Volt. The MIT Technology Review has a positive article about A123 in the May/June 2008 issue. One public competitor, Altair Nanotechnologies (ALTI: $2.17 +1.40%, market cap: $183.1M) has not produced much and has become a target of short sellers.  [more]



SEC Ensures that Penny Stock Market Manipulation Remains Profitable

May 13, 2008 – Comments (3)

An SEC enforcement division press release today shows why penny stock manipulation remains popular and why I hate the SEC. According to the SEC:  [more]



Friday night music video

May 09, 2008 – Comments (2)

His name is Andy McKee and he is awesome. The song is his original, "Gates of Gnomeria". My wife calls me a gnome sometimes.  [more]



Some regional banks that may be worth shorting

May 09, 2008 – Comments (7)

As some of you may know, I have been looking for some regional banks to short sell (see my previous post on the subject). I normally stick to shorting OTC pump and dumps, but the lack of shares to short in any of my favorite ones is driving me crazy.   [more]



The coming mortgage crisis part III: Low interest rates do not make houses more affordable

May 08, 2008 – Comments (5) | RELATED TICKERS: BAC , DHI , LEN

Many people have argued that the current high house price to income ratio is not reason for house prices to decline, considering that interest rates are very low now. These people argue that what is important is not the actual price of the house, but the mortgage payment required to carry the house (for an example see user jcrash’s comments on my previous aritcles on the coming mortgage crisis at SeekingAlpha).  [more]



Is your husband urban or rural?

May 05, 2008 – Comments (1)

To celebrate my sister's marriage, here is a funny video from the Newlywed Game:  [more]



Which are the best banks to short sell?

May 02, 2008 – Comments (10)

Anyone know of any regional banks that are:

a) heavily concentrated in the bubble states
b) heavily reliant on HELOCs, HELs, option ARMs, NINJA loans, and other bad types of loans
c) highly leveraged (low Tier 1 ratio)
d) trading above book value

I've found a number of banks that have some of the characteristics, but not enough.



Almost top 10

May 01, 2008 – Comments (8)

Okay, so I have now reached my intra-day high ranking of 11. I would be more elated but I lost about $10k on a bad trade this morning. :(

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