Happy Hump Day all. Today’s edition is going to be a mish mash of different things going on both around the markets and specifically at the SmallCap Network site and even a couple of rants. All worth reading if you ask me. Then again, maybe I’m just a bit biased. Also, after reading today’s edition you’re still wondering why the subject title? You’re right on track because I’m still wondering the same thing. Ha.
CDXC Popped Just as We Suspected
First, congrats to those of you who followed our trading alert of CDXC yesterday. We gave our readers an opportunity to jump into CDXC around the $.60 cent level based on some technical analysis we identified. As I type, the stock is currently trading at $.88 cents for a one day gain of 46%!
Considering the market as whole returned absolutely NOTHING for 2011, maybe a few of you skeptics now see why we love small stocks. Your entry on CDXC is excellent now so let's make sure you follow it up with some trailing stops to ensure this one stays a nice win for you.
SCN Readers Top 205,000!
The # of SmallCap Network Newsletter readers punched through the 205,000 mark in the last few weeks making it our largest reader base in our 12 year history! We hope to continue to bring our readers profitable and informative information on small stocks. Although small stocks are not for the faint of heart and are definitely the most difficult to navigate, there is no faster or higher return type opportunity in the markets when you uncover the right idea... and that's what we're always on the lookout for.
While we've had some seriously huge blockbuster winners over the years, we've also had our fair share of losers as well. We realize we're not going to make all of the people happy all of the time and we're not always going to be right... but nevertheless we appreciate your participation and readership here at SCN and we are always going to be committed to finding you small stocks for BIG returns.
Our Call on Shaking the Tree
Monday, we issued a trade of the QQQ put options. Although the market surprisingly gapped up yesterday and caught us a bit upside down, the weakness toward the end of the day and into today hasn't caused any sort of short-term alarm for our trade. However, should the market take out yesterday's high, we'd likely take our lumps and live to trade another day. Should the market continue with its weakness to the downside, we'll let it ride for now.
I'm just finding it hard to believe the market is going to want to make new highs without any sort of scare in the works. That's just what the market generally likes to do before going into any sort of thrusting mode. We'll see though so stay tuned. I still like our chances right now albeit when entered maybe a day early.
On the Lookout for New Feature Ideas
Since the SmallCap Network is a Community and we read every single piece of feedback we get, I'm going to throw this out there for you. We're looking to add a few new Featured Stocks to our list in the coming week ahead so if you've got a small cap or smaller that you seriously believe has the potential to provide SCN Members with ridiculous returns, send in your ideas. You can go to our contact us form at the site or simply reply to this email with your ideas. We'll consider each and every idea.
I've got a few stocks I think may prove worthy but I'm still doing some digging into a few ideas to see which ones I like best.
The Good, the Bad and the Ugly
We're always talking about ideas we like but rarely do we talk about ideas we don't like. I'll preface this short rant by saying bulls make money, bears make money but pigs get slaughtered. Just because you like an idea at some point doesn't mean you should love it forever. Case in point, Green Mountain Coffee (GMCR), this was a darling small cap that took its investors to new heights providing incredible return for those who believed. However, let's face it... GMCR is a bit of a one trick pony with its Keurig product. I just don't see it. I know it's novel but it's just not cost effective for the average consumer in this type of an economy. I know, they also sell their coffee in the stores but the bottom line for me is whenever this stock finds strength on the trading side, I still think it's a good short opportunity.
Baidu (BIDU) is another idea that at one point did well. I think it's days are numbered. I could go on and on about what I think about the China space right now but the reality is I think China hasn't only played our government in recent years, I think they've manage to play our stock market as well... to their benefit. BIDU is a sell for me. I'll short that into strength as well.
Priceline (PCLN), really?? Over $400 per share and a $23B market cap? For what? I don't get it but the important thing to remember here is sometimes stocks move and act a certain way not because of fundamentals but because of other forces working within large stock holders. My guess with PCLN is much of its run was nothing but a rotation of short sellers due to patient holders of the stock on the long side. That's a whole different dedicated newsletter for another day. Bottom line? I think PCLN will prove an excellent short play when the time is right.
Lastly, don't know if you remember Monday's edition at all but I pointed out that just because U.S. based revenue for a Company may not be as solid as you'd like that it was important to consider their global sales. YUM brands (YUM) is a perfect example. When I was in Asia, there were KFC's and Pizza Huts literally everywhere. There were as many of these as there was of any other U.S. based QSR's (quick service restaurants). You might say KFC and Pizza Hut are old news? Not to emerging and third world countries there not! These places were packed with fried chick and pizza lovers everywhere. Look at YUM's chart and you'll see what I mean. I still think YUM has more room to run.
As Porky the Pig used to say... that's that's that's all folks!