It's Thanksgiving in Canada!

BTW, in no way am I calling the above people “stupid” by including this picture, I just thought it was funny, and appropriate seeing as it’s Thanksgiving in Canada. So now that that’s over with, let’s start the weekend reading blog.

I don’t know about you, but I had a pretty good day.  I started thinking I’d try to day trade Vonage VG, but I didn’t anticipate all the profit taking. I started with a position in the 1.85 ish range, and the thing kept coming down. I caught it at $1.71 and loaded up, I then sold my position at the $1.79 range losing about $185.  no big deal, looks like a good swing perhaps for another day.
I took some LIWA trading shares off the table, and re-bought in the 9’s again, re-sold in the 10’s. Then it started to crash down to about $9.50.. While it was there an alert came to me about a possible “9M dilition”.  I thought it was plausible, but certainly not credible.  I then searched the internet, found a forum where people started bashing the stock and piling on the shorts and/or sales and fear.  I put a quick warning on Twitter (check the timeline, it’s unreal how fast this all occurred) —- I said that short term traders be aware, there may be a dilution, still looking into it.  
In the meantime the stock fell to about $9.40… I was reading through this document, thanks to @MicrocapTrader for responding so quickly and sending me this document.

If you read carefully you’ll see there is no dillution, no secondary, nothing crazy.  In fact it was a private sale of an existing 200,000 shares to “institutional shareholders” – and all they wanted to do was unlock those 200k shares.  Big freaking deal.  So I started buying the stock. By the time it was over I added another 15,000 shares into my short term account between $9.40-$9.55 and the stock is now at $10.  

This is what we in the trading world call an interim day short squeeze. It usually only happens when stupid people with money read a headline, don’t understand English, and promptly short and/or sell and bash a good stock at the same time.  This happens once every so often.

So there you have it – I made money on MNKD and LIWA today, and I also added to some positions.

I really appreciate the power of Bulls on Wall Street and how our community came together *very* quickly to help solve this problem.  I asked for help, someone responded quickly, I read the doc, made the call, and we all made money.

Great job, love this stuff, hope you had a good day too.

…and this year I’d like to thank God for making stupid people with money, so I could capitalize with my LIWA trade.



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