I received a DM yesterday from @TryTheWine basically asking how I was able to value these stocks so quickly, specifically the TRIT IPO. The answer is pretty simple, I start with a small position. Depending on your scale that could vary, but I usually like to hold positions in the 30k-80k range depending on the play. In the case of TRIT I picked up some in the $8.60 range, I then had my broker at Wood Gundy grab me all the details he could find including the prospectus. If I don’t like the deal after doing all the research (like all of it) then I’ll sell for a little profit. It’s very rare that I have to sell, I usually pick stocks based on my gut – it’s served me well so far. If I do like it then I build my position pretty quickly, keep a little on the side just so I can average down if necessary.
One thing I know for certain: Stare at the numbers long enough and the truth will come out… I have a knack for numbers, I’m very good at finding the odd skeletons in the closet.
No matter what some pumper or dumper or loser tells you, the numbers don’t lie. Ever. If you get a good feel for a stock then it doesn’t matter how it swings, at the end of the day fundamentals will catch up with the stock price.
In China catching the uplisting wave is an incredibly easy way to make big returns. @kunal00 and I have been buying PUDZ since it was PUDC in the .30 range. In other words my lowest entry after their reverse split was $2.10. I continue to accumulate this stock, I have a 6 figure position now. While people kept asking questions “What’s going on with PUDZ?” we held on and tried to grab as much as we could as often as possible. I knew that PUDC was uplisting at some point, I knew about the reverse split, and I know they are trying to finalize a deal with the Government of China on 6 more mines. They are also going upstream in their margins — even though last quarter was weak they *still* made money.
These guys don’t do the same accounting tricks that some of the U.S. coal producers do… To me, this is the real thing.
Patience is everything on stocks with good fundamentals. As long as the story doesn’t change who cares about the dips? I sure as fuck don’t. Granted it’s nice to build a war chest so you can do this while playing momentum plays. Eventually you’ll know what I mean if you’re just starting out.
So, PUDZ is now $5.35 today, way up on low volume. If you watch the pattern, RINO, TRIT, PUDZ, they all trade 50-100k shares a day. They get listed on the NYSE Amex and they get slightly more volume. They get noticed by the late bloggers and pumpers and it gets viral – then all of the sudden you see $10. Everyone makes money, institutions pick it up, and we all get richer.
Well, most of us anyways. Some of you still have some learning to do. Like the 22 year old Biggie Small fan who tweeted me today. Look Sonnnnnn…Biggie would be rolling in his grave if he saw you was representing.