Back by popular demand.......
Well boys and girls, I have been literally inundated with PMs and email requesting that I don't leave SI. I was quite flattered naturally - and have decided to return to continue exposing stock criminals and pointing out interesting opportunities short and long in the market.
My time will still be limited and I really want to avoid getting into long-winded and bizarre arguments with stock cultists, shills and their ilk. However, I *may* take a day every week or so to answer questions and to perhaps point out some particularly inane - and funny - stuff. So for the most part, I will only be posting picks. After I post a pick, please feel free to respond to the message or send me a PM/email. I will try to respond at some point in the future, but I can't promise that I will.
Each pick will be followed by a rating - much like Mr. P$nk's T3/f.
All picks will employ the following valuation rating:
GOV - grossly overvalued.
OV - overvalued.
FV - fair value.
UV - undervalued.
GUV - grossly undervalued
All picks will employ the following trade recommendation:
S = sell
SS = short sell
C = cover
AB = accumulate/buy
SB = strong buy
Short sale candidates will employ one or a combination of the following quality ratings:
SPF - stock promotion fraud. (excessive, exaggerated claims made by management and/or paid stock promoters)
CF - criminal fraud (gross misrepresentation by management, accounting fraud, or similar shenanigans)
FT - fraudulent technology/product. Outright scam.
OT - obsolete, unpopular, or worthless products/technology with little or no chance of significant market penetration. Products/technology of questionable value.
Each trade recommendation will be followed by a percentage which represents the percentage by which I'm increasing or decreasing my position. If it is a new pick the percentage represents roughly how much of my ultimate position I am starting off with and will be preceded by the words (NEW POSITION). If I am completely closing a position, there will be no percentage given, instead I'll use the phrase (CLOSE POSITION)
Examples:
IBM UV/AB (NEW POSITION) 10%
Translation: IBM is undervalued, accumulate/buy recommendation with an initial position 10% of what I guess my ultimate goal will be (so if I want to eventually own 5,000 shares I'm starting off with 500).
IBM GUV/SB +100%
Translation; IBM is grossly undervalued, strong buy recommendation, increasing existing position by 100%. (I already own 500 shares, I'm going to buy another 500).
IBM FV/S -20%
Translation: IBM is fairly valued, sell recommendation, decreasing existing position by 20%. (I already own 1000 shares, so I'm selling 200).
IBM OV/S (CLOSE POSITION)
Translation: IBM is overvalued, sell it all.
Short sale candidates are a little different as they employ the additional quality rating in brackets. Example:
ZITL [SPF, FT] GOV/SS 20% (INITIAL POSITION)
Translation: Zitel is a stock promotion fraud and has a fraudulent technology. It is grossly overvalued and I am initially short-selling 20% of my total position.
ZITL [SPF, FT] GOV/SS +200%
Translation: Zitel is a stock promotion fraud and has a fraudulent technology. It is grossly overvalued and I am doubling my existing short position.
ZITL [SPF, FT] OV/C -50%
Translation: Zitel is a stock promotion fraud and has a fraudulent technology. It is overvalued and I am covering one half of my existing short position.
ZITL [SPF, FT] FV/C (CLOSE POSITION)
Translation: Zitel is a stock promotion fraud and has a fraudulent technology. It is fairly valued and I am covering my entire short position.
Note: sometimes I may rate a stock "grossly overvalued" and still issue a cover call. This may be because I believe a short-squeeze is imminent, or perhaps the stock is "dead in the water' and there are better opportunities elsewhere. So the buy and sell calls may on occasion not jibe with the valuation rating.
Even though this method may seem a bit confusing at first, I feel with time everyone will get the hang of it. Please print out or keep a link to this message to use it as a reference.
Best wishes and happy trading,
Bill Wexler |
