WHY MM'S WANT TO SINK STOCKS OF COMPANIES LIKE **SJIG** WITH GREAT NEWS
Are some of you sometimes puzzled why your stock which just has great news did not go up? Or maybe went down?
CONSIDER THIS:
What are the stocks that MM's most want to panic people out of and pick up cheap shares of?
Of course it's often companies like WLGS, TLTG, SHAL, WINR, MRPS, SJIG, etc that they KNOW or SUSPECT are very likely going to run up big later precisely because they just had, and often continue to have, good news.
And ALL these stocks did RUN UP BIG at some point (except SJIG)
SJIG sure SHOULD have appreciated nicely today with an announcement of 26 cent per share EPS for 1998, and because it has (right now) $3.50 in EPS if it decided to sell it's investment in SLEU, of which it owns 1.5 Million shares
SO WHAT DO I DO?
Buy on significant dips! That's what!
DOES THIS REALLY HAPPEN? (yep and I have Level 2 to prove it)
FTRK was a classic example. This company a year or so ago was trading between $1 and $2, and probably deserved to be around 75 cents.
Then in late December and first of the year, the company came out with several excellent news releases. Investors piled in, but always the MM's apparently recognized they were mostly DT's and WAITED THEM OUT.
With every release, somehow the MM's cleverly managed to frustrate buyers, and especially frustrate the DayTrader's, and the stock sunk to 20 cents, where it basically sat (with a couple of runs to 40 or so) for about 3-4 months.
The MM's picked up a LOT of cheap shares and then one day not long ago, after a good, but not great PR, suddenly ran up the stock to $1-3/8!
Obviously I say "ran up" because all of a sudden on less buying than during the earlier PR's, advanced the BID/ASK very easily....too easily.
They made a lot of money from that! And now are doing the whole thing over again, with the help of people who bought too high and now are giving up.
MORAL:
You have to be clever and brave and buy great stocks when they are CHEAP, and then be patient. Otherwise you can't win at this game.
*** NUKE at 11 cents in Decemeber when it was forgotten for dead is a great example of one trade I made. It wasn't easy to do, but I re-DD'd it and went for it. Soon it hit 80 cents.
When a stock has great news like SJIG today, those are the stocks that they MOST want to pick up cheapest and continue picking up cheap shares if they can, before they probably really run it.
I bet that SJIG eventually appreciates nicely. |
