Tuesday, November 6, 2012

11/6/12 Risk Off

I'm a gambler, and so are all of you. So I think we know there are times to stand back and watch. No trades here.

125 comments:

  1. NLY - Speaking of risk - Ouch, $0.50 is a big smackdown.... Risk is lower now but had to lower my stink bid from $15.25 to $14.75 See if it can give up another $0.50....

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  2. Funny that NSPH/MITK/HEK all report tomorrow AH's. Mitk closing in on that 2.80 area.

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    Replies
    1. What the heck are you doing with 1 share of a stock?

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    2. I thought you might ask about that. I wasn't thinking when I sold a bunch of positions and kept one share of about 10 stocks to keep them on my screen. I didn't think about the cost to sell them!

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    3. Well, at least you made your commission on BMRN yesterday

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  3. Sold my MLNX calls when it was at $87 for a 7-bagger...wow. Wish I put more than $2k into it.

    That penny stock I own is up another 40% today. Was up 95% yesterday. Impressive news today...not sure it's a scam:
    http://finance.yahoo.com/news/amarantus-biosciences-appoints-amgen-co-123000000.html

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    Replies
    1. My gut is its a scam...but doesn't mean it won't go to $.50 first.

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    2. If there's something to this, then most certainly Michael J. Fox will be involved in some capacity. Does Amarantus claim to have received funding from the foundation? Seems MANF research at U of Helsinki was funded by FOX Foundation:

      https://www.michaeljfox.org/foundation/grant-detail.php?grant_id=927

      Note no mention of Amarantus or Sunnyvale...

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    3. I haven't been able to connect any dotted lines over to the MJ FOX foundation, have you?

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  4. roller coaster in VRNG today.

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  5. David,

    just checking in on AUMN today as CDE seems to be dragging them all down and noticed your article on seeking alpha has generated 227 comments so far. I don't think I've ever seen an article with that many comments. Not sure if it is a good sign (lots of interest in the refinancing) or bad sign (people too keen on it), but you definitely hit the sweet spot for people's interest in this stock!

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  6. wow this penny stock crap is literally like gambling at the casino. was up 170% then up 60% now up about 90%. makes the day a little more enjoyable than just watching YRCW drift $0.05 to $0.10 at a time.

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    1. I haven't been able to connect any dotted lines between the MJ FOX foundation and Amarantus, have you?

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    2. http://www.faqs.org/sec-filings/110531/Jumpkicks-Inc_8-K.A/ex10_13.htm#b

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    3. Well, apparently there are a couple of dots, from a 2010 research grant from MJFF to a project with John Commissiong's name attached:

      https://www.michaeljfox.org/foundation/grant-detail.php?grant_id=644

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    4. Good link thanks CP.

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    5. I guess since MJFF seems to be continuing their funding for MANF research(via University of Helsinki grant), the next step would be to confirm IP ownership (perhaps a mute point?).

      MJFF 2012 "GRANT ABSTRACT

      Objective/Rationale:
      Mesencephalic Astrocyte-derived Neurotrophic Factor (MANF) is currently one of the most potent factors protecting and rescuing neurons in pre-clinical models of Parkinson’s disease."

      Obviously they need labratory subjects for their research, with just 10,000 human subjects identified in Finland, do they have good smoke in Helsinki? At any rate, we can be certain MJFF is serious about the subject, plenty of material there to bone up on:

      https://www.michaeljfox.org/foundation/news.html?tagid=411

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  7. I sold my IRE for some idiotic reason at $5.55 today. Still like that one a lot but just want to have some cash on hand in cash some stupid stuff goes down over the next few days ang gives me a chance to buy some stuff on the cheap.

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  8. Watch what you inhale, or Who's been smoking what?

    "Research conducted by The Parkinson’s Institute and Clinical Center (The PI) and the National Institute of Environmental Health Sciences (NIEHS) has found that exposure to Paraquat, one of the most widely used herbicides in the world, may dramatically increase the risk of developing Parkinson’s disease."

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  9. http://www.bloomberg.com/news/2012-11-05/when-zombies-invade-who-do-you-want-for-president-.html

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  10. BB -- my article on SeekingAlpha somehow had turned into a trading blog, where a few people are mentioning how they are managing their positions in AUMN and speculating about the future based on the most recent events.

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    Replies
    1. There are now more readers on that David guy's SA blog than on CC....! ;)

      Oh, and silver is up nearly a dollar today!

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  11. ARNA - Getting ruffed-up pretty good, looks like a potential $2.9x target to fill May gap?

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  12. "Stocks are up today as advancing issues outpace declining issues by 2.7:1 on the NYSE. The Dow Jones Industrial Average is up 1.18% to 13,266.69 and bonds are largely unchanged. The yield on the benchmark 10-year Treasury Bond is currently 1.75%. The best performing sectors are the Consumer Staples and Information Technology sectors, up 0.74% and 1.03% respectively."

    Hmm, looks to me like materials are the winning sector again today.

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  13. I just checked out David's Seeking Alpha blog for the first time. Nice photo, bro! You could start a second career in Hollywood, maybe playing the lead cop on a Brighton Beach series.

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    Replies
    1. I lived on Brighton Beach for 4 years (while going to high school in Brooklyn) and have taken a live part in such TV-type episodes. :)

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    2. Anything we can see on Youtube?

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    3. Maybe I'd better do some more digging into what Brighton Beach really is...

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  14. happy election day fellas

    sold out of some coal today. I made money and I had too big a position sitting there for me.
    Sold all of my long stock ANR at 9.66 that I bot last week at 8.93. I still have some long ANR stock but I'm short the NOV 9 strike calls at $.60. I won't buy those calls back unless ANR trades back to around $9.00 a day or two before expiry.

    Sold half of my long ACI stock at $8.63. I made money but I'm not sure how much because I traded in and out of these the day I botched my order and bought 7700 shares. ALso have some shares of these that are matched up against short Nov 8 strike calls.

    Still have my small qqq and iwm dec at the money calls. I bot both of these on 11/1/12 and they are both still underwater by about $50 each.

    Still have my small SPY Jan call positon that is slightly i the money. Obviously I was thinking the rally would have kicked in last week.

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  15. Some interesting things on Buzz today. One lady posed an article showing the percent up/down the market was days 1-5 after the election back to Nov 1984. One thing that sticks out to me is it the market was only positive 2 times in that period 5 days after the election, 2004 and 1996. I think we get a repeat of that.

    My thoughts, I think Obama gets reelected which means initially, current policy stays in place which tells me we rally with an Obama win and drop with a Romney win. Obama doesn't like coal.

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  16. I was going to write about TBT but I just emailed you guys, at least the ones I have an email for about an article I read today.

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  17. The play of the past week was going long DECK. Filling the gap...got too oversold just like MLNX. I suspect more opportunities like that will be coming our way as people continue to overreact to earnings.

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  18. http://finance.yahoo.com/news/election-night-cheat-sheet-well-234826478.html

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  19. http://elections.msnbc.msn.com/ns/politics/2012/all#.UJmvbIYdyi4

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  20. Can someone please explain why the election map of some states such as Colorado

    http://www.politico.com/2012-election/map/#/President/2012/CO

    shows that Obama is the winner even though only half the votes have been counted there so far? Does it mean that the overall result showing that Obama is the winner is just a pure guess?

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    Replies
    1. no idea but I'm surprised how many in Texas voted for Obama. I predict that the majority in Texas will vote for the Dem's in 2020 for certain, possibly in 2016.

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  21. Why is Hawaii indicated to be pro-Obama even though 0% have responded there???

    http://www.politico.com/2012-election/map/#/President/2012/HI

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    Replies
    1. This state is and always has been 98% dems and 2% reps.

      And that's the way it is.

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  22. Replies
    1. ANR - Down 12%

      Rare is it, I guess the outcome correctly.

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  23. NLY - Wow, another $0.50 filled my $14.75 bid.

    Just offed it at $15.98

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  24. I think this sell-off this morning is a fakeout by people betting on Romney unwinding positions.

    Let's see where the day ends up.

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  25. NLY - Okay, placed another bid @$14.21, early buyers seem to be running out of gas and this thing could yield a lower low.

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  26. David- I'm still thinking about my take on energy...and especially how it effects coal/NG etc. Look at WPRT today.

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  27. WPRT, there was a negative article on it over the weekend in barrons.

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  28. MGIC:

    Magic Reports Record Revenue of $33 Million for the Third Quarter of 2012; Non-GAAP Operating Income for the First Nine Months Grew 36% Year Over Year to $14 Million
    Company Reports Solid Cash Position with $14 Million Operating Cash Flow for the First Nine Months of 2012

    So let's trash it for -6%

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  29. prices coming in. glad i raised some cash yesterday to take advantage of panic selling. coal was an obvious target.

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  30. I'm not buying anything more until this stupidity ceases, SPX could be 1100 by then.

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  31. REally suprised the rate on the US 10-year has dropped so dramatically to 1.63%. I would have thought people would be more worried about inflation under Obama and therefore drive rates up.

    I guess instead they see QE keeping rates down. At some point this doesn't work though and people realize printing money causes inflation and interest rates to rise. Guess we are still not there yet.

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  32. New lows for MCP. Anyone interested here?

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    Replies
    1. Good eye Mark, this might be a good entry price and pre-earnings shakeout. I'd have to wait to see earnings results.

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    2. PAL - This one looks good to me to, and a washout from here would be the fat pitch wiggle likely to make me bite.

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  33. NSPH - Double bottom breakdown today.

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  34. WPRT - Looks to me it's just retesting May lows, of course I didn't read the Barron's article.

    FSYS - I think I prefer this one though, not a one-pony show and their designs have been in the market for ages. OEM's buy fuel systems from this company and they've been producing liquid to gas fuel delivery systems since the 50's

    I can find a butt-load of their devices on ebay, used, rebuilt, new and repair parts. I don't guess you can say that for WPRT?

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  35. UNG - 50SMA still holding......!?!?!?

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  36. Election - We knew Obama would win, why weren't we in front of this?

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  37. Replies
    1. Sure 'nuff is, probably a good entry here.

      I wanna see if SPX moves on down to 1100, this selling is pure bologna but it is what it is.

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  38. I think this selling is a knee jerk reaction, whining cry baby gift. Support is the 200.

    I bought BBEP in the IRA, up 2.5%

    This may be the big flush Geoff was hoping for with the dollar/gold/silver.

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    Replies
    1. BBEP - Interesting.

      Yep, could very well be knee-jerk fake-out reaction.

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  39. Bloomberg reports gun makers are doing well.
    All the good ol' boy amygdala's are doing their lizard thing.

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  40. Sold all my January $15 calls on BTU (which I purchased when it was around $22). A large part of the rally in coals might have been due to expectations of a Romney win, which would end anti-coal policies. Also, Obama's win spells real troubles for economy in 2013 (I have already written about the negative effect of any tax increases in the US). So, putting these two things together, coal is not the place to be in.

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  41. VE - If the situation in France is so dire, then why is this one green today?

    Chinese sewage treatment has got to be a sweet prospect for consideration?

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  42. As CP said, it might be smart to see where the current pullback ends. According to ZeroHedge, the NYSE margin debt is at a 16-month high, which can precipitate a margin-call selling loop:

    http://www.zerohedge.com/news/2012-11-07/and-now-come-margin-calls-nyse-margin-debt-16-month-high

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    Replies
    1. Good catch David, wait and see remains my current strategy. Got two longs in the port now going into earnings (NSPH/AGO) and that's good enough for the time being.

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  43. Now, last hour on bloomberg tv Wilbur Ross is going to be on with three others.

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    Replies
    1. Thanks. I think Wilbur is one of the most logical, level-headed ones of the guys you see on TV. Plus, he's one of the few who you don't question his motives or think he may be trying to play you. Always look at what he is buying.

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    2. Yeah, he's also been buying t on of XCO from the low teens.

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    3. I think Ross is a value guy not a timer. He also tends to be right more often then not and his time frame is probably in years versus months.

      Unlike most of the focus here.

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    4. Your right, I know. The way XCO works though is really leveraged to the price of NG. I'm trully wondering now if all the NG might just go elsewhere.

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    5. If you are a value-oriented investor, you have to be looking at nat gas.

      It is an over-supplied commodity with high value. Because it is a commodity, the traditional well shutins, drilling stopping, etc. is happening which will cut supply over time. But it easy to justify much higher prices for NG as it is an energy equivilent of 6:1 or 7:1 to oil, so could trade up over $10 as other uses are found for it to replace oil. Plus, if the LNg gets going, the world price will moderate with North American prices going up and the rest of the world going down.

      Ross has more resources and is better connected than us, so he is looking at potential huge shale reserves in China, but it is almost a certainty if you buy a good quality nat gas company now with long life reserves, you will do very well over the next few years.

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  44. NSPH- How many placements are we looking for today, 40? I forget.

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    1. 40 would be helpful(on track) I think. hopefully the orders are over 200, 1000 would really be tits!

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    2. Hey CP, have you seen the new Bond girl?

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  45. I'm still favoring the sidelines here. I don't keep track of the numbers, but I have to think we've broken through a few support lines on the indexes, and we've bounced so many times recently the bulls have to be in 'bounce fatigue' mode.

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  46. Replies
    1. West Virgina must be Romney territory.

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    2. Yes of course, WV was a shoe-in for Mitt. I had no idea they so vigorously welcome having their tits lopped off, considering the environmental effects.

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    3. You're kidding, right?

      http://www.youtube.com/watch?v=8Q6G_WqLp1w

      http://www.youtube.com/watch?v=PnVQ17-6j40

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  47. We all recognize panic and desolation, and we're not there yet.



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  48. XLFubar, market really began it's dive at 07:30 on weak German economic data.

    Nothing to do with Obama, just looks that way.

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  49. S&P cuts James River Coal to 'selective default'

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  50. MITK rallying into earnings. Brave.

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  51. NSPH

    50 new VerigeneSP system placements double over prior quarter
    C. difficile assay filed with FDA
    FDA categorizes blood stream gram-positive test as CLIA moderate complexity

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  52. 50 new VerigeneSP systems were placed during the quarter, bringing the cumulative number of systems placed to 216.
    Revenues for the third quarter 2012 were $865,000 compared to $556,000 for the same period 2011, driven primarily by increased consumable sales to new customers. Third quarter revenue did not include meaningful blood stream infection gram-positive sales as most new placements have taken approximately 90 days to validate the assay, after which revenue recognition commences.
    R&D expenses decreased to $4.6 million for the quarter from $5.8 million in the same period in 2011 due to reduced spending on clinical trials and reduced patent-related legal expenses.
    SG&A expenses increased in the second quarter to $4.4 million from $3.8 million in the third quarter of 2011 due to increased expenses from the expansion of our sales and customer support teams.
    Total operating expenses were $9.0 million in the quarter, down from $9.7 million in the same period of 2011.
    Net loss for the third quarter of 2012 was $8.7 million, down from $9.5 million for the same period in 2011.
    Cash and cash equivalents as of September 30, 2012 were $41.9 million.
    In July 2012, the company completed a public offering of common stock that added $27 million in net proceeds.

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  53. NSPH seems pretty solid. MITK looks like a Fing disaster.

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  54. HEK now to report on the 9th/per finviz.

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  55. MITK bidding 10K AH at 2.15. I bet a TON of longs are sweating that bid!

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  56. afternoon

    Stopped out of most of my short term plays today. I agree with 2nd, I keet wanting to do something but it would probably be best if I just stepped aside for a bit. I do have one chart I'm watching on USG that might be of interest.

    ANR - closed out my long stock short calls. I lost $150 on that trade from yesterday's close. I'm just lucky that I sold so much coal yesterday. Looks like my total return since my first purchase in August is 17%. Too bad I didn't take a bigger position so that it would amount to something more.

    ACI - I had a bigger position on this one. I have 700 shares left and I'm short 7 NOV 8 strike calls. I was going to trade out of this right before close but I couldn't access fidelity's option screen. Odd. I'd really be upset if this were a bigger position. I'll either set up a mental stop below the Oct 25th low of 7.13 or maybe $6.00 from the week of Sep 26th. There is a lot of profit on my ACI trades over the last 2 months and big Dave would probably be unhappy if I gave it all back. I bet I join his service sometime over the next year. His books have really helped me a lot. It's probably more of the same info at the right time in my trading/investing career.

    Stopped out on my long SPY, QQQ, and IWM calls at $500 each. Dang. I'm sure we're good to go on the year end rally tomorrow but I think I'll just sit it out for a bit anyway.

    Still have my RIMM and DSX, neither one is close to stopping out at the moment. The last time I got bored with a trade and sold it before it got stopped out, it rallied another $3.00 or so per share.

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  57. USG
    USG - it's in an uptrend and it's just what they will be needing on the east coast. It gapped down today I think at the open but closed down only .04. I'd like to see a bit more of a pullback but I would probably buy it if it traded through 27.48 which is .10 above today's high. Take a look and let me know what you think.


    Profile per Etrade
    "USG Corporation (USG), through its subsidiaries, is a manufacturer and distributor of building materials. The Company produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. The Company operates in three segments: North American Gypsum, Building Products Distribution and Worldwide Ceilings. The Company's North American Gypsum manufactures and markets gypsum and related products in the United States, Canada and Mexico. The Building Products Distribution segment consists of L&W Supply. The Worldwide Ceilings segment manufactures and markets interior systems products worldwide."

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  58. Buying NSPH 2.65-2.75. MITK canceled.

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    Replies
    1. guided to the lower end of range due to europe

      i like this one but may get a little rocky here

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    2. Next time I need to come up with an excuse, it's going to be 'Europe.'

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    3. I should be more specific, European sales are poor and US sales are robust.

      I think I'll have a shot of Nadurra, man my bottle last an eternity.

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  59. NSPH - Not exactly a positive response here, initially. Already reached my preliminary downside target area($2.66).

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    Replies
    1. Why buy this one(NSPH) when it's obviously going to be dead money for awhile, why not buy TNA or QLD and capture tomorrow's 34 point SPX gain?

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    2. Too funny, CP. The SPX will be moving sideways or down in the ST, IMO.

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    3. I hasten to add, however, 'WTF do I know?' Seriously.

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  60. NSPH- I didn't have time to her the call.

    10,000 @ 2.75
    10,000 @ 2.70
    10,000 @ 2.65

    It' so funny. I always place these orders in 3 accounts. First in my trading account, the largest. Second in my IRA, and third in Patricia's IRA, the smallest. I should just do the mental exercise in the first two accounts and make all the trades at Patricia's prices. I've been trading her account for maybe 16 months and have taken it from $4,000 to $48,000. Too funny.

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    Replies
    1. wow nice stuff man! i was actually travelling today. what a bloodbath! i didn't do any buying but i did see MITK take it on the chin...as usual. jeez. NSPH had some nice placement #'s.

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  61. Not that it really matters but Patricia got a partial fill @ 2.65. 7,900 shares.

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    Replies
    1. I'll be a buyer again tomorrow if it stays that low. NSHP is a volatile microcap now suffering along with the general market. It takes time to introduce an outstanding new medical product. It's in the building phase. Every hospital in the world will want their product. My daughter-in-law, an intensive care RN, says the majority of her patients are in for sepsis. Look it up. Deadly hospital disease. Time is of the most importance. Also the cost savings.

      Delete
  62. I bet if I checked, this was being said right when I was sold my shares...

    '"Net cash increased in the third quarter by 18.2 million dollars due to the net proceeds from financing activities of 26.5 million dollars, offset by operating and investing activities of 8.3 million dollars. Operating cash flow in the third quarter included 1.3 million dollars of inventory for systems to support our growing customer demand. As anticipated, our spending has begun to shift from operating expenses to working capital associated with accelerating customer growth. We believe that our present cash is sufficient to fund the business through positive cash flow.

    To maintain a strong balance sheet and maximize our flexibility we are assessing various alternatives to finance this working capital need. We ended the third quarter with 41.9 million dollars in cash."

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    Replies
    1. Okay, I'm not sure what the point is yo're(slang) trying to make but whatever...

      Anyway, that Chad Mirkin Phd guy is either close to one of the best things since sliced bread or there's something really fake going on:

      http://en.wikipedia.org/wiki/Chad_Mirkin

      Delete
  63. MITK- There's a comment on the MITK message board that DeBello said their pricing/revenue model is broken. If true, wow!

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    Replies
    1. Yep, that's basically what he said. Scanning through the call on audio and it's in his opening remarks..but bill pay will fix that!! Now coming in.........................................................................................................................2013 :)

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  64. Mark, can you please take one of my accounts from 40K to 480K over the next 16 months? Thanks...

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    Replies
    1. I wish I could do it to my trading account. I'd retire.

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    2. Sounds like that 'size' thing. when the trades get bigger the fear does too.

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  65. I'll probably get smoked tomorrow, but I just listened to the CC for NSPH...Damn, they are on top of their shit. Listening to that call compared to DeBello for MITK makes them sound like 2nd graders.

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  66. Illini/CP- What's interesting is the shares sold to me were in big blocks. To me that means small players panicking.

    I'll add also if it gets to 2.40. I hope you both listened to the call. VERY impressive.

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    Replies
    1. Good work on your re-entry, seems you did well.

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    2. Thx. So far though MITK would have been a better trade on the panic.

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  67. Jeffries cuts NSPH PT to 4.50 from 5.00. Maintains Buy.

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  68. SD- Wow, interesting news! What a reaction.

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    Replies
    1. "TPG-Axon sends letter to SD's Board; Calls For Board Of Directors realignment, CEO resignation and potential sale of the co"

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