Equity research: How to Avoid Getting Delisted From Nasdaq

Here is the link.  

In other words, if a company messes up, the exchange will kick the company out of its exclusive club. A stock that has experienced a steep price decline and is trading below $1 is very risky because a relatively small price movement could result in a huge percentage swing (just think—with a $1 stock, a difference of $0.10 means a change of 10%). In low volume penny stocks, the fraudsters flourish and stocks are much more easily manipulated. Major exchanges don't want to be associated with this type of behavior, so they delist the companies that are liable to be affected by such manipulation.

Actionable Items

I should have invested on EXPR at price 0.90 with 50,000 shares, $45,000 dollars. I can wait for more investors to invest the company in Jan. 2021. before the price went up over $4/ share. 

Reddit: Will Meade

 Jan. 24, 2021

It is so interesting to learn more about a hedge fund manager, and understand how pump and dump works in real life. I did learn from EXPR pump experience as well. 

Here is the link. 

jamespogo

7 months ago

If you want to make easy money day trading, buy whatever he tweets as soon as he tweets it, and sell it 15 minutes later. He’s great at pumping to his followers and lets them hold his bags

29

level 2

mikeymoneybags

7 months ago

Even being 2-3 min late on a tweet can be the difference between big gains and being on the wrong side of a pump and dump

14

level 2

mixmastamikal

7 months ago

Would be interesting to program a couple bots to trade in a paper account on his tweets. One that goes long and sells after a certain % increase or amount of time (maybe 15 minutes like you say) and another that goes short on it.

Equity research: Express: Speculation Gone Wild

 Jan. 24, 2021

Here is the article.

I tried to figure out why EXPR stock went up from $1.1 to $2.7. As an investor, I like to take risk from whatever I have earned in investing, mostly from index fund - passive investment. That amount is around $3000 dollars. I did purchase EXPR stock from Dec. 2020, and then I had gains $2600 US dollars. 

EXPR stock

I need to learn how to read more often about EXPR financial reports, and then analyze by myself. 

Summary

• Express shares went on an epic ride on Friday, starting at 3 PM, driven by a Will Meade tweet suggesting Express was worth $10 per share.
• Will cited that Express has $1.63 per share in cash yet he fails to mention net cash was negative $58 million as of October 31, 2020.
• Express has been hemorrhaging cash flow through FY 2020 (Q1-Q3) to the tune of negative $134.5 million (adjusting for seasonal inventory changes).
• On January 14, 2021, Express announced 'additional' financing from Sycamore at LIBOR +800 BPS (a new $90 million term loan).

So a Will Meade tweet started the party of pump and dump on Jan. 22, 2021. 

However, towards the end of November 2020, the market felt like a casino. This frothiness has continued virtually unabated from November 9th to Friday, January 22, 2021. I continue to read these wild theories of 'V' shaped recoveries in 2021.

Speaking of casinos, in today's piece, I write to highlight a textbook case that showcases this speculative insanity - Express, Inc. (EXPR). And before we go there, I want to add, at least anecdotally, November 9, 2020-January 22, 2021 is starting to feel like more of a bubble than Q4 1999-March 10, 2020 time period for the NASDAQ.

After the 4 PM closing bell, the casino and party like atmosphere spilled into after-hours trading, where Express traded 37.4 million shares. Keep in mind that there are only 4 hours of after hours trading and this was a Friday night. I guess people have nothing better to do with their time, on a Friday night, than speculate on a mall based apparel penny stock. Cumulatively, Express traded north of 77 million shares on Friday and yet there are only 65 million total shares outstanding!

I like to learn how to write better on this topic:

About that $1.63 per share in cash claim

1. Express $1.63 in cash. 
2. Feb. 1, 2020 , 207 million in cash, no finance debt  - exclude store operating leases
3. EXPR's cash balance increased YoY by $35 million, its inventory declined by $47.5
4. Express FY 2019 10-K
5. Cash 207 million - 2020 Feb -> 107.3 million Oct. 31, 2020, debt $165 million long term debt, 264.8 million swing in wrong direction
6. Q4 2020 130 million increase inventory
7. Burned upwards of 134.5 million of cash in nine months!
8. Q1 FY 2020 - horrible - gross margin - negative $46 million, Express lost $154 million (or 2.4 per share)
9. Q1 FY 2020 - cash flow burn of $131.2 million 
10. Q2 FY 2020 - loss 107.8 million - Q2 loss of 1.67 per share 
11. Q3 FY 2020 - loss 90.3 million - negative $1.99 per share, gross margin is 4.3%; seasonality standpoint - 99.8 million 
12. Build inventory for seasonal change - Q3 - cashflow operation - negative 251.6 million 
13. 2021 140 million financial loan - 90 million FILO term loan with maturity date of May 24, 2024, and a $50 million delayed Draw Term loan 
14. Loan 8.00% to 8.25% - LIBOR - pricing margin 

It is not $1.63/ share in cash, but it is debt $2.54/ per share in debt, as of Oct. 31, 2020. Express had $58 million of net debt at the end of Q3 FY2020 and not $1.63 per share in net cash. 

How to (LEGALLY) Make Money Trading Penny Stock Pump and Dumps

 Jan. 23, 2021

Here is the link. 

What is a pump and dump and why should I get involved with penny stocks if they are all pump and dumps? Subscribe here to get INSTANT alerts when I post a new video outlining my penny stock trading techniques: https://goo.gl/poGZTm 0:30 I want to utilize all different kinds of companies and stocks in the stock market to get me richer. Pump and dumps and penny stocks have worked for me. 0:50 A pump and dump is not always going to be a penny stock and vice versa. 1:10 What is a pump and dump? It's when someone lies and "pumps up" a stock or a company or a technology to get people to purchase stock. It's pumping and lying. 2:00 Companies will put out misleading press releases to purposely inflate their stock prices. 2:30 Companies lie because they want to pump up their stock prices, collect the profits and then dump the stocks. 3:00 Sometimes you might think that a company is legitimate but in reality, there are all kinds of nefarious individuals in penny stocks.

4:00 For me, all of this pumping and dumping is very predictable and you can learn the patterns. You can learn to spot the fakes. 5:00 For me it's very easy to look at the FCC filings and get to the truth. That's how I make money. You can ride the hype, make profits and get rid of the stock legally. 6:00 This is where my value comes in. I can see through the fakes, I can tell you how long a pump and dump will last and when it's time to short sell. Pump and dumps are very predictable. 7:00 People who haven't studied and who aren't doing their homework will lose in pump and dumps. Many people find me when they've lost all of their money in a pump and dump. 8:00 Nowhere else in the stock market do you have this kind of predictability. 8:20 Leave a comment if you have any questions about pump and dumps. There are predictable signs with pump and dumps and I can teach you how to learn these signs, too. Thanks for watching, make sure to subscribe to my channel for advice on penny stocks, cryptocurrency, and the stock market and leave your questions in the comments below.

How To Know When A Stock Is A Pump and Dump

Jan. 23, 2021

Here is the link. 

One of my favorite patterns is to short the first red day on a pump and dump. I want you to learn how to trade smarter. Remember, it’s said that around 90% of traders lose. That’s why I think it's so important to be fully transparent and show you every single trade I make. Here’s what a pump and dump is and how you can learn to spot them.

FULL DESCRIPTION One of my favorite patterns is to short the first red day on a pump and dump. So how do you spot this pattern? And what the heck is a pump and dump? I want to you be a smart, self-sufficient trader. You gotta remember that about 90% of traders reportedly lose. That’s why transparency is so important to me and why I show every single trade — win or lose. I share how much I’m risking. And it’s not just one screenshot, one trade. I’m open about every single trade. A pump and dump is when a company — or an insider, investor, or third party — pumps up the stock. They hype it to try to bump up the stock price so they can sell their shares or do a financing. They pump up the stock price, then dump the shares. That's a pump and dump. And when these stocks are spiking, it can be a good time to short sell or bet against it. So how do they pump the stock? It can be through a press release or a social media campaign. A lot of these companies invest money to promote their stock. Why? Because they want the stock price to go up. Why is this useful? I'm just trading the price action and the technicals. This is how this game usually plays out. I’ve seen it a lot. I'm not even amused by it anymore, and I’ve learned how to profit from it.** You have that first red day in the chart ... The whole goal is to get people to believe in the company and buy the stock. After five to seven days in a row of the stock being up and then the volume drops a little, there's not as much buying happening. That’s usually the first sign that the pump is over. Let me give you one quick note here: If you're waiting for the first red day to short, often there are no shares to short. A lot of traders know about shorting the first red day now, so you kinda have to anticipate the first red day, which isn't as easy. That said, three of my patterns — catching the bounce, dip buying, and the long kiss goodnight — are all covered in my Pennystocking Framework course. Personally, I enjoy dip buying the morning panics. But you need to study, experiment, and practice to find what works best for you. What patterns work best for you? How do you play pump and dumps? Leave a comment if you like trading dip buys... #TimothySykes #Pennystocks #Investing ---------------------------------------------------------------------------------------------------------------- Hey, it’s Tim Sykes, millionaire mentor and trader. Thank you for watching my videos. I hope that they help you. I want to share everything that I've learned over the years. You can check out more videos right over there, and also click ‘subscribe’ so that you can watch all of these videos, get that knowledge and become my next millionaire student.* ----------------------------------------------------------------------------------------------------------------* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here: https://www.timothysykes.com/terms-of.

Crime and Fraud: How Does a Pump and Dump Scam Work?

 Jan. 23, 2021

Here is the article. 

A pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of the endorsement. Here, we take a closer look at how pump-and-dump schemes work and how to avoid them.

KEY TAKEAWAYS

• Pump-and-dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements.
• The favored medium of communication for traders involved in pump-and-dump are social media platforms or anonymized messaging apps like Telegram and Discord.
• Promoters of the scheme will then begin to coordinate rumors, misinformation, or hype in order to artificially increase interest in the security, driving up its price.
• Then, once the price of the stock has been increased sufficiently by unsuspecting marks, the promoters then sell the stock at high prices.

EXPR stock: Last three swings, what is next?

 Jan. 23, 2021

Introduction

I like to rethink about the strategy I have as an investor. How many shares should I purchase as a long term investor? 

EXPR stock

There are three swings in last three months. First one is to go up from 64 cents to 1.8/ share, and then next one is 0.90 to 1.50/ share, and the third one is to go from $1.17 to $2.70 a share. 

Jan. 25 - ? 

I like to think about dollar cost average to make some purchase, so that I can hold those shares for long term. 

I like to hold $20,000 dollars share and hold for next 12 months if possible. 

Interview: 45 minutes talk to a senior project lead

 Jan. 23, 2021

Introduction
I had chance to talk to my friend, who spent 45 minutes to talk to me while she was driving 50 miles to Miami. We talked about project management. 

Project management

I like to copy my notes in the following: 

1. Scope in/ out, project chart
2. Business purpose - strategy goal
3. Plan/ phase, goals 
4. ...

Expr stock: How to better manage investment project?

 Anxiety as an investor

I could not control my behavior, what I talk, what I do, how to manage a project to invest EXPR stock; I do think that it is simple not to time the market, buy 20000 shares at price 1.10/ share, and then wait for rebound. That is simple. 

But I tried to time the market, set up $2800 purchase with 2400 shares. I did not make my life simple to invest 20,000 shares in three installments. Each time I just purchase at least 5000 shares. 

My project ended at gains of 2600 dollars with less than $7600 capital, last less than two months. 

Better performance

I do believe that it is better for me to purchase 20,000 - 30,000 shares at price $1.17/ share. And I just have stomach to take less than 50% loss, let it go down at price $0.90/ share, and then wait for at least 100% rebound. The gains can be around $20,000 to $30,000, instead of $2600 dollars. 

State of the State of Silicon Valley - Media Round Table

 Here is the link. 

Moderated by Melissa Lee, host of CNBC's "Fast Money", Silicon Valley industry leaders discuss the tech stocks and investment, the talent war, the cloud landscape, and thoughts about the next 'hot' trend in tech. Hear from: Marc Andreessen, General Partner, Andreessen Horowitz David DeWalt, Chief Executive Officer and Chairmain of the Board, FireEye Pat Gelsinger, Chief Executive Officer, VMware Joh Hennessy, President, Stanford University Joseph Tucci, Chairman and Chief Executive Officer, EMC

Project management: If I like to purchase 10,000 shares of EXPR, then purchase 1000 shares first

 Jan. 23, 2021

Introduction

I like to learn how to do a good project management. My renter is a Michigan PH.D., who is working for ASML right now. She taught me over 40 minutes how to manage as a project manager when she was driving to Miami. 

How to make a good project management?

1. Scope in/ out, chart

Bestbuy.com: Samsung - 5.9 cu. ft. Convection Freestanding Electric Range - Stainless steel

 Jan. 23, 2021

Here is the link. 

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