Bob and Scott » GWSC

Bob’s Activity and Action

BobL — Wed, 15 Jul 2009 13:54:43 +0000

I have been rather active in the last few days. I have been trying to resist the urge to be greedy. I am going against my mantra of “Don’t turn a trade into an investment and don’t turn an investment into a trade!”. I did sell some long term plays last week, but avoided my past mistake of simply putting the proceeds on the sideline. I sold out of some dead money positions (so I thought) and moved into a couple of firm plays that are also dividend plays (BLK, PFE, BP, GS). BP has been a solid winner and has a yield above 6% a year. Thanks for the BP call Teddy!!

I am currently in a TimothySykes.com short of DRGZ. I will stomach the short term pain over the next couple of days since I don’t expect to be able to find shares to short. Short them while you can. I had some success with a past call where shares were available during the run but not during the fall (GWSC).

I am speculating on the earnings of FNFG (First Niagara Financial Group). They are a regional bank (In my back yard) who have been clicking on all cylinders for the past 6 months. They did 2 offerings during the worst of it. Took TARP and were one of the first to pay it back. They report earnings on Friday. My option play is a speculation that the numbers will be good and will move this stock back up to the level the reached in late April.

I also placed a buy of ERX (energy bull). This is a volatile way to play oil and the energy sector. As I write this, half of my position sold off (7.48% gain in 1 day). I am holding the other half to speculate on the EIA petroleum status report due at 10:30 today.

I have written many times about how much I like Corning. I placed an option trade and the shares got caught in the market downturn. I bought 10 more contracts. I sold 8 of the 10 contracts yesterday for a 33% gain. I am holding my last 9 contracts for a longer term play. If the recovery is real, Corning will be a big winner. These are Nov 15 call options. Plenty of time left and well into the money.

Bob

Check out my trading log to stay up to date with what I am up to. I might not be writing lengthy articles regarding each move, but you can catch up on my thoughts with the Bob and Scott Twitter feed.

BTW: Scott has been on Vacation. He’ll be back to share.

Episode 22 – Going Green

BobL — Fri, 19 Jun 2009 00:18:44 +0000

In episode 22 Bob and Scott discuss quite a variety of topics including input devices, housing, a penny stock pump and dump and green initiatives.

Episode 22

GWSC is not in very good shape

BobL — Wed, 17 Jun 2009 13:54:57 +0000

This is an excerpt from Tim Sykes (timalerts.com) regarding GWSC. It doesn’t appear the lofty (relatively speaking) stock price that GWS Technologies has reached is going to hold for long. The crash of the shares is probably only being supported by the shorts who are covering. As Tim Sykes mentioned, he expects it to head down toward $1.

When looking into the press that was issued on this company, you have to pay attention. The “news” that they released had to do with a proposal that the company submitted for a project. It wasn’t a contract win. It wasn’t a closed sale. It wasn’t a partnership. It was for a submission of plans for a project. That would be like me saying that I might get Wal-Mart as a customer simply because the checkout clerk gave me the name of the person to send something to. Is that newsworthy? Hardly!

I will keep my sell order in place at a conservative number and hope to bank a fair profit (I could use one of those). I would expect to reach my number today especially as news/analysis reaches more sites and more sellers show up.

From Tim Sykes…

the company has less than $1,000 cash, no audited financials, they’re delinquent in paying suppliers, they can’t pay their workforce so they’ve laid people off, they can’t raise $ because lenders want personal guarantees from management (who don’t appear to be willing to give those), they’re in a legal battle with rumored stock promoter/manipulator Douglas Furth & Co. (one of the largest shareholders in the blatant pump & dump SPNG) and they have a $100,000 loan that they can’t pay back!

Yup, it’s pretty much the worst news all around, the only positives, which they are quick to mention in PRs galore (which they’ve paid for with big cash compensations) is that they’ve submitted plans for a big solar project…yup, that’s right, they didn’t win any contract, they just submitted plans…and given the company’s dire financial situation and sketchy sketchy background, I’d say the chances of them winning this contract is less than 10%…

Oh yes, that CEO interview on SmallCapVoice.com the other day was paid for with (read the disclaimer HERE):

GWSC: Small Cap Voice received $40,000 from the company and 150,000 restricted shares subject to Rule 144 of the Securities Act of 1933 from the Company on 7-15-08 for 90 days of service. Small Cap Voice received an additional 275,000 restricted shares subject to Rule 144 of the Securities Act of 1933 from the company on 11-15-08 for an additional 180 days of service.

via The Single Worst Company I Have Ever Shorted, Prepare To Laugh | TIM – Timothy Sykes.