eoMMan's $1,000 Stock Trading Thread (1 Viewer)

[General Malaise]

FWIW... I like MCP $5.30 - $5.40.

Curious as to why? I used to trade Lynas, but haven't in a few years...

It started when i happened to catch What's The Earth Worth? on the History Channel. They profiled MCP as the company sitting on the largest supply (by a large margin) of rare earth metals, and how they are now ready to mine them and make them available.

If nothing else, the price is currently below their book value (~$7.50) and way below it's $75 high. Not that I think it would get back there, ever, but I think it's a good short term play.

I think GM deals with companies in this sector... maybe he has some insight?

ETA: I don't own any MCP... but I may start buying some this week

I wouldn't own this one right now. Management is a mess, rare earth prices got killed the last couple of years and I think this company has way too many expenses to turn a profit. They bought a very good business a couple years back in Neo Materials (a well run company with great earnings) but haven't done anything to merit my trust in the aftermath.

Their Mountain Pass mine has been around for ages. It used to be the biggest Rare Earth mine in the world back when certain Rare Earths were used to make color televisions (1960s). But this mine got mothballed in 2002 because it was running into environmental restrictions in the heavily regulated state of California. Mining rare earths is a hideously dirty affair and the state of California ain't one to be trifled with when it comes to pollutants.

But, Kee's right...this is THE name to own for domestic production of rare earths. They are pulling it out of the ground, though the collapse in REE prices hasn't helped this stock at all. They know what they're doing when it comes to mining material; I just question if they know what they're doing vis a vis running a profitable business. Former CEO Mark Smith was an abject failure.

 

[eoMMan]

Made another trade this morning....

Picked 110 shares of ARIA for $9.10/share.

Ariad Pharmaceuticals is a drug company that focuses on oncology drugs. They have a good pipeline and the biggest news with them are all the rumors that a bigger company will potentially buy them (such as an eli lilly). We'll see. I think I can get at least 10% on this one.

Was there a close second choice instead of Ariad?

I just deleted my post about buying ARIA by accident. I still own it and still confident it will rebound after getting crushed yesterday (up 1.5% today)

 

[sbonomo]

I'm willing and ready. Which sites are the best to use?

I did this about 10 years ago but they had a requirement on trading. Are there sites where you can buy and hold and not be forced to execute XYZ amount of trades in a month? Curious how these things have evolved in that span.

For those that bank at Wells Fargo, they have a PMI account. IIRC you need to have a $25k balance with them. This can include any of checking, savings, credit card balance or mortgage account. I get 100 free trades per year with this account. Which is plenty from me.

i have something similar at ban of America. 100k total between Merrill and bac and I get 40 free trades per month.

40 a month is a lot for an average Joe like me. Do you ever use all 40?

not even close...because of my position at the Bank i must hold every purchase for a minimum of 30 days.

 

[Otis]

Good luck beating your friend.

Yes, and I hope you win the contest too!

 

[eoMMan]

Still holding on to ARIA for a little bit. It's having a good morning so far.

 

[Arizona Ron]

The OP needs to be updated a bit more often with a portfolio balance if you want to make this interesting.

3 weeks since the last update.

 

[sbonomo]

The OP needs to be updated a bit more often with a portfolio balance if you want to make this interesting.

3 weeks since the last update.

 

[eoMMan]

The OP needs to be updated a bit more often with a portfolio balance if you want to make this interesting.

3 weeks since the last update.

Okay. Will do.

ARIA having a big day!

 

[Mr. Chumley]

Can someone talk to me about flipping IPO's? I have a buddy that has started doing this. He sets it to sell if it falls below a certain price and tries to sell after a day or so just trying to make a quick buck. Does this really work? I'm sceptical, if it were that easy every one would be doing it.

 

[Mystery Achiever]

Can someone talk to me about flipping IPO's? I have a buddy that has started doing this. He sets it to sell if it falls below a certain price and tries to sell after a day or so just trying to make a quick buck. Does this really work? I'm sceptical, if it were that easy every one would be doing it.

Schwab blacklists you from IPO participation for awhile if you flip within 30 days. I think this is a common practice, so you would want to check broker's policy. Also, as a retail investor, it is difficult to get a meaningful amount of shares for an IPO with good enough demand to rise a lot when the IPO launches. As an example, the only one I ever got a full fill on was Facebook and you know how that IPO went.

 

[Skylord]

The OP needs to be updated a bit more often with a portfolio balance if you want to make this interesting.

3 weeks since the last update.

Okay. Will do.

ARIA having a big day!

Certainly is. Good job.

 

[Mr. Chumley]

Can someone talk to me about flipping IPO's? I have a buddy that has started doing this. He sets it to sell if it falls below a certain price and tries to sell after a day or so just trying to make a quick buck. Does this really work? I'm sceptical, if it were that easy every one would be doing it.

Schwab blacklists you from IPO participation for awhile if you flip within 30 days. I think this is a common practice, so you would want to check broker's policy. Also, as a retail investor, it is difficult to get a meaningful amount of shares for an IPO with good enough demand to rise a lot when the IPO launches. As an example, the only one I ever got a full fill on was Facebook and you know how that IPO went.

So using Scott Trade for instance and buying small amounts, say a couple thousand $$ worth? Is that small enough that that would leave you alone and let you trade? I know how Facebook went but do most go up in the first couple days?

 

[Mystery Achiever]

If you want the IPO price, you have to request shares from the broker's allocation. Not all brokers get allocations for every IPO and i do not know if Scott Trade gets any. Most IPO shares go to institutions. Anyone can buy shares on the open market once trading opens the first day, but you miss the initial bump from the IPO to the opening price. I do not really have a feel for the general price pattern of iPOs once they open. TWTR, the last I boutght, went up and then down in first day or days, but you would have done well to have bought then. Even after the huge sell off this week, the stock is still higher than it was then. Your friend has probably studied price patterns once the stocks open more closely.

ETA, the 30 day restriction is only if you get shares allocated to you at the IPO price. If you buy in open market, there are no such restrictions. Maybe that is what your friend does.

 

[General Malaise]

Getting an initial allocation on a hot IPO can be very tough. MA did a great job explaining it from his perspective and I tend to agree with him. Investment banks, underwriters, et al will hand out slugs of an IPO to their best/biggest/most demanding institutional accounts. Odd lots for Mr. Jones is almost unheard of, especially for the newsworthy IPOs. Unless Mr. Jones knows the CEO or has a very special relationship with his broker, he won't get IPO shares.


Our firm got a nice allocation from Molycorp when they went public, but my boss was instrumental in introducing MCP to Neo Materials, which they later acquired. We didn't have a ton of money to buy a meaningful slug, but we scrounged up enough cash to buy 50K shares at the offer. We didn't do as well on that print as we should have as we missed out on MCP's mad run to $70, but we got circled at the original price of like $11ish and sold higher when we could.

Neo Materials was such a damn good company. Hard to believe what's happened to MCP after they bought them.

 

[Mr. Chumley]

If you want the IPO price, you have to request shares from the broker's allocation. Not all brokers get allocations for every IPO and i do not know if Scott Trade gets any. Most IPO shares go to institutions. Anyone can buy shares on the open market once trading opens the first day, but you miss the initial bump from the IPO to the opening price. I do not really have a feel for the general price pattern of iPOs once they open. TWTR, the last I boutght, went up and then down in first day or days, but you would have done well to have bought then. Even after the huge sell off this week, the stock is still higher than it was then. Your friend has probably studied price patterns once the stocks open more closely.

ETA, the 30 day restriction is only if you get shares allocated to you at the IPO price. If you buy in open market, there are no such restrictions. Maybe that is what your friend does.

Yes this is what he does. So it's not really flipping an IPO, since he is just getting in on it the first day not at the real initial offering. Makes since now. It has worked well for him so far, but he just started last year and we know what the market did last year. I'll be curious to see if it works in the current climate.

 

[eoMMan]

Just got out ARIA at 7.65 for a $160 loss (bought 110 shares at 9.10 plus $14 in fees).

Sitting at $855.

 

[Mystery Achiever]

Do you and your friend share your standings or is it blind until end of year?

 

[eoMMan]

Do you and your friend share your standings or is it blind until end of year?

We talk and we're honest with each other. In fact, he's always suggesting companies to me. He mentioned and liked Plug a couple weeks ago but neither of us bought any.

 

[eoMMan]

Work has been super busy....

Fwiw, I did buy 123 shares of PLUG at 6.75 a couple weeks ago. It was up huge yesterday and I'd like to get out this morning. I should be around 1,045 after the sale.

 

[Mystery Achiever]

Nice comeback. Looks like it is down pre-market, but hopefully bounces for you.

 

[eoMMan]

Got out of PLUG today at $7.75. I made a buck a share on my 123 shares (before the $14 in trading fees). Currently sitting at about $945 in the account.

 

[eoMMan]

Just made another trade with an old time cheap favorite......FREE!

Picked up 575 shares at $1.63.

 

[eoMMan]

Update:

I got destroyed with FREE. Sold it all for about $1.12/share and had about $660 in the account....

However, just made another purchase this morning.....

2 shares of Amazon for $325/share.

This will be the start of a roll....I can feel it!

 

[eoMMan]

Sold the Amazon stock today for just over $334/shr. It basically a wash.

Bought 14 shares of GoPro at $44.30/shr. I definitely don't believe in them long term but with the 9% dip this morning (after being up around 20% yesterday), I think this is a good spot to jump in.