Thursday, December 30, 2010

OnlyDoubles Profit Spotlight for December 30th, 2010

Hello and welcome back to CRI's OnlyDoubles Profit Spotlight.

Here you will find past OnlyDoubles trades that have been recently closed. This blog's purpose is to update the public on recently completed OnlyDoubles trades as a demonstration of the model and a teaser to get you to subscribe. If you would like to learn more or subscribe (for real time access to OnlyDoubles NewTrades) please visit our Subscription page.
Considering the substantial gains seen of late in the venture capital market, it should come as no big surprise that yet another little penny stock has doubled in price. Regardless of the reason, CRI's time tested rule suggests that one ought to sell at least half of an investment if it should double. And as a result of this rule, CRI is taking (at least partial) profits once again.

The latest stock to double is a little shell we have owned for some time, EcoMax Energy Services (EES.H on the Canadian Venture Exchange). The company itself was basically unwound through 2009 and has languished between $.01 and .03 for some time. At those levels and with only 25 million shares outstanding, the stock was basically trading at the value of the trading shell ($250,000 to $500,000). Since there are many legal and tax issues with regard to listing on the Canadian Venture Exchange once can put a price tag on a the trading vehicle itself. That number comes to around $500,000 so it is no surprise we see bottoms come in on stocks that wish to remain listed on the venture exchange in and around that level. The best part about finding a shell is that once something is done with it, prices can move rather dramatically. Indeed, that has happened. There has been no news of significance but clearly something is going on here.

18 Month Chart

The above chart should be shown to every new technical analyst out there. An example of price, volume and momentum coming together all at once, the double bottom breakout that occurred in November was quickly followed by a dramatic move higher in price. The breakout came at $.02 but with such a powerful looking chart we just had to pull the trigger and pay the offer. Canadian stocks trade in half pennies so our fill came at $.025. As of two days ago, CRI was filled on an open order to sell half the purchased stock at $.05. While the current uptrend suggests support is in and around the original breakout near $.025, our remaining position is 'free' so I am more than happy to let the rest ride.

...speaking of you know which market CRI's OnlyDoubles is trying to take a position in right now? Seems to me it's worth $100/year subscription to find out....

That's all for this issue of CRI's OnlyDoubles,
Brian Beamish FCSI