We’d like to introduce two picks: a “short” and a “long” idea. To avoid any confusion (especially for new PennyStockHaven members, which topped 500 in the last week alone) we’d like to explain that “short” ideas mean selling a stock short; “long” ideas refer to buying a given stock. These ideas, whatever they may be, put money in your pocket, whether you trade short or long on a stock. We screen for stocks that have large downside potential and suggest shorting them for profits. Likewise, a long idea is one with a large upside, which means you buy this idea to generate income. Here are our thoughts for one short, and one long trade.
Short selling: North Springs Resources (NSRS)
NSRS is a typical penny stock mining scam, heavily promoted by the Eric Nguyen Van group websites and other notorious names. We count at least 2 months’ worth of promotion to-date. The way you make money on this type of promoted penny stock company is timing and proper allocation of capital. For example, we’ve traded NSRS four times during the last two months, timing its “waves” up and down for aggregate gains of over 300%. Now we’re confident that short selling is the best way to trade it as we predict it will trade down.
Here are some highlights on this story:
- North Springs Resources’ market capitalization is over $600,000,000 amid a true valuation for the company that is probably close to ZERO
- North Springs Resources is a “one-man show”: company’s President and CEO, Harry Lappa, is the biggest stockholder in NSRS. He is the only member of management, the only director on the board of directors, the company’s only secretary, and probably the office handy-man, since less than $100 in the bank won’t buy you much help around the office. So here’s our challenge for you. Find us a $600M company with one employee.
- Everyday press releases – me, oh, my…how long will these charades go on? How long will NSRS continue to tout their scrapyards – er – goldmines? They’re definitely onto something here but it’s more than likely some hot air. More importantly, NSRS has to be very careful with what they report, especially to bring up 35 years old gold "sampling" data as the recent discovery. The SEC is already watching this scam.
For these reasons, alone, NSRS is an attractive short sell – we’ve already begun building a short position of over $1.40 to capitalize on the trade down. It will go down, and we think you could make money by joining in on this trade.
Now for our long idea.
“Long” trading idea: Security First International Holdings Inc. (SCFR)
At a glance, SCFR is implemented a straightforward business model in attracting talent and selling entrepreneurial ideas through their network. They’re essentially helping entrepreneurs monetize innovations. At present, they’re inviting software developers with novel ideas and helping them bring these ideas to the commercial stage. SCFR is positioned to be a “helping hand” by taking these projects under their umbrella, finalizing development and legal matters (such as trademarks, patents, and so forth), and finally marketing and distribution of these products.
Please note: we’re waiting on a reply from James Scheltema, SCFR President and CEO, regarding the financing sources of upcoming projects.
Further, SCFR recently cancelled the majority of outstanding shares issued by former management (see at this link). This makes SCFR an ambitious company showing a great deal of transparency, now trading with a low share count, or low number of free trading shares ( just 12.5M shares) – what else is needed for a winning trade?
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