PWEI is my hot new short-busting pick
Good evening!
I hope our readers and friends in the northeastern part of the United States affected by Hurricane Sandy are OK, and I wish everyone harmed by the storm a speedy recovery hoping things get back to normal soon.
a
After two days of shuttered markets and with the end of the month upon us I have a special alert tonight. An incredibly liquid stock, trading millions of dollars a day and providing plenty of opportunity for traders to profit. This stock has been rising daily for two straight weeks and I believe more beautiful gains lie ahead. Yet another perfect storm. Liquidity and momentum are just two of the wonderful forces lined up here. As you will soon see, there is a third. Get ready to start trading and let's get the week going with some fantastic gains. My new alert is PWEI.
Introducing: PWEI (Pacwest Equities, Inc.)
Before getting into what the company does and some of its recent good news I wanted to focus for a moment on the specific reason that compelled me to issue this alert.
The reason is that PWEI has been heavily shorted. My sources tell me possibly upwards of 10 million shares short. Certain market makers and investors (short sellers) have been selling shares of this company they do not own for the last few weeks, hoping it goes down to then cover their "short" at a lower market price for a nice gain. It's a game we too often see in the pennystock world.
How do I know PWEI has been shorted? I know not just because my sources tell me, but because the symbol has been added to the REG SHO Threshold list. This list reports any stock where more than 0.5% of the company's total outstanding shares are not delivered for five consecutive days, i.e., that the stock has been naked shorted. Former SEC Chairman Christopher Cox referred to this as "the serious problem of abusive naked short sales, which can be used as a tool to drive down a company's stock price".
Basically there have been more shares shorted than accounted for and it will soon be time to pay the piper. When companies are placed on this list it’s basically serving notice that the games need to come to an end.
You can see the REG SHO list at this NASDAQ link: http://www.nasdaqtrader.com/trader.aspx?id=regshothreshold
See PWEI on it? Yep.
While it looks like some shady market makers are using their ability to naked short in an attempt to profit from PWEI, the end game usually favors the company when investors stand their ground.
What does all of this mean for you?
Those market makers and investors that have gone short have to buy the shares shorted and now they have been put on notice that it should happen soon. Investors who own PWEI when this occurs stand to see some beautiful gains on their positions!
I have seen some stocks triple when this happens. And even though PWEI is trading at $0.70, which many of you tell me is "too expensive" for a pennystock, I tell you that when the shorts cover it's going to go much higher and you will want in on this action. I like what's happening here and you will too.
Independent of the developing short play, which is what I am excited about and telling you to get excited, PWEI is moving forward in an exciting fashion on all aspects of its business, releasing in the last two weeks the following news:
-PWEI acquired PurGro Electronics that could potentially at $50 Million in new revenues ( http://finance.yahoo.com/news/pacwest-equities-inc-announces-letter-130000398.html )
-PWEI has entered the $50 Billion organic food production market ( http://finance.yahoo.com/news/pacwest-equities-inc-announces-entry-173513093.html )
-PWEI recently has received a purchase order for about $1 Million for 5 units of its proprietary MobileFeed trailers to be delivered on the Big Island of Hawaii for K. Hill Livestock. ( http://finance.yahoo.com/news/world-eco-source-foods-corp-153107763.html )
Place PWEI at the very top of your watch list right now. Many of my subscribers are doing the exact same thing. Prepare for what could be a very BIG day as the markets open tomorrow.
You can always reach me at info@damngoodpennypicks.com with questions or comments.
Jeff Mirkin
Damngoodpennypicks.com
To receive my text alerts text "damngood" to 25827.
DISCLAIMER:
Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. PLEASE NOTE: DamnGoodPennyPicks employees are not registered as Investment Advisers or broker-dealers. The disclaimer is to be read and fully understood before using our site, or joining our email list. None of the materials herein constitute offers or solicitations to purchase or sell securities of the companies profiled and any decision to invest in any such company_or other financial decisions should not be made based upon the information provided herein. Instead DamnGoodPennyPicks strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. DamnGoodPennyPicks does not offer such advice or analysis, and further urges you to consult your own independent financial advisors. The report in this newsletter is provided solely for informational and entertainment purposes. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor's investment may be lost or impaired due to the speculative nature of the companies profiled. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, projections or future events are not statements of historical fact and are "forward-looking statements". Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those anticipated. DamnGoodPennyPicks may receive compensation for the issuance of this report which is an absolute conflict of interest in our ability to be unbiased. In any event, DamnGoodPennyPicks will never accept compensation in shares, restricted or free trading. Any and all compensation received in cash will always be disclosed. For this report, DamnGoodPennyPicks has received twenty five thousand dol lars in compensation from an unaffiliated third party, Trinity International. In preparing this publication, DamnGoodPennyPicks has relied upon information supplied by its customers, and press releases that it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this report but rather use the information contained in this newsletter as a starting point for doing additional independent research on the featured companies. The advertisements in this newsletter are believed to be reliable, however, DamnGoodPennyPicks and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. DamnGoodPennyPicks is not responsible for any claims made by the companies advertised herein. Although the information contained in this e-mail is believed to be reliable, we make no warranties as to the accuracy of the content of this e-mail, and expressly disclaim and accept no liability for how readers may choose to utilize this e-mail.
