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The Biggest Oil Discovery In 50 Years

The Biggest Oil Discovery In 50 Years?

 

In a virtually uninhabitable section of South Australia, a discovery has been made which could rock the world.  Some are calling it the biggest discovery of oil in 50 years.  Earlier this year, a company called Linc Energy announced that tests had revealed that there was a minimum of 3.5 billion barrels of oil equivalent sitting under more than 65,000 square kilometers of land that it owns in the Arckaringa Basin.  But that is the minimum number.  It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area.  If that turns out to be accurate, the oil sitting under that land is worth approximately 20 trillion dollars, and it would be roughly equivalent to the total amount of oil sitting under the sands of Saudi Arabia.  In essence, it would be a massive game changer.

If the 233 billion barrel figure is accurate (and some have even suggested that the true number could actually be 400 billion barrels), that would make it nearly 10 times larger than the Bakken formation, 17 times larger than the Marcellus discovery and 80 times larger than the Eagle Ford deposit down in Texas.

It would also mean that Australia now has more “black gold” than the nations of Iran, Iraq, Canada, and Venezuela.

The closest town to this oil discovery, Coober Pedy, is in the process of being totally transformed.  It normally only has about 1,700 inhabitants, but news of this discovery has drawn in 20,000 additional people already and real estate prices in the town are absolutely skyrocketing.

So does all of this mean that gas prices will go down soon?

Well, unfortunately, that is not likely to be the case.

First of all, the oil in this formation in Australia is going to be quite expensive to extract.  It has been estimated that it is going to cost up to 300 million dollars just to get this site ready for production.

In addition, many of our politicians are absolutely determined to greatly punish the use of oil because they believe that it is the primary cause of global warming.  So they continue to raise taxes on gasoline consumption.

Today, motorists in the United States pay an average of 49.5 cents of taxes per gallon of gasoline, and in the state of California motorists pay an average of 71.9 cents of taxes per gallon of gasoline.

Hopefully, the price of gasoline will come down a bit over the next few years, but even if it does I would not expect it to come down too much.

But what we can be sure of is that the world is not going to run out of oil anytime soon.  Those that have been predicting that we are are on the verge of an “energy doomsday” can take a rest for a while.

Sometimes it is funny to look back and remember some of the ridiculous things that our politicians were saying about oil in the old days.  For example, U.S. President Jimmy Carter made the following statement back in 1977….

“Unless profound changes are made to lower oil consumption, we now believe that early in the 1980s the world will be demanding more oil than it can produce”.

That prediction didn’t exactly work out for him, did it?

It is the time that the American people were told the truth about our energy situation, and the truth is that we have plenty of energy resources.  The following stats have been updated from one of my previous articles…

#1 Back in 1995, the U.S. Geological Survey told the American people that the Bakken Shale formation in western North Dakota and eastern Montana only held 151 million barrels of oil.  Today, government officials are admitting that it holds 7.4 billion barrels of recoverable oil, and some analysts believe that the actual number could be closer to 24 billion barrels of oil.

#2 It is estimated that there are 19 billion barrels of recoverable oil in the tar sands of Utah.

#3 It is estimated that there are 86 billion barrels of recoverable oil in the Outer Continental Shelf.

#4 It is believed that there are 800 billion barrels of recoverable oil in the Green River formation in Wyoming.

#5 Overall, the United States is sitting on approximately 1.442 trillion barrels of recoverable oil.

#6 According to the Institute of Energy Research, the United States has an 88 year supply of natural gas.

#7 According to the Institute of Energy Research, the United States has a 169 year supply of oil.

#8 According to the Institute for Energy Research, the United States has a 465 year supply of coal.

#9 Goldman Sachs is predicting that the United States will be the number one oil producing country in the world by the year 2017.

So the bottom line is that we have plenty of energy resources.  We do not need to be importing oil from OPEC or anyone else.

But just because we are not going to run out of oil, natural gas or coal anytime soon does not mean that we should not be developing alternative energy resources.  We should definitely be seeking ways to produce energy more cheaply, more cleanly and more efficiently.

If America does not end up leading the world in developing new forms of energy, we should be ashamed of ourselves.  And right now, the Chinese appear to be way ahead of us as far as thorium energy is concerned, and Italian scientists appear to be ahead of our own scientists in developing “cold fusion” technology.

So yes, let’s be glad that we are not going to be facing a crippling energy crisis in this generation, but let’s also not be complacent.  There are lots of new technologies out there just waiting to be developed, and the rewards are going to go to those that are able to develop them first. I believe for the next 15 years oil stocks will still be a decent investment.

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Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction

Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And ‘Are Likely To Cause Big Trouble

 

After all these years, the most famous investor in the world still believes that derivatives are financial weapons of mass destruction.  And you know what?  He is exactly right.  The next great global financial collapse that so many are warning about is nearly upon us, and when it arrives derivatives are going to play a starring role.  When many people hear the word “derivatives”, they tend to tune out because it is a word that sounds very complicated.  And without a doubt, derivatives can be enormously complex.  But what I try to do is to take complex subjects and break them down into simple terms.  At their core, derivatives represent nothing more than a legalized form of gambling.  A derivative is essentially a bet that something either will or will not happen in the future.  Ultimately, someone will win money and someone will lose money.  There are hundreds of trillions of dollars worth of these bets floating around out there, and one of these days this gigantic time bomb is going to go off and absolutely cripple the entire global financial system.

Back in 2002, legendary investor Warren Buffett shared the following thoughts about derivatives with shareholders of Berkshire Hathaway…

The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so
far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.

Those words turned out to be quite prophetic.  Derivatives have definitely multiplied in variety and number since that time, and it has become abundantly clear how toxic they are.  Derivatives played a substantial role in the financial meltdown of 2008, but we still haven’t learned our lessons.  Today, the derivatives bubble is even larger than it was just before the last financial crisis, and it could absolutely devastate the global financial system at any time.

During one recent interview, Buffett was asked if he is still convinced that derivatives are “weapons of mass destruction”.  He told the interviewer that he believes that they are, and that “at some point, they are likely to cause big trouble”…

Thirteen years after describing derivatives as “weapons of mass destruction” Warren Buffett has reaffirmed his view that they pose a threat to the global economy and financial markets.

In an interview with Chanticleer this week, Buffett said that “at some point they are likely to cause big trouble“.

“Derivatives, lend themselves to huge amounts of speculation,” he said.

Most of the time, the big banks that do most of the trading in these derivatives do very well.  They use extremely sophisticated computer algorithms that help them come out on the winning end of these bets most of the time.

But when there is some sort of unforeseen event that suddenly causes a massive shift in the marketplace, that can cause tremendous problems.  This is something that Buffett discussed during his recent interview

“The problem arises when there is a discontinuity in the market for some reason or another.

“When the markets closed like it was for a few days after 9/11 or in World War I the market was closed for four or five months – anything that disrupts the continuity of the market when you have trillions of dollars of nominal amounts outstanding and no ability to settle up and who knows what happens when the market reopens,” he said.

So if the markets behave fairly calmly and predictably, the derivatives bubble probably will not burst.

But no balancing act of this nature ever lasts forever.  Just remember what happened in 2008.  Lehman Brothers collapsed and then the financial system virtually froze up.  According to Forbes, at that time almost everyone was afraid to deal with the big banks because nobody was quite sure how much exposure they had to these risky derivatives…

Fast forward to the financial meltdown of 2008 and what do we see? America again was celebrating. The economy was booming. Everyone seemed to be getting wealthier, even though the warning signs were everywhere: too much borrowing, foolish investments, greedy banks, regulators asleep at the wheel, politicians eager to promote home-ownership for those who couldn’t afford it, and distinguished analysts openly predicting this could only end badly. And then, when Lehman Bros fell, the financial system froze and world economy almost collapsed. Why?

The root cause wasn’t just the reckless lending and the excessive risk taking. The problem at the core was a lack of transparency. After Lehman’s collapse, no one could understand any particular bank’s risks from derivative trading and so no bank wanted to lend to or trade with any other bank. Because all the big banks’ had been involved to an unknown degree in risky derivative trading, no one could tell whether any particular financial institution might suddenly implode.

After the crisis, we were promised that something would be done about the “too big to fail” problem.

But instead, the problem of “too big to fail” is now larger than ever.

Since the last financial crisis, the four largest banks in the country have gotten approximately 40 percent larger.  Today, the five largest banks account for approximately 42 percent of all loans in the United States, and the six largest banks account for approximately 67 percent of all assets in our financial system.  Without those banks, we would not have much of an economy left at all.

Meanwhile, smaller banks have been going out of business or have been swallowed up by the big banks at a staggering rate.  Incredibly, there are 1,400 fewer small banks in operation today than there were when the last financial crisis erupted.

So we cannot afford for these “too big to fail” banks to actually fail.  Even the failure of a single one would cause a national financial nightmare.  The “too big to fail” banks that I am talking about are JPMorgan Chase, Citibank, Goldman Sachs, Bank of America, Morgan Stanley and Wells Fargo.  When you total up the exposure to derivatives that all of them currently have, it comes to a grand total of more than 278 trillion dollars.  But when you total up all of the assets of all six banks combined, it only comes to a grand total of about 9.8 trillion dollars.  In other words, the “too big to fail” banks have exposure to derivatives that is more than 28 times the size of their total assets.

I have shared the following numbers with my readers before, but it is absolutely crucial that we all understand how exceedingly vulnerable our financial system really is.  These numbers come directly from the OCC’s most recent quarterly report (see Table 2), and they reveal a recklessness that is almost beyond words…

JPMorgan Chase

Total Assets: $2,573,126,000,000 (about 2.6 trillion dollars)

Total Exposure To Derivatives: $63,600,246,000,000 (more than 63 trillion dollars)

Citibank

Total Assets: $1,842,530,000,000 (more than 1.8 trillion dollars)

Total Exposure To Derivatives: $59,951,603,000,000 (more than 59 trillion dollars)

Goldman Sachs

Total Assets: $856,301,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $57,312,558,000,000 (more than 57 trillion dollars)

Bank Of America

Total Assets: $2,106,796,000,000 (a little bit more than 2.1 trillion dollars)

Total Exposure To Derivatives: $54,224,084,000,000 (more than 54 trillion dollars)

Morgan Stanley

Total Assets: $801,382,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $38,546,879,000,000 (more than 38 trillion dollars)

Wells Fargo

Total Assets: $1,687,155,000,000 (about 1.7 trillion dollars)

Total Exposure To Derivatives: $5,302,422,000,000 (more than 5 trillion dollars)

Since the United States was first established, the U.S. government has run up a total debt of a bit more than 18 trillion dollars.  It is the biggest mountain of debt in the history of the planet, and it has grown so large that it is literally impossible for us to pay it off at this point.

But the top five banks in the list above each have exposure to derivatives that is more than twice the size of the national debt, and several of them have exposure to derivatives that is more than three times the size of the national debt.

That is why I keep saying that there will not be enough money in the entire world to bail everyone out when this derivatives bubble finally implodes.

Warren Buffett is entirely correct about derivatives – they truly are weapons of mass destruction that could destroy the entire global financial system at any time.

So as we move into the second half of this year and beyond, you will want to watch for terms like “derivatives crisis” or “derivatives crash” in news reports.  When derivatives start making front page news, that will be a really, really bad sign.

Our financial system has been transformed into the largest casino in the history of the planet.  For the moment, the roulette wheels are still spinning and everyone is happy.  But sooner or later, a “black swan event” will happen that nobody expected, and then all hell will break loose.

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Penny stock fortunes are both fantasy and reality

This is a little light hearted and not in line with the usual postings on here but since it’s my birthday I thought I would lighten the mood a little before getting more serious with an increase in the number of posts and some recommendations. Enjoy!

Stories of penny stock fortunes abound. Most of us have heard the tale of Aunt Betsy, who bought Intel at 3 pounds a share, or Uncle Herbert, who got in on the ground level of ATT. We know that the stock market has made millionaires. But still, we think, penny stocks are not for us – or are they. Use your imagination for a moment, and consider the possibilities.

A gift from Grandma

The 1980s have just begun. You graduated high school, and as a gift, Grandma gave you 400 pounds in Wal-Mart shares, telling you that she is helping you to build your penny stock fortunes. You thank Grandma profusely for her generous gift. Later, you ask your dad what the stock market even is, and what you are supposed to do with 5455 “penny” shares of some company that you never heard of. Dad tells you that this is an up and coming retailer in the United States and that someday it may be worth a lot of money and no you cannot sell the shares now to buy a car. Whatever. You put the stock paper aside, and go listen to the new Stones album. Years go by, and you are far too busy to care about stocks.

Fifteen years later, you are done with college, working, and engaged to that special someone. At the wedding, Grandma gives you an envelope; inside is 400 pounds worth of shares in a company called Dollar Tree. Ah, another company you never heard of, but it reminds you of those other shares she gave you years ago. You’ll have to look into those. But now, it is time for that wedding dance to the latest Madonna song.

What ever happened to those stocks?

A few more years go by. You and your spouse have had a baby, and while money is always tight, life is generally good. Of course, more money would be better, but you can only work so hard. One day, you are cleaning out your office, making room for that new computer that is supposed to be Y2K proof. As you sort through some papers, you come across that old Wal-Mart stock. You pause and think about how friends of your have mentioned the stock market, and of course, now you know that Wal-Mart is a huge conglomerate – you wonder if they are worth much. You might as well look at those wedding stocks too, so you get both pieces of paper together, and look them up. You aren’t too excited – Grandma only gave you 800 pounds worth of stocks, but hey, they may be worth a few thousand now, and that could help with the baby.

You finish hooking up your new computer and get online to check out these stocks. Almost instantly, your face goes white. Your hands are almost shaking. You call your spouse in because you must be looking at this wrong. Nope, you are right. Those Wal-Mart shares, well Grandma paid .07 pounds a share in 1980. Now, it sells for 45.23 pounds – your shares are now worth 246,744 pounds! And those Dollar Tree stocks are now worth 5,156 pounds, after just five years. Grandma’s gifts to you started as 800 pounds, and are now worth a total of almost 252,000 pounds. Grandma built you a penny stock fortune, while you were not even paying attention.

A penny stock fortune

Now, imagine for a moment, that you used most of that to pay cash for a new house, but kept 50,000 in savings. A few more years have gone by. Now, it’s the financial crisis of 2008, and things look bad for the big banks. You decide to invest your 50,000 pounds of that money you earned from Grandma’s penny stocks into a single bank stock, that is valued at pennies, but which you (and Grandma, of course) feel confident will recover. You wait a few years, and now, they have rebounded from .50 a stock to 35.50 a stock. That stock is now worth three and a half million pounds! You are not even 50 years old, and you are rich. You and your family have secured your penny stock fortunes, and you can now retire, living life on easy street.

The reality of penny stocks

The above scenario is, of course, a fantasy. Or is it? Is it an urban legend that Aunt Betsy is rich? No, she really did buy Intel at three pounds and has been living the good life ever since. Of course, not every stock is going to make you a multi-millionaire, but it does happen. Many penny stocks are simply stocks low in their value cycle and bound to skyrocket. Investing just a few thousand pounds can result in tens of thousands in return and investment return like no other. A well-placed penny stock purchase can pay off over many years, and sometimes in just a few years.

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Learn how to make money from penny stocks! Penny Stock Tips

Be a wise penny stock investor

With beginning and experienced investors alike still feeling the effects of an economic recession, the search is on for a responsible, low-risk way to invest in future assets. Enter the penny stock, defined by the Securities and Exchange Commission (SEC) as any stock currently trading at less than five dollars. Because penny stocks are so cheap, they have the potential to massively multiply an investment if the stock takes off; the price can easily rise by a factor of five, 10 or even more. Following these tips will help you successfully invest in these low-priced stocks.

Choose Your Broker. Many stockbrokers are not especially fond of penny stock trading, so they charge higher commissions for buying and selling cheap stocks. Even for successful investors, these fees can really eat away at profits. Worse yet, if you take a loss, that extra commission could push you right out of the market. Make sure you work with a broker who is willing to help, not hinder.

Be Informed. Although penny stocks are unique in some ways, investing in them is fundamentally no different from investing in more expensive stocks. Take time to learn as much as you can about general stock trading before delving into the specifics of penny stocks. That knowledge will form the foundation of your investment success.

Pick Listed Stocks. Even though they are very cheap, many penny stocks are listed on the NYSE, AMEX or NASDAQ. The major exchanges employ certain financial criteria when deciding which stocks to list, so an investor who chooses listed stocks knows he is investing in companies that are financially sound. Listed stocks are not guaranteed to succeed, nor are unlisted stocks guaranteed to fail; nevertheless, sticking with listed stocks is by far the safer option.

Research Thoroughly. Many investors fail to take basic information such as company earnings when buying stock. It is easy to see shares of stock as abstract quantities, not shares of a real company that does real business somewhere in America. Instead of falling into this trap, look up basic financial information on a company before choosing to buy its stock. Companies with solid revenue streams are more likely to succeed in the market.

Market Trends and Uniqueness. Small businesses that really succeed are usually in some hot industry, where many investors are paying attention. In addition, having a unique product or a great story tends to improve a company’s chances of rapid growth. If a company is in a hot industry, brings in solid revenue, and has some unique aspects, its stock is likely to take off in the near future.

Diversify. Because penny stocks are so cheap, it is fairly easy to invest in several different stocks at a time without tying up a lot of capital. Investing in multiple companies means you stand to benefit if any one of them has a run of success. There are no guarantees for anyone in the stock market, and certainly not for penny stock investors. Having a diverse portfolio, then, is one of the best ways to increase your odds of success.

Be a Skeptic. Because of their low prices, penny stocks are very vulnerable to price manipulation. Con artists may spread false rumors about a certain company to encourage inexperienced investors to buy, thus driving the price up, then sell their own shares to make a quick profit. Conversely, some schemes encourage investors to sell off their shares, then buy them up for literal pennies when the price hits rock bottom. The best way to avoid being caught in one of these schemes is to corroborate your tips as much as possible. If several independent sources say that a particular stock is a good buy, odds are that it really is a good buy. If just one source says to invest in a certain penny stock, move on to a safer investment.

Keep Cool. It is very easy for an investor who runs into trouble to start investing recklessly, hoping to make back his losses. It is even easier to get excited after a few winning trades, become overly aggressive, and lose it all on a few ill-advised investments. Penny stocks are volatile; to succeed, you need to be steadfast. Focus on making sound investments, and in the long run, you will reap the rewards.

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ELED Chart update

Chart update on ELED

 

First is the chart I posted in the comments a week ago. As we can see the support at the 50-day moving average gave though.

 

The second chart will show an example of how this drop could have been predicted. As you can see on the second chart there was a decline in volume. When a penny stock comes down to a level of support you want to see buying volume start to increase. Buying volume helps power up the support and brings new money in which builds momentum that can push the stock to the next level of resistance. Once a level of support gives fails it becomes resistance. Likewise, once resistance is broken through it then becomes a level of support.

ELED chart

 

As far as the future outlook on ELED chart wise a positive sign would be to see a bounce to .02 with double the average daily volume you have seen over the last week. You would most likely hit resistance at .02 get denied once and need to create a triple bottom at .015 range. If the 3rd bounce off of .015 also had an increase in volume you could see a bounce to .03 and test resistance there. On the flip side, If support at .015 doesn’t hold ELED will most likely come down to support at around .01, most experienced traders would load ELED in the .01-..0115 range and then flip it at resistance around the .014-.015 range.

ELED future support

 

 

Again this is just my opinion. Everyone should make their own buying and selling decisions.

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Top 10 U.S.-listed Chinese Stocks with highest return on Assets

Below are the top 10 U.S.-listed Chinese stocks with highest Return on Assets ratio (ROA) for the last 12 months.

ROA shows a company’s efficiency in making profits from its assets. It is equal to net profits divided by total assets.

Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has the 1st highest Return on Assets in this segment of the market. Its ROA was 38.10% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.83 for the same period.

Changyou.com Limited(ADR) (NASDAQ:CYOU) has the 2nd highest Return on Assets in this segment of the market. Its ROA was 33.36% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.66 for the same period.

SouFun Holdings Limited (ADR) (NYSE:SFUN) has the 3rd highest Return on Assets in this segment of the market. Its ROA was 29.48% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.87 for the same period.

Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD) has the 4th highest Return on Assets in this segment of the market. Its ROA was 24.11% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 1.13 for the same period.

NetEase.com Inc (ADR) (NASDAQ:NTES) has the 5th highest Return on Assets in this segment of the market. Its ROA was 24.08% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.54 for the same period.

Noah Holdings Limited (ADR) (NYSE:NOAH) has the 6th highest Return on Assets in this segment of the market. Its ROA was 23.74% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.69 for the same period.

Rda Microelectronics Inc (ADR) (NASDAQ:RDA) has the 7th highest Return on Assets in this segment of the market. Its ROA was 23.32% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 1.64 for the same period.

CNOOC Limited (ADR) (NYSE:CEO) has the 8th highest Return on Assets in this segment of the market. Its ROA was 20.98% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.69 for the same period.

Shanda Games Limited(ADR) (NASDAQ:GAME) has the 9th highest Return on Assets in this segment of the market. Its ROA was 19.39% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.73 for the same period.

Sohu.com Inc. (NASDAQ:SOHU) has the 10th highest Return on Assets in this segment of the market. Its ROA was 18.39% for the last 12 months. Its Asset Turnover ratio (revenue divided by assets) was 0.60 for the same period.

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Summer Strategy for Penny Stocks

Summer is always slower when it comes to penny stocks

Summer is here. This is where you have to be extra picky with the penny stocks you get in. You also have to be very alert. I usually limit the amount I put into penny stocks summer months. It is a lot harder to make money. January through March are usually the hottest months. Those months are the easiest to make money. In the summer volume dries up and companies seem to be more sneaky. So be alert. Watch the SEC filings, Watch the charts, and don’t be afraid to cut losses. Penny Stocks are streaky. You will go on winning streaks and losing streaks. During the losing streaks it is very important you learn how to cut losses. I have seen some traders win on 9 in a row and end up broke on 1 because they didn’t cut losses and kept averaging down over and over again and the stock kept falling. You need to learn to have a basic knowledge of charts. You need to learn to read SEC filings and find out what they mean. You need to learn to watch level 2. If you have questions about a stock jump on Google and ask those questions. Don’t just listen to what others say. Most cases it is the blind leading the blind. If you see VFIN show up on the ask showing only 10k shares and not going away that most likely isn’t someone shorting. Stop listening to people trying to pump the stock and jump on Google or youtube and find answers. You have to be able to act quickly in penny stocks. I have been riding high in a stock that seemed like it was going to go up forever and see one SEC filing crush the stock. If you don’t know how to read that SEC filing you will have to wait for the next day or until you can ask someone before you realize you should have gotten out. If you see something you don’t understand ask but also jump online on a major search engine and try to do your own research. That way you can ask a more direct question. I talk a lot about a team here and being a group and working together but it also requires effort on everyone’s end as well. I am usually an open book when it comes to SEC filings, charts and the L2 even if I am in the stock. It is easier for me to be direct and blunt through direct message or over the phone. I still want you to double check everything I say as well. Get in the habit of always double checking everything so you can be confident with your own decision making. Again summer months are difficult you want to get in the habit of taking profits earlier and learning some chart plays. Don’t be a sheep and just follow the crowd. Everyone wants a stock that goes from .01 to .10 but those are rare, and if you can find a stock that goes back and forth from .01 to .02 10 times you will make a lot more money playing that cause you can profit and reinvest those profits. This time of a year it is good to be creative with your profit taking. An example of this is finding a .0004x.0005 stock that has decent volume. Sit on both the Bid and the Ask. Lower the number of shares you are trying to buy on the bid and stack the ask when you want to buy more shares and then once someone sells you shares then add more to the bid and lower the shares you are trying to sell on the ask. This will encourage people to sell when you want shares and buy when you want to sell shares. While everyone else is trying to be greedy and hoping the .0004 will go to .01 you are making money flipping it for 20% at a time. I believe this summer is extremely important for everyone to learn how to trade and learn to take profits and cut losses. 2018, in my opinion, will be huge for Marijuana stocks. In August and September, you should be able to load up on marijuana stocks and see some huge profits with the states legalizing recreational use of marijuana in 2018. You want to have as much powder available to load up on these Marijuana stocks.

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WBSI penny stock aimed at stopping cyber bullying

Facebooks finally going public and the social stocks are in a tizzy.

WebSafety, Inc. (WBSI) is a pure play on the only story hotter than social media.

WBSIs software fights cyber bullying the dark side of the social web.

There’s a high-profile movie out about bullying. The subject makes parents and pundits sick.

It’s trending so hard they even ripped on it in this week’s South Park cartoon!

WBSI is front and center in those bully wars so traders are getting an earful.

It’s no wonder its shares are throbbing up over 1,600% off a low of $0.0019.

On paper, it’s a knockout product. You can hear the CEO talk about it here.

For under $8 a month, WBSI watches your kid’s phones and computers.

If it sees other kids sending mail like you stink or go die, it warns you.

With 52 million American kids eager to pick on each other, that’s a $400 BILLION opportunity.

Remember, WBSI bills monthly.

Cyberbullying is more than a huge deal for the kids on Facebook and their nervous parents.

It’s a nightmare for schools that have to prevent electronic harassment.

Every single state but Montana forces schools to have an anti-bully policy.

80% are required by law to watch email and Facebook as well.

Schools have 14 million aging computers to monitor. Add THAT to WBSIs market opportunity.

And that, friend, is what we call high impact.

WBSI is just a pipsqueak that’s had to fight its way back from under 1 penny a share.

Even today, when the stock is a month into a full-fledged rally trend, WBSI is barely worth $9 million.

With the news flow stacked in its favor and the chart pointed up, it just takes a few parents signing up to move WBSIs needle.

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Longhai Steel, Inc. (LGHS)

Chinese stocks have taken a real beating as the pundits fret about a hard or soft landing, but face facts!

The Red Dragon is still the hottest growth story on the planet at a depressed 7.8% a year.

And as Beijing pumps cash into the manufacturing sector, Chinese factory names like Longhai Steel, Inc. (LGHS) are bouncing back fast!

Check out the LGHS chart gliding up an easy 50% over the last six weeks for the proof.

But even after that big move, LGHS has a LONG way to go before traders really climb the Great Wall of Worry!

You see, LGHS makes steel wire, which is then turned into nails, screws, concrete support mesh and other construction materials.

It might not be sexy but its a recession-resistant and remarkably lucrative business.

Last year, LGHS sold $608 million worth of wire and reported fully diluted net earnings of $1.12 a share.

And so far this year, 2012 earnings are tracking 36% above 2011 levels. (Read more)

LGHS has been so badly beaten up by the China bears that the P/E here is clearly well below 1 either way!

And when you factor in anticipated growth, it’s hard to imagine a value investor these metrics wouldn’t tempt!

I see a whopping $119 MILLION in assets on the LGHS balance sheet, including $4.7 million in cash.

You can do that math yourself, but if LGHS wasn’t controlled by Chinese steel magnate Chaojun Wang, it just might be ripe for an opportunistic takeover!

Maybe you’re thinking all this looks great on paper, but how do we know LGHS really has all that cash or that state-of-the-art $20 million wire factory?

For one thing, Chaojun Wang doesn’t strike me as the kind of guy who’d tolerate much funny business from lowly accountants.

LGHS is a captive customer for the hot steel billets his other companies make, so he’s got a big incentive to keep the lights on.

Skip the latte today, read the paper online and take another look at LGHS instead!

Resources:
http://ih.advfn.com/p.php?pid=squotesymbol=LGHS
http://www.google.com/finance?q=OTC%3ALGHS
http://finance.yahoo.com/q?s=LGHS%2C+ql=1

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Biostem U.S. Corp. HAIR

I’m on fire about Biostem U.S. Corp. (HAIR) today and the reason is in the ticker itself.

HAIR uses ethically harvested adult stem cells to super-charge balding scalps.

They say it’s virtually painless and you can do it on your lunch break.

You can imagine how much cash an outpatient cure for baldness would pull in!

And yet somehow HAIR is currently priced in the 20 cent range, so everyman traders like us still have a chance to see it on the ground floor.

See, HAIR is only now rolling its stem cell technique into hair transplant clinics in places like Orlando, Florida, where aging big shots want to stay young-looking forever.

HAIR will receive monthly revenue from each doctor who signs up.

Because they’re starting from near-zero here, every dollar moves the valuation needle.

And those first clinics just opened for stem cells a few weeks ago, so the inflection point here is as fresh as it gets!

Now that the wheels have finally started turning, HAIR could even become an attractive Big Biotech merger target.

After all, Propecia brings down $400 million a year for Merck.

And old Rogaine earned its maker $150 million a year back in the 90s.

The market is endless. Look for baldness cure online, 3 MILLION hits.

Just a few months ago, news that they’d found the cause of baldness drove the world wild.

A cure in five years? HAIR is already doing it!

HAIR is also turning heads as brokerage firms throw it cash for the privilege of getting their taste of this story before the Street catches on.

Elco Securities bought 20 million HAIR shares back in May at 25 cents apiece.

That’s a 65% premium over where HAIR was trading the day the deal was signed.

Remember, HAIR is now well under the $0.25 level so that position is still technically deep underwater.

Did the big boys at Elco get taken here or did they figure that $5 MILLION bet will be worth a lot more down the road?

All I know is that HAIR plans to use that cash to keep the lights on while its marketing team goes to work!

This board is stacked with top management from blue-chip corporations like Crocs.

Love or hate the shoes, Stephen Beck and Scott Crutchfield know how to build a multi-billion-dollar craze from the ground up, and they seem eager to do it again.

Bottom Line: HAIR just blasted out of the gate with a new revenue model and some of the biggest names in hair replacement on its team.

Smart players have gambled long green on this company and its technology.

Resources:
http://finance.yahoo.com/q?s=HAIR
http://www.google.com/finance?q=PINK%3AHAIR
http://ih.advfn.com/p.php?pid=squotesymbol=HAIR

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