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Wednesday, February 10, 2010

Readers Respond: BIEL, MSBT, Day Trading

BIEL.pk: A comment from Shep regarding my 'Readers Respond' post yesterday in response to a question about BioElectronics:

Another problem with BIEL is several trading firms won't allow 'buy' orders. A few I've heard about are TD Ameritrade, Scottrade and I believe ETrade. The reasons for this have never been made quite clear but the message boards abound with theories. You've got a whole cadre of folks out there who can't buy, but can only sell. That makes for depressed prices until the flood gates are allowed to be opened. I say allowed because I believe there is a bit of chicanery going on behind the scenes. My advice: open an account with Zecco and load up at these prices.

VFC's Take: Thanks for keeping me honest, Shep, I did not mention the problems that many existing investors and potential buyers have had purchasing the BIEL stock over the past couple of months. In fact, I've also heard that members of the USAA investing services are also not able to purchase shares of BIEL through the program.

For those that haven't followed my take on BIEL, I've discussed this issue HERE and HERE over the past month or so.

While this enigma is not solely responsible for the drop in share price, it is definitely a factor as many investors have tried to add shares on this dip and couldn't.

Regardless of the reason behind the madness, the small investor is getting the bum-end of the deal on this one, at least those that are investing with brokerages that won't allow a BIEL buy order right now.

Message board chatter of "The brokerage houses are just protecting their clients" is pure garbage. If that were the case, then they wouldn't let you buy just about any speculative penny stock.

It's my opinion that someone is making out pretty good on this drop, and is being allowed to add at will for below three cents. I'm not privy to the reasons as to why some major brokerages are not allowing BIEL buy orders right now, but I'm not complaining as I've been adding shares myself.

As for Zecco, I agree with Shep. I'm in the process of transferring just about all of my Sharebuilder and E-Trade holdings to my Zecco account because I've never had any problems whatsoever buying and selling any stock with Zecco. They also don't have a 'large order' fee and charge only $4.50 for buy/sell orders - no matter how large or small.

You also get ten free trades a month if you're sporting 25k or more in your account.

It's tough for some investors to see BIEL trade for around three cents for so long, but - in my opinion - it's time to take advantage and buy. If that means opening up a Zecco account, then so be it.

Thanks for the comment, Shep.

Disclosure: VFC is long BIEL.

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MSBT.ob: A comment regarding MedaSorb Technologies:

Hi Vinny,

I was wondering if 6 to 7k in msbt would be well to risky at the current price point of 0.17-0.18, thanks for your time

VFC's Take: I cannot honestly or legitimately answer this question for a couple of reasons.

For one, I'm an opinion-based stock guy and I'm not in the business of suggesting how people spend their money.

Also, it's difficult to gauge that investment without knowing how much 6 or 7k is in relation to the total portfolio, let alone in relation to 'free cash' for the investor.

MSBT could pay off very, very well if the European Cytosorb trials for severe sepsis turn out positive, but the stock could also plummet if the trial fails.

It's up to each investor to develop their own entry/exit strategy based on their own DD. Those investment strategies should include the availability of free cash or 'night on the town' money available with which to invest.

Thanks for the interest, but that is a question that I cannot answer.

My only suggestion would be to not jump in all at once - buy in at seventeen cents with maybe half of the total amount that you planned on investing in MSBT and hold the other half on the sidelines in order to average down if the opportunity presents itself.

This way you're not as bad off if the stock drops after your initial buy, but you also won't miss out on a run if one does occur.

All just my opinion.

Disclosure: VFC is long MSBT.






From Skip regarding a start on day trading:

Hey Vinny,
I am interested in starting to do some day trading, I already have a few positions. However I was going to try and make a jump to day trading and was wanting your opinion on a couple of issues I have.
What would you consider a proper starting bankroll?
How many stocks would you ideally want in your portfolio at a given time?
As far as online brokers I am leaning towards Think or Swim, any comments on them?
Thanks for your efforts..
Skip


VFC's Take: I'll start my response in similar fashion to how I started my last response - I'm not in the business of managing money and it is impossible to ascertain how much an investor should start with without knowing his or her overall financial situation.

VFC's Stock House is stricly an opinion-based stock investing website and nothing more, it's up to each individual investor to devise entry/exit strategies based on their own DD and financial situations.

As for the question of how many stocks you want in your portfolio I would say that you don't want any more stocks in your portfolio than you can manage and stay on top of, in terms of information.

It's my opinion that you should never look in your portfolio and not recognize a stock; put another way, every time you look at a stock in your portfolio you should know exactly why you invested in that stock and have a general idea of where you would buy or sell some (if not all) shares.

I have no experience with think or swim so I cannot offer an educated opinion on their services, but I will say that I use Zecco almost exclusively at this point and I've never had any problem with them.

I still use Sharebuilder for my long term picks (IRA) and for stocks that I need to buy quickly (via Sharebuilder's Express Funding option) but may not have spare cash in the Zecco account at the time.

Good luck with whatever decisions you make, and thanks for the interest in this site.

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9 comments:

  1. Open you fat mouth about CVM.

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  2. Gotta love anonymous tough guys. This site only offers suggestions based on informed opinion (and only as well as one can be informed at that). If you think that CVM wasn't a wise purchase then you've only yourself to blame.

    I actually stopped in to comment on CVM too but couldn't let the tough guys comment go unchecked. This one has been falling on lack of anything new, but today it's really down, and I was wondering why. Then I saw that Feuerstein and The Street put out a three part hatchet job on CVM today. It's fairly detailed and if true, troubling. The problem is knowing what's true and what's more Street fluff. Since Feuerstein has admitted he likes bashing because it makes for sexier "journalism", it's hard to make a judgement. I was never heavily invested in CVM and am in fact still in the green. Still I'm wondering if I shouldn't have sold at 1.80 and made a small if tidy profit. Oh well...water under the bridge at this point. Nearly everything is either down or flat right now so we're in a slump. Time to keep our heads down, look for bargains and wait it out.

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  3. Hey VFC -- Not sure how to contact you otherwise but would love your thoughts on the OTCBB, Rotech Healthcare (ROHI)'s just awarded but unannounced $88MM gov contract.

    https://www.fbo.gov/index?s=opportunity&mode=form&id=917e99e66e4388d62b787ccd5980232a&tab=core&_cview=1&cck=1&au=&ck=

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  4. Do you follow AMLM, a lithium play? Anything new with GNBT?

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  5. Vinnie,
    What's your view on the merger of PWRM?
    How do you think that will affect the share price?
    As always thanks for your thoughts.
    Geo.

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  6. Anything new in regards to SIGA?

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  7. Hey Vinny,
    I've got a few stocks I've been looking to invest in and wanted to get your opinion on them. Also which ones do you think might be better suited for short term profits, Mid term and Long term profits.
    I will start with TTRX.ob, has anyone been able to find any information regarding a licensing partner for Nemifitide?

    MHAN.ob do you think this stock has a heart beat at all, when dealing with Hedrin?

    ACTC.ob any new comments on this one?

    MCET.ob?

    AGEN Do think the conference call on February 18th 2010 will be of any significant value to us whether thats up or down?
    Also do you think AGEN is a good day trade play?

    As always thanks for the opinions you provide!
    Franciso

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  8. All,

    I'll back very soon. Appreciate the interest and comments.

    Enjoy the Olympics and go Team USA!

    Except for the guy with the VFC fetish. Not sure whether or not to be flattered, creeped out or annoyed by the attention from this message boardtough guy. I will say this, though, I've got no time for personal attacks.

    And if this is all you have to bring to the table: "Open you fat mouth about CVM.", then there's no need to wonder anymore why you never got picked for dodgeball in grade school - cuz you bring nothing to the table.

    We're here to discuss stocks, leave your bitterness and agendas at the door. If you got something to add (and most do), then add. If not, adios.

    If the small investor threatens you, then don't read VFC's Stock House.

    I'll be back in a few days - for now let's enjoy the fact that dozens of nations have joined the forces of peace in Vancouver to compete in a friendly manner for a couple of weeks.

    If only the bears and bulls could get along so well in a competitive manner; but you've got to be able see people as people first, and not dollar signs.

    VFC

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  9. Hi VFC
    Have a good time, and we are waiting for your comments!
    Bye

    ReplyDelete

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