Good morning mi amors!
It’s that time again to feed da bears, because if they go hungry for too long they tend to go on raids and who wants that? haha
***MUST READ: Short selling is NOT for amateur roaches, and with shorting your losses can be endless, where you not only lose your initial investment, but you can end up OWING money to your broker.****
Short selling is the opposite of buying low and selling high aka going long as we usually do here at the StockRoach. It’s where you sell short or bet on a stock’s price declining and then covering, or returning the shares at a lower price. So the more a stock’s price drops, the more money the short seller makes.
So without further ado, I present los osos (that’s the bears in spanglish) with Antares Pharma, inc. (AMEX: AIS), this is purely a tech short on a biotech that has seen a 33% increase in the share price within a 1 month time span. As you can see from the following chart, the accumulation level is near it’s peak and to be quite honest I personally do not see AIS as a chart buster, so you know what that can mean. That’s right TIMBER!
AIS chart: http://stockcharts.com/h-sc/ui?s=AIS&p=D&b=5&g=0&id=p00001912606
The bullish engulfing candle formed on the daily chart was in my opinion due to a few well known newsletters pumping the crap out of this bio-tech that supposedly has some super secret deal with Pfizer which to me sounds sketchy. They specialize in drug delivery devices aka needles, and imo for the pipeline they currently have which most are still in clinical trials, they price seems a bit artificially propped up in my humble roachy opinion. They do have 2 treatments which have been filed for ANDA and everyone knows that can MONTHS, and of course nothing up for FDA approval anytime this year. Take a look at 2012′s FDA approval calendar, no mention of Antares anywhere:
http://www.rttnews.com/corpinfo/fdacalendar.aspx (Look, our favorite bio-tech BPAX (Biosante pharma) however is on the FDA calender for Feb. 14th where the FDA decides the fate of Bio-T Gel).
So how would such a short play work out? Well watch for any buying pressure since you have some newsletters pumping it (they must really want out and they need suckers to buy those shares that they most likely accumulated at the rock bottom price of $1.70), also AIS has had mucho problemos breaking that 50 DMA of $2.32 with another resistance level of $2.50 to watch out for, while the 200 DMA at $2.16 has acted as support.
So bears, watch closely because if AIS cannot break the 50 AGAIN, then it looks like it could be a quick ride on the short bus to potential profits. Just how low can it go? Well there’s a lot of frustrated longs or baggies in AIS that might just sell for even because they don’t want to hold for months and just give up their shares and move on.
IF AIS breaks below the 200 DMA support, then say goodnight sweet prince because the next level of solid support on that piggy is $2.00.
Keep an eye on the StockRoach Twitter because your Senorita might have a snack for the bulls if I see a runner or if I see a hot stock that’s gearing up nicely for a breakout.
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Senorita “Feeding the bears” Roachita
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