buy penny stocks, penny stocks, penny stock alerts, hot penny stocks, hottest penny stocks, best penny stocks

What to do about AMWI come Monday?

Like Us On FacebookAmwest Imaging Incorporated (AMWI.OB) regained some of its momentum gaining 40.38% to close at 0.365 to regain its claim as the best penny stock of the week.. AMWI was very good to us so far.

buy penny stocks, penny stocks, penny stock alerts, hot penny stocks, hottest penny stocks, best penny stocksOur readers who did buy AMWI at our initial alert should be up about 700% right now.

It has been very hard to not make money with AMWI up to this point.

As the holidays approach, we’re all thinking about our ever-growing shopping list. Speaking of endless growth, have you seen how well AMWI is doing?

buy penny stocks, penny stocks, penny stock alerts, hot penny stocks, hottest penny stocks, best penny stocksWe experienced a speed bump on thursday which was very unexpected. What caused the retraction was bogus “news” released by a horrible greedy person. Please refer to our email from Friday morning for a full brief of those events if you haven’t read it yet.

This goes to show us that AMWI investors are smart and well informed, and were able to fully understand that AMWI was oversold on Thursday for essentially no reason.

So not only did they hold through Thursday, but many people did buy much more AMWI.

Is $12 still possible? Anything is still possible, but we will have to regain the $1 to $2 levels first which could realistically be obtained again.

Many think that it could easily go back to over $1 by early next week, and then possibly resume its ascent as it was doing earlier.

Short-Sellers must be furious right now. Their attempt at rattling the cage last week didn’t work out as well as they had hoped it would.

They are still short a huge amount, and seem to have increased their short position even more…

Here comes the nice Saturday read

…According to finra.org’s regsho list. A total of 37,235,015 are short as of yesterday.

That’s right around 15 million dollars short at Friday’s closing price.

(We may get a bit technical here and if there is something you don’t understand you should look it up on investopedia or wikipedia.)

What often happens is that market makers become short-sellers as they have the power to do that without necessarily having to borrow the positions first (naked short-selling). These guys don’t play by the rules you and I have to deal with.

Margin requirements are very tight, and they can only hold an ‘upside down’ position for so long before they are called to cover.

So what happens is as AMWI increases in price it puts them in the hole more and more until they are ‘called to cover’. At that point they are forced to buy back the shares in the market (which is what we call a short squeeze)(they are literally squeezed in a corner and forced to buy back automatically).

This creates a chain reaction as not only market makers are forced to cover their position, but gents like sykes and his posse (if they are short) have to cover as well.

This flurry of ‘covering’ creates amazing buying pressure on a stock as everyone is trying tobuy at the same time, and there is not enough shares around. It becomes a very basic Supply/Demand scenario…

and we like to call that the ‘lexg’ effect. This is a little pennystock that we have been mentioning here for the last couple of weeks that shows the power of a short-squeeze, and how profitable it can be for participants.

LEXG soared from around 50 cents all the way up to nearly $12 just a few months ago.buy penny stocks, penny stocks, penny stock alerts, hot penny stocks, hottest penny stocks, best penny stocks

If we could even conservatively achieve half of that with AMWI we really think everyone will be very happy.

In our opinion it may be very possible because as we get into the end of the month the short-sellers have to cover. Usually that’s how it works as they cannot carry short positions on their books from one month to another, however they do have some work arounds for that so…

this leads us to the punchline… on top of this timing being the end of the month it is going to be the end of the year as well, and they DEFINITELY can’t carry a (naked) short position through the end of a year so they will be automatically forced to cover very soon here.

As long as AMWI can persist with a solid price per share through the month we may very well get a beautiful christmas gift. At least for everyone who did buy and hold AMWI. The others who didn’t buy or didn’t buy and hold through the year might be watching everyone else make money except them.

Everyone is looking past Thursday’s incident as it was artificially created by short-sellers to serve their agenda, and AMWI issued an official statement rebuffing the absurd ‘news’ release.

Patience in such situations. Holding the fort solidly could pay off in a big way. Many of you experienced that first hand last week by holding through Thursday’s fiasco.

We will continue covering AMWI at least through the end of the year as it could get extremely exciting, and will keep our members posted on a daily basis!

AMWI is bouncing very strong.

Your smart judgement could pay off!

Would you like to receive the #1 rated penny stock newsletter?

If you answered yes, then receiving Aim High Profits’ Penny Stock Alerts will help guide you to some of the biggest and most profitable trading alerts and techniques that are proven to bring in the “big bucks”.

Visit http://www.AimHighProfits.com to find out more.

AND AS ALWAYS…………..

  • Do your own research.
  • Verify everything.
  • Do not use market orders to enter a position, use limit orders.
  • If a stock gaps open look for pullbacks to enter.
  • If a stock breaks below our alert price GET OUT. Do not wait.
  • Always use stop loss orders to protect yourself.
  • Always take your profits whenever you can. Do Not Be Greedy.
  • Do something to make someone else’s life better today.

Good luck in making the best penny stock picks. Have Fun!!

 

Advertisements

Got Something to Say or Add......

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s