Solucorp Update... The Spamalot Files

Dear reader,

Solucorp has turned into a soap opera that almost defies belief... The SEC has now suspended trading of 35 companies in connection with spam emails that apparently hyped said companies based on erroneous or false information about their financials.

Solucorp was one of the companies whose traded was suspended (on March 7).

Tomorrow, the stock resumes trading once again... and we'll be watching it closely.

I must add that now that the audited financials have come out from 2004, and unaudited financials from 2005, that the basic business was not strong as of 2 years ago. This was impossible to tell when we recommended the company, which illuminates the difficulties of trading in the pink sheets...

Again, we have forever banned pink sheet stocks from Green Investments going forward... live and learn.

That's not to say we couldn't see Solucorp go on a little run after resuming trading... and if it does, we'll watch closely... and close out our position as soon as it makes sense.

I noticed our BG options rallied 37% today... so all the news isn't bad.

Steer straight,

James

Cell CTEX at $0.0035

Well, we gambled a bit and lost... Sell CTEX now at $0.0035... This will represent a 51% loss on this position as it crashed right through our sell stop yesterday afternoon and closed well below it...

Follow up is forthcoming...

James

Sell CTEX Today... But Hold for Now

We'll sell CTEX today... it went below .0042, which was our sell stop, yesterday... but we'll wait a bit today on the early morning rally and try to gain back a few points... Watch for the sell order on the rising market.

James

The Hot, Tedious Summer Ahead

Frankly, it's uncanny...

This morning, I issued a sell on 1/2 our remaining Bunge $80 April calls... We locked in a 15% gain by doing so, meaning so far we have closed out 75% of our position for about 14.5% gains in less than one week.

Since I issued the sell, the markets have stalled again...

The BG options are now trading at $1.65... We got in at $2.35, so if we had to close out the remaining quarter of our position today, we'd be staring at a 29% loss on that part of the position... Luckily, we have more than a month to go...

I like our chances here still, especially if the Fed does nothing with rates, or cuts rates...

Even if the rest of the position expires worthless, we'll still have netted 10.75% from our position... So worst-case scenario, we lock in double-digit gains in about a month and a half... while the broad markets are careening into the ditch.

Still, I think worst-case is... well... worst-case... It seems more likely that Bunge will see at least one attempted rally toward our strike price... and when it gets close and we see more green on the table, we'll pounce.

CECO KEEPS CHARGING AHEAD...

In other news, CECO has defied all the odds and is up almost 1% on the day, and is now trading about 70% above our entry price from a couple months ago. Our trailing stop has been raised here, meaning that no matter what happens, we'll lock in sizable gains on this position as well.

I can't help but be amazed at CECO's run so far this year... and it could get even better should the markets attempt another gasping rally before what promises to be a long, hot, tedious summer...

Cheers,

James

Sell half remaining BG calls

Sell half the remaining BG calls to lock in another 15%... This will leave us with 1/4th of our original position... and lower our risk exposure as the markets continue their volatility shake-out... and the subprime lenders reap the rewards of their reckless past. (To say nothing of their really unfortunate lendees, who are facing foreclosures... bankruptcy... psychological damage and all the rest...)

The remaining 1/4th of the position we will let ride...

So this means we'll have locked in 14% on half the position... 15% on 1/4 of the position... and we will see what happens with the rest.

Not bad for one week's work... and we could see a nice spike from here... In fact, I'm confident we will.

But again, when you can take double-digits off the table in this kind of market, with stocks falling again today... we'll do it. This is the key... finding the "efficient frontier" where your risk/reward behaviors are perfectly balanced and taylored to the market... We'll go with the flow and take profits where we can.

ACTION: Sell half the remaining BGDP.X position at $2.70 or better. We got in at $2.35... and the options are trading at $2.70 today, up 4.65% on the day... Meaning we're locking in 14.89% by selling at $2.70.

Good day,

James

Smile... You Just Saved 6%

We must know the lemmings well...

I hope you got filled on the sell order for 1/2 the BG calls... because in the moments after I initiated the recommendation, the calls dropped 6%.

They're still 8% above our recommended price from yesterday, but this was exactly what I was talking about...

The markets are spooky. You need to watch your butt. And when you can get in and take a quick 14% slice of the action... and get out like a ninja killing machine... you better do it right now. Because although we've seen three years of almost no volatility in the broad markets, that's all changing now, baby blue.

Good day to you,

James

Lock in 14% on BG Options... In Just 24 Hours

Sell half the Bunge April $80 options now to lock in a 14% gain in about 24 hours. We could be looking at significantly more upside over the next month or so...

But with the markets acting spooky still... and the lemmings in the financial media rattling their sabres of self-fulfilling prophecy... dear hearts, let's take a quick double-digit gain off the table and hold on for what could be a fun and wild ride for the next few weeks.

We bought at $2.35 or better and will be looking to sell at $2.68 or better... Work your order, see how close you can get... and pocket the proceeds.

We'll let the other half of this position run, because I do see Bunge going in the money on these calls within the next two to three weeks... particularly after the Fed announcement on March 21. (Hint: I don't see Bernanke raising rates or lowering them... and historically, that has been a tremendous thing for stocks... During times when the Fed does nothing, stocks outperform by nearly 10-1 over periods following the announcement of a rate adjustment.)

Meanwhile, I've noticed that CTEX did bounce its big, silly head off the top of its normal range and is now threatening to stop out again... Good times, eh?

Good trading,

James