Well the last two days have been challenging to find easy pickings to say the least which is why I’m setting up an account to short stocks too. I took a pretty good beating trying to scalp LEXG and LEE so I decided to look outside penny stocks for a quick hit toward the close. Now I’ve been watching Demand Media Inc. (DMD) since before it went public. They are basically a content farm that creates a bunch of marginal content and then Google picks it up. When Google changed their algorithm recently, DMD went in the toilet… rumors were that it was pretty overblown and I agree.
So today was their day to report after hours and my gut told me it was going to be good. Just before the close I grabbed 1k DMD at $16.30. Again, outside of my normal range but my strategy, Penny Stock Warfare, definitely applies to the big boys too, it’s just penny stocks are much, much easier to make a living in due to the countless suckers who throw money at anything looking to get rich. Let me put it this way, it’s like poker, if you can’t spot the sucker at the table… then you’re probably about to get fleeced. There isn’t as much of that above $10… which is why I’ve setup shop here.
Anyway, right around 4:15pm EST the financials hit and my order was ready to fire at $18.80 and within seconds I was filled. Honestly, I think I was the first after hours sale or damn near close. As of this writing, 7:03pm ESt, it’s at $17.60.
So to close I’d like to give kudos to a fine execution – finally from ETRD!
Oh and I’d be remiss if I didn’t mention, it’s hard to bet on real stocks’ earnings so this isn’t for the untrained eye. There’s a lot of pros betting on them and they all have more info than we do. I just went with my gut here.