Short-term winning strategy that paid 64% during AXMM promo
Chart Image courtesy of Yahoo Finance
On July 24 of 2015, our in-house software flagged AXMM as a stock promotion to-be. We did not write an article about it as to avoid a conflict of interest whilst planning to MAYBE play this promotion ourselves… which we ended up doing.
Because we sold out of all our positions in stock of Axiom Corp. on July 30 of 2015, we’ll now do a quick write-up here of the “process” we used to make a small albeit nice nominal profit during the initial AXMM promotion yesterday. We’re not saying the promotion is over, we’re just saying we’re out for now. We rarely hold on to promotion plays for longer than 24 hours.
- Found two landing pages for AXMM on 24 July 2015 via our software at Sladderdash.com. This motivated us to do a little due diligence exercise, outlined in the next bullet points.
- Checking the AXMM Financials on finance.yahoo.com, looking through some key data points. As is usual with stock promotions, the financials of the promoted companies are nothing to write home about:
- $–50 000 operating income reported December 31, 2014. Deteriorated to $–379 000 reported March 31, 2015;
- $1000 of current assets as of December 31, 2014. Improved to $235 000 current assets by March 31, 2015;
- Current liabilities deteriorated from $-82 000 on December 31, 2014 to $-499 000 by March 31, 2015.
- On July 29, 2015, checking if the stock was previously promoted:
- Twitter and Investorshub: seems promotion is beginning, but not yet intensive and not that obvious;
- Via e-mail: Sladderdash did not receive any promotional material through e-mail yet;
- Buying in a small position on July 29, 2015 after morning peak settles around $0,032 (still a risky 16% above previous day’s close)
- Selling out of small position on July 30, 2015 at around $0,0526. Why? We observed a sudden drop in the intensive messaging volume on Twitter and Investorshub, leading us to belive the HOD was near or had already arrived.
This trade yielded 64,375% profit before tax and transaction costs. Our position was not a large one as our order did not fill completely.
Will the AXMM promotion continue? Today, July 31 of 2015, it sure looks likes there will be more messaging going around.