KIOR Beat downKIOR has a black eye that looks so bad, it seems to have hit every piece of furniture and stairs on its way down to the basement. Management has send the distress call that they need money now to keep the doors open. Most people would write the company off and let it bleed out. But.... There seems to be a little bit of gold buried deep down inside KIOR.
Lets face it. No one likes Ethanol. Even thou this form of ethanol doesnt harm a single shred of corn. Cellulose Ethanol hasn't been well supported by the government and Oil hates it. However, the EPA has been taking a very very long time in reformulating the RFS and we think there may be some relief in store for companies like KIOR. If it can hang on of course.
The only other thing KIOR has going for it is its PATENTS. www.faqs.org
As you can see the company has a lot of them! Enough to change the valuation dynamics of the company.
This is an all or nothing one way bet. A long here puts all capital at risk of instant bankruptcy death. Of course, should the stock rally, the pay of could be huge.
Speculative long only.
Ethanol
AMTX Sleeper Bull$AMTX has been a stunning example of a stock with all the signs of a great bull run. AMTX is very similar to another stock we cover called Pacific Ethanol ticker $PEIX. We have been following the AMTX since it crossed over its EMA Daily lines in March 2014. The stock being uplisted to NASDAQ in June gave it more room to run from 6 dollars up to a high of $13. Last month there was a spook article that was published that created a create opportunity to buy into $AMTX at a great discount. The stock has never looked back since its dip to the low 6's. The article proved to be false to a large degree and the stock remains to be very stable at 9.50. We see the stock poised to move higher again to re test its highs at 12 dollars. We have plotted our support and resistance lines.
While this is a small Ethanol pure play, the volume in this stock is very low. So expect huge swings if the stock does in fact move higher and break 13 resistance.
Our target on this stock is 21.76
We are long this stock from much lower levels so our risk tolerance is very high. New positions should take an averaging in approach, attempting to catch the stock on pullbacks. AMTX should remain very firm at or around 9 dollars due to large support.
PEIX PACIFIC ETHANOL SLOW STEADY ATTEMPT TO WAVE ITS WAY TO ATHIF A COMPANY HAS CONTINUED GROWTH IN A CHANNEL WITH FLAWLESS STRENGTH AND A NICHE MARKET FOR A PRODUCT USED AS NECESSITY IN AN ECONOMY STRUGGLING TO FIND PRODUCTION YET PRODUCE OIL AND GAS WHICH IN TURN GASOLINE RISING AT THE PUMP AND CORN BASED ETHANOL OUR ATTEMPT TO GO GREEN IN A DIRTY BLACK FOSSIL FUEL LOL. THE GOVERNMENT MANDATES A PERCENTAGE IN EACH GALLON OF GAS AT THE PUMP MEANS CONTROLLED COMMODITY THAT EQUALS CONTROLLED GROWTH IN PRICE BY DEMAND AND INFLATION WILL LEAD TO HIGHER PROFIT MARGINS THE STOP I WOULD USE IS A TRAILING DAY BY DAY XYB NUMBER WHICH IS HIGHER THAN THE INDICATOR GAVE US OUR BUY WINDOW IT WILL ALSO GIVE US A SELL STOP TO ENSURE BREAKEVEN HOWEVER I WOULD PLACE IT BELOW THE XYB BY A DIME EACH DAY.
TO ENSURE THAT THE PROFIT IS MAXIMIZED I WOULD USE THE WXT DAILY ONLY ON A CLOSE ON OR WITHIN FIVE CENTS OF THE HIGH OF DAY WITH LOW VOLUME ESPECIALLY. YOU COULD THEN BUY BACK AT 8-10EMA IF IT HOLDS THERE AFTER A TWO TO THREE DAY SELL OFF YOU COULD WRITE CALLS ON IT IF IT CLOSES ON WXT THAT DAY AT CLOSE INSTEAD OF SELL AND SHORT TERM EXPIRATION SO YOU COULD BRING MOST PROFIT OFF COST BASIS INSTEAD OF A SWING TRADE DEPENDING ON POSITION SIZE THIS USUALLY OCCURS IN THREE DAYS OR SO FOR SELL OFF TIME FRAME TO SUPPORT LARGER BLOCKS SELL 70% OF POSITION THEN BUY BACK ON EMAS SO THATS THREE OPTIONS ON HOW TO MAXIMIZE TRADE
1LONG TERM FOR ALL TIME HIGH YOU WRITE CALLS AT WXT ON CLOSE
2 SWING TRADE SELL OFF 70% OF POSITION WRITE CALLS ON 30% THEN BUY BACK ON 8-10 EMA SUPPORT HOLDING FOR DAY OR TWO THEN BUY BACK ON UPTICK DAY COVER CALLS THEN REAVG AND REPEAT TRADE AS LONG AS NECESSARY
3 PURE TRADE SELL OUT IN FULL AT WXT ON FOLLOWING DAY ON DOWN TREND THEN FULL BUY BACK ON STABILZATION AT 9 EMAS REPEAT AS MANY TIMES AS REQUIRED TO CAPTURE HIGHEST PROFIT MARGINS USE LEVERAGE AFTER BEING UP 15% TO FULLY CAPTURE DOUBLE PROFIT POTENTIAL.
This is a pick from the master BILLY 4th of JULY 90 percent correct on his buys... MENTOR TO JACKIE MOON AND MYSELF DOES HE EXSIST OR IS HE JUST A CONCEPT THAT THE WORLD CHASES HOPING TO UNDERSTAND HOW THAT ELABORATE FIXTURE WE CALL HIS BRAIN WORKS ALL THIS CREATED IN THE BLINK OF AN EYE ..... BUY BUY BILLY 4th OF JULY ALWAYS BUY ALMOST ALWAYS SELLS PAST HIGHS
I attached the links to show how the sell from WXT occurs then the support at 9 ema 8-10 stabilizes the 9 initiates buy backs
