Beware of Penny Stock Offerings when Day Trading- $AVEO $OPTT SEC Filings for Beginners

March and April are historically the best
months for small cap penny stock runners. The past week we’ve seen penny stocks like
OPTT, AVEO, PULM go up hundreds of percent in one day. While all these companies have each their
own headlines and news release that got their stock price pumped up, not a lot of people
actually dig into their SEC filings and see exactly why these stocks are soaring. Spoiler alert, these companies are not releasing
PR to make you, or the investors, money. Today we are going to do a deep dive into
two specific penny stock companies filings, OPTT and AVEO. Uncover their dirt. And find out exactly what’s going and how
you profit from these sketchy penny stocks. So make sure you hit that like button and
subscribe if you havent already! First one , OPTT. A former runner. On April 2, 2019, the stock closed at $5. Today, Wednesday April 3. It opened at around $8 and ran all the way
to a high of $16. That’s a 300% return in a short span of
two days. If you go to yahoo finance, you can see that
the press release headline that got this hot stock hiked up seems to be “Ocean Power
Technologies Wins Contract with Leading Oil & Gas Operator”. So thats the news that was released premarket
this morning. I’ve been in many penny stock trading chat
room before. And they beginner teach traders, oh just scan
for the key words in the headlines. If there are key words such as “win”,
“contract”, “agreement”, “patent”, those are catalysts that will drive the stock
up so you should buy it. And that is true, to a certain degree. But if you buy into that kind of headlines
every time, yes you’ll make money sometimes, but a lot of times the stock will sell off
and you’ll lose. It’s basically a gamble. So let’s look beyond just the headlines
and actually skim through the article. HERE OPTT), a leader in innovative and cost-effective
ocean energy solutions, has signed a contract with a leading oil and gas exploration and
production company to complete a 12-week paid feasibility study that will examine the use
of OPT’s products and services in monitoring subsea wells during decommissioning activities. So if its such great contract that warrants
a hundreds of percent stock price increase, it should be worth millions of dollars right? But it doenst say how much this “LEADING
oil and gas exp, prod company” is paying OPTT for the contract. and this article also doesnt mention who exactly
this client is. If its such a great contract, why wouldn’t
you tell the investors? Next let’s look at their SEC filings. Because this is where things get interesting. So I dug up their recent filings. And I went through it for you. Because i know no one wants to read this complicated
looking stuff. But i read for you guys, so please give me
a like down there and subscribe. So OPTT had an 8K filed on March 14, 2019. It was a notice of compliance from the NASDAQ. Basically the exchange will delist the stock
if they do not get their share price above $1. When that happens the stock will get delisted
and go to OTC, basically the pink slip stocks Jordan Belfort was pumping in the Wolf of
Wall street. So obviously this penny stock company OPTT
wouldnt want that. And thats why they did the 1to 20 reverse
split on March 20. Their stock was trading around 20, 30 cents. After the split it’s about $6. Now theres generally three purposes for a
penny stock company to reverse split their stock shares. First, to maintain the $1 price and meet NASDAQ
compliance and stay listed there. Second, by staying on NASDAQ the company will
stay attractive to investors and be able to raise more money, because who in their right
mind would want o invest in OTC stocks? Third, is to tighten their stock float. The amount of common shares outstanding thats
available for trading. And why does OPTT want to reduce their float? Well, when the float is small on these small
cap penny stocks, the prices can be pushed up or down much easier. Thats how we ahve all these supernova stocks
like BPTH, HUNT that can go up from single digits to double digits within a day. I also took a look at their balance sheet
statements for you guys, because thats how much I care. And besides, what else am I going to do anyways. Go out an enjoy the nice weather like normal
people? Please Anyways, the short summary is this company
is basically burning cash like crazy and they are out of money. So now we know this penny stock company is
needs more cash, they reverse split their stock two weeks ago to stay listed on on Nasdaq,
to stay attractive to potential investors, to reduce their shares float in order to easily
pump their stock up with this empty press release headline from this morning. And all of those information, are for what? Hint, it’s not to make you and I money. It’s SO they can do an offering. This is their form S-1 filed this morning
with the SEC, to register new shares to offer to investors. And this is their presentation that they’re
probably showing to investors. They need to offer their stocks to raise $15
million dollars. And that is the real reason OPTT needed to
prop their prices up this morning with their float float shares. To drive the prices up by a fluffy news release. To get traders and investors to sink their
money in. And to announce an offering soon, maybe Thursday
or Friday. To raise $15 million dollars. Because they are cash poor and cannot stay
operating. Even if the contract in the news headline
was real, they still need to raise capital to fund the project anyways. That was fun. Most people my age find drinking, clubbing,
partying fun. But not me, I like reading SEC filings. Ok now that we’ve uncovered some dirt on
OPTT. Next hot penny stock of the day is AVEO. I actually traded this one yesterday on Tuesday
on the long side. So on the daily it shows that AVEO was trading
around sixty cents before this huge run up to almost two dollars. What exactly caused the run starting on March
27? So I did exactly what I just did with OPTT,
they have some press release. Upcoming conference, positive reports, filing
for FDA, not approved by FDA btw. Just filing, for FDA. Two very different things. Again, sounds like the same fluff as OPTT
right? After watching the first part of this video
hopefully you can tell now this penny stock company AVEO is obviously trying to drive
the stock up with these empty press releases. But why? And it turns out, just like OPTT, AVEO also
got an 8K delisting notice from the NASDAQ. If they don’t keep their prices above $1,
they will get delisted. And also, in their recent 10 K filed with
the SEC. The company said it themselves. They have lost a lot of money. They are not sure if they’ll ever be profitable,
and they will require additional funding to stay operating and continue their drug research. While AVEO didn’t do a stock split like OPTT. It’s no surprise that the company did an
offering after hours today on Wednesday, April 3. I am quite curious though. They are doing an offering sell their shares
to raise cash. The offering price hasn’t been disclosed
yet. But at the same time, they also need to do
whatever they can to keep the stock price above $1 for at least 10 consecutive trading
days to stay compliance with NASDAQ. So keep that in mind. This one dollar line will be very interesting
the next few days. Im not saying to buy or sell the stock. But knowing all these SEC filing info will
help with your trading. At the time of this video recording, OPTT
hasn’t announced an offering yet, but it’s definitely coming. They’ve already registered their shares. All these information is there. You can decide what to do with it. If you guys want to learn more about day trading
strategies whether it’s overnight penny stocks or playing sector sympathies, I’ll
link the videos and playlist up in the top corner. Either that corner or that one, idk. It’s by going beyond just the headlines
you will find out the real reason these penny stocks are being pumped up. Yes you can definitely make a lot of money
just by picking the right penny stocks and go long from $5 and sell at $10. But if you don’t know the why that the stock
is up, it could be very very dangerous down the road. These penny stock pump and dump happens all
the time every week. Most people don’t spend the extra time to
read over the filings but it’s by doing a little bit more work that will give you
the edge in making theses trading decisions. I want to give huge shout out to my trading
buddies in the chat room, Gene, and Orane, for helping me out with reading SEC filings. Thank you guys, you guys make me a better
trader every day. So hopefully this video shows you my process
of analyzing penny stock news, reading their SEC filings and figuring out exactly what
the company is trying to do behind those headlines. I’m not saying it’s the right way or the
only way. But this is my process and hopefully it’ll
help with yours as well. If you enjoyed this video , don’t forget
to smash that like button and leave a comment for me down below. I really do appreciate all the feed back and
i do reply them all. This is the humbled trader. Thank you guys again for watching and i’ll
see you next time.

57 Replies to “Beware of Penny Stock Offerings when Day Trading- $AVEO $OPTT SEC Filings for Beginners”

  1. Lol, yes this video certainly helped! It gives you a direction of where you to look for further info needed to make wise decisions

  2. Very interesting. Im curious as to your process. DO you wake up, check your scanner then dive into the news on the biggest movers pre-market? Very interesting. Also, can you do more videos on swing trading? i was looking at WFC for a swing trade, but as per your guidelines, there was not an uptick in volume.

  3. I can totally tell you are liking YouTube. You're about 700 subscribers now. I think you gain at least 100 or maybe two hundred from the last time you posted a video lol. Btw, some people make a short story or a post on Instagram and Facebook with hash tags to advertise their new YouTube videos to attract more subscribers. You can do so too if you think it's a good idea. But, I see you're doing a lot of work with your description already. Some people just record their video in one shot and no additional editing. Of course the video quality isn't perfect but the topic is valuable and the content meets the topic so it's enough. So I think you can totally do less work and still gain more viewers.

  4. Oh wow great video ! I'd never know that reading SSC file is certainly helpful. BTW I'm in Vancouver as well, just wondering which broker do you use ? I'm trying to get to the US market but not sure which one to choose.

  5. Very informative humble trader, I had to watch it a few times because there was a lot of info in this video regarding day trading penny stocks. Keep up the great work 👍

  6. lol yea, your kind of fun is more or less the same as mine. except since i look at balance sheets all day, i do more of the stock scouting instead

  7. Just stumbled upon your channel recently from btb. Nice videos. And I like your style in your videos. Keep up the good work.

  8. how come companies like yriv was able to stay under 1 dollar share price and didn't get delisted from nasdaq? btw learning so much from your channel. thank you.

  9. Every single video is absolutely amazing!
    No time wasted, to the point, clearly explained, great sense of humor, points discussed are well organized!

    You are the best! 🙌🏾

  10. Hey this video is so helpful! Thanks
    Do you think its a good buying opportunity when a stock is like at 50cents/share and has the warning of being delisted ? so you probably could get 50c/share profit ?

  11. dropping a comment and a like. you will make some guy very happy and that guy will be very lucky to have you. very rare to find smart women who are interested in finance. Blessings to you!

  12. I really like your video cuz your video explains strategies to buy penny stock. I am wondering how long have you been trading penny stocks? I have been doing it for 5 months. I still cannot get consistent profit 🙁

  13. Hello, you presented some good information. What is your scan recipe to find penny stocks that have the potential to gap up? I use Thinkorswim but i can't find these type of stocks.

  14. It seems like you learnt alot from these chat rooms about trading. What rooms are these? Please recommend. Awesome video by the way. I am just starting and this is really really helpful. I always want to know what is happening behind the scenes.

  15. Saw nasty $PSTV today.. just as you taught in your videos.. sketchy dog sh%t company reverse split to pump up price with fluff news only to do offering.. piled up by sheep after sheep after furu, and left the sucker holding the bag.. your insight is golden

  16. Hey humbled trader, I know you put a lot of effort into editing your videos, but I would love to see raw footage of you going through your process with SEC filings! Love you videos/content !

  17. Hi Humbled Trader I let you know that I find your channel just 2 days ago and I like you to know that you are funny + you are a great teacher. You just open my eyes a lot more in this crazy stock market that I try to learn for around 1 year I learn many things from many different youtubers but you really bring me up to the next level with all your videos. Thank you for taking the time for sharing your knowledge with me I will make sure I smash that like bottom many many times for you

  18. I feel richer by the second as I listen and understand, analyze and then plan a beautiful entry and beautiful exit….I mean you are a GOD BLESSING FOR SURE!!!! I have actually thanked God for me "accidentally" finding you, But there are no accidents in Gods plan, He shows you the doors of opportunity as you walk through life, now this is where free will comes in, you decide to peak through, look around, or just walk through and never look behind like I did year ago with learning to invest!!!! Just wooooow for you! Wow! Thank you sooooooo much!!!!! I ENCOURAGE ALL OF YOU YOUNG KIDS to stop watching BS on youtube and EDUCATE yourself!!!!!!!!!!!!!! No excuses todays world! Do you want to be a Doer? Or a watcher??? I know I have sat far to long in the stadium "watching" it's my time to be watched! and I do it now!!!!!!!!!!!!!!!!!!!!!!!!!!! Give me a hell yeah!!!!!!!!!!!!!! 😉

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