On Monday afternoon, we gave an alert to buy Real Goods Solar, Inc. (RGSE) as we saw similarities between it and EnteroMedics, Inc. (ETRM). We suggested to take profits by putting staggered sell orders starting at $6.00 which is a good thing because RGSE closed down 16% to $3.87 after starting the day well over $6.00. That allowed us to take profits on some of our position and reload at lower prices.
DryShips, Inc. (DRYS), a similar stock to RGSE with a very small float and a perpetual need for financing ended up doubling on Tuesday. With the market primed for small float movers like ETRM, DRYS, GLBS and SGNL post-reverse split, we think it's only a matter of time before RGSE has the same kind of pop.
As mentioned previously, RGSE appears to be very similar to ETRM. On December 28, ETRM had a 1-for-70 reverse split, taking the stock from 4 cents to $2.80 equivalent. It sunk for about a week, but then from January 4th close to January 10th it rocketed from $2.09 to over $30 before settling in the $6's, where it is today.
On January 25th RGSE closed at 19 cents. A 1-for-30 reverse split the next day took it to a $5.70 equivalent. For the past two days it has had a huge increase in volume with very volatile trading from the $3's to the $6's. If it follows a similar pattern to ETRM, it could spike as high as $20. RGSE has only 1.3 million shares outstanding so it is very susceptible to incredible short squeezes like DRYS and the other aforementioned stocks have had over the past few weeks.
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DryShips, Inc. (DRYS), a similar stock to RGSE with a very small float and a perpetual need for financing ended up doubling on Tuesday. With the market primed for small float movers like ETRM, DRYS, GLBS and SGNL post-reverse split, we think it's only a matter of time before RGSE has the same kind of pop.
As mentioned previously, RGSE appears to be very similar to ETRM. On December 28, ETRM had a 1-for-70 reverse split, taking the stock from 4 cents to $2.80 equivalent. It sunk for about a week, but then from January 4th close to January 10th it rocketed from $2.09 to over $30 before settling in the $6's, where it is today.
On January 25th RGSE closed at 19 cents. A 1-for-30 reverse split the next day took it to a $5.70 equivalent. For the past two days it has had a huge increase in volume with very volatile trading from the $3's to the $6's. If it follows a similar pattern to ETRM, it could spike as high as $20. RGSE has only 1.3 million shares outstanding so it is very susceptible to incredible short squeezes like DRYS and the other aforementioned stocks have had over the past few weeks.
If you like advice like this, follow the blog by clicking the follow button on the left hand panel.
If you are interested in other great penny stock picks, check out Microcap Millionaires. If you're interested in trading options, both, calls and puts on some large cap stocks, check out binaryoptionsprosignals.com.
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