The Next Supercharged IPO Runner Like LPA

Latam Logistic Properties, S.A. (LPA) moved from $10 to $500 in a handful of trading days last week. Unfortunately for the people who bought high on the back end of the pump, it will be hard pressed for them to make money. You have to buy these plays before they run and before they have large volume. LPA's trading days have looked like this:

What do we notice here? The volume is non-existent on the way up. The best days top out at 200,000 of volume. This was the same for HKD. In addition to being low float, you need a stock that's low volume. Not attacked by trading bots that flip and/or short the stock several times a day so that the stock trades 10x its float and never moves anywhere.  

This is where Tungray Technologies Inc. (TRSG) comes in as we have identified it as the top candidate as the next supercharged IPO runner. It ran 44% on June 6th on only 276,000 in volume. LPA began trading on March 28. TRSG began trading on April 19, three weeks after LPA. Now let's take a look at TRSG's price history:

Notice the volume is thinly traded like LPA, with most days trading well less than 100,000 shares. TRSG has only a  2.5 million float, which compares to LPA's 2.8 million float. Again, these stocks actually trade like stocks with 3 million floats. Not penny stocks with 3 million floats. Case in point Actelis Networks, Inc. (ASNS), which opened at $3.71 on June 5th from $0.47 from the previous day's close, but was range bound most of the day on a ridiculous 90 million volume, nearly 30x its float. It then tanked 47% on June 6th, thanks to dilution.

LPA and TRSG don't trade like this because they are profitable. They aren't going to dilute their shares because they don't need to in order to keep the lights on. The other key is its chart:

A simple screen grab from Yahoo Finance will suffice because the chart is so easy to tell what's going on that we don't need a lot of in-depth technical indicators. When the stock debuted, it started high then sold off. TRSG has since recovered most of what it has lost. Now compare that to the price action on LPA. We have to use price history to illustrate the similarities because LPA's chart is screwed up from the massive run. LPA closed its first day of trading at $16, then dropped to around $7 for nearly two months. On May 16th it broke $10 for the first time since, then hit $14 on May 24th. The next day it doubled in price, and the rest is history. 

TRSG is the one you want to buy low before the next IPO supercharged run. Buy low, not high. TRSG has a chance to run to $100. If you like our picks you can follow this blog by clicking the follow button on the top of the left hand panel. We have 1013 followers on here as well as 120 followers on our Canadian blog. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

Disclosure: We are long TRSG