Sunday, September 20, 2009

Secondary Lesson RE:HEAT

Thursday night SmartHeat brought a secondary that was very well received and was a large money maker for me on Friday. Let me give you some 'insight' on how to spot these transactions and how to make money from them even without getting stock in the deal! As seen from the chart below ( I hope you can see it well enough) HEAT announced a secondary issue of 5mm shares on 9/8 after the stock had bottomed at the $6.50 level. Typically the stock of company who is doing a large secondary relative of its float will be trending down going into pricing. This did not happen with HEAT. As a matter of fact the stock trending HIGHER throughout. This is a tell tale sign of a quality deal the the institutions accumulated as they heard the story. The stock priced at $9 on 9/18 at a discount from a $10 close. As you can see from the chart the stock OPENED at $10.60 and ripped from there. Smart money could have bought this stock the night before pricing and made very nice coin the next day.



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