Friday, June 22, 2007

My Frankenstein Monster... FTEK

Ascending triangle noted in this previous post with a target to "37-38". Check. I loved this stock @ 5 and even bought and traded it at 10. Being a hype averse sort I could not possibly have held FTEK after Cramer and Wall St. got a hold of it. The cleaner coal technology is potentially disruptive and the story is GREAT. But a company is a company and a stock is a stock and this stock is way over valued. Now, that never stopped Wall St. from pumping a good story before, but I took a high risk (high reward) position against my monster yesterday at the HOD. A position that is up 15% and could be down God knows what at the drop of a hat. This is my monster; a stock I sat in for months on end @ 5's, telling myself over and over "but the STORY... it's an undiscovered gem Gary. Just hold the POS, you'll be fine." Now it is a darling with pure bullish momo behind it. Please avoid taking a position in this stock unless you do your own research and conclude a position is warranted. This is personal ;-) and I thought it would be interesting for readers to see... either me blowing up (risking what I can afford to lose 100% of and not lose sleep) or getting paid once again by this very fine company.

For reference, I once owned ISRG way back in the single digits. It too is over valued. FTEK will likely stay over valued or one day become even more so. The above is a short term trade. Nothing more.

Edit (9:34) Trade closed out +89% for basically a 15 minute hold, but I am not a day trader ;-) Edit (9:50) Ah, downgrade from Roth Capital. Guess they saw it the way I did - over valued and over pumped. Edit (6/23 @ 6:49) BTW, now that it's over, the trade was the July 35 puts bought @ .85 and sold @ 1.60