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Holding: PTEK

TimothySykes [83874]

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Symbol	Sector	Return	Exposure	Trades	Last Trade	Status
PTEK	Gambling	8.63%	n/a	21	09-Jun-08	Prior Holding

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08-Jun-08

Why I Shorted Turd Of A Company PokerTek, Inc. (PTEK)

Holding Rationale for PTEK.

If you’re familiar with my short-biased PennyStocking trading strategy, or watched the latest episode of LiveStock (in which I detailed this setup), it’s not hard to tell why I shorted 1,000 shares of PokerTek, Inc. (PTEK) at $4.69 right before the market close on Friday.

Not only was Friday its first down day after 5 straight—agonizing for early shorts, opportunistic for later shorts—up-days, after a blatantly-obvious-typically-bankruptcy-coming-type 50% mid-month drop in May, if on Monday we get a morning panic (which seems likely considering Friday’s price action with hugely fading volume due to the gradual realization by bitter long-term shareholders realizing they’d better take this bounce as an opportunity to the hell out and aggressive shorts to get in) that takes out Friday support of $4.50ish making $4 a likely downside target, which if the sellers can take out the probable stop losses there brings up $3.80ish, if you take a look at the reasons for the runup, you’ll see it’s no different than f#@%ed-company-last-chance-at-raising-capital-through-hype-type plays like IPIX, CAFÉ, VION and eerily-similar VRML of the past, all of which had been great piece-of-3-day-old-smelling-dung-type stocks to short into these message-board-rumor-floated-fueled-type plays.

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