Tuesday, September 29, 2009

Compliance Plays?

A guy I respect on Twitter suggests buying names off Nasdaq Compliance tickers names like AXL and BZ and many others that have jumped several hundred percent since receiving notice.

I must admit I had bought CRDC then sold for a small loss -- at 1.20  -- it was in danger of delisting.  Then 2 days ago they receive a PP  and the stock has jumped 50% from where I sold it.  All happened in about two days.

I checked the list of non-compliant names and it just so happens I own two already that are on the list:  INSM and ROIAK.

 ROIAK received its letter last October but INSM's notice is only about 2 weeks old.  I added more INSM to my managed portfolio.  I'm very intrigued about INSM.

update: checked out a few charts, quite a few tickers popped strongly the very day the Compliance Note came out.  So perhaps quite a few people are playing this game.  It's clearly no slam dunk.  Some issues stay down for months and lose another 50% before finally rising.  I'm sure quite a few go BK and aren't on the list anymore.  Something to think about for sure...

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