Superman Trade Alerts Review – Best Small Cap Newsletter

Paul aka Superman is a veteran small swing trader who trades low float stocks with explosive price moves. What separates him from the crowd is his unique ability to find momentum, more often than not, before other traders. He is the number one Profitly Guru on Investimonials.com and is 5th in overall profits on Profit.ly with $2.38 million, just ahead of investors underground.

Background

He has been trading since 1997, and has over 15 years experience. He was a former CPA, this gives him an edge when reading SEC filings.  His posting style was inspired by Tokyo Joe, who was a famous stock picker during the early internet times. He started his career by posting on thelion.com – a popular message board /community where traders share investment ideas. Paul is twitter famous, and is highly followed by small cap traders.

Superman’s Main Strengths 

  • Finding momentum before it happens – ROSG + LIVE 
  • Focuses on earnings / value plays
  • Theme Plays
  • Prefers Low Float Stocks
  • Has been involved in most of the annual monster small cap movers
  • Plays stocks mainly from the long side, occasionally he short sells

Weaknesses

  • Posts too much, and tweets too much about stocks he has positions in – Some traders call him a pumper
  • Greed – Doesn’t sell early enough to lock in profits + sets dollar targets e.g. if the stock goes to $2.00 I’l make $20,000 etc
  • Limited chart use
  • Fixates on small groups of stocks at times
  • Did not see into the breadth and depth into the Chinese fraud – Chinese companies were posting false financials
  • Needs to short more

How Superman Finds Momentum Before it Happens

Earnings Plays – Things to Look out For

  • Keeps a list of stocks – Yahoo Finance
  • Know when they are due to report financials
  • Know the prior year comps
  • Review the last earnings report
  • Know sympathy companies that reported strong earnings
  • Year on Year growth
  • One Timers?
  • Sequential Growth?
  • Seasonal Businesses
  • Run Rate?
  • P/E?
  • The Lower the Float the Better
  • Vision of the company
  • Forward comments by CEO/CFO – Vague or Specific
  • Warning or Caution
  • New Business

Theme / Sympathy Plays 

  • Can send a group of stocks higher
  • Always read about current events + new technologies
  • Try and get ahead of the theme
  • Get in early or don’t bother getting in
  • Usually the easiest shorts
  • Keep portfolio of stocks sorted by theme
  • Example of themes – Social Media, Gold, Hurricane, Bird Flu, Cancer, China etc

Low Float Stocks

  • High risk / High Reward – Don’t chase low float stocks
  • Illiquid – Take small positions
  • Don’t Chase
  • Quality of news is crucial
  •  2 Million Float or Less –  Ultra – Very little volume is needed to move the stock
  • 3-5 Million Float – If news is Quality will act like Ultra
  • 5-10 Million Float – Solid volume needed
  • Keep portfolio of stocks sorted by float

                      Some of his BIG Winners       

 LIVE – LiveDeal Inc  

Superman Pro Review

 

ROSG – Rosetta Genomics Ltd                                                                

Superman Alerts Review

Summary
Reviewer
Keith
Review Date
Reviewed Item
Superman Trade Alerts
Author Rating
5