Sometimes when I get the chance to watch the HUSA trading action (and it doesn't put me to sleep), I am amazed at how focused the market maker appears to be.
As most know, HUSA employs a broker-dealer firm that buys and sell shares for HUSA in its own account in order to create and facilitate an orderly and timely market. The market maker is also an expert in the affairs of HUSA and can contact the company at any time if they have any questions. If the market maker is doing his job correctly, he can make good money for his broker-dealer firm, in addition to whatever compensation his firm gets from HUSA.
Take today, for example. The market maker is holding the share price at right around 30 cents. Currently, there is downward pressure with 100 on the bid at .2965 and 4900 on the ask at .3036. Earlier there was 10,000 on the ask. But the market maker is holding steady at 30 cents. Why? First of all, its his job. Second, he knows what is likely with HUSA. He is likely loading up on cheap shares now in order to "stabilize" his market and he will sell them later, at a much higher price, once again to "stabilize" the market. This is how they provide a service to the market and make money at the same time.
The above is just my opinion and we will never know for sure because of the secrecy surrounding "market makers."
Crop, may I ask what other companies you own stock in. I do own HUSA and have been slowly increasing my share quantity but right now i am playing the silver and gold game pretty hard. Also a long term COP share holder. If my gold silver plays play out I will surely be buying more husa. I think this company will go higher based on what I've read about it.
Jimmy, at the moment I am mostly a speculator when it comes to stocks, but a speculator with a long term bias. I like what I consider to be good stocks that are beaten down for one reason or another. I am sure you have heard of this approach before. I try to buy low, sometimes very low, and ride the recovery on up to the top. My big claim to fame was Dynegy, which I first bought in 2002 at 77cents. It went on to rise to $10.95 by 2007. My big mistake was not selling at or close to the top. I learned my lesson the hard way.
In my mind, HUSA is in almost the perfect storm like Dynegy was. My cost basis is 23 cents. If I can ride it to $8 or $10 in 5 to 7 years, I will be one happy speculative investor.
Essentially I have chosen HUSA for the moment, as it suits my purposes almost perfectly. I like almost everything about it, to include its name. I am partial to Houston, as I was born and raised there. Other stocks that I have been interested in over the past year which you might want to take a look at are:
ALU Alcatel Lucent Technologies
AMD Advanced Micro Devices
BAC Bank of America
IRE Bank of Ireland
HOV Hovnanian Enterprises Homebuilding
SPF Standard Pacific Homebuilding
NOK Nokia Corporation
SIRI SiriusXM Satellite Radio
ETFC E-Trade Financial
HTM U.S. Geothermal
If I could only buy one of the above, it would probably be IRE, which has been performing very well lately. At $12 now, I can see it eventually going to $100 or better. On all of the above, look at their chart for the last 10 years and ask yourself if they could ever recover to their previous high, or even half of their previous high.
I believe in a balanced portfolio, but even better than that would be to make that one right pick that recovers fully and gives you a 10, 20, or even 30 multiple return on your initial investment over 5 to 7 years.
Copduster, just want to tell you how much I appreciate you views and insight. I hold a great number of shares in HUSA and I believe it will come back. Like you I believe they just need some positive news in order to get back into the game. Keep up the great work and research.
Thanks Mitchell. I was just looking at some of the older posts and I was wondering what happened to you and some of the others HUSA posters. Good to see you posting again. I wish the others who follow this board and are interested in HUSA would post their thoughts also, no matter how short. It is good to have a little discussion going back and forth and it gives new and fresh ideas to all concerned for further research.
I know I am long-winded most of the time. But I like to do research on a subject I am interested in and I enjoy writing about it. It is kind of like one of my little hobbies. I find it relaxing and it diverts my attention from other things.
No doubt I am positive about HUSA and I have a significant investment in its stock, but I want to make clear to you and others that HUSA could do exactly the opposite of what I think it will and folks could lose all or most of their investment money here. My thoughts have been known to be wrong before, so take them for what they are worth. But, like I said, I have invested heavily in HUSA and I expect it to go higher in the longer run.