While rummaging through the bottom of the OTC barrel, looking for very low priced stocks and patterns to take advantage of, one of my scanners brought up $HCMC. Let's start with a daily chart.
I've seen charts like this from time to time, where there is bot-ish trading going on for a period of time with sudden breakouts. Usually, I see these bot patterns after the breakout has happened and folks are piling into the short-term volatility rise. The natural question for an opportunistic ninja is: can I get in just before the breakout to capture a bigger piece of the pie? Well, sure. There are many low-priced bot patterns but there are far fewer breakouts comparatively. The challenge is in predicting the one that is going to supernova. The vast majority of the time one will jump into these and it will be relatively lifeless for longer than one has patience. So let's take that idea and put it on the backburner. Maybe this will supernova, maybe it won't, I have no idea. If it does, then I get to tell a different story. But based on this chart as it is, projecting a similar action into the future, what value is there in it?
I'm thinking that, given the fact that after the stock split on 3/9/2016, and the inevitable drop two months later, this stock essentially went comatose. It mainly trades in spurts from $0.0001 and $0.0002 with occasional jumps to $0.001 and $0.01. There was the lower bot pattern in 2019 to watch out for, but for four years it is looking like a steady heartbeat. Yet after the latest earnings on 11/18, volume has started to come in.
So here's where my half-baked idea was born. What if I can use this activity to my advantage and act like a bot? The price on this is so low, I can afford to run an experiment for at least a year (anticipating that this will be the limit of my patience on this). What if I load up on shares at the bottom of the bot action, and then set up dozens of GTC sell orders at different stages of the action, and just wait until I get hits? If my shares get sold, the minimum percentage gain will be 100%. All I need is for the volume to continue and for the bot-ish action to be maintained. If I do get hits, then I'm guaranteed to double my investment at random times, looking like a random dividend machine.
Therefore, on 12/3 I did my finger pushups for the year and bought, in 100,000 share increments, 10 million shares of $HCMC at $0.0001 and set GTC orders for $0.0002, $0.01, and $0.02 (I had $0.001 at one point also but changed that). Although that sounds like a lot, it is only a $1,000 investment. I can comfortably set aside $1,000 for at least a year and, if the volume continues enough to get me out, take in random profits at $10 each at a minimum. If all of my shares were sold at $0.0002, then I get 100% of my investment back. But if all of my sell orders go through as I've entered them, then I will reap $89,600. Here's how with 10 million shares bought at $0.0001:
**30 orders of 100,000 shares @ $0.0002 ($300 profit), 50 orders of 100,000 shares at $0.01 ($49,500 profit), 20 orders of 100,000 shares at $0.02 ($39,800 profit)**
How's that for an idea? And my first 100,000 sell order went through yesterday for a cool $10 (which apparently is only the second posted order for this ticker on profit.ly). Since I shifted my sell orders a bit, and it took about two weeks for my earliest order to go through, and many millions of other sell orders showing up on the tape with a similar idea to mine, I'm estimating the rest of my 29 orders at $0.0002 will hit in about another week or so. At that point, I either need to decide to sit it out and see if the higher sells get hit within a year, or adjust all of them down and just be happy with 100% profits. But, c'mon, anyone would love 100% profits. Even if one adjusted for the time value of money for the investment, the return percentage is still great.
So, this could be a long experiment. Feel free to post your comments and I'll give updates from time to time as this progresses. Who knows? If enough long and shorts stay in this, we could all get paid small amounts from time to time in an apparent win-win scenario.



2/1 Update: Well, I definitely wasn't as patient as I planned. The pattern changed and I was concerned the price would drop so I've made $3,850 after selling 90% of my shares. Now today the volume is up over 600% and the question is, do I dump the rest or wait longer and see where this goes?
2/16 Update: I'm still watching at least until the end of the month. I have one million shares at $0.0001 left and am curious to see if there is any big pop for the lawsuit announcement as some of the hype is suggesting. Personally, I don't see this getting much past $0.10 with a very low chance it could get to $1 on FOMO. Most likely, I'll cash out in a month as it turns and drops back to $0.0001, and I will repeat the bot experiment one more time.
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