Friday, March 29, 2013

Pssst! Have I got a Hot Tip for You!

I really hope you don't go around taking investment advice from fictional stockbrokers, but if you're a gambler and a rambler (because you've lost all your money gambling on penny stocks) you might want to consider Odyssey Marine Exploration Inc. That's OMEX for short, the company's N.A.S.D. market symbol.

According to Etrade, OMEX is "engaged in archaeologically sensitive exploration and recovery of deep-ocean shipwrecks worldwide. The Company employs technology, including side-scan sonar, magnetometers, remotely operated vehicles (ROVs), and other advanced equipment that enables the Company to locate shipwrecks and natural resource sites at depths."

That's right, I'm suggesting you might want to take a flyer on a treasure stock. Ha ha ha. I know. It's crazy. It probably won't work. I've owned this stock for more than ten years, and it's still worth only a few bucks. $3.26 was the close yesterday. I've made money on it over the years by selling when they've made a big announcement (They've actually brought up two big treasures) and then buying back when the stock gets cheap again. Once, back before the big stock crash in 2008, OMEX soared from $3 to $9 for a day when they unloaded tons of gold and silver from the infamous "Black Swan." That shipwreck turned out to be a Spanish warship, unfortunately, and OMEX had to give the whole treasure back when Spain beat them in a U.S. Court. That loss sent the stock back under $1.00. Yikes for all who held on for that ride. I started buying back a little early, but I got some at $1.50, too.

You have to sell when the good news hits. Like my genius trader boss taught me: Sell when the ducks are quacking.

So is the good news about to hit? Maybe. This ship you see here is call The HMS Victory. It was the pride of His Majesty's British Navy when it went down in 1744 in the English Channel. On board were two British Admirals, one of whom told his family and friends he would be collecting bounty for his retirement on his final voyage. Amsterdam newspapers later describe the payment of huge insurance premiums because of the gold on board when the ship sank. OMEX says this on their website: "Two of the greatest admirals in English history, Sir John Norris and Sir John Balchin called Victory their flagship. Research indicates that Balchin's Victory sank with a substantial amount of specie aboard."

Specie means money in the form of coin, not paper. No one knows for sure, that's the truth. OMEX has to go down and dig. After discovering the ship four or five years ago, it's taken all these years to work out a deal with British government, have the British public comment, and then receive the go-ahead for each step of the archaeological work and eventual recovery.

The final go-ahead is expected in April. OMEX's biggest and best ship, The Odyssey Explorer, is docked in Hull, England, waiting to slip out into the Channel. You can read more about The Victory and many other wreck sites at OMEX's website.

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