$NEWL: The sinking turd that makes money if you can time it correctly!

NewLead Holdings Ltd. ($NEWL) is an international shipping company with a market capitalization of $19 million. Their mainly engaged in the transportation of refined products, such as gasoline, jet fuel, and dry bulk goods, such as iron ore, coal and grain. Although it is not clear they are currently doing any of the above tasks because of recent downsizes.

It is my belief that this company is headed for bankruptcy if not already in this state. The company for the past few years has been clearing their indebtedness by diluting shares, downsizing staff, selling and decommissioning their fleet of ships and introducing endless reverse splits to preserve their NASDAQ listing so they can raise money and dump shares on dumb investors.




When you analyze the overall trend of this company, it's really a fool's game. All you have look at is its highest price per share since inception (which tops at a staggering $2200 because of all the endless reverse splits) and its current price of 70¢ to realize that this is a sinking ship.

Another perspective to think about is a $10,000 investment back in 2005 would now be valued as little as $3 in 2013. This company is a turd and should not under no circumstances be kept longer then a month, unless if you enjoy losing money of course.




Although the company is a stinker when it comes to being valued as a long-term investment, it has provided some of the sickest recoveries in the past 5 years in a row. $NEWL has always repeated this trend. Back in 2012 it recovered 856% and the year prior 172%. If you're able to time a proper entry you can make as much money in a month as you would with a blue-chip company in several decades.

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