Archive for March, 2010

Penny Stocks

March 30th, 2010

Penny Stocks are a very interesting investment. Many traders consider these types of stocks to be a little risky. A lot of traders avoid penny stocks whenever possible or completely. However, there is an opportunity to make a very large return, you just need to know what to look for.

Penny Stocks are any share trading under 5.00 but when i’m trading penny stocks I look for them to be under 2.00. Look for a company that is growing and new, with a minimal trading history. All penny stocks are trading this low due to tough financial issues and difficulties. Instead of investing in the struggling companies you could choose to invest in new and growing companies. Focusing on these types of companies allows you to minimize distraction and focus on companies that have the potential to become huge.

How do you find companies to buy?

Find the company your interested in by meeting the above criteria, then take a look into the industry. Is the industry growing, is it predicting to be hot over the next 10 years? How is the competition in the industry for the product or idea being marketed? Take a look at the industry as a whole and whether or not this companies product is worthy of your investment.

If everything is solid, then dig deeper into the company to find out more information about their operation. Find businesses that are different from others look for something that stands out with this company. Maybe they have a better product, better price or a more streamlined and financially sound company. Original products that you would be willing to buy are often signs of an interesting investment.

When you take a look at the companies financial situation there are many things to look for. These are penny stocks, you will find them with negative income and in debt. This is natural, often these companies are just beginning and it takes money to make money. This is often the situation with new companies. When your company is in this situation, look for them to have a line of credit available or some other source of funding.

Finally, look for a stock of a company that maintains strong communications with shareholders. When you can read periodic updates from the business, either on a website or some type of newsletter, you can keep up with exactly what is happening within the organization.

When you begin buying penny stocks you will find yourself making huge gains (addictive) and taking some losses. Ensure you can look back to find out what you missed on the bad trades. Learn from your mistakes and try to limit these losses in the future.

Use the penny stock tips you find on our penny stock forum and the hot penny stock picks that are randomly placed upon this blog.

Where is my Penny Stock Watch List?

March 29th, 2010

I know, and no results either from last week.

On results: I know some of you are lazy :) but you can pull them up.

I’m late on the watch list and the results due to a busy weekend. Sorry about that, I do them for my own trading and since I type fast I normally post them for you. If I make one for the week I’ll post it.

I hope I’m fogiven.

Have a great week of Trading!

Penny Stock List March 21

March 21st, 2010

AGAIN! These stocks you put on your watch list, and when they begin to pick up in volume and move positive is when you buy. Don’t just buy the list now.

BFRE .37 ethanol. Has flatlined for a while just under .40 positive divergence happening, ready to pop.
BMNMD .85 double bottom.
MBCI .51 triple bottom and nice candle look for pop soon.
SNKTY .91 setting up nicely.

OPCO .71 staircase straight up.
SUWN .38 I thought this was done thursday but came back strong friday. I’m expecting a rest but we’ll see.

Just 6 penny stocks. Easy to keep track of them as we watch the news and the market as a whole.

Results: March 14 Penny Stocks List

March 19th, 2010

BFAR made a few more cents but stalled like we figured.
NTUR holding that bottom, MACD ready to cross positive. Keep on watch.
IPMN continued that strong run but then topped out. wait for a pullback.
ITEX run died where we alerted.
STTN still looks weird and holding its own with a large drop in RSI

AIDO didn’t really move, its holding just under .03 watch for the 50 dma to push it up.
DSHL ran up over 100% but pulled back under the MA’s moves very nicely!!

NCOC popped a little off that bottom. pulling back, may double bottom.

Finding Profitable Penny Stocks

March 18th, 2010

Penny stocks are the stock offerings of companies that are too small or have little capital and therefore have more shares out in the market. These shares are then lower priced than the major exchanges. Informed penny stock investors like these OTCBB stocks due to the limited amount of money needed to invest, and the possibility of making huge gains. Often new traders to this market wonder: How do I find the best penny stock picks?

How do I choose profitable penny stocks to buy?

In order to select the best OTCBB stock to buy, you will need to look at the technical analysis and the fundamental analysis of the company. You also want to investigate how long the company has been operating and whether they have a history of reverse splits. Take a look at how the price is, has it dropped recently, has it exploded recently and try to find out why. With all stocks it is a great sign if you find the company is being invested in by the owners of the company. This is called insider buying.

It is very important but extremely difficult to find quality information about the company. This is very important in order to be successful trading these stocks. It will help limit your losses and poor investments.If you need help in finding these types of stocks there are many services and newsletters around some are free and some cost money. You can always find great information for free at our forum and read our blog which has penny stock picks and watch lists.

Remember most penny stock services whether paid or free are not able to live up to their expectations. At times they are great for ideas and if you want a quick trade. Often companies pay for the service of these stock picking sites. If you have been looking at penny stocks for any length of time you will know exactly what I’m talking about. If you are looking for great penny stock information, you have found the right place.

Penny Stocks List to Watch- Week of March 14

March 14th, 2010


Again, DO NOT BUY these stocks are on a watch list, if you see positive volume triggered then jump in, these are poised for a run but may not be quite ready.
-look at our results list for last week, there are a couple stocks still on watch from then.

BFAR went from .50 to .94 Friday. Probably the end of the run as we’re at heavy resistance but watch it anyways.

NCEN .42 near a bottom. Setting up positive divergence.

NTUR .80 low floater so chart is weird but likes to pop from lows.

IPMN .28 up about 200% in a few days. Petroleum play with room to run.
ITEX resting at .85 has room to run last 2 candles signal pullback.

STTN .60 tough chart to read but has been hot.

AIDO .03 low float. Weak Cup and Handle forming, ma’s making a bullish cross.

DSHL might have found its bottom as a subpenny Friday. Back up over .01 by end of day and closed at high.

NCOC looks like the bottom was hit. .60 now.

Good Trading!

Results: Penny Stocks List

March 12th, 2010

Results from last weeks Penny Stock List to watch.

AMNP at .30 is now .42 and at the high for the day, looking great.

PTOS .275 is now .25 keep on watch but chart is looking worse now.

SNDZ .44 still bottoming after a drop from 2.00 watching for a bounce still.

APNT .35 and running, stalled right there never a buy.

SCLX after a great friday. Popped to .95 from .70 a lot of it was gap so it ended up being unplayable.

TBIO .83 stalled right there, holding the .80′s though

STCA is just flat, chart was good looking worse.

Leftover from prior weeks Penny Stock List

AEXP bouncing a little

CPCF popped nicely from that bottom .75 now.

See you on Sunday!

Ex-Dividend Date on Forward Splits and Dividends

March 10th, 2010

Someone showed us an interesting dividend site yesterday although we have our own article about dividends

This excerpt is from the site Ex-Dividend Date

The Ex-Dividend Date is the most important date when you are playing a stock for a dividend or forward split! There are so many dates involved during the dividend process that some traders don’t actually understand when they are eligible to receive dividends. It is important to understand how the dividend process works and what role the ex dividend date plays when compared to the record date and payment date.
A trader who lacks the understanding of the dividend process can lose out on profit. Trading is a difficult occupation as it is, no being able to capitalize on trades for maximum profit is unacceptable. Failure to understand the dividend process can lead the trader into selling his stock to early which may mean taking an unneeded loss. Selling early will also mean the trader is ineligible for the dividend payout. Holding the stock to long after the dividend is paid out can bring other problems. Many traders may sell a stock after the dividend is paid out causing a dip in price. This dip will decrease the traders chance of maximizing profit.
The EX-Dividend Date is the first day a stock trades without the dividend attached. If you buy a stock on the Ex-Dividend Date you are not qualified for the dividend. Therefore, if you’re very interested in receiving a companies dividends, you must own prior to the Ex-dividend date.This also means you can sell a stock on the Ex-Dividend date and still receive the dividends even though they have not been placed in your account yet. Some of the other names sound more formal, such as record date and payment date but the one you need to focus on is the Ex-Dividend Date.
The Record Date is when the company begins to work on dividend payments to the shareholders, or the shareholders on record.
The Payment Date is when the company expects the payout to shareholders to be completed.
It must be noted that this can all happen rather quickly but that there can be a long period of time between the ex-dividend date and the payout date and that is very important in case you feel the need to exit ownership of a stock but would like to receive the dividend first.
For those long term buy and hold traders these problems will never arise unless your planning on buying a stock for the dividend or selling one after you receive your dividend. Most long term traders will hold a stock through the price cycles.

EX-Dividend Date and Penny Stocks
Dividends with penny stocks follow the same rules as every other company. With penny stocks problems have arisen during forward splits because a company may not understand how the process works and begin to sell shares they do not own yet. Not only is this a bad sale on the part of company ownership but now those shares are elligable for the forward split. These mistakes have been known to increase the share amount beyond the authorized share limit with the SEC having to step in and halt trading.
The main issue with penny stocks and dividends is the ability to pump and dump the dividend excitement. Pumpers create scams that drive the price of a penny stock up so that others may sell for higher profit and leave those traders waiting for dividends at a loss. There are a few ways these scams are perpetrated, anyone who has traded penny stocks for a while will notice these scams immediately. Hopefully they weren’t victims of these scams themselves. It can be a tough lesson to learn.
A reason companies often exploit penny stocks in this manner is their ability to manipulate penny stock traders who are often novices to trading and can easily be duped. One way a penny stock company will exploit the dividend process is to announce a dividend in advance of actually filing it. The press release will say something to the effect of: Company XYZ trading at .015 has just announced they are issuing a .02 per share dividend to each share holder pending shareholder approval. This causes excitement in the penny stock world, a 100+% dividend! Thats a big dividend for a penny stock company and then the pumping begins. After purchasing company XYZ they begin to place the dividend announcement on ever penny stock forum and penny stock chat room they can find. This causes the volume in the stock to rise which in turn causes the price of the stock to rise. While the price rises, those who own the company and own the majority of shares begin to sell into the excitement. This allows them to sell at a better price without worrying that the amount of shares they are dumping will drop the price per share. The may even continue to issue press releases that remind traders of the promise of the company and the fact that they are issuing such a large dividend. At a time in the future they will announce that there will be no dividend as a majority of shareholders voted no. Being that the same people who write the press releases also own 51% of the company this is obviously a fixed outcome and a very simple penny stock scam.

Related Blogs

Penny Stocks List- week of March 7

March 7th, 2010

If your new here, don’t forget last weeks results, some of them are continuing on our watch list. Last weeks Penny Stocks List

This Weeks List of Bottom Picks:

AMNP .30 pos divergence
PTOS .275 weird one, never goes up but….low floater.
SNDZ .50 Careful this one just dropped down from 2.00

This Weeks Runners

APNT-.35 Probably bad, currently setting up neg divergence and a bad candle friday but…its close.
SCLX .70 was a beast friday for 30% closed at HOD an made a new 52 wk high
TBIO.83 let it rest, rocked all week, Friday was low volume red. look for short pullback and entry.

Those are usually are longer lists but we can only call them as we see them.

STCA .22 right on bot ma’s coming down hard. look for a bounce from here. wait for positive volume, yes we see how scary it looks.

Remember, these are all chart thoughts, no insight into news or filings with no company contact.

Good Trading!

Our weekly penny stock list for Monday-results

March 5th, 2010

The Penny Stock List was posted there over the weekend and here are results midday friday.

AEXP holding that bottom keep on next watch.

BFRE holding that bottom but looking a little less promising

CPCF holding the bottom keep on watch

NVLT holding the bottom keep on watch

ATTUF quick pop to .55 mid week for a 50% gain.

BETM did nothing after that one day pop we talked about. Probably a pump.

RBYC up about 25% but looking less strong

CLSP is boring remove from watch.

SPBU up .02 and still looking ready for a move

ELTP on the upside of the 50 dma, thats what we were looking for, lets see how it closes WATCH CLOSELY

Not a bad watch list, the movers were easy to play, nothing tanked and thats always good. New penny stocks list over the weekend.