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MANIPULATION BY MARKET MARKERS? WHO ARE THE MARKET MAKERS TRADING PENNYSTOCKS
Wall Street Market Makers
Manipulation by Market Makers is an really an overstated term that carries feelings of exploitation and down right fraud, but in reality, Market Makers are not companies that appear like one night stands and then disappear, quite the contrary.. Market Makers are responsible to make a market and to meet the needs of those they are responsible for, companies, shareholders and institutions and it is to these entities where they may try to influence the best market executions.
If the Market Maker was to keep the price steady on the release of news they would find themselves with lots of buys or sells which they had no choice but to fill at the screen price (what you go by and this is their obligation, but before they could find matching orders (for every buyer has to be a seller and visa verse) they would have to change the price and they would then loose money through market exposure. This is bad for them and for us.
So what happens if there are all sells and the price is going up? Well the explanation is that the Market Maker had an order to fill and no stock to fill it with (this trade would not have shown up on your screen until somewhat later, which are referred to as delayed trades). Under their obligations to create liquidity in the share, the Market Maker is obliged to gather an inventory (Stock holding), but only until they can meet the above obligation. This is only possible if they can encourage people to sell, which can be achieved by raising the price...The order is likely to have been large enough allowing the Market Maker to gather a decent premium on the price. So once the order is filled and the market volume returns to their normal levels, so does the share price. You can see this through the daily highs and lows along with the volume at these particular trades in time or in sequence.
You've heard the term on these message boards all too often "shaking the tree". Well that is when the MMs moving the price up, which will encourages sells, moving it down also encourage sells. Another look is that the price was hiked way up despite the support level and few of the people who got in are now going to sell.. The rise was artificial and the real traders in the know just ignored it as it only lasted about 2 hours, but what was caught were investors who were in way before the spike and had forgotten about it, now they want out. Volume is a big part of this and sometimes folks ask "why the volume".. So the Market Makers order gets filled, the price settles back to a support level and volumes decrease and it starts all over again. This scenario is where shorty likes to hang his hat.
The above reason is why you should never put a pennystock in your sockdrawer and daily monitoring is an absolute must. You have heard me post such reasons and should be part of every persons understanding and why the term "long" makes no sense and will only have you losing money.
Can you track such activity? So So and there are all sorts of tricks and one is mainly to reduce the volatility.. Sometimes this is mostly done by increasing the bid/offer spread therefore discouraging trading especially by day traders and also by marketing the companies shares, Loansharks as referred to equity financing (dilution) in the hope they will take up long term positions.
There are a couple of areas that MMs try to encourage liquidity and one is all to apparent. .Notice on the boards when posters beg the company to release news any news, well the MMs need this one venue to increase the liquidity and such encourages the companies to produce news releases, whether substantial or not.. It does create interest if you know what I mean.. The other area is by narrowing the spreads.
You ask if this practice is legal, well sort of and then not. See Market Makers are not supposed to allow themselves to go short, but in the process of making a market they may well find themselves short of a stock. If this happens a Market Maker has a number of options, purchase from another Market Maker, which they do quite often and it is allowed or play with the price in the hope that enough sellers will embark to cover the short or borrow the shares. The institutional borrowing, which happens on larger exchanges is much practiced, but in pennies is unlikely since institutions don't hold pennies unless it is from offshore loansharks and then they just speed up the dilution process to cover and of course a manipulated PR to help in this angle.. If that's illegal? Well my friends, this has been going on since the dark ages.
Thus you have your day-traders and their only means is to make money on the heels of the MM's, not your long-term holders, they will never recoup and that I'm sure of.
The key to trading pennies is timing and one must have an understanding of how the market markers play.. One rule that will always apply and that is the 3 day rule.
Never buy an issue on a 3rd day uptrend in pennies and sell on that return reverse of a swing on that 3rd day or the outside of the 4th day.. After that, if it hasn't gone beyond the lows before the uptick is the time to dump. In other words, never chase a stock.
Everything on this site is Copyright (c) 2000-2018 by KVR and Stockmarketquarter.com. This material may be distributed only with proper credit to and must include the Author.. Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
MARKET MAKER - CDEL
I wrote this about CDEL 2019 - VRUS
Things have drastically changed with respect to CDEL over the last 3-5 years.
I know CDEL and what they consist within the pennyarcade and the overall trading sessions.
CDEL is a very large institution that comprises of many facets. First and foremost, they have the largest electronic trading platforms that is larger than Nasdaq.
They control over 35% of the volume that is traded through their systems and why you see them always ping ponging along with NITE.
Their only competition in handle large volume trades is NITE. When some of you came back and mentioned they are retail and doesn't do dilution or convertible/toxic debt financing is not accurate. They are one of the largest purveyors of shorting, conversion on convertible notes and yes Toxic Debt instruments. Not to mention that options trading is their bread and butter and they are the largest in the world in this venue.
Second, CDEL runs one of the most successful global hedge funds and is very large in institutional buying and selling that far exceeds general retail outside of their electronic volume handling.
Someone mentioned about the 5th decimal yesterday, that there were some trades going through on the 5th decimal. That folks is institutional buying, not retail!! And it was CDEL that handled that part. Of course it may also be trading among themselves to handle so called mask trades, which we see a lot of. This is simply a share amount like CDEL does a lot and notes only a 5,000 share count but seems never to leave.
CDEL was in front of all the trades. CDEL and most of their business is institutional. When some of you see CDEL who executed, is only because their Electronic Trading platform got routed, but their retail is for mostly their clients, but dwarfs compared to institutional.
This MM CSTI, is the problem with this shorting.
Also, let me mention that CSTI who is the second player along with NITE and is a European MM out of the UK and is allowed to short pennystocks. In the states where shorting pennystocks isn't allowed is where this MM (CSTI)is running interference for NITE.
However CSTI isn't really playing in this sandbox, but that will change once we get that catalyst
Most of the popular penny stock MM route through NITE because they are quick to execute most orders, but CDEL is very much in this venue and competes with NITE
Each market maker has it’s own complex algorithm that tries to make trades and CDEL is considered to be the worlds finest.
Many times they do this by shorting the ask and then covering on the bid. It is here with respect to CDEL, CSTI and NITE bounce back and forth and what we have been witnessing in the last many sessions.
Sometimes when a stock is running and you place an order on the ask and you don’t get filled, it is actually the market maker taking shares on the ask.
Then they move up the bid and again is where CDEL shows up and NITE trails. Then on the ask and tries to bait traders into hitting the ask again to sell the shares that they just bought. This happened a lot and resulted in a deep slide and took out the emotional holders of which, I believe were not the Level II traders, but saw the quote and WOW!! panicked.
You will also see MM’s shorting a stock as it runs up because they know that it will eventually come down. Think of it this way. If they are able to short a stock at .17 and it runs to .19, you will hear people on the forums, or a market maker is short.
In reality, it really won’t matter because naked or shorting really isn’t enforced in Europe and Canada where it is legal and any short will eventually be able to cover, if then they just keeping shorting more. Here is where I believe CDEL played and accommodated emotional traders into selling.
So far every indication that the share structure hasn't changed and the O/S shares the float is in strong hands appears CDEL is a major buyer at this time.
The problem we have here is CDEL is playing counter weight.
Have a good day
varok
3 DAY RUN-UP TRADING
Why not to buy a Stock after a 3 day run-up..
Here is a usual scenario on how this may come about..
After a stock has been trending down or trading flat for some time, suddenly one day it starts moving up, it continues up that day and then next day. On the 3 day of this run, it goes up, but for only the first 15- 20 minutes, then it drops for about 30 minutes, turns back up, but doesn't quite reach the morning high. After this period, it usually will trend down and the run is over and in most cases this stock has finished it's 3 day run.
This program will work in most cases and does apply.
So, if you're a buyer, this method will keep you from getting Emotional into buying a stock that has ready peaked, only to drop right after you bought it and I'm sure, many of you had this happen when buying stocks. This is what is referred to as " Chasing An Issue".. If you already own it, it gives you the timing to get out with usually the best profit or close to it. Which ever case applies, decide whether you want to buy it only after the drop. Depending on the stock, it can drop for a few days, and may take some time until the next 3 day advance. Be assured, that in pennies, this has been repeated over and over again with many of the same issues.. This is what you have a "Watch list for" to track issues..
The rule here is simply to let you know it is over for now.
The next time someone mentions a stock, look at a chart and see how many days it has been going up. If it's not the first day or maybe second day of the run-up, stay away for the time being. In the first 15-20 minutes after the open of the 3rd day, the issue will usually drop or in most cases just stall...Now of course you must determine this by seeing if a PR and the strength of such PR warrant further advancement, but from the history of most penny stocks, these PRs only have a very short run span..
Although, the system is not perfect it does help in timing.
Sometimes a stock continues up until 20 minutes after the open of the 4th day before it drops. Selling your stock 15-20 minutes after the open of the 3rd day of the run-up is usually the high or close enough to it. You will go broke trying to find the exact top or chase into a run, forget about it and leave your emotions out of the trade. It is in this segment that Greed usually plays on your Emotions and Anxiety. Play the 3 P's.
And how does this help in buying?
Well, that is a little more difficult, but the system does work. It is mainly there to protect you from being a "Stock Chaser". But the system will work and you must apply discipline.
Go to any stock website and look up a few stocks that are up....Jot them down...I only do this with OTCBB market stocks, but does work on most issues.
Next, I take my stock picks and go to any chart site to look at a 5 day history. The 5 day gives you a nice feel of the trading chart of the last 5 days. Notice why the 5 days compared to the 3 days.. This is so you will see the up or down on the 2 extra days and can avoid the pick. Look to see if it is the first day of the run-up. If it is the second or third day on an up swing, forget about it, since the above method has completed their run on these stocks and you will be only buying into a run or when it is reading to peak.
If I have any choices left, then go to a chart to see a 1 year and a 30 day chart to get a feel of what the stock has been doing. Keep in mind that the past is no bearing on what a stock will do in the future, but it will give you an idea...This also helps in determining what if any reason for volume and price spikes or drops.. Some chart sites allows your cursor to move along the graph for pertinent data with actual numbers.
My last stop is always the message boards and my favorite was RB, but now I go to iHub and there are others. It is here where you can get a real good idea why there is interest or reason for lack of..I don't rely so much on what is said on message boards and ever react on my decision to buy or sell..However,these boards do give you a sense on what others are thinking and many will go above and beyond to gather up DD.
After you have made your picks on which ones to buy, I have found that mid-afternoon is always an excellent time because of lunch and the morning rush has calmed down. The mid-afternoon session is slow before a strong rally that many times comes before a close. I have found mid-mornings are also good for buying, but still leaves many with high expectations that moves a stock for no other reason than emotional buys and it is this play that you want to stay away from.
Now stay on top of your picks and see if the next day it has moved up and determine the volume.. Determine if the highs are higher than the close and higher than the highs of the previous day.
On the third day, I sell it 15 to 20 minutes after the open to take advantage of the morning gap. That's pretty much it.......If your inclined to trade the same issues again, wait for the next above program cycle.
Not all stocks go up for 3 days. Some just flatten out and when this happens, just get rid of it after about 15-20 min. from the open on the 3rd day. If you fail to exercise this you will be left with major % loss and may never recover.. So a little loss is much better than an overall wipe-out.
Stocks that suddenly go up and you see there has been almost no volume the days before the sudden rise, this is usually indicative of a sign that a newsletter picked the stock or it is being pumped or hyped. The lack of previous volume makes the stock spike up.
This 3 day rule is a universal application and to each it's own method of how one should conduct such a process.
Good luck and solid trading and as always, apply sound DD, but keep your Emotions and Anxiety out of this arena and trade for profit not greed.
I hope that this will help many to be able to at least maximize profit taking..
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The 3 P's of Investing and the Strategy that can maximize your ROI.
* Principle
* Profit
* Potential
Investing and trading in the pennies is based on one's ability to fully understand what he/she has and when to sell.
Penny companies and the arena they trade in are the most unpredictable and have left investors/traders with losses that with a smart strategy, could have been avoided.
Emotion, Anxiety and Greed, three of the prevailing sentiments that always seem to be the guiding force on investors as when to buy and sell,only to acknowledge it is discipline that will pave your road to a successful ROI.
I'm only discussing the unpredictable and unregulated market,known as the pinksheets...Here the Market Makers and not the investor have the total control and you as the investor must learn to either stay one step ahead or fall victim as most usually do.
When you trade in this market you first must at the earliest opportunity to remove your Principle.. The best way to assess this part is divide your total share account into 3 parts..The first 33% is your Principle,the second 33% is your Profit and the remaining is your Potential.
We have all experienced nice runs only to find your issue floundering at the bottom never to return..It is this first run that one should remove the Principle investment..This should always be applied and under No circumstances should you deviate from this..If you feel that the issue warrants a second run,it is your Profit that will be your next exit..Remember,if you removed your Principle investment you will have taken a huge risk out of the market and your Emotions will become less of a factor..
Potential...The last of the 3 P's is the most difficult and should only be left as an investment if the company has a business model that can generate revenue,but most importantly, can ROI based on the forward fundamentals of the company be realized..One assessment that you must take into account is the share structure verses Market Cap..It is this one and very much overlooked part that will determine the true value and fair value with respect to share price and where it will eventually go..
In the penny arcade,most participants/investors are way over their heads and have a skewed impression what really comprises what is an investment and what is a crap shoot.. From what I have seen in this cesspool of penny garbage, it's all in the timing and being able to stay one step ahead of the market markers and the loansharks...There is no such term as long-term, investment grade, great buy and all the other misnomers that many like to refer to these pennies.. For what it's worth, they are all junk and the only money makers are your day traders and the loansharks that feed offshore on what gullible buyers throw their way and the market makers who execute these buy and sells...
When one comes to the pennyarcade, he/she comes with the idea to make money, but only to be let down.. The understanding of how pennies work is in itself an art and science and not the fact that a stock is priced at .0002, .001 or .10 or whatever, and it should go up because it's so cheap...Most investors if you can call them that in pennies, get the 3rd degree and they lack the sensible approach of admittance that they made a mistake and can't accept their loss..
Since the great tech and birth of the computer, the potential of online trading took off and everybody with a computer thought that the penny arcade was going to make them wealthy.. This has become so far from the truth and 15 years later many have lost thousands and still can't figure it out...
It's simple,98% of all pennies are losers and just plain junk.. Many or most penny companies will have movement beyond a certain entry, but all will without a doubt fall like a rock and flounder at the bottom for years with ever moving north again.. If you hear nonsense like "wait until next year", or "put it in your sock drawer" and there are dozens of brilliant ideas only to have you looking back on why did I pay attention to all those clowns on the message boards.
It doesn't matter on how much DD or other research you do on a particular penny stock, because these companies don't have a future.. It is the art and science of understanding the way market makers play and until you get a grasp at their non-rules and cheating ways, you will lose..
The idea of holding any company is and should be based on free shares after the Principle has been recouped.. This part is the Potential of the 3 P's..Does the company have a future?
First, when a company promotes itself on penny exchange, it is for funding their R/D and this is especially true with BIO and Tech companies.. Once a company can establish that even their product/idea has legs, it isn't the shareholders that gain, but the owners and the largest preferred shareholders.. We as shareholders gain in the cycle of share price movements over a period of time, which allows us to sell on news and reap a decent reward, not hold out in hopes...It is pure nonsense and just doesn't make for an explanation that hold long-term on any penny stock, without exceptions can ever be achieved..
To explain this further.. When a company goes public, it is mostly for funding their R&D programs through stock sales by market makers and picked up by us, blah blah, you get the point.. Once a company has perfected their technology or product, it will usually in most cases shop around for a buyer for their tech/product or merge as a division into a larger company or outright hostile type takeover, again this is very true within the Bio companies.. Companies with large O/S and huge amount in authorized shares generally don't have a problem with hostile takeover practices.
Through this whole ordeal, the company continues to sell shares until it has ballooned their O/S and depleted their authorized shares so much, they are forced to do the most drastic of all moves, a R/S.. All this time they continue saying and moving ahead and convincing us their R/D is on target.. But Then, they announce a R/S, because they feel to stay in operation is a must and probably so, since they haven't found a partner and they are short of funds and we are, or some of us reluctantly go along.. Posters always use the argument that if the company doesn't split it will go out of business and we will not have anything and should be loyal and stick it out.. Loyal!! That's a new one.. Now this is just plain incorrect and management knows this and will be able to keep going with or without a R/S.. Remember the offshore loansharks? Most companies go for these same culprits and is at this moment diluting the pool as we speak with most pennies.. When management and I must say are in general a bunch of sharks that have a printing press for their own benefit and will do everything to keep the printing of new securities going just to fatten their own greed. Management is up against the wall when they parley their shares and this is always a last attempt and absolutely a death sentence, like the R/S. Incidentally, a R/S approved by shareholders is a formality and will always get approval regardless how we as shareholders vote.. This part is always stacked against us.. Of course in certain cases we may be able to thwart a R/S, but that is rare..
In case of any BIO company, they usually disappear into a much larger concern. .Healthcare companies that trade on the penny exchange rarely ever become stand alone concerns.. The R/D and marketing requirements is far to great for any startup to absorb and is too costly, so they usually and that is if the product is all that is meant to be, will be acquired.. In general if a Tech company has a promising product they too will be looking for a buyer, because the tech field is changing so fast that the smaller concerns lack the funding just to stay in the game and will never be able to compete with a much larger firm that have the cash and know how.
Bio companies who have products that can even meet FDA approval will probably be sold or a major PHarma company will become a partner as in a collaboration partner and they absorb or become merger.. Now to get to this stage will be with countless rewards towards shareholders equity, but eventually it will become an entity of whomever becomes a partner.. This is in most cases the way of a startup Bio company with excellent potential.
You as a shareholder will get the most out of a Bio company on the penny exchange than any other company.. The rewards are so great in Bio as well as the tedious long wait and this may require patience that will take years to develop, but eventually if the company has the fountain of youth medicine can make you a wealthy investor, in return on your principle.. Also keep in mind, that the risk is also the greatest threat to a dismal demise of your investment dollar. The latter is more accurate than the success rate..
A Bio company that can hopefully get the FDA seal will give the company the real interest and the potential share price explosion within hours of such a PR, but that will only come with the approval.. The timeline for a nay or yah on acceptance is rather short on devices than the lengthy clinical trials required for drugs and a device, which not actually being a drug could come sooner then think.. So a 6-8 years for even a drug going to trials can certainly be overshadowed with impatience and will keep a stock price from ever achieving the result in the near-term or even pan out all together.. The movement on the stock price with these companies comes with the interval press releases which allow you some trading with potential profit.
So in Short..Trade penny stocks do not use these issues as investment grade..If you have one and believe me they are rare,remove your first two P'3 of Investing and Strategy and fully understand the true Potential of the company that you wish to hold long..
Everything on this site is Copyright (c) 2000-2018 by KVR Stockmarketquarter.com This material may be distributed only with proper credit to and must include the Author.. Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
Happy New Year 2023
I have a small mining company that I really think you would like. I own it and I received No compensation cash or shares to write about a company that I feel has a 10-20 increase potential within the next 24 months.
' HAMRF '
Trading .22
Fully Complient https://www.otcmarkets.com/stock/HAMRF/overview
O/S: 46,713,662
Float: 25,508,259
The company came out of R/M 10/01/2021 HAMRF Symbol change from LWDEF to HAMRF
The Company:
Silver Hammer Mining Corp. is a junior resource company advancing the past-producing Silver Strand Mine in the Coeur d’Alene Mining District in Idaho, USA, both the Eliza Silver Project and the Silverton Silver Mine in one of the world’s most prolific mining jurisdictions in Nevada. The Company strives to become a multi-mine silver producer focusing on near-term exploration and drilling plans at the Company’s Idaho and Nevada silver-gold assets.
Website: Https://silverhammermining.com
Press Release 1/04/23
https://www.otcmarkets.com/stock/HAMRF/news/Silver-Hammer-Reports-Drill-Results-from-Phase-II-Program-at-the-Silver-Strand-Project-in-Idaho?id=385335
Press Release 11/25/22
https://www.otcmarkets.com/stock/HAMRF/news/Silver-Hammer-Makes-Leadership-Transition-and-Appoints-Warwick-Smith-as-Interim-President-and-CEO?id=381482
Press Release 10/25/22
https://www.otcmarkets.com/stock/HAMRF/news#:~:text=Silver%20Hammer%20Significantly%20Expands,Release%20%7C%2010/25/2022
Press Release 8/15/22
https://www.otcmarkets.com/stock/HAMRF/news/Silver-Hammer-Reports-on-Drilling-Progress-at-the-Silver-Strand-Project-in-Idaho?id=368605
Press Release 3/24/22
https://www.otcmarkets.com/stock/hamrf/news/Silver-Hammer-Receives-Permit-to-Drill-the-Past-Producing-Silverton-Silver-Mine-Project-in-Nevada?id=349176
Press Release | 11/29/2021
Silver Hammer Mining Reports High Grade Silver Samples up to 692 g/t Ag from Rock Chip Sampling at its Silverton Silver-Gold Project in Nevada
Press Release 11/25/22
https://www.otcmarkets.com/stock/HAMRF/news/Silver-Hammer-Makes-Leadership-Transition-and-Appoints-Warwick-Smith-as-Interim-President-and-CEO?id=381482
Hamrf has a strong story to tell. The company has a very attractive balance sheet and management is well known in the industry.
The O/S gives a current MC of $10 million well within a startup junior mining concern with viable legacy claims.
With commodities trailing sideways on the bottom and silver being an industrial commodity and investment makes HAMRF an ideal acquisition for your portfolio.
The share structure is attractive and mostly trades on low volume and is simply due to the company is more interested in a solid preliminary their development stages with positive results as noted above Press Releases. The next release maybe the catalyst we will be looking for.
Target $1.00 for 2023 and $3-$5 during 2024.
Have a good day
varok
Seriously? All because I started following you? Don’t feed my ego please. But bummer take care.
IDNG Profiled
http://www.stockmarketquarter.com
Corporate Market Awareness Consultant
Have a good day
varok
Welcome to JPEX --
Shares are tight. Very good thing.
The buzz is -- You have embarked on a Shell that sat dormant for the last couple years.
The Form 15 - 12g-4/3 from January 2019 denotes this.
Simply means they cancelled the old and is preparing the new.
This is simply a shell that had NO business model and is looking for a partner.
R/M Is what we have here.
This first showed up on Jan 2019 the filing.
And Now a Twitter account.
We are now in R/M mode.
Look for Attorney LOI.
And filings update bringing in the new.
This is now an in-play waiting game for further updates.
Trading at par value .001. A very attractive shell and a decent SS.
Have a good day
varok
http://www.stockmarketquarter.com
Corporate Market Awareness Consultant
COBI Profiled
http://www.stockmarketquarter.com
Corporate Market Awareness Consultant
Have a good day
varok
VRUS Profiled
http://www.stockmarketquarter.com
Corporate Market Awareness Consultant
Have a good day
varok
Stockmarketquarter's website.
http://stockmarketquarter.com
Corporate awareness and consulting service.
The weekend report - August 6
Ok folks, this is the week that is going to put you on the edge of your seat and have you thinking your the best trader around.
I am talking specifically on 2 issues that will come to fruition this week.
- EXOL -
This is an awesome company with a great business model and already generating REV, nut just small incremental increases, but doubling quarter over quarter and this quarter which will be released before or on Thursday of this week, is expected to show again the company is the real deal.
I predicted REV to be around $700,000 well above a double over the last quarter.
If you are in, HOLD and if you decide to acquire, my thinking is that Monday would be your Que since the release is expected by Thursday.
However, the company has released the last quarter sooner, but this is our week for some great gains.
+++++++++++++++++++++++++
- OMVS -
This company is in the right space and the time and this week will be a real gainer and I expect that the spike on the R/M will send this issue into dollar land.
The Friday's close was awesome with the run from the very positive tweets from the CEO that the R/M is 99.7% done deal.
The Monday open is going to spike this issue and will probably run until the official announcement is made. The official announcement is expected this week so watch out.
I predict that the share price will hit .50 this week and pullback some as profit-takers will exercise their semblance as astute traders and this is a very normal procedure.
Normally I would never suggest to buy on the open, but if you haven't bought in and are sitting on the sidelines and missed Friday's buying opportunity, your last chance is Monday.
WOW !! This is one hell of a ride coming this week for OMVS that I certainly would not want to take a backseat.
+++++++++++++++++++++++
- DOLV -
Continue to hold and if you are in a profit position NOW, sell some and look for other immediate runners.
Have a good day
varok
Thank you for the detailed information on these companies and your opinions varok. Following this board, thank you :)
The Weekend Report
The below companies are extremely attractive and should be part of your portfolio.
- OMVS -
This is a very exciting company and their business model is the future in Robotics and the SS is just unbelievable (July 24, 2017, there were 71,739,750 shares of common stock are issued and outstanding).
There is a pending Merger in play and the announcement is very near.
The share price on the close of Friday is .17 on a trading range of 0.1075 - 0.174 with the close of .17.
The spike on the close is indicative of some very special announcements coming as was from a tweet from the CEO on Friday, has put this issue in the spotlight and the closing price of Friday may be the pivot point to much higher highs.
As with all pinksheet companies the SS must be watched. However, the strong business model, in my opinion, will not resort to a heavy hand on issuing and bloating the SS is probably very limited, since REV will certainly offset any need for such action.
This company is in a very hot sector in Robotics and as I see it right now a $1.00 per share is very achievable.
It appears the opening session probably will spike and gap up big time, so don't chase this on the opening and wait for a pullback, but as I see this now, we are going for new highs.
I love this company and would like to thank Duelittle for posting this issue.
This is the real deal and I recommend this as a strong buy and hold.
Go to the OMVS thread to further your due diligence. You will be impressed with this issue.
+++++++++++++++++++++++++++
- EXOL -
I have posted my reasons in a earlier post and think this issue is about to move to new highs pending the financials, out by August 15th. This company has an attractive SS and their business model is absolutely in in vogue for today's active lifestyle.
This issue will move above .01 upon release of the financials or sooner, but it will move up as their growth in this field is gaining steam. From just the last quarter financial, they had triple rev and many expect this to continue for at least through the end of the year and by just the way these folks run their company, makes for an attractive position that will reward your portfolio with some nice gains.
I recommend this as a strong by and hold.
++++++++++++++++++++++++++++
- Dolv -
I mentioned earlier that I expect the ticker change come by Monday. Now my reason for this was the recent updated SOS WY doc. That had to be in place and the update was needed for FINRA to move forward. However, when paper work is updated and then sent back to FINRA results in the effort of moving to the back in line. It's been a couple of weeks and should be coming soon.
Whatever the holdup, this is still a very good company and I understand holding is becoming very frustrating, but never the less, maintain a positive attitude and don't be impulsive and sell.. There is nothing wrong with taking profits and as with all pinksheet companies, is your first priority without reservation.
Let me mention something about the forthcoming financials.
The financials will not show REV since the Chinese entity is not operating under DOLV, so it would become a moot point to expect anything related to REV since DOLV is still a clean shell.
Now what the financials will show, is SS and possibly a asset based picture and any other related items that will show the breakdown of what kind of various partners and their respect to any financial instruments that these folks hold, ie; converts, warrants and preferred. This will be shown in the next financials.
If you are already in, HOLD and for you folks that are not, it is an opportunity to take a position. Regardless, the announcement will create a huge run and the financials will dictate the length of the run.
We have been waiting for sometime on the ticker change and it is unusual for this long wait. I have been doing R/M's as a consultant, but with respect to this company, it is going beyond regular order, but still should not deter the potential when we finally get there.
The Chinese are very methodical and precise in their business dealings. For this issue to come to closure, the length of time is probably based more on complicated process with a foreign country and when it is a HOLDING COMPANY (DOLV), the transfer of assets from a Chinese entity to the clean shell, may be the major hurdle that is making this a snail pace process.
It is for this reason why taking profits is always a solid prudent step.
That's it for this coming week.
See you all on the trading floor Monday. It is going to be a positive and exciting week and both OMVS and EXOL are going to be runners.
Have a good day
varok
Great post, varok. Agree 100%. Primed
OMVS
Current O/S ~72 Mill
- EXOL -
The company is in a holding pattern, awaiting the financial that is due August 15th.
I have mentioned that the financials will show REV in the amount of 700K+.
Now this represents a significant increase which is inline with previous financials.
The company has a very attractive SS and there is to no dilution and appears the rev growth can handle the monthly burn rate so far.
The growth of this company is in explosive growth rate and should continue for the foreseeable future.
This is a decent company supported by an excellent management team that certainly knows how to run this company.
This is a strong buy in this current trading session and .01+ is a no brainer.
In the past 6 months I have been in 3 very promising companies that have returned on investment in huge gains and I believe that EXOL is another pinksheet company without the usual burdening practices within the pink arcade.
I have been adding at these daily lows and feel this issue is another great pinksheet company.
Have a good day.
varok
RE: "...announcement is coming either by Friday or the latest on Monday."
That would coincide with the few days delivery time for the latest Registration document to reach FINRA and to get back in line for consideration. The changes to the document were probably in response to a comment.
-DOLV-
Whisper wind is in the mode of a breeze and that the announcement is coming either by Friday or the latest on Monday.
We are in Ticker release.
Have a good day
varok
- EFFI -
As of March 2017 per filings and current OTC.
A/S 1,000,000,000 shares
O/S 774,885,910
This is a MJ play.
I own it and feel this is about to run.
Great buying opportunity at .0022-0023
Have a good day
varok
- EXOL -
The near term potential for this company is huge and it will come very shortly.
As I have stated before, the company is undervalued and is trading on anticipation what will come from the next quarter filing due mid August around the 15th.
I have done some math and the last few quarters the company has been filing explosive REV growth. Just from March-16 to March-17, has shown over 100% increase.
Now this makes me believe we will see REV for the next quarter at around $700k up 116% from March 2017. This increase is on the low end, but it wouldn't surprise me that it closes in on $1m. Certainly the 10K for the end of 2017 a $1.5 million REV is very possible, given the back to college sports and the Pizza Fusion entity is on a path to really make a nice contribution to the overall business model and will be the greatest REV generator.
Interest for this company will come and my bet is that the path towards a .02 horizon is if not weeks away, surely during the fall going into the end of the year.
When you look at the 2 top part of the management team, appears these guys are real hustlers and know where they want to lead the company, Both men have ample experience. Then you have the rest of the team who are well positioned in this growing company.
I'm adding.
This is a very decent company and so far, a well run startup.
Have a good day.
varok
SCIE
Is a buy at .0003.
Even though the SS is really not what I like, it is still a runner when the patents prove itself and now that the Trump administration is fast-tracking many FDA trials.
I'm in and believe this issue will go to a target of .001+
Good Morning,
I have decided to reactivate my Stockmarketquarterly thread with all my Ihub postings and stockpicks and analysis.
I will no longer post on individual threads and even the great companies within the pinky arcade, many threads are just becoming too out of balance and away from the real purpose that brought us all here.
My first pick - EXOL -
EXOL is a generating revenue company with an extremely attractive share structure.
A highly successful business model that positions itself with a very active lifestyle that so many people need. Their products appear to have garnered much support among the athletic departments within academia is a huge revenue plus.
Folks, this company in it's present form is way undervalued and the next quarter is going to show a major increase in revenue.
I have been looking over the financials and this company is quite clean at the moment.
With their healthy lifestyle products, hopefully will resonate with the prudent oversight on the SS and that is where the attention for me, anyway stands.
After further review of the overall company there is no doubt after a few announcements from the company forthcoming, we will trade between .01-.02 probably before this week is over and then the higher range will be towards the next financials, which I think will be a great changer.
Right now it's revenue and new Royalty arrangements and this part is a major asset.
This, for us shareholders, is ground floor opportunity and any new announcements will only enhance share price and our overall ROI.
Right now this company is really a decent buy at these levels.
Well I added today and feel this has just begun and the next couple of sessions will be very exciting.
This is a recommended buy to .005 and price target of .02-.04. Top end of this target range gives us a MC of $6.4m. This is very achievable!!
I will be watching for the mechanics of the Share Structure.
Excellent DD: http://investorshub.advfn.com/EXOlifestyle-Inc-EXOL-11015/
The huge potential of it's business model, gains going forward will be significant and the up coming financials will be impressive and give us that explosive edge.
This is another great pennyplay!!!!!
Have a good day
varok
My Take again on MHREF
Time has come to make an assessment on where we stand.
I wrote this article back in August of 2014 and feel it still is relevant on how we will move forward for 2016-17 calendar year.
Although the issue didn't come to fruition at that time, but with the meltdown of the overall commodity sector and it's driving force in the oil sector, I believe the bottom is upon us.
With our company involved in the new generation of Rare Earth Elements things are starting to come around,now we have put behind us the R%D and it's costly capital, we can now look towards the final stage of implementing the operational part.
Every now and then comes along a pinksheet or pennystock that has huge potential. Now I come from this mindset after 20 years of playing the penny-arcade and from my professional experience of having my own business as a corporate profiler and Merger and Acquisitions for the last 16 years.
Trading pennystocks is an art and science that requires an absolute discipline in understanding the nature of pennystocks. Trading in this venue is not for most and from history's standpoint most (98%) of all pennystocks, fail or flounder at the bottom to never return.
Now we have in Matamec a truly well run and in my belief a pennystock that has long-term investment potential. I have never considered a pennystock as an investment, but a mechanism to build wealth by trading and not holding to augment your earnings into investment grade securities.
I see huge upside with MHREF as we move closer to the actual operational stage.
The company so far has been extremely discipline in controlling the issue of shares or maintaining a lid on the execution or retailing other wise known as diluting the pool by running the operational stage, Administration and R&D. This is very positive and is what drags down most pennystocks and leaves investors holding worthless stock to never be able to recoup their principle investment. This company, so far is and appears to have shareholders interest in mind and that is the beginning to feel comfortable with your investment.
It doesn't surprise me that we are still lingering down in the subpennies, but eventually this will change as we move forward.
As the world moves into a renewable source for our energy needs the Kipawa project with Toyota as a partner is only going to enhance our investment that will commend credibility and as such, so will the investment for us shareholders.
As the company has noted from their analysis, the Kipawa project is a 2. $b recoverable mining project over a period of 15 years.
So when we break this down to actual revenue per year, it is 16 $m.
Now I'm not going into the operational costs since this part still has to be determined and giving actual numbers may prove to be unproductive at this time, but the company has mentioned in one of their past statements that a 25 $m capital outlay needs to be obtained. This original capital expenditure is only the beginning, but still well within making this enterprise a profitable venture for us and the company.
Currently our market cap is under 1 $m with 120m O/S and generally is within the scope of pennystock companies that truly have a business model.
As we move forward going into 2015 and closer to operational stage, which I believe to be around 2016 when we will be in full production the share price will start it's climb and I expect this to happen by the end of this year or the spring of 2015.
Currently the company maintains a burn rate of 12 $k per month , but we can count on this to drastically to go up once we go into operational stage, but with a potential of 16 $m per year of revenue or 1 $m per month, one has to agree that we are looking at an eventual considerable multiple increase in the share price.
Of course, much of this rise in the share price will be dependant upon the financial package that the company needs to secure it's capital needs to move into operational stage, but still, we should see a significant increase to at least 10 fold from the current price of .07.
One can reasonably be comfortable to the understanding that a major price hike is in the future and if the timeline on actual operational and the capital financial package is made public, we will see a move by the end of this year going into spring.
I see the first point of resistance on the share price to be around .25 and this will give us a MC of 3 $m, still well below the fair value. I am not looking at PE ratio since pennystock companies generally are never tabulated on PE, but straight accounting. I expect this movement to begin near the end of 2014 through the end of spring 2015 since the winter months well probably have very little impact.
With 16 $m in potential revenue for the first year of operation expected for 2016, but 2017, should allow for us to have a share price to be well over 1.00$. Again, of course this is dependant upon the financial package and how it is laid out with the equity end of the deal.
But let's assume that our O/S move up from 120m to 250m, even at 250 O/S one can see that under the current share price of .07 is still well under the fair value of MC 2 $m. Even at .25 the MC will be 6 $m still well under fair value if the figures of retrieval reserves is based on 16 $m per year.
If the 16 $m achievable resources is met and not mentioning the actual burn at the time during operation we could very well command a share price of .65 giving a MC of 16 $m straight up accounting without a PE ratio calculated. So one can see definitely .50 without any problem.
Now you must take into acct the gold aspect of other claims. This needs to be calculated into the overall worth and the other claims yet still to be realized with respect to feasibility and operational costs to profitability assessment.
With the Kipawa project we should bode well on it's own merit and adding the other assets (claims) we can commend a share price of well over a $1.00 in the years to come and I believe this company will eventually move out of the pennyarcade and become a true investment grade company.
I recommend this a buy at the current price of .07 and under .13. Always do your due diligence and never invest more than you can lose.
Have a good day
varok
Here one can view issues and stockmarketquarterly pages in rotation.
http://www.stockmarketquarterly.com/rotator/
Have a good day
Varok
- SWRS -
Southwest Resources, Inc.
A/S: 500m
O/S: 35m
Float: 2m
Website: http://www.southwest-resources.com
For a full report link here.
http://www.stockmarketquarterly.com/messageforum/view_topic.php?id=511&forum_id=1
Have a good day
Varok
http://www.stockmarketquarterly.com
- EVFN -
Evolution Fuels Inc.
A/S 100 b
O/S 2 B approximately
http://www.evolution-fuels.com
Email Investor Relations
investors@evolution-fuels.com
Business Development
bizdev@evolution-fuels.com
About Evolution Fuels, Inc.
Evolution Fuels, Inc. endeavors to market renewable transportation fuels at retail fuel stations that will provide superior quality fuels to competing fuel stations by virtue of the blending capability within the fuel dispensers at its stations and offering the blends at competitive prices. The stations will offer ethanol/gasoline blends of fuel including 10% ethanol/90% gasoline (E10), 20% ethanol/80% gasoline (E20), 30% ethanol/70% gasoline (E30), and 85% ethanol/15% gasoline (E85). The latter three blends are intended for flex-fuel vehicles, although recent studies have shown that many legacy vehicles on the road today may use E20 and E30 blends without incurring damage to the engines or fuel systems. The Company's plan calls for the development of a chain of renewable fuel stations in the southwestern and southeastern United States that will be a combination of "Evolution Fuels"-branded fuel stations/convenience stores and western-motif truck stops modeled after Willie's Place Truck Stop in Carl's Corner, TX.
Annual Report Year Ending Dec. 2009
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=30992
Latest Press Release:
Evolution Fuels to Initiate Dividend Distribution of Evolution Resources, Inc. Common Stock
PR Newswire
DALLAS, April 28
DALLAS, April 28 /PRNewswire-FirstCall/ --
Evolution Fuels, Inc. (Pink Sheets: EVFN) (the "Company") today announced that it expects to initiate the mailings of certificates of Evolution Resources, Inc. common stock to its shareholders by the end of this week, pursuant to the Company's previously announced stock dividend update on January 26, 2010.
All dividend shares will be "restricted" as defined under the Securities Act of 1933. Rule 144 allows for the public resale of restricted securities only if certain holding period and other conditions are satisfied. For example, generally Rule 144 permits non-affiliates of an SEC-reporting company to resell restricted securities without regard to Rule 144 volume, reporting or manner of sale limitations after a period of six months. Further, it generally permits non-affiliates of non-reporting companies to freely resell securities after a one-year holding period. Evolution Resources, Inc. is an SEC-reporting entity. However, there are additional complexities and variables associated with Rule 144 and shareholders should evaluate the specific circumstances of each proposed sale.
My Comments:
We have heard much on the needed emphasis on alternative fuels..Evolution Fuels is on the right track and should benefit nicely as we move forward..The company's business model is gaining ground with new developments in it's business model through partnerships and support from local representatives.
The company is a fully reporting Sec. compliant and this is a big plus.
Although the share structure with respect to the authorized can be over whelming at first glance, the shares are not in the market place and presents a couple of positives for protection against hostile takeover and allows management to maintain the controlling interest.
Company Balance sheet over the last 2 years has been improved through elimination 100 million dollars liabilities.
I recommend this as a speculative buy.
Have a good day
Varok
http://www.stockmarketquartely.com
Disclaimer: Stockmarketquarterly is an independent newsletter. Stockmarketquarterly's goal is to give the investor the necessary knowledge to make rational and profitable investment decisions. Stockmarketquarterly expects to generate new subscriber revenue, the amount of which is unknown at this time, to its newsletter through the distribution of future special reports. This publication does not provide an analysis of a company's financial position and is not an offer to buy or sell securities. Information about publicly listed companies and other investor resources can be found at the Securities & Exchange Commission website http://www.sec.gov. Investing in securities is speculative and carries risk. It is recommended any investment in any security should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Stockmarketquarterly presents information in this report believed to be reliable, but its accuracy cannot be guaranteed. Past performance does not guarantee future results. The information contained herein contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected continual growth of the featured company. In accordance with safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that statements contained herein that look forward in time, which include other than historical information, involve risks and uncertainties that may affect actual results of operations. Factors that could cause actual results to differ include the size and growth of the market for the company's products, the company's ability to fund its capital requirements in the near term and in the long term; pricing pressures, etc. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could, should or might occur. Stockmarketquarterly has received $1,000 cash and $5,000 in restricted stock that will be held for one year from a 3rd party to profile Evolution Fuels Inc.. We may purchase for our portfolio a certain amount of our holdings as we feel companies we profile have substantial growth potential or until the business climate dictates otherwise.. Due Diligence is a must for all investors as there is a certain amount of risk investing in any market..
Hello Varok... it is good to see you posting back on Ihub... you have been missed...
- DLAD -
Good Afternoon,
This pick will be featured in my Newsletter and giving the class a headups.
This is a LOTTO play for profit.
Trading .0001
The company will change it's name to Cabal Communication.
The website is http://cabalcommunications.com/
Newsletter will go out tomorrow or Thursday for more pertinet info. http://www.stockmarketquarterly.com/newsletter_signup
Have a good day
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
Good Saturday Afternoon,
Next week ( Wednesday ) we will be profiling two issues trading .0001..
These issues sat dormant for months, as the company finally concludes their business model..
There will be major press releases depicting the new business plan.
I generally refrain from how high these issues will go, but I'm certain that .0005 after the promotion, isn't out of the reality.
Also, my profiling will be through my Newsletter first...
After 24 hours of my Newsletter release, it then will be posted on my website and around the NET..I have decided that my 5200 + loyal members should be first in line, since many have been with me for years..
My Newsletter Signup is on a brand new Email Marketing Company with absolute safeguards for members, any former members must reactivate their confirmation link or signup again.
I have always tried to give my members the best opportunity before posting on my board, but this case and mid-week release, makes this even more important, unlike a weekend release as in the past..
If you missed the link, here it is..
http://www.stockmarketquarterly.com/newsletter_signup
My Newsletter is FREE and you can unsubscribe at your request..
Have a good day and solid trading.
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
Welcome to Stockmarketquarterly..
For all previous members and new members..
If you are currently a member you must subscribe to this new subscription newsletter..
I have made this choice since spamming is a very serious act and allowing this change-over is to prevent in the future of such acts. This new script runs independently from this forum and has protection safe guards.
If you would like to be added to the newsletter subscriber list, click on the link below..
You will then receive a confirmation link that you must click, then you are on the list.
This newsletter is an enhancement script for your protection and stockmarketquarterly..
The script allows you to unsubscribe at your request, that you have control of.
http://www.stockmarketquarterly.com/newsletter_signup
Have a good day
Varok
http://www.stockmarketquarterly.com
I noticed that varok hasn't posted since the middle of December.
I hope he's ok, has anyone heard anything?
Health Sciences Completes Licensing Agreement With The Healing Center of Montana
INDIAN HARBOR BEACH, FL, Dec 28, 2009 (MARKETWIRE via COMTEX) -- Health Sciences Group, Inc. (PINKSHEETS: HESG) would like to announce that it has completed a licensing agreement with The Healing Center of Montana for the territory of Livingston County, Montana for purposes of operating a medical marijuana collective and distribution center for medical marijuana patients as pertains to Montana state and Livingston County law.
"Health Sciences Group is enthusiastic about this license," said Thomas Gaffney, Health Sciences Group, Inc., CEO & Chairman. "It is only with support of industry leaders like The Healing Center that we can help create market-driven solutions to medical marijuana patients so Health Sciences can form a collective with the guidance and knowledge of The Healing Center so that patients can get the medicine they need and want from legitimate sources. The Healing Center of Montana has been a leader in medical marijuana in the State of Montana since the legalization of medical marijuana in Montana."
Under the terms of the licensing agreement Health Sciences Group will operate under the Healing Center-Livingston.
ABOUT HEALTH SCIENCES GROUP, INC.
Health Sciences Group, Inc. is a provider of health and wellness services to consumers, physicians and other healthcare professionals through its website, www.igohealthy.org, and health focused publications. The Health Sciences network consists of its public website, www.igohealthy.org, and iGoHealthy Magazine. The Company operates in three segments: Online Services, Publishing and Other Services. The Company is recently exploring options of corporate growth within the Legal Medical Marijuana Industry.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Health Sciences Group, Inc. to be materially different from the statements made herein. Investors are highly advised to seek professional advice and conduct a complete due diligence regarding this, or any other company being considered for investment purposes. Investing in securities, particularly in issues priced at less than $1 per share, involves substantial risk and may result in a partial or complete loss of investment capital. Health Sciences Group, Inc., its subsidiaries, officers and employees cannot guarantee the completeness or accuracy of the information contained in company press releases or other company communications. Press releases and communications issued by the company should not be interpreted as an offer to sell or a solicitation to buy company stock. Investors are highly advised to seek professional advice and conduct a complete due diligence regarding this, or any other company being considered for investment purposes. Investing in securities, particularly in issues priced at less than $1 per share, involves substantial risk and may result in a partial or complete loss of investment capital. Health Sciences Group, Inc., its subsidiaries, officers and employees cannot guarantee the completeness or accuracy of the information contained in company press releases or other company communications. Press releases and communications issued by the company should not be interpreted as an offer to sell or a solicitation to buy company stock.
CONTACT:
Health Sciences Group, Inc.
Investor Relations
Health Sciences Group, Inc.
Frank Godleski
IR Representative
Email Contact: Email Contact
SOURCE: Health Sciences Group, Inc.
CONTACT: http://www2.marketwire.com/mw/emailprcntct?id=EA6BEAB75C40CA81
Copyright 2009 Marketwire, Inc., All rights reserved.
-0-
Varok . . . where are you when needed . . . lol
TFZI just had news . . . now this . . .
http://www.otcbb.com/asp/dailylist_detail.asp?d=12/17/2009&mkt_ctg=NON-OTCBB
I know that this is a stock that you have had sitting around . . .
Thanks
-HESG-
Good Afternoon,
The PR this morning was not well written and actually exacerbated the selloff.
What went on thus far in this trading session, is based on fear and emotional anxiety..This is known as CAPITULATION! Folks are throwing in the towel and I will say at their RISK..
In the pinks and this issue is NO different...These issues sell/buy based on news events and this mornings PR was the catalyst for this selloff.
For the last couple of weeks we have been inundated with BASHERS playing on the emotions as this issue works through this mess..I posted earlier on why these issues, but more importantly HESG has a major short position and that is a fact. Reason why the buying halt.
Many off these huge blocks is not necessarily dilution, but MMs balancing...
Lets look at the PR from this morning.
# 1 Application to Pink Sheets commendable,but still a unpredicted pink sheet issue and means absolutely nothing.
#2 About the halt on buying through Scott and TDA and the company, through it's attorney's to sort this out is nonsense..We all know, that TDA and Scott have in the past and currently have dozens of issues in this predicament only to protect the culpable MMs.
#4 No R/S is a positive announcement, but certainly should be watched and taken with continued interest in the SS and where it will go.
#5 Increasing A/S..This can be a problem, but can also protect the company from unnecessary hostile candidates, as well preferred and restricted issues for acquisitions...Details and details is what we need here with respect to this item...
#6 The recent restrictions laid out by brokers, does appear a reasonable concern why acquisitions are on hold until resolved..
#8 The retiring of 2 b shares is the cusp of what is happening and until the DTCC can make an actual accounting of these retired shares, this problem will persist.
#9 This is a booming industry and that is a FACT!!!
Selling into this collapse by many here was in my opinion not a smart move with what transpired so far was nothing more than FEAR..
Buying into this collapse may not be prudent just yet, but certainly for the folks that have funds and can average down, should watch closely for a bottom which never can be an actual prediction, but the rebound and I believe it will happen, will come from NEWS developments not from hyperbolizes and wishful hopes that go beyond 6 months.
There was much talk about putting in a GTC..I'm quite dismayed by some poster that I recognize and consider more than novice traders didn't dispute the notion that putting in a GTC is a sound position..
GTC does NOT prevent MM from using your shares..
There is only one way to keep the MM from using your shares and that is take possession of your shares in the form of certs..In other words, take your share out of the game.
When shares are held by your broker, it shows up as one holder, holding millions of shares..This is what we all see, not individual owners. Thus the MM can sell and resell your shares 100 times over.
I do NOT recommend taking possession in CERT form..Absolutely a bad move in the pinks or any issue that has volatile movement..Reason is simple...The turnaround to put your CERTS back in circulation takes 5 days and then the potential run if any, will be well over.
Buy on rumor and sell on NEWS and then work your way to FREE shares..
Have written many articles on pink Trading and how to maximize profit through my " 3 Ps of investment trading strategy "
In all, I am holding and will continue to hold as the company develops it's business model.
Merry Christmas and have a very prosperous New Year.
Have a good day
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
The Fight Zone Now Reporting to Pink Sheets
Date : 12/09/2009 @ 9:35AM
Source : MarketWire
Stock : The Fight Zone, Inc. (TFZI)
Quote : 0.0001 0.0 (0.00%) @ 2:05AM
The Fight Zone Now Reporting to Pink Sheets
ADDISON, TX -- (Marketwire) -- 12/09/09 --
The Fight Zone (aka Gold Recycle Corporation) (PINKSHEETS: TFZI) today announced that the Company is now reporting to Pink Sheets
According to Co-CEO Steven Humphries, "In an effort to make current information available to shareholders and the general public we are now reporting to Pink Sheets. Our financials have posted as of September 30, 2009 and the 'stop sign' has been removed. We are currently preparing our disclosure statement and other information in order to become fully reporting to Pink Sheets within the next 90 days."
John Buckeye Epstein, Co-CEO, added, "We are in the process of completing a new business plan that we will unveil in the next 30-60 days. Once we announce and implement the new program GRC will be poised to be the major player in the gold recycling industry."
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, words such as "estimate," "expect," "anticipate," "projected," "planned," "forecasted" and similar expressions are intended to identify forward-looking statements, which are, by their very nature, no guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to the risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
CONTACT: Steven Humphries 214-866-0606 Ext. 106
Good Morning,
- AMCG -
Amico Games Corp, Inc,
News Release for 11/08/09
Just profiled on Stockmarketquarterly..
You may view the profile here.
http://www.stockmarketquarterly.com/messageforum/view_topic.php?id=485&forum_id=1
Have a good day
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
- WNCG - Good Afternoon,
9/21/09
- WNCG -
Follow-up
When we first profiled WNCG on 9/15, we have held up nicely with a + 25% up from .072 and appears good support in this range of .8 - .09.
Today's Pr demonstrates the companies business program and growth strategy -
News 9/21/09 WNCG - Wyncrest Group's Strategic Acquisition to Raise Earned Fees by $5 Million
Recent releases have displayed and unfolds a continued development program for the next 3-5 years..You may view them here.
http://www.stockmarketquarterly.com/messageforum/view_topic.php?id=468&forum_id=1
Continue to keep an eye on this microcap...This sector ( Financial ) of our larger overall economy is going through consolidation, mergers and buyouts that will completely transform how we deal with Financial and Insurance products and companies in the future..New regulation and a larger government presence will certainly play a huge part..However, with that said, the overall benefit for smaller regional services in the near-term, albeit still remains turbulent, does have room for growth..Government involvement will have a major impact ( 2013 implementation ) of a nationalized healthcare program, companies like WNCG and many others will require due diligence...
Wyncrest Group has a history in the industry and fills a nice niche and should bode well in this interim, even though with the Fed government's role, the next 3-5 years and beyond, should give us this window, until the real task of what is the governments involvement to be...
Here is the Beacon Research report about WNCG. http://www.beaconequityresearch.com/?option=com
Invest smartly and Due Diligence must be part of your strategy for continued success...
Have a good day
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
How to build a portfolio on $500.00.
Now, this sounds easier than it appears, actually, the ability to apply a strategy, takes discipline with controlled emotions..This tutorial isn't for everyone and one must have a certain degree of trading experience, mostly in the penny-arcade where profits can be realized in great numbers and knowing when to sell.
As I have mentioned in another article I wrote in 2000 " 3 Day Trading Rule " in " My Strategy in Trading Pennies " in the forum, pretty much explains the pitfalls in trading in pennies..
The concept is simple in isn't own right and resembles the old board game of Monopoly..Why I say monopoly? Is that you are throwing dice to make moves and like Monopoly, you sell less attractive holdings (JUNK) and trade up to strong issues with fundamentals.
Even junk moves on news or promotions by third parties and is one of the prevailing winds that clutter the penny-arcade.This arcade is similar to playing the roulette wheel in Vegas..The odds are stacked against you. So knowing when to get out, is the absolute and is the most important element you must master..
The penny arcade is a crap shoot and 98% of the issues in this venue is absolutely junk, but with that said, they do have moves that one certainly can maximize profits and augment these profits into big board (NYSE, NASDAQ) issues that have strong fundamentals..With the markets experiencing huge losses due to the current economic climate, makes for great buying opportunities never seen since the great depression and other huge declines in the 70s and 80s, where one could go in and pickup issue at records lows.
The problem many traders have, is that they try to guess how much profit one can achieve with a particular issue they may be in..Once a issue starts to run, never try to guess the top or how much profit you want..This one criteria seems to always fail and should never be applied in trading..Nobody can guess the top and for that matter, the bottom..
The soundest way to achieve results with respect to profit-taking, is based on percentages..When a issue starts a run, draw a redline at an imaginary level..I usually start this imaginary line at 25%..Now if the issue has heavy volume and it continues, than good for you and maintain a careful watch, but use this imaginary line and in my case 25%, is a safety valve, in the event it drops, then you know to bail..At least you are still making profit without a total meltdown...Here again, many traders take on the assumption that it could turn, only to be let down..Of course it could turn and is known as a headfake, but it's always better to be safe, than playing with guess work on where the MM will take your issue.
So let's get started.
Now, for this exercise, I'm going to use an issue "TFZI". This issue came out of a shell known as The Fight Zone, Inc and merged in a concept known as Gold Recycle Corp. The issue is trading at .0001 and waiting for a symbol change and has a mountain of shares.
Understand, I'm only using this issue since it is current to this tutorial, but there are hundreds of penny issues you can chose from..
Remember, consider this issue with extreme suspect and caution..However, the business model is unique for the current economic times and currently is running ads in USA and Canada. The have a decent website to explain their concept and others in this sector makes for competition.
Another recent issue that sat dormant for months was MGLG trading in the range of .0001 to .0003 until last week 05/11/09 ran from .0003 to .0033 in one session..This is a 1000% gain and if one sold on the high, whether it be .0025 or even .002 was looking at making huge profits.
Now here is where you must react with smart and discipline without the emotions, in how to start your first part of portfolio building..
Lets say you spent $200 and bought 2,000,000 shares of MGLG and held until it spiked to .0025 and you sold all of it, your grand profit would be $4800..
So with your original $500 and spent $200 to make $5,000 your grand total is now $5300..Not bad on a $200 bet.
As I have mentioned in my " 3 Day Trading Rule " most of these issues are junk, so you move onto another issue and if for example you feel this issue or any other issue has warrant for you to hold, than you must make the appropriate decision and I have written about this as well in " The 3 P's of Investing and the Strategy that can maximize your ROI.. This tutorial explains if the issue has fundamental qualities for you to go long..Remember, trading in pennies means just that, trading them, don't go long unless they have the business model that qualifies as a good sound company that can generate revenue going forward.
Now you must continue to stick to your program of trading pennies for profit and moving those profits into stronger long-term NYSE issues.
You made $4800 on trading MGLG and it's this figure that you must reinvest, but not into another penny stock, that you still have your original $500 set aside..
Although, MGLG made an impressive run that day, I have to mention that this run, up over 1000%, is uncommon and not every issue stands out..Most issues have modest gains if gains can be realized..It is all in the hands of the trader to maximize and understand when to sell and if one holds too long, it may be too late as a decline may be too fast and getting out unobtainable, until it stops it's desent and you have lost all your gain..Why I mentioned above that a imaginary stop or percentage level must be put in place..
Take your $4800 and shepherd this into blue chip securities or mutual funds.
Now take your original $500 and buy TFZI or another issue..Now you may not want to trade the whole $500 and since TFZI is trading .0001 you may elect to only spend $300 and leave in cash the remaining $200 and look for another issue that could give you another potential profit.
Always remember, this is a very risky venue and you can lose and most do, but the rewards are also very gratifying if one does realize such gains..Never reinvest your profit in another penny venture, as this will only defeat your purpose in building a solid portfolio..
Also, don't just look for issues that trade in the .000 range..There are many trading higher that can still give you huge gains. It's just a matter picking one that has the potential for a run..
I can say this with experience, most penny stocks are junk and don't allow your emotions control your trading and stay focused on the objective...It's all about, portfolio building.
Have a good day and trade smart.
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
Everything on this site is Copyright (c) 2009 by KVR/Varok.Stockmarketquarterly. This material may be distributed only with proper credit to and must include the Author.. Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
The 3 P's of Investing and the Strategy that can maximize your ROI.
* Principle
* Profit
* Potential
Investing and trading in the pennies is based on one's ability to fully understand what he/she has and when to sell.
Penny companies and the arena they trade in are the most unpredictable and have left investors/traders with losses that with a smart strategy, could have been avoided.
Emotion,Anxiety and Greed,three of the prevailing sentiments that always seem to be the guiding force on investors as when to buy and sell,only to acknowledge it is discipline that will pave your road to a successful ROI.
I'm only discussing the unpredictable and unregulated market,known as the pinksheets...Here the Market Makers and not the investor have the total control and you as the investor must learn to either stay one step ahead or fall victim as most usually do.
When you trade in this market you first must at the earliest opportunity to remove your Principle..
The best way to assess this part is divide your total share account into 3 parts..The first 33% is your Principle,the second 33% is your Profit and the remaining is your Potential.
We have all experienced nice runs only to find your issue floundering at the bottom never to return..It is this first run that one should remove the Principle investment..This should always be applied and under No circumstances should you deviate from this..If you feel that the issue warrants a second run,it is your Profit that will be your next exit..Remember,if you removed your Principle investment you will have taken a huge risk out of the market and your Emotions will become less of a factor..
Potential...The last of the 3 P's is the most difficult and should only be left as an investment if the company has a business model that can generate revenue,but most importantly, can ROI based on the forward fundamentals of the company be realized..One assessment that you must take into account is the share structure verses Market Cap..It is this one and very much overlooked part that will determine the true value and fair value with respect to share price and where it will eventually go..
In the penny arcade,most participants/investors are way over their heads and have a skewed impression what really comprises what is an investment and what is a crap shoot.. From what I have seen in this cesspool of penny garbage, it's all in the timing and being able to stay one step ahead of the market markers and the loansharks...There is no such term as long-term, investment grade, great buy and all the other misnomers that many like to refer to these pennies.. For what it's worth, they are all junk and the only money makers are your day traders and the loansharks that feed offshore on what gullible buyers throw their way and the market makers who execute these buy and sells...
When one comes to the pennyarcade, he/she comes with the idea to make money, but only to be let down.. The understanding of how pennies work is in itself an art and science and not the fact that a stock is priced at .0002, .001 or .10 or whatever, and it should go up because it's so cheap...Most investors if you can call them that in pennies, get the 3rd degree and they lack the sensible approach of admittance that they made a mistake and can't accept their loss..
Since the great tech and birth of the computer, the potential of online trading took off and everybody with a computer thought that the penny arcade was going to make them wealthy.. This has become so far from the truth and 15 years later many have lost thousands and still can't figure it out...
It's simple,98% of all pennies are losers and just plain junk.. Many or most penny companies will have movement beyond a certain entry, but all will without a doubt fall like a rock and flounder at the bottom for years with ever moving north again.. If you hear nonsense like "wait until next year", or "put it in your sock drawer" and there are dozens of brilliant ideas only to have you looking back on why did I pay attention to all those clowns on the message boards..
It doesn't matter on how much DD or other research you do on a particular penny stock, because these companies don't have a future.. It is the art and science of understanding the way market makers play and until you get a grasp at their non-rules and cheating ways, you will lose..
The idea of holding any company is and should be based on free shares after the Principle has been recouped.. This part is the Potential of the 3 P's..Does the company have a future?
First, when a company promotes itself on penny exchange, it is for funding their R/D and this is especially true with BIO and Tech companies.. Once a company can establish that even their product/idea has legs, it isn't the shareholders that gain, but the owners and the largest preferred shareholders.. We as shareholders gain in the cycle of share price movements over a period of time, which allows us to sell on news and reap a decent reward, not hold out in hopes...It is pure nonsense and just doesn't make for an explanation that hold long-term on any penny stock, without exceptions can ever be achieved..
To explain this further.. When a company goes public, it is mostly for funding their R&D programs through stock sales by market makers and picked up by us, blah blah, you get the point.. Once a company has perfected their technology or product, it will usually in most cases shop around for a buyer for their tech/product or merge as a division into a larger company or outright hostile type takeover, again this is very true within the Bio companies.. Companies with large O/S and huge amount in authorized shares generally don't have a problem with hostile takeover practices.
Through this whole ordeal, the company continues to sell shares until it has ballooned their O/S and depleted their authorized shares so much, they are forced to do the most drastic of all moves, a R/S.. All this time they continue saying and moving ahead and convincing us their R/D is on target.. But Then, they announce a R/S, because they feel to stay in operation is a must and probably so, since they haven't found a partner and they are short of funds and we are, or some of us reluctantly go along.. Posters always use the argument that if the company doesn't split it will go out of business and we will not have anything and should be loyal and stick it out.. Loyal!! That's a new one.. Now this is just plain incorrect and management knows this and will be able to keep going with or without a R/S.. Remember the offshore loansharks? Most companies go for these same culprits and is at this moment diluting the pool as we speak with most pennies.. When management and I must say are in general a bunch of sharks that have a printing press for their own benefit and will do everything to keep the printing of new securities going just to fatten their own greed. Management is up against the wall when they parley their shares and this is always a last attempt and absolutely a death sentence, like the R/S. Incidentally, a R/S approved by shareholders is a formality and will always get approval regardless how we as shareholders vote.. This part is always stacked against us.. Of course in certain cases we may be able to thwart a R/S, but that is rare..
In case of any BIO company, they usually disappear into a much larger concern. .Healthcare companies that trade on the penny exchange rarely ever become stand alone concerns.. The R/D and marketing requirements is far to great for any startup to absorb and is too costly, so they usually and that is if the product is all that is meant to be, will be acquired.. In general if a Tech company has a promising product they too will be looking for a buyer, because the tech field is changing so fast that the smaller concerns lack the funding just to stay in the game and will never be able to compete with a much larger firm that have the cash and know how.
Bio companies who have products that can even meet FDA approval will probably be sold or a major PHarma company will become a partner as in a collaboration partner and they absorb or become merger.. Now to get to this stage will be with countless rewards towards shareholders equity, but eventually it will become an entity of whomever becomes a partner.. This is in most cases the way of a startup Bio company with excellent potential....
You as a shareholder will get the most out of a Bio company on the penny exchange than any other company.. The rewards are so great in Bio as well as the tedious long wait and this may require patience that will take years to develop, but eventually if the company has the fountain of youth medicine can make you a wealthy investor, in return on your principle.. Also keep in mind, that the risk is also the greatest threat to a dismal demise of your investment dollar. The latter is more accurate than the success rate..
A Bio company that can hopefully get the FDA seal will give the company the real interest and the potential share price explosion within hours of such a PR, but that will only come with the approval.. The timeline for a nay or yah on acceptance is rather short on devices than the lengthy clinical trials required for drugs and a device, which not actually being a drug could come sooner then think.. So a 6-8 years for even a drug going to trials can certainly be overshadowed with impatience and will keep a stock price from ever achieving the result in the near-term or even pan out all together.. The movement on the stock price with these companies comes with the interval press releases which allow you some trading with potential profit.
So in Short..Trade penny stocks do not use these issues as investment grade..If you have one and believe me they are rare,remove your first two P'3 of Investing and Strategy and fully understand the true Potential of the company that you wish to hold long..
Have a good day
Varok
Everything on this site is Copyright (c) 2000-2009 by KVR/Varok.Stockmarketquarterly. This material may be distributed only with proper credit to and must include the Author.. Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
Why not to buy a Stock after a 3 day run-up..
Here is a usual scenario on how this may come about..
After a stock has been trending down or trading flat for some time, suddenly one day it starts moving up, it continues up that day and then next day. On the 3 day of this run, it goes up, but for only the first 15- 20 minutes, then it drops for about 30 minutes, turns back up, but doesn't quite reach the morning high. After this period, it usually will trend down and the run is over and in most cases this stock has finished it's 3 day run.
This program will work in most cases and does apply.
So, if you're a buyer, this method will keep you from getting Emotional into buying a stock that has ready peaked, only to drop right after you bought it and I'm sure, many of you had this happen when buying stocks. This is what is referred to as " Chasing An Issue".. If you already own it, it gives you the timing to get out with usually the best profit or close to it. Which ever case applies, decide whether you want to buy it only after the drop. Depending on the stock, it can drop for a few days, and may take some time until the next 3 day advance. Be assured, that in pennies, this has been repeated over and over again with many of the same issues.. This is what you have a "Watch list for" to track issues..
The rule here is simply to let you know it is over for now.
The next time someone mentions a stock, look at a chart and see how many days it has been going up. If it's not the first day or maybe second day of the run-up, stay away for the time being. In the first 15-20 minutes after the open of the 3rd day, the issue will usually drop or in most cases just stall...Now of course you must determine this by seeing if a PR and the strength of such PR warrant further advancement, but from the history of most penny stocks, these PRs only have a very short run span..
Although, the system is not perfect it does help in timing.
Sometimes a stock continues up until 20 minutes after the open of the 4th day before it drops. Selling your stock 15-20 minutes after the open of the 3rd day of the run-up is usually the high or close enough to it. You will go broke trying to find the exact top or chase into a run, forget about it and leave your emotions out of the trade. It is in this segment that Greed usually plays on your Emotions and Anxiety..Play the 3 P's..
And how does this help in buying??
Well, that is a little more difficult, but the system does work. It is mainly there to protect you from being a "Stock Chaser". But the system will work and you must apply discipline.
Go to any stock website and look up a few stocks that are up....Jot them down...I only do this with OTCBB market stocks, but does work on most issues..
Next, I take my stock picks and go to any chart site to look at a 5 day history. The 5 day gives you a nice feel of the trading chart of the last 5 days. Notice why the 5 days compared to the 3 days.. This is so you will see the up or down on the 2 extra days and can avoid the pick. Look to see if it is the first day of the run-up. If it is the second or third day on an up swing, forget about it, since the above method has completed their run on these stocks and you will be only buying into a run or when it is reading to peak.
If I have any choices left, then go to a chart to see a 1 year and a 30 day chart to get a feel of what the stock has been doing. Keep in mind that the past is no bearing on what a stock will do in the future, but it will give you an idea...This also helps in determining what if any reason for volume and price spikes or drops.. Some chart sites allows your cursor to move along the graph for pertinent data with actual numbers.
My last stop is always the message boards and my favorite was RB, but now I go to iHub and there are others. It is here where you can get a real good idea why there is interest or reason for lack of..I don't rely so much on what is said on message boards and ever react on my decision to buy or sell..However,these boards do give you a sense on what others are thinking and many will go above and beyond to gather up DD..
After you have made your picks on which ones to buy, I have found that mid-afternoon is always an excellent time because of lunch and the morning rush has calmed down. The mid-afternoon session is slow before a strong rally that many times comes before a close. I have found mid-mornings are also good for buying, but still leaves many with high expectations that moves a stock for no other reason than emotional buys and it is this play that you want to stay away from.
Now stay on top of your picks and see if the next day it has moved up and determine the volume.. Determine if the highs are higher than the close and higher than the highs of the previous day.
On the third day, I sell it 15 to 20 minutes after the open to take advantage of the morning gap. That's pretty much it.......If your inclined to trade the same issues again, wait for the next above program cycle.
Not all stocks go up for 3 days. Some just flatten out and when this happens, just get rid of it after about 15-20 min. from the open on the 3rd day. If you fail to exercise this you will be left with major % loss and may never recover.. So a little loss is much better than an overall wipe-out.
Stocks that suddenly go up and you see there has been almost no volume the days before the sudden rise, this is usually indicative of a sign that a newsletter picked the stock or it is being pumped or hyped. The lack of previous volume makes the stock spike up.
This 3 day rule is a universal application and to each it's own method of how one should conduct such a process..
Good luck and solid trading and as always, apply sound DD, but keep your Emotions and Anxiety out of this arena and trade for profit not greed..
I hope that this will help many to be able to at least maximize profit taking..
Have a good day
Varok
Everything on this site is Copyright (c) 2000-2009 by KVR/Varok. Stockmarketquarterly. This material may be distributed only with proper credit to and must include the Author.. Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
Market makers control the action on the penny arcade not shareholders..
Is there really manipulation by market markers?
Manipulation by Market Makers is an really an overstated term that carries feelings of exploitation and down right fraud, but in reality, Market Makers are not companies that appear like one night stands and then disappear, quite the contrary.. Market Makers are responsible to make a market and to meet the needs of those they are responsible for, companies, shareholders and institutions and it is to these entities where they may try to influence the best market executions.
If the Market Maker was to keep the price steady on the release of news they would find themselves with lots of buys or sells which they had no choice but to fill at the screen price (what you go by and this is their obligation, but before they could find matching orders (for every buyer has to be a seller and visa verse) they would have to change the price and they would then loose money through market exposure. This is bad for them and for us.
So what happens if there are all sells and the price is going up? Well the explanation is that the Market Maker had an order to fill and no stock to fill it with (this trade would not have shown up on your screen until somewhat later, which are referred to as delayed trades). Under their obligations to create liquidity in the share, the Market Maker is obliged to gather an inventory (Stock holding), but only until they can meet the above obligation. This is only possible if they can encourage people to sell, which can be achieved by raising the price...The order is likely to have been large enough allowing the Market Maker to gather a decent premium on the price. So once the order is filled and the market volume returns to their normal levels, so does the share price. You can see this through the daily highs and lows along with the volume at these particular trades in time or in sequence.
You've heard the term on these message boards all too often "shaking the tree". Well that is when the MMs moving the price up, which will encourages sells, moving it down also encourage sells. Another look is that the price was hiked way up despite the support level and few of the people who got in are now going to sell.. The rise was artificial and the real traders in the know just ignored it as it only lasted about 2 hours, but what was caught were investors who were in way before the spike and had forgotten about it, now they want out. Volume is a big part of this and sometimes folks ask "why the volume".. So the Market Makers order gets filled, the price settles back to a support level and volumes decrease and it starts all over again. This scenario is where shorty likes to hang his hat.
The above reason is why you should never put a pennystock in your sockdrawer and daily monitoring is an absolute must. You have heard me post such reasons and should be
part of every persons understanding and why the term "long" makes no sense and will only have you losing money.
Can you track such activity? So So and there are all sorts of tricks and one is mainly to reduce the volatility.. Sometimes this is mostly done by increasing the bid/offer spread therefore discouraging trading especially by day traders and also by marketing the companies shares, Loansharks as referred to equity financing (dilution) in the hope they will take up long term positions.
There are a couple of areas that MMs try to encourage liquidity and one is all to apparent. .Notice on the boards when posters beg the company to release news any news, well the MMs need this one venue to increase the liquidity and such encourages the companies to produce news releases, whether substantial or not.. It does create interest if you know what I mean.. The other area is by narrowing the spreads..
You ask if this practice is legal, well sort of and then not. See Market Makers are not supposed to allow themselves to go short, but in the process of making a market they may well find themselves short of a stock. If this happens a Market Maker has a number of options, purchase from another Market Maker, which they do quite often and it is allowed or play with the price in the hope that enough sellers will embark to cover the short or borrow the shares. The institutional borrowing, which happens on larger exchanges is much practiced, but in pennies is unlikely since institutions don't hold pennies unless it is from offshore loansharks and then they just speed up the dilution process to cover and of course a manipulated PR to help in this angle.. If that's illegal? Well my friends, this has been going on since the dark ages.
Thus you have your day-traders and their only means is to make money on the heels of the MM's, not your long-term holders, they will never recoup and that I'm sure of.
The key to trading pennies is timing and one must have an understanding of how the market markers play.. One rule that will always apply and that is the 3 day rule..
Never buy an issue on a 3rd day uptrend in pennies and sell on that return reverse of a swing on that 3rd day or the outside of the 4th day.. After that, if it hasn't gone beyond the lows before the uptick is the time to dump. In other words, never chase a stock..
Have a good day
Varok
Everything on this site is Copyright (c) 2000-2009 by KVR/Varok.Stockmarketquarterly.. This material may be distributed only with proper credit to and must include the Author.. Distribution of substantively modified versions of this document is prohibited without the explicit permission of the copyright holder.
Good evening Varok . . .
Would be nice to see this board come back to life . . .
In MGLG and have appreciated your posts there . . .
Take care,
karen, thebaglady
hi eagle, good afternoon. i received your comments. thanx. will be watching
HI Mick,
Its nice to see Varok on MMTE now...:)
Eagle1
hi Bob, think we found a goodie here.
Stockmarketquarterly'
good point about gold and mining.
you almost have as many markers as postings. gotcha.
To 'varok', thanx for showing me here.
got several networking ideas for ya.
waiting for confirmation on one.
hi eagle ya surely know da right jurnts.
i'm here and there.
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