A must read to those which don't understand the OTC game.
Have posted about the OTC game many times. Looking at 3 year historical charts for pinks or OTC stock can aid with when to expect new funding. And a new sell shares to retail game run.
This post is about pennyland companies which are really trying to succeed. Not the typical pump & dump stocks out there.
The process is buy a shell company, run the OTC game once a year for 3 years. If they find VCs to fund. If all 3 rounds of funding doesn't get the company to success. Sell the shell and let the next owner have a try at growing a company off the OTC exchanges.
This is the process for my Temp Job pattern. Where you see 3 steps up over 3 months and re-test of previous high month 4, then a 6 to 9 month walkdown, each year for 3 years. Usually each following year runs smaller then the year before. That's the sign the company will not make it and uplist. If you see price highs around the same level year to year or higher. The company may make it.
One of the things I try to teach here, for pennylanders, is trade each game as a game, not an opportunity to get on the first step of a story ladder to become the next Google. Because PR stories are only a tool to sell shares. And selling shares is the name of the game on the OTC. Companies sell them to VCs and VCs sell them to retail!!! Retail holds the bag, wanting and expecting more out of each run. But if there is no one to sell higher, the run falls. Once the funding shares are sold the game is over till next year.
If you can find any OTC or pink run more the 3 months it's a freak!! Don't bet your money on this one or that one being that freak. You have no idea how many time I've been told; "LOWTRADE but this one is different." It's NOT ! you have 3 months max. Experience has proven that.
Companies on the OTC have nothing but a business plan and stock when they start. To grow a business it needs cash, to get cash they need funding. The only funding available when you have no assets or rev's is VCs (venture capital firms). They know one company in a ten thousand has a chance to succeed and repay the loan. So they take stock as collateral and sell that stock to herds of retail story believers (1st thing), to recoop their investemnt with huge profits. This is how companies get funding needed and why VCs will invest in them.
Find large amounts of new shares being issued by the company and you have found a possible OTC run within the next 3 weeks to a month or so!