What are no-BIDs?
This message board is dedicated to no-BIDs. First of all if you are a risk taker or a gambler at heart, then you may have come to the right place. No-BIDs are sub-penny stocks, A.K.A. Trip-zero stocks, that have fallen to the smallest increment that everyday retail traders can trade only at the asking price at .0001; however, the bid is zero or near-zero. You got that right, nothing, nada. Your brokerage account might not even allow you to trade if it is on the do-not-buy list. If you are looking for safer investments that make steady or near steady small gains, then you probably are not in the right place.
So why buy these stocks? There exists a tremendous percentage gain for just a few ticks above the current asking price, and even sometimes +1,000% of gains can happen at times. Should you invest everything you have because of the potential these no-BIDs have – of course not. Are there any risks of just buying at the asking price – well of course there are.
Prices of stocks trade on the 1/100-th of a penny or what is called a tick. A no-BID Trips starts at .0001 and then the next tick if the bid starts to form because of a rumor or front-loading or substantial business improvement is .0002. Then on to .0003 and so on, up to .01 and even higher. The first tick after .0001 is .0002 for a 100% gain, and sometimes it is difficult to get the stock price to that point; sometimes there are too many shares in the float, other times other investors just want out even at any price, and even toxic financing agreements with the company may have been offered free shares that are being dumped in mass at the asking price.
But occasionally, a stock will trade above .0002 and continue even to .001 for a 900% gain or what is also called a 10-Bagger. Once out of the no-BID situation, every tick is important to the trader that holds the millions of shares taken at the .0001 asking price. Because every $100 invested at .0001 is one million shares. Some sell all of them at .0002 (not too smart really if you have 10’s of millions) or a small portion of the shares to get some of the input cash back into the trading account.
There are numerous strategies employed to maximize profit and to limit risk, and this is up to the individual trader, and I suggest talking to others to learn strategies if you are new to this. One simple strategy is to buy at the .0001 Ask a few million or at some level of comfort just in case it gets stuck for a long time. For example XYZ Company, you buy $1000 at .0001 for 10 million shares and you sit on them until news or a tremendous rumor or buy-out possibility. If it can trade between .0001 and .0002 and the bid at .0001 grows, set small sells at .0002, and .0003 and .0004 and try to calculate the minimum shares to sell to break even for what’s called going free. In the above example you could sell 2 million at .0002, 2 million at .0003 and 2 million at .0004. If it only trades at .0003 vs .0004 and falls again and your .0004 orders where the only ones not sold you would have sold out for about $1000 which would have been your input cash. You would still have 6 million shares free. I would suggest selling most if it jumps on no major news and even if a PR did hit, and take any news with a grain of salt. From .0008 to .0014 sell around 50% of the remaining 6 million but never all; keep some 'just in case'.
Above was the good, now for the bad. Usually, unless you pick the right one by pure luck, will sit at no-BID or possibly trade between .0001 and .0002 and even fall back to no-BID for a very long time – even years! So, trade only with money you can afford to live without for some time just in case this situation happens. Never bail unless you must but even then selling at .0001 may take months and months.
Now the ugly, many of these can go out of business or reverse split which will 99% of the time wipe out your entire position, i.e. your money invested. Also some can be halted or suspended or even go dark. So, make sure you don’t have all of you eggs in one basket. Do your due diligence, and study the trading patterns, monitor the emotions of the chat boards, and learn any possible rumors that may exist, before leaping.
No-BID trading Tips
Obviously, there is a lot of money to be made or lost in these types of stocks, so be careful first of all. Below is a list of items you probably need to do:
|Ticker||52 Wk Range||AS (Mil)||OS (Mil)||Float (Mil)||Notes|
|ARIOQ||.0001-.0002||9500||178||?||In bankruptcy proceedings…|
|BAYP||.0001-.0123||700||239||?||Low AS play|
|BSSP||.0001-.14||100||371||?||Merger (2.2B OS most likely)|
|CBYI||.0001-.0002||9000||4639||4139||CEO most likely Rodger the scammer, but always seems to do something|
|DNAX||.0001-.001||10000||5990||?||Had CC Apr 21, 2016|
|GRCV||stay away from|
|HIMR||.0001-.0003||25000||308||?||Wood selling, what?|
|HYBE||.0001-.001||8000||8000||1200||Board is dead|
|KALO||.0001-.14||15000||6805||3484||Unusual volume, no news ‘yet’|
|KNSC||.0001-.001||10000||5217||3017||Board is dead|
|LGBS||.0001-.0011||2000||1404||557||Keep on watch|
|NNRX||.0001-.0048||750||580||?||CEO change, but be careful|
|PEII||stay away from|
|PRDL||.0001||9000||8288||2939||On watch only|
|RCHA||.0001-.07||?||?||?||Merger? Be careful|
|RMRK||.0001-.0013||780||?||?||Board is dead|
|SEGI||Verge of no bid|
|SNRY||wavers on no bid, Jury is still out on this one, has an active board|
|SPRV||.0001-.0007||20000||5487||2451||10K due? Has volume|
|Hypothetical Dozen Prudently Bought Picks|
Note from Moderators:
Disclaimer: Buying any of these may mean that you will be "stuck" in them and never find a buyer so do your D/D, or at least use money you are willing to lose. No bids can also be very profitable (that is if you take profits off the table). As Steve Miller Band sings, "Go on and Take the money and run!"
PLEASE: No bashing or major pumping. If you want to do this, go to the IHub board for that particular ticker.
Other links to IHub's for research