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Janice: I've been away from the board for awhile. Can you give your excuse (reason) for posting again, if you don't mind? Somehow I missed it, and if KSWJ has an enemy on this board, you sure come across as the leading nominee.
Rookie: One more thought. If a person has the coin, I would nab about 1,000,000 of INSQ before it runs much higher and just SIT on those shares as well. Though the nearly 5 billion shares outstanding is a big negative I realize ... the sector they are in and what they do has the potential makings of a $.10 to $.20 stock in a year or two. Maybe even higher.
Rare do you find a stock as cheap as INSQ is whereby you can buy so many shares. Sitting on a bunch of shares of a company like INSQ can make you a millionare very quickly -- like in a year or two.
INSQ sure has a lot more going for it right now than what AMEP had starting out, I'll tell you that much.
Rookie: Oh, I forgot to mention. You can't know how much I regret NOW selling those 3,000,000 shares of AMEP. I would LOVE to have unloaded them at about $.14 a share recently. I could find a lot of places to invest $420,000 right about now!
One may very well be looking at a "AMEP" right here with KSWJ. George is fumbling around just about as unprofessionally as CB was stumbling-bumbling around with AMEP a few years back, for what its worth.
One thing I've learn in playing pennies in the last six years is that sometimes a person can get so focused on the "scam ellement" of a company (and I assume 99% of these Pink/OTC's are nothing but share-selling scams) that they CAN'T SEE the potential there is in scooping up a million or so shares of a company below a $.01, and just WAIT. And wait ... and wait ...
It is NOT all that difficult to see a sub-penny stock run above $.10 a share IF it is in the right sector and they aren't constantly dilluting whereby a Reverse/Split looms larger and larger in the road ahead.
I've been a penny trader these last six years and still buy beans and rice when they go on SALE. I held over 2,000,000 shares of MOBL, buying it near a $.01. I was out of it under $.03, and patted myself on the back! Stupid chit, I was!
I held over 2,000,000 of MBAH buying them dirt cheap as well, BUT I listened to everyone elses advice ... "They're a scam!" so take your profit and RUNNNNNNNNNNNNNNNNN! ... which I did.
Only to realize I'm not half bad at picking winners, but I just don't hold them long enough to make the BIGGGGGGGGGGGGGGG return.
Well ... now that I'm nearly broke ... maybe I'll start making some of that BIGGGGGGGGGGGGGGGGG return the next five years!
One more thing ... I STILL have a gut feeling this company may just be legit, and sitting on a few million shares may pan out to be a very blessed experience for those who will just tuck away their shares in the back of a drawer and try to forget about them.
Of course ... with a PinkSheet, there is always the dillution possibility, and surprise R/S that can devour your holdings overnight. That's the greatest risk with Pinks that I see.
Rookie: IMO, AMEP is strictly a trading stock. It no longer is a trusted buy and hold. It had a predictable trading range from $.045ish to $.07ish range before their Q came out. Now it will establish a new support and resistance range, and it is too early to determine what that will be I believe.
Charles Bitters IS AMEP, if you haven't already figured that out. Read his Q. He IS the sole employee. How many Mexicans he hires to conduct business has never been released.
If you read back over past PR's, you'll see that there is always "promise," ... but he never gives out how much oil or gas he sells, which to me is an eye-brow raiser.
I was in the stock a few years back when he came out with his HOA-(????) "Snake Oil." Interestingly ... it was a "secret formula" he was experimenting with to get heavy earl out of the ground. The buzz was that his heavy oil extraction secret formula was going to make 1,000,000 share holders very, very wealthy.
He played up the "snake oil" but NEVER released any specific details about how effective it was. It eventually died about two years ago.
Credibility is somewhat lacking with him IMO. He seldom follows up with any credible updates on previous PR's.
Only thing positive I can tell you about him is that I called him on his cell phone while he was out in the field back in 2004. I told him I had nearly all my investment money in AMEP at the time (somewhere about 3,000,000 shares, I believe); much of my retirement money. He told me in his Texas drawl: "Son, don't EVER put all your eggs in one basket; not even in AMEP. I could die tomorrow, and this company would be history. Diversify your investing, now, will you promise me? I would feel terrible if you lost all your retirement money in ANY stock."
I'm serious. That is what he said. I dern neared kept all my money in AMEP just because the guy was so bluntly honest! I made a little money on the position but went elsewhere after a fashion. The "snake oil" was just too fishy.
Now ... he keeps plugging along, and as the price of oil goes higher, people are looking for little oil drillers like AMEP to park their money and just ride out whatever happens.
What MIGHT happen? There are a lot of people playing AMEP, so with the right stars in it's favor ... the stock could run very high this summer. Momentum can never be underestimated these days in little oil plays. They are nuggets of wealth.
And then there is KSWJ. I've always assumed "snake oil" ... but ... at the price you can buy it ... IF it somehow is the real deal ... Charles Bitters may be the FIRST to experiement with it down Texas way and make it a global success!
Rookie: AMEP's RB board resident is: Drillbit. Maybe you surmised that. He reposted a message on the RB MSEV board that has considerable merrit I believe. Here it is:
http://ragingbull.lycos.com/mboard/boards.cgi?board=MSEV&read=37520
If the price of oil should suddenly begin to drop, (would sure doesn't seem likely, does it?), I would expect the share price of AMEP to begin to drop as well.
If you are thinking about taking a sizable position, my gut feeling is that you can buy it under $.10 if you're patient a few days.
AMEP got a nice pop because it's quarterly registered some income. Minus any PR's for awhile, which is customary for the company, the share price slowly begins to fall back down. That's why I think odds are pretty good you can buy it under $.10 if you are a few days patient.
Whether it has been intentional on George's part, or whether it just turned out this way ... I've had this little thought going through my head every since the SEC shut KSWJ down that this may very well turn out for the good of those who plan on holding their shares for awhile.
The MM's have been playing this like a fiddle, and the longer they keep shorting it, (which you KNOW they have), the more this company may have been forced to dilute to stay in operation until they can start making some revenue from the EM-100 process.
This weekend suddenly got MUCH better!
OT: Anyone with powder playing GSHF, VRDM and/or INSQ? Sure looks to me like three stocks to put money in and just patiently SIT.
Here is a writing on oil/energy that many might find very insightful:
The Coming Oil Crisis
by Robert Kiyosaki
Utility Links
April 18, 2006
How many of you are old enough to have been working in 1973? If so, you would've had the kind of economic experience I did at that time. But if you were in school or missed the period of the oil crisis, get ready because those times could return with a vengeance.
I left the Marine Corps in 1974 and got my first (and only) real job with the Xerox Corporation. The U.S. economy was in terrible shape at that time. From 1973 to 1974, the U.S. was in the midst of an energy crisis, and inflation was in the double digits. Stagflation, a new word, had been introduced -- there was high inflation, but the economy wasn't growing.
Because of the energy crisis, I had not one but two cars. One was a Corvette, and one was a Karmann Ghia convertible, made by Volkswagen. I filled up my Corvette with gas on even-numbered calendar days and the other car on odd-numbered days. Also, the speed limit was cut from 65 to 55 mph to reduce gasoline consumption, which meant I was often pulled over for speeding.
Worst of all, as a brand new Xerox salesman just learning to sell, I found myself struggling to save Xerox copiers, rather than sell Xerox copiers. That's because back then, Xerox only rented copiers. As the economy worsened, one of the first items businesses got rid of was their Xerox copier. Each cancellation meant I had to sell two copiers -- one to cover the loss of the cancelled machine and another copier to earn enough money to put gas in my cars and food on the table. In some months, I was losing more machines than I was selling -- and was nearly fired several times.
Oil Prices Will Keep Heading Up
My reason for taking you on this trip down memory lane is because I believe we're approaching a repeat of that 1973-1974 crisis. Once again, oil prices are going through the roof. During the mid-70s, oil went from under $3 a barrel to over $35 a barrel. And in 1974, we were stuck in an unpopular war in Vietnam, a war we would not win.
In 1998, oil was just $10 a barrel, and today it is over $60. We're also stuck in a war we may not be able to win.
The difference this time is that things are actually worse than they were in 1974, at least in my opinion. One difference is that the oil crises back in 1973 to 1974 and again in 1978 were political problems. Today, the oil crisis is a problem of diminishing supply and increasing demand. In other words, this time, there really is an oil crisis.
Many people today believe that oil will once again return to the $35-a-barrel level and aren't concerned. Or they believe that with better technology, energy companies will find more oil, and happy days will be here again.
I believe differently. Not that I'm an oil expert, but in 1966 through 1968 I was hired as an apprentice by Standard Oil of California, where I learned a lot about oil and the oil industry. Although I did see oil prices slide back down in the 1970s, this time, I believe they will go higher, not lower. I wouldn't be surprised if we soon see oil at over $100 a barrel and gasoline at $5 to $12 a gallon at the pump.
Wealth and Energy
Pricey oil makes clear that wealth really is energy in various forms. And that means more than just money. If I'm correct, and oil does go over $100 a barrel, you'll see some individuals' -- and some companies' -- wealth equation look like this:
For people who live in the suburbs and must commute long distances to work, their wealth will sink as energy prices rise. The same is true for the airlines, food, and car companies, plus destinations such as Hawaii, which depend on cheap energy to grow.
For other people (and some companies), their wealth equation will look like this.
For people who invest in oil companies or own oil production, their finances will reflect this equation. This is why Exxon-Mobil (XOM) has recently replaced Wal-Mart (WMT) as the most profitable company in America.
An Alarming Gap
While many environmentalists, concerned with global warming, are thrilled that oil supply is on a decline (and we truly do need to replace oil with more renewable forms of energy, such as wind and solar power), there's another concern that must be considered. If energy costs continue to rise and our economy stops growing and starts shrinking, many stocks will crash, older Americans will not be able to retire, inflation may skyrocket, businesses will close or cut back, and jobs will be lost. Not only will we be facing global warming, we'll be facing civilized chaos.
The problem today is that oil companies are too short-sighted, the environmentalists too far-sighted, and politicians only concerned with being elected. As a result, there will be a gap between the end of oil and a conversion to less destructive forms of energy. In this gap, all hell may break loose.
In my next article, I'll go into what I'm doing to prepare for the gap, as well as why I believe the gap can't be avoided. In other words, it will not be 1973-1974, or stagflation, all over again. I believe it will be the end of civilization as we know it -- and possibly the birth of a brave new world.
As my greatest teacher, Dr. Buckminister Fuller, said to my class in 1982, "Humanity will soon have to choose between utopia or oblivion.... Do we work only for ourselves or for our planet?"
OT: A little Easter message for anyone who thinks a rabbit atoned for their sins: http://www.precious-testimonies.com/Exhortations/a-e/WhyTheCross.htm
All have an enjoyable Easter!
Lucky
Calgary: I have no intention of selling my shares if this even goes to grays. However ... I don't have my life-savings in this stock either, and when I put money to it, like all Pinks, I take a position fully realizing that I may lose every single dime. So many things can happen that is totally unpredictable with Pinks, as well as certain OTC's.
Lucky
I emailed George a bit ago, simply encouraging him. I asked no questions, and don't expect an answer back. Others may want to consider doing the same thing.
If this is the real-deal, our emails of encouragement might go a long way.
Have a blessed day at Pennyland Casino.
Lucky
Google caption may be of some interest:
Mcguirewoods Llp Mcguirewoods Kazakhstan Llp - Address Details ...The Legal500.com is the comprehensive web resource for legal professionals. With over 40000 pages it features on-line versions of The Legal 500, ...
www.legal500.com/us500/firms/r51422.htm - 7k - Cached - Similar pages
Website for McquireWoods lawfirm:
http://www.mcguirewoods.com/
Calgary: GREAT find! Thanks tons!
Lucky
Duelittle: I think your last post has meritt. People would ask, "WHO would like to put the screws to KSWJ?"
If the EM-100 does have meritt, a LOT would be interested in doing so, I would guess.
We'll most likely never know, if it happens to be a BIG oil company (who hasn't been included in the possible licensing process, or wants an EXCLUSIVE use contract, for instance ... or ... it COULD even come from Middle East connections. You THINK the folks holding the title deed to middle-east oil WANTS heavy oil extraction made more profitable in Alberta and other parts of the country?
C'Mon!
Furthermore ... we retail don't have a clue what other uses EM-100 may have in other technologies, that a couple past PR's have hinted of.
Now ... don't think I'm trying to make KSWJ credible amd honest, and implying this puppy will fly afterall. I have already prepared mentally -- expecting my money to be gone.
BUT ... I'm not writing this off totally as a lost cause so quickly. I have no choice but to ride this out like other share holders, but I'm NOT going to launch a witch-hunt against George or KSWJ to crucify their reputation and credibility until concrete facts are made public ... IF they get made public, I realize. That sounds pretty foolish to me of coming to premature judgment/s, because it may well taint one's decision to ride this out longer, and perhaps cause someone to unload their shares the first five minutes this starts trading again, if it does, and then cause them to lose out if it takes off and they have to buy at much higher prices.
I've always felt George has been trying TOO HARD to please too many people, and in so doing, spreading himself too thin. What was his motive? Again ... either his emails to shareholders was an honest attempt to give the impression that the CEO "cares," (and He might WELL care) ... or ... it was a means to buy time to sell as many shares of stock before the sheriff and his pose road into town to throw him into the Alligator Swamp Correctional Facility.
IslandKim: I agree with you. I really don't think the demands the SEC are making on KSWJ as anything the company has to be greatly concerned with. I too expect this stock to be trading again.
As long as the company is not outright selling shares and has absolutely no EM-100 period, I think a lot of doom and gloom is unnecessary.
If the company is on the up and up, and I'll give them the benefit of the doubt at this juncture ... I also believe this may very well prove to be the BEST thing that could have ever happened to KSWJ. It will put the fear of the SEC God in them, as will the right kind of IRS Audit. Once you been though one, you really don't EVER want to hear from the IRS again ... which is exactly the "trauma" they want you to remember. It tends to make most people a little more "honest" thereafter.
I want to thank everyone for all their posts here as well. I've been so occupied with other family matters and I haven't been able to contribute, but I read what you post when I get the chance.
I realize this may not effect the final outcome of KSW, but wouldn't it be something if "competition" is the one who has prodded the SEC to do what they did? It's been known to happen.
Of course, we retail most likely will never be notified of such, unless KSW were to sue, and then maybe, we might.
This is my first experience with something like this as well, so it's a good learning experience. Maybe the SEC is cracking down on Pink-OTC-Scams ... or at least give the appearance that they are.
At any rate, I agree ... let's keep snooping and sharing information. How else will we learn and grow?
All have a good weekend
Lucky
California: Are you off this board indefinitely?
Is this what KSWJ will look like in the bye and bye:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=fmnj&sid=0&o_symb=fmnj&f...
(In case the above didn't fly, punch up the ticker FMNJ)
Thanks Island!
emit: I'm on the same page as you are. Not selling. Sold at times like this so many times before, ONLY to see things reverse a few days later and miss out on a profit.
This is not advice for anyone else. If I didn't know better, a CD holder is unloading shares to OWN cheaper shares of this company. Only speculation of course, but it sure smells of CD selling/acquiring to me ... and very possibly a hedge fund or two trying to accumulate as well.
When a tornado hits, you run for cover and stay put until it passes. This stock is in a HUGE tornado right now, but it most likely will pass.
Pizzes one off however, BUT ... if one has powder, is definitely the time to be buying some more, but at less than $.001. They'll run this again, just wait and watch.
I've been busy with so many other things I haven't been watching other stocks. What I've been watching, nothing is worth buying right now. Too high in price.
I'm keeping my eye on PBLS, but you can wait awhile for a PR right now to get it to pop. Getting it around $.0225 - $.023 is a good price to sell it above $.03.
They MAY have some good action if they ever get onto to OTC, which they claim they are in the process of. Taking a very long time IMO to make it happen, so the company may be more "talk" than action. Lot's of posters on Raging Bull which means there are a lot of people watching the company, and like here, getting impatient.
If you like to play higher priced stocks, I would keep my eye on CAMH. If they release some good news, the stock will shoot back up to $3.00 and above very easily. They should be ready soon for another PR.
Bedtime
Lucky
California/Paul: Glad to see you are cool, calm and collected this week. I too have played these little puppies enough to just get a sixth sense that the MM's are not wanting this to run. They do so for only ONE reason. To make money on the upside when they are ready to let it rise, and make a little money long and short while the company has yet to release any wazoo news release/s. Until they are ready to let it rise, a person is virtually trying to swim upstream.
Thus patience is called for.
If the company was selling all these shares, this stock would not be at the bid price it has been, but rather, the MM's would have dropped the bid much, much lower.
Lucky
RealtorNH: I'm with you! Great take!
Puke on you MM's. I hope you have a rotten evening!
Looks like the MM's will have to start buying from each other to bring new retail buyers into the stock. This MAY be the bottom for now ... or it may just be halftime.
MM's evidently all slept in this morning.
Lakedweller: Wouldn't surprise me if new MM's work strictly on commission! Otherwise how could they be so CRUEL to us nice longs?! I get the strong impression they just have no idea how painful this is for us faithful KSWJ longs.
As a side note, I'll bet few MM's ever go deer hunting on public land.
By the way, was that guy Dick Cheney shot a former Market Maker, you suppose?
Here was WNWG's PR from March 23rd. Can you SMELL potential here for KSWJ, ya'll?
FORT WORTH, TEXAS, Mar 23, 2006 (CCNMatthews via COMTEX) -- EXPERT TEAM ASSEMBLED TO COMMERCIALIZE OIL SANDS TECHNOLOGY
Wentworth Energy, Inc. (WNWG) reported today that Wentworth Oil Sands CEO Roger Williams has announced the management team who will join him in the commercialization of the Petromax Oil Sands technology.
"We are fortunate to have assembled an aggressive and nimble management team with decades of industry experience, tremendous technical knowledge, and the business acumen to commercialize and market the patented Petromax Oil Sands separation technology," Williams said. "We need to get off to a fast start and we have a lot of work to do. I am confident this strong nucleus will enable Wentworth Oil Sands to make a significant impact in the oil sands industry."
"The selection of these outstanding and seasoned professionals, in addition to the recent appointment of Dr. David Sego as Executive VP of Technology, will result in a faster ramp-up of the Company's efforts to introduce our Oil Sands technology to the international oil and gas markets," stated Williams.
What is the real value of KSWJ? If you aren't familar with the following company (WNWG), let this PR salivate your glands just a little!
FORT WORTH, Texas, Feb 28, 2006 (BUSINESS WIRE) -- Wentworth Energy, Inc. (WNWG) announced today that it has signed a joint venture agreement with Petromax Technologies to develop oil sands projects worldwide using the patented Petromax hydrocarbon separation technology. The joint venture, known as Wentworth Oils Sands, Inc., will have exclusive rights to the Petromax processing technology for oil sands and several other specific economic applications.
Wentworth Oils Sands Inc. will use Petromax's process to develop oil sands starting with Wentworth Energy's established leases in eastern Utah. Wentworth owns approximately 1900 acres of oil sand leases in the potentially prolific Asphalt Ridge region. Historical geologic assessment conducted by and reports authored by the United States Geologic Survey and the United States Department of Mines indicate that total recoverable oil reserves are estimated between 30,000 to 40,000 barrels per acre.
John Punzo, Chairman and CEO of Wentworth Energy, stated: "We are extremely pleased to have secured the exclusive rights to use the Petromax technology for oil sand resource extraction. Under the leadership of Barry Rosengrant Petromax has assembled one of the most experienced teams in the industry to bring this technology on stream. Our plan is to build the first production plant using the Petromax process over the next several months before making it available to other oil sands projects worldwide."
Petromax Technologies Founder Barry Rosengrant added, "Not only is the Petromax process ideally suited for oil sands resource extraction it does so in an environmentally benign manner. In Utah the state government has said it will only approve projects meeting strict environmental criteria. The patented Petromax process is a combination of water-based chemicals that change the charge of inorganic and oil-based organic surfaces from neutral or positive into strongly negative. This clears the way for the easy and clean separation of the hydrocarbons from the oil sands."
Gord McDougall, President of Wentworth Energy stated, "Petromax's process also ensures that the development cost-per-barrel will be significantly below those of other exploitation processes, while producing a high grade of oil from the oil sands environment. Traditional oil sands projects can cost billions of dollars, however, we believe that with Petromax we can build a plant that will produce oil at a fraction of the infrastructure cost for conventional oil sands development projects.
"The joint venture will immediately set up a pilot plant to produce the first generation of the integrated components necessary to profitably process oil sands. The Petromax technology has numerous applications in addition to oil sands processing. The joint venture also has the exclusive rights to market Petromax for use in emulsified oil sands tailings remediation, and various rights to market the technology in Canada including use in the stimulation of oil and gas wells, tank sludge projects and the pipeline transport business," added McDougall.
About Petromax Technologies
Petromax is the developer of a proprietary process combining non-hazardous chemical formulations with shearing technology that separates oil and other commodities of value from inorganic material to which it adheres. This process has application to markets for oil sludge removal, down-hole oil field stimulation, hazardous waste remediation (e.g., Mature Fine Tailings; MFT), and oil sands development.
About Wentworth Energy, Inc.
Located in Forth Worth, Texas, Wentworth Energy, Inc. is a diversified energy company focused on the responsible development of America's natural resources while providing maximum shareholder value. Wentworth Energy will apply innovative technologies towards the discovery and development of a diverse portfolio of high value, low risk energy projects such as the Company's opportunities in the oil sands of eastern Utah, the prolific oil and gas fields of the Gulf Coast, and the East Texas gas play. Wentworth Energy trades under the ticker symbol WNWG. For more information on the Company visit www.wentworthenergy.com
Wentworth Energy, Inc. (WNWG)
SOURCE: Wentworth Energy
JPGetty: Your post just ruined the weekend of a lot of MM's! Thanks for the update.
P.S. If you have an "in" with George, tell him I'll sign a contract or two of KSW if he'll get the share price of this stock up above $20 soon!!!!!!
If I was an Market Maker, at this particular evolution of KSWJ, I would be accumulating myself a HUGE inventory of the cheapest shares I could buy. They know word is spreading about the EM-100 process.
News will most likely get released that indicates revenue generation will start happening by the licensing of their EM-100. Once news like this gets released, the MM's know big to huge buyers will come rusing in to get as many shares as they can before the stock soars.
I believe what we've seen the last week is exactly the above. MM's shorting the stock down to accumulate profits both on the short side and buying them back at the lower and lower price. Typical MM buying on a sub-penny with HUGE potential. I've seen in happen time and time again. It's like clockwork.
MM's ESPECIALLY love it if longs start doubting the legitamacy of the company. The more weak hands selling, the BETTER their profits will be a few weeks down the road.
This is the BEST time coming up to continue to accumulate shares and NOT start doubting that you are going to lose all your money you have in this stock. Now is NOT the time to start doubting. Now is the time to be PATIENT. Impatience kills 9 out of 10 opportunities for you to make a positive return on your investment ... ESPECIALLY in a penny stock, (of course, depending on your average buy price).
Unless something totally unexpected happens, which can happen to ANY company, this stock will have a run. Depending on the news and the timing of the news ... it can run to $.01, or to $.10 or $1.00 initially when the MM's are motivated to sell their investory at the highest price they can get for them.
And if KSW Industries have a process unlike no other ... OH MY GOODNESS ... the sky is the limit.
Lucky
From someone who KNOWS:
"More and more investors are winning the game nowadays despite all bashers that float the Internet that has become part of the game. Floor traders of market makers often watch CNBC, new wires and bulletin boards in order to follow the market during the trading session.
"OTC BB market makers (MM's) don't use fundamental and technical analysis. However, what they DO realize is a lot of dumb money DOES use this newest nitch charting or TA (Technical Analysis) to run a stock either up or down. To the MM's this like taking candy from a baby. Simply ... they will paint the tape and use whatever tactic to affect the charting bands."
California: I would STRONGLY encourage you to heed Calgary's post and just forget about this stock until it starts to climb above your buy point average. Watching pennies you own keep dropping is emotional cancer of the WORST kind if it's getting to you, and it appears that it IS from your posts.
Buying DOWN is seldom a successful strategy, by the way. Remember, if this looks better to you right now at this price, it CAN look a whole lot better at $.00015. Trust me, it can GET there before rising above your existing buy point.
Buy your wife some flowers and a nice card and put your money in some other penny stocks to diversify. Grab some PBLS when it gets back to $.023. It'll run back up to $.027 in a few weeks. Buy some AMEP when it gets back near $.04. It'll run back up to the $.07 range when it's time. Grab some ONEV when it drops near $.02 again. Many here can point you to investments like these - maybe better.
NEVER, NEVER, NEVER put so much of your total invesment capital in ONE penny stock. Twenty years from now when you've mastered settling for a 20% return to 50% return with smaller investments in pennies ... THEN shoot the rapids! But not when you are new at this, please.
The game here is to make you WISE early so that when I'm old (happening too fast!) and my brain is nearly gone, I can ask YOU what to do with my Social Security check and have confidence that YOU will give me good counsel!
Have a good weekend!
Lucky
Here is a trillion dollar post off the MSEV board. Tuck it away, and learn how the "casino owner" finds great joy in taking away all your money while you never quite figure out how it REALLY happenes:
By: shorthair
31 Mar 2006, 12:00 PM EST
Msg. 37210 of 37210
Since it's a little slow, I found this on an ihub board, the 10 baggger or something like that, and thought it was a pretty good read.
Specifically the part about the job of a Market Maker...to make a market. They really don’t give a crap about what a company does, they make their cash on volume, which is true.
................................
Weekly Thoughts: Learn How to Play the Game: Invest Wisely and Trade Smartly
The savvy long-term investors never chase stocks up. For the most part that is
momentum players and daytraders where most of it or what follows is dumb
money. Instead the long-term investors use a couple of simple strategies in
order to position themselves. One is to find a stock no one immediately sees
has huge potential and accumulate. Long-term investors are not interested in
trading against the public mind or the dumb money. That's where the majority
of the money can be made but even more can be made if the base of a stock is
held extremely strong by investors. However the second is not to doubt the
research which is the underlying basis for going long and holding.
More and more investors are winning the game nowadays despite all bashers that
float through the Internet that has become part of the game. Floor traders of
market makers often watch CNBC, news wires and bulletin boards in order to
follow the market during trading session. OTC BB market makers (MMs) don't use
fundamental and technical analysis. However, what they do realize is a lot of
dumb money does use this newest nitch charting or TA (Technical Analysis) to
run a stock either up or down. To the MMs this is like taking candy from a
baby. Simply they will paint the tape and use whatever tactic to affect the
charting bands. Thus the public and dumb money they will have eating out of
their hands. Effectively the MMs can show a strong stock growing weak by
manipulating the close price in order to generate selling volume, delaying
trading time to manipulate trading activities, or even stalling the ask
without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock
especially an OTC BB. That is the level that stocks will seek that yields the
most volume. Now this is very important because they make money on the volume
buying at the bid and selling at the ask. In other words, by making the market
they are buying low and selling high. Now smart money adheres to that rule, so
do all the market makers. They could careless whether the stock is at $83 or
at $0.23. All they care about is the action thus being able to sell stock at
the offer (The high) and buy stock at the bid (The low). To increase their
profitability, they make the spread as great as possible on as many shares as
they can especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to
yield the most volume. They need both buy and sells to get the maximum action.
Remember, MMs play the volume. If the volume decreases and there are mostly
Buys that become a one way volume, Buy volume. So what they do is let the
stock run up to a price where it runs out of steam. They fill all the buy
orders there that they can and then comes the pullback one way or another
naturally or induced. During the pull back they can buy tons of shares and
flip them to those averaging down or trying to catch the bounce. At some
price, the stock will be relatively stable and yield the most volume. Now that
is the average price you will see
The average price is the point where a stock seeks a level where MMs can
profit on the most volume. So during the day that is the price that MMs and
momentum/day traders want to see the stock at. Why? Because they know the
public and dumb money was chasing the price thing up. Most of the time, the
MMs love a flurry of Market Orders which is a dead sign of an artificial run
or momentum. Merely it is money in the bank for them. Most get hung in a
momentum or day trade or by the tactics of Market makers, who are in the
business to screw the public every chance they get and the NASD is not going
to do anything about it. They are merely making the market liquid is there
reasoning.
The market makers have created an added complication to the OTCBB's chaos of
the already volatile intra-day price movements created by dumb money, momentum
and day-traders. MMs can not relate to long-term holders in the OTC BB. That
makes absolutely no sense what so ever. They feel a large percentage of trades
in the OTC BB market consist of short-term or day-trades, MMs merely view the
barrage of buy and sell orders as relatively neutral to the market. How they
figure it is when the average dumb money buys shares in a company, the MMs
feel or rather know with some certainty it is very likely that dumb money will
want to sell back those shares relatively quick on the slightest drop.
Now somewhat comfortable with this logic the MMs merely short sells into the
buying and attempts to take the stock down in an effort to "shake out" the
weak. Since it is tough to know for sure whether a move is the beginning of a
trend, or a routine shake out, this type of deception works quite well for the
MMs. What the long-termers do to a stock is surprise the MMs because instead
of falling the shorting has no effect and the price goes up. Now that puts the
MM at selling low through shorting and thus having to buy high in order to
cover.
Boy, when this happens, the MMs are not very happy campers. The investors and
traders are supposed to be doing that no them. Now it becomes time to pull out
every trick and tactic in the book in order to attempt to get a Bear Raid at
every dollar mark or percent from where the stock started. Could be a penny in
smaller priced securities? What MMs do is give you a chance to make a small
amount of money for your momentum and day trading style by shorting it at
these levels and trying to get a bear raid each time. Each failure is
compounding the MMs short position so they let it go to the next level. Now
come more deliberate tactics MMs use to coerce Bear Raid or panic selling.
Once the MM is caught short and the strength of the buy is overpowering the MM
will want to cover his short position. So the MMs call up one of his friendly
MMs and says some like "the weather is sure rough today." The MM along with
the other "friendly MM initiates a down tick about the same time. Now this can
also be done with a certain amount of shares such as an infamous 100 shares
flag. This down tick gives the illusion of weakness designed to hopefully
begin the bear raid of selling. The fickle, fearful, day trader, momentum and
short term begin to sell out allowing the MM to cover his short position at
lower prices. They will move it down quickly to get it to a price of least
financial damage. Problem they have is long-term investors in the OTC BB. They
start accumulating and buying comes flying in when they take it too far thus
the MMs took it to the point of volume again and not only investors the other
MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like
stalling, boxing, or even locking the Bid and Ask for a while.
Of course, MMs aggressively deny any sort of collusion designed to fix quotes
or spreads, but a recent SEC investigation tells another story.
MMs have a vast resource of tactics and it would take probably more than my
lifetime to figure them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB
arena? One answer is indirection trading style by going long which the MMs do
not expect. In the war between investors and public companies on the OTC BB vs
the MMs, if the MMs have all the advantages due to position or other factors,
direct confrontation such as momentum or day trading hitting the stock is a
definite death sentence.
However, an indirect approach tends to weaken the path of least resistance
before slowly overcoming it. The most effective way is long-term investors
slowly accumulating and holding thus drawing the MMs out of its defenses
making them as naked as their short position. This is war so this slow
accumulation and holding for the long term easily achieves the desired effect
to force MMs to cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to
get a Bear Raid thus playing on the individual fear of most people. The MMs
feel they have information and position advantages over the investors as long
as the holding of the stock is in weak hands or short term holders. Since they
are OTC BB MMs who believe all OTCBB companies are not worth investing and
management is ineffective regardless what is happening within the company.
Furthermore, MMs know they are in the position to impose a great deal of
influence in OTC BB stocks trading when it suits their needs.
This inherent power of position enables the MMs to move the markets at any
time up or down. As a result, the only way to draw them out of their favorable
position is going long. Now this does not mean just any company but to
effectively nail the MMs, Longs must find the great company on the floor and
accumulate long before the MM tactics and games begin.
Calgarylady: Agreed. If the selling continues to subside, odds are good the "casino owner" will want to open their door for new customers. The casino owner can't make money with dead money sitting for very long.
In the infancy stages of a stock like KSWJ, to me it's such a blessing to have a handful of mostly sincere posters posting, because once a stock starts getting more attention, odds are much greater that the lying and bashing increases, as does the hyping and pumping. Greed always rules when money is involved, sooner usually than later, and quality posting dies quickly, because your sensible, knowledgeable posters just don't waste their time, mostly because they get tired of bashers ripping their credibility to shreds.
To answer a couple of questions:
WHEN will this stock move up? When the MM's are ready to let it move.
Remember ... Saudi oil shieks can go to Vegas with truckloads full of cash, but if the casino owner doesn't open the casino doors, the Saudi retail customer has no choice but to wait until they DO open. Little Joe retail with his bag of nickles get's to wait in line as well ... though maybe much further back in line.
Heavy oil is a GREAT interest to a lot of big buck's folks both in the corporate sector and the guvment sector/s. Anyone coming up with a means to make heavy oil more useful and profitable is going to get the attention of some BIG money.
CEO Charles Bitters got a lot of money coming into his AMEP stock with his HOA "whatever" formula to get more oil out of the Texas ground, and after some years now ... Charles STILL has that "secret formula" available at his disposal to get his share price to climb if he wants to use that ace card.
If George and company doesn't know how to execute SM-100 properly, they may want to grab the next plane for Texas and buy CB the biggest steak in town. Those Texans know HOW to get heavy oil out of the ground while their share price rises ... believe me ... even if they have to horizonal drill all the way to the Canadian Alberta oil sands using the EM-100 process!
Silverado: I WISH I knew the ropes! Like you, I'm still learning, and I've left a lot of hard-to-come-by money at the casinos. OH if you ONLY knew how much I've "lost" because greed, fear, false hope and denial ruled my thinking (not to mention the stupid advice I've believed about "buy-and-die" ... oops ... I mean, "buy-and-hold" stock investing.)
If you watch certain penny stocks long enough (10 decent ones is really about all you need to study, but if you can watch more, fine) - read many of the message boards (Key thing to look for is what I call "Bashing Sentiment" with popular penny stocks). When bashing starts to slow down, you can often get a good idea when the stock is ready to run again) - study their action day in and day out ... and have a streamer that you can watch (I like Scottrade's streamer over Ameritrade's, though that's the only two I have tried)... these things will give you an edge. If you're able to watch a given stock long eneough with Scottrade's streamer ... you can almost gain a sixth sense of what the MM's are about to do).
Probably the wisest thing I've ever heard, and DID, was take a solid year and NOT put one dime into a penny stock ... BUT paper trade pennies with $2,000 "Monopoply" money. Paper trading for a year in pennies will help you see your weaknesses much faster than buying and selling with real money. Paper trading with big sums of "monopoly money" can be a detriment as well, and I won't go into reasons why. Simply put ... if you can't make a profit on $2,000, you almost SURELY won't make a profit on $20,000, and most likely, will only compound your weaknesses and it will take longer to learn from them, (if your wife EVER allows you too again, and/or your heart can take it!).
I'm not going to write all I've learned through trial and error and observation because you never know how many MM's can take one post like this and pass it to their cohorts. You have to know that at this casino, the casino "owners" play it like life and death. The more the "owners" of the casiono realize how we retail customers think and act, the more proficient it makes them at taking your money from you. If you are going to become a successful President of the U.S., you talk to former President's if you're able. If you're going to be a successful Muslim terrorist, talk to Bin Ladin if you're able. If you're going to become a smiling investor of pennie stocks, convince yourself that you are most likely the ONLY authority you're ever going to be able to learn from, because successful penny players don't tell even their closest friends where their favorite fishing hole is.
I read an excellant book a few years ago, titled: The Successful Long Term Day Trader ... I think that was the title. One thing that book said made such an impression on me, and I've grown to believe it's one of the wisest statements I've ever heard about winning at this casino. It said: "When you've made the same common mistakes that all stock investors/traders have made ... (and you WILL make them!) ... that's when you STOP making bad decisions and start making more RIGHT ones. Once that happens, you start making more money than you lose, which is the goal of this pursuit.
I liken it to getting a degree in Financial Stress Universtity. If you go to four years of college and get a degree ... you pay tuition to get a degree. My tuition at Financial Stress University has been HUGE ... and I guess if I can help others not pay such high tuition to get their degree, then I'll feel a little better about all the mistakes I've made and the money I've lost. I personally am in favor of helping others leave the casino with moe money than what they walked in with. Tough if the casino owner gets less. Greed on my part, I realize, or maybe the Robbin Hood complex.
I LOVED that post Calgary (I believe) made earlier today on the board. Any book you read about "buy and hold" investing is as outdated as a Columbus cruise liner. The market has evolved into a TRADERS market, and as Calgary said, 85% of casino players make their utltimate decision by the chart (TA - I don't use TA and I'm not smart enough to understand Level II. Besides, Level II is ONLY going to show me what the MM's want me to see and believe -- to give me a head fake about 95% of the time I figure).
In this present reality we live in ... the people with BIG money to move the direction of a stock like to do so shorting (When the time is right, of course). Finally fundemantals (sadly) means essentially diddly anymore (cheaper priced shares, anyway), because folks with the big bucks are only interested in profit. They don't care whether they make it up or down, and like I said on the MSEV board over last weekend, the unconfessed mantra has evolved into the sad fact that BIG money can make 100% return on their money manipulating a stock twice as fast, taking it down, as they can trying to manipulate a stock up 100%, (again,if the right factors are in their favor. For whatever it's worth, I think the "right factors" have been right in KSWJ for that to happen the last few days. But least you freak, remember ... the "casino" KNOWS that if they take away all the financial powder (soul and spirit as well) of retail, retail will go to another casino (or go commit suicide!). Thus ... the "casino" has to let there be enough jackpot winners to keep new customers coming in and some old customers bringing in their friends).
Sure the "casino owners" can't do this manipulation with the MSFT's or GE's. They don't try that stuff with the BIG companies, because the big companies can stop a short attack in a heartbeat. But these little pennies ... TONS of money to be made for the "casino owners AND casino investors [certain Hedge Funds for instance]" because the SEC can't begin to police them, even IF the SEC was inclined, which appears to many they aren't, and these little companies don't have enough money to file lawsuits against the "casino owners" anyway.
Last tip for the evening: Take 10% of your hard earned trading profits and donate them to a charity that is trying to outlaw naked shorting, and unfair generic shorting. Convince me that there is little difference between naked shorting or your local bank making loans with "digital" money they don't truly have.
For those of you more knowledgeable than me, and that's probably 95% of you ... please help me learn if I've spoken wrong here, okay? Thanks.
Lucky
OT: Looks like the MM's may have their quota of GZFX, and are now ready to let it run.
Only took three days roughly! Monday coud be hot for KSWJ.