OTC Game:
Some may find it interesting to risk in 0001’s or they might be desperate or just plain foolish gamblers. The normal case for a 0001 no-bid is they just sit there for many, many months; even years. Sometimes a material event or just plain really ‘good’ rumor appears and they jump up to 001 or even higher – that’s the lure of these zombie tickers because sometimes they really can make out with tremendous personal gains if you sell carefully on the run-up.
But be aware there are some users that will tout these zombie tickers (I don’t have proof of this but it sure seems likely) because somehow they have gained free shares into their trading account or possibly compensated by other means. So if you see many, many, many positive postings when the ticker sits at 0001 and volume seems to be pouring in and every time the 0001 bid begins to build it sells off and/or it even trades at 0002 level for 100% gain, be very careful!
If you find yourself in this contemptible situation and you are a large holder, immediately set a GTC order to sell all of your shares at 0001, and if you want to play the ‘risk’ game only leave 3 million or less shares available because this money could be locked up for a very, very long time after the gamers move on. I mean it could take years for the particular ticker to run and most likely 0004 to 0008 will be the maximum (normally this is the top for 10B and up AS), and normally a RS (reverse split) will occur before that run-up even happens, meaning, your money is gone!
The best way to reduce risk is to plan very diligently and spread your 100’s over 10 or more tickers. Some may think this is unwise but it is like putting chips down on different numbers on the roulette table – basically. You cannot go too thin otherwise if one runs you will either not sell hoping for larger gains or it is not enough to recoup capital, or if you go too heavy in a hand full, you could lose it all (RS, delisting, halting, or just death). When I say plan diligently, look at the stated AS on otcmarket web site and related, look at the posters posting, note the general post activity level per day, look at the supposed rumor or hope of the board and evaluate it realistically, talk to other people and find out what they seem to know before hitting the button, and just do your DD period! Don’t let that money sitting in your trading account force you to buy anything, caution is the game, and true patience is the pay-off. Waiting for a good one sometimes is best even if you miss 0001 and have to buy a tad higher right.
If one runs up well over 0003, then figure out your initial capital you put into these lower subs, and divide that by half and put in limit orders to sell just enough to ride truly free. After that point, slowly sell at your risk levels you determine yourself. As an aside, I would highly recommend you don’t post the following: your share count, your percentage gain, your diversification picks. Keep this private.
Xero out!
