Monday, May 04, 2020 10:10:38 AM
May Day Not Mayday For Penny Stocks
May Day is the traditional celebration of welcoming spring.
Mayday is a distress call – the ship is going down.
[See May 1, 2020 OTC Market Analysis Below]
I’m choosing to believe May 1st is a celebration of new things coming to bloom for penny stock investors – including me.
I have some more time than usual on my hands between sheltering at home and my usual employment no longer footing the bills.
I’ve been here before, and I find penny stocks a reliable go to for filling my periodic income gaps.
I’ve been away from the pennies for 18 months or so … maybe 2 years. So, I’ve spent the weekend getting a lay of the land in preparation of targeting the best opportunities.
I’m an engineer by training and taking a mathematical modeling approach to back my target opportunities has always been my go-to strategy.
From the model I develop reasonable goals for some doubles and triples and maybe the odd out of the park opportunity.
I thought I’d share my modeling. My modeling is intended to determine where the market is trading – what share price range is producing the majority of volume.
Then I’ll target opportunities in the bottom of that range and look to exit at the top of that range.
I downloaded all the trading date from Friday May 1st, 2020 for the OTC Markets. I sliced it and diced across about 20 different spread sheets. Below you’ll find my summary spread sheet.
As an aside, the results frustrate me in regard to what is clearly a dramatic and concerning in reduction in access to capital for U.S. small businesses from concept (an inspiration in the heart of an entrepreneur to 500 employees). But first, I need to make money. I’ll have to save my soapbox on small business capital for another day.
The OTC Markets had $1.9 Billion in trading volume on May 1st, 2020. Foreign companies account for more than $1.65 Billion of the total volume. The OTC Markets is first and foremost a platform for foreign companies to get access to the U.S. capital markets.
The “penny stocks” – those U.S. companies looking for investment capital to fuel early stage businesses that list as an OTC Pink or OTCQB only accounted for about $38 Million of the $1.9 Billion in trading on Friday.
The majority of trading volume for OTC Pink and OTCQB U.S. companies took place between $0.006 and $0.025.
Accordingly, my core strategy will be to look for companies to buy in the $0.006 to $0.015 range and sell in the $0.015 to $0.025 range.
I hope by sharing this information that perhaps some of you will share some good candidate companies that fit the trading range criteria and have a good cap structure, a good business plan and good management.
May Day is the traditional celebration of welcoming spring.
Mayday is a distress call – the ship is going down.
[See May 1, 2020 OTC Market Analysis Below]
I’m choosing to believe May 1st is a celebration of new things coming to bloom for penny stock investors – including me.
I have some more time than usual on my hands between sheltering at home and my usual employment no longer footing the bills.
I’ve been here before, and I find penny stocks a reliable go to for filling my periodic income gaps.
I’ve been away from the pennies for 18 months or so … maybe 2 years. So, I’ve spent the weekend getting a lay of the land in preparation of targeting the best opportunities.
I’m an engineer by training and taking a mathematical modeling approach to back my target opportunities has always been my go-to strategy.
From the model I develop reasonable goals for some doubles and triples and maybe the odd out of the park opportunity.
I thought I’d share my modeling. My modeling is intended to determine where the market is trading – what share price range is producing the majority of volume.
Then I’ll target opportunities in the bottom of that range and look to exit at the top of that range.
I downloaded all the trading date from Friday May 1st, 2020 for the OTC Markets. I sliced it and diced across about 20 different spread sheets. Below you’ll find my summary spread sheet.
As an aside, the results frustrate me in regard to what is clearly a dramatic and concerning in reduction in access to capital for U.S. small businesses from concept (an inspiration in the heart of an entrepreneur to 500 employees). But first, I need to make money. I’ll have to save my soapbox on small business capital for another day.
The OTC Markets had $1.9 Billion in trading volume on May 1st, 2020. Foreign companies account for more than $1.65 Billion of the total volume. The OTC Markets is first and foremost a platform for foreign companies to get access to the U.S. capital markets.
The “penny stocks” – those U.S. companies looking for investment capital to fuel early stage businesses that list as an OTC Pink or OTCQB only accounted for about $38 Million of the $1.9 Billion in trading on Friday.
The majority of trading volume for OTC Pink and OTCQB U.S. companies took place between $0.006 and $0.025.
Accordingly, my core strategy will be to look for companies to buy in the $0.006 to $0.015 range and sell in the $0.015 to $0.025 range.
I hope by sharing this information that perhaps some of you will share some good candidate companies that fit the trading range criteria and have a good cap structure, a good business plan and good management.
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