Y'know, I don't want to pick on CTTJ. It's been a good run for alot of people, and it's just the nature of the pennies to do this kind of thing.
We have to remind ourselves it's not always even safe to play the penny PR cycle. It's the very nature of these low priced companies to be erratic and unpredictable. We venture to believe anything that is rumored at our own peril. Again, I keep repeating that penny CEOs rarely have increasing the PPS as one of their corporate goals. I know that's hard for investors to believe, but it's clear by the corporate actions. How many times have we seen badly written PRs that have tanked the price on contact? Isn't it possible that isn't accidental, and that in some cases, the CEOs are shorting their own stock, and that these terrible PRs are designed to help them, not us make money?
I hate to see people get hurt, and that probably made me esp. harsh. It was hard to believe that there wouldn't be at least a slightly cheery PR, after all the hints from the IR people, and the optimism of posters who had spoken to the company. Someone someplace was lying...and I'm more inclined to think it was people at the company, who for reasons none of us can relate to, led some people to think something nice was in the works, and then released a special which couldn't have been better designed to tank the PPS.
Maybe they really are just dropping the price so somebody can get in cheaper. Maybe they are just disassociating themselves from anything that could resemble inside information. But even so, maybe I'm personally second guessing how much risk I want to expose myself to in an arena where this kind of PR sadism is pretty commonplace.
I'm thinking of SPNI, where the investors were expecting an update on the merger, and instead got a PR outlining plans for a big reverse split. No matter how positive SPNI might turn out in the long run, everyone knows that kind of thing will lead to a massive selloff short run. Savvy penny traders should be aware of that, and perhaps start selling the minute a PR isn't even whispered to be in the works..lol. Forget about selling the news. Sell the rumor of the news!
Is it that these CEOs really despise the traders who buy their stocks? Sometimes that's the only conclusion I can reach. How can we even begin to determine our risk/reward scenario where these unnatural attitudes towards investors are commonplace?
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If you take anything I say as advice, you're crazier than I am.
