Felicia
I am still under the "free version" so cant respond back with a "private message", so it must be public.
Penny stocks are very risky, furthemore that makes them very volatile. I look at penny stocks as "legal gambling", however if you do your homework along with alittle luck you can make large blocks of cash.
In your private message you told me you already have a sizeable position in PLKC but you bought it at a much higher price and wondered what you should do. You also were wondering why people with "long" positions would be interested in bailing if the stock has great potential.
Well your first question I could could only advise, you must make the final decision (my advice and 1 dollar will get you on the bus). The company has made some very bold moves into a sector (GPS) that is in its infantile state with virtually unlimited upside. To sell off right now at a loss wouldn't be very wise, give the company 4 to 8 weeks to either prove itself one way or the other. I think PLKC will at leat be in the teens in the next couple weeks. Within 8 weeks it wouldn't surprise me to see 30 cents plus. But again that is my opinion and I make that with being a seasoned veteran in the penny stock arena. Good Luck in your decision.
You also asked why someone would bail if they were "long" in the stock and holding great profits with the possibilty of greater profits. Well there comes a point where an investor must use his disciplines on an exit point. Some longs have greater then 1000% profit, that in itself is staggering. So exiting with such high profit is really what the penny stock arena is all about. I cant fault anyone on making that decision, once they sell the profit is locked in (money in the bank). And if the stock decides to go much higher, well thats o.k. because they made alot of bank themselves.
Let me tell you about a great gain that I had, but could have been a tremendous gain had I stayed in for a another month or so.
I bought about 100,000 shares @ .85 cents a share of an emerging company that just spiked from 8 cents to 85 cents in a couple weeks. Once I made my initial purchase the stock dropped below 50 cents a share and continued falling. I didnt care because I did my homework and believed it would rebound, so I continued to build that position. As I bought more it continued to fall and finally stopped at 1.5 cents a share! When it hit 1.5 cents a share I had approx. 3 million shares but I wasnt finished buying. I bought another 2 million shares for a grand total of alittle over 5 million shares. At that point I was satisfied with my position at a cost average price of 14 cents. So at this point I put this position on the shelf and let it sit there while I continued trading other stocks. After a period of time the company took off and I sold all my position between 45 and 65 cents a share, with a cost average of 14 cents that turned into a nice profit! Then I watched it and it dipped backed down to about 40 cents so I loaded up again and this time I sold out at about 75 cents a share, so you could say I double dipped. Well the stock didnt stop at 75 cents and actually topped out at 5.95 cents a share! Imagine if I would have held until then, but that is the risk you take when you cash out. I was happy to have locked in some great gains however I missed out on some tremendous upside.
So "longs" in PLKC who are selling at the current price also are taking that same risk of missing out on some potential major gains! But the bottom line is no matter how you look at it there is nothing wrong with locking in profit, again that is what trading is all about. If PLKC were to spike up over a dollar a share and a "long" sold out with a large profit @ .08 cents a share that still wouldn't be half bad. You must follow your own disciplines in this arena.
Good Luck!
AI
