Wave Systems Corp. (fka WAVXQ)

[Vacationhouse]

FWIW a mention:Wave Systems Corp. Closes Up 7.24% by Market Close; WAVX
Friday, 26 March 2010 14:30
http://www.learningmarkets.com/News-Feed/2010032615267/wave-systems-corp-closes-up-724-by-market-close-wavx.html

Wave Systems Corp., (WAVX) moved 7.24% today which may indicate a breakout to the upside. This stock is considered a penny stock by traders because it is priced at less than $5 a share. Penny stocks, like Wave Systems Corp., (WAVX) are interesting because price breakouts can turn into very large rallies on a percentage basis over the short term.





In many ways, traders treat penny stocks like a speculative position in a call option. They both represent limited risk and a high probability for a loss or merely short term volatility but when they breakout, the increase in price can be significant and very profitable.


Wave Systems Corp., (WAVX) competes in the Computer Peripherals, industry with larger firms like NICE Systems Ltd., (NICE) and , (AVCT). We would normally expect Wave Systems Corp., (WAVX) to be much more volatile than its industry as a whole which makes a comparison to other firms in the group difficult.



If you are interested in trading penny stocks there are a few risks to keep in mind. 1. They are typically poor performers historically (which is reflected in the low share price). 2. They can be extremely volatile and losses are likely. 3. Because small stocks like Wave Systems Corp., (WAVX) are lightly traded they can be pushed around by a small number of traders.