American Scientific Resources (ASFX)

[Oz the OK]

Please read my last post and understanding that all of my points are factual.. let me know your opinion.

Ok...I'd say you are a newbie at Penny Stocks. Nobody "Invests" in these things. They are traded, short term, on bounces, usually tied to a PR. Way too many people lose their keister on pennies and pinks because they:

A) Compare them to exchange listed stocks.
B) Expect huge 500%, 1000% or 10,000% returns on them.
C) They hang on to them and ride them down while they frustrate themselves trying to figure out A or get lost in dreams of B.


Most of these pennies and pinks are nothing more than printing presses, via dilution, for the management and their lending partners, with control through preferred shares. Any long term "investment" is usually killed and wiped out by the cycle of dilution, increase A/S, dilution, R/S...wash, rinse, repeat.

So, you trade them, like futures. Set stop losses if it moves down. Take profits on the bounces. A good 30% return can be found over and over in these things...but most will ignore that profit because they are dreaming of situation B above.

If you have ridden one of these down, and you are showing losses of 40%, 50% or more, you should either bail, take your losses and chalk it up to learning...or wait until a new floor is found, and average down with more purchasing of the stock. Pining about how bad the management in a Penny is, may be cathartic for the short term, but not relevant to the overall dynamics of the Penny Market.