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Re: AliEn BRaInZ stox post# 230

Saturday, 12/31/2011 1:10:32 PM

Saturday, December 31, 2011 1:10:32 PM

Post# of 311
In response to your statement;

When it comes to penny stocks and making a profit, company quality often has nothing to do with it.
Penny stocks are for trading, not long term investing. When it comes to long term holds, company quality is everything. When it comes to short term trading, quality means almost nothing.
In the end, as long as there are more buyers in a stock than sellers prices will go up.
So this leads us to the question “how do I go about finding OTC stocks that may have more buyers than sellers”.
Focus on the companies that are undergoing exposure advertising campaigns. In the OTC market these are the stocks that everyone is paying attention to. This is where the action is.
Because federal securities laws require full disclosure of these advertising campaigns when you know where to look it is easy to find out which stocks are being advertised.
These are the stocks we specialize in. We send you alerts on the companies that are currently involved in an advertising campaign. This way you know what stocks are “in play” so you can get yourself in a position to profit from any gains.
If you are a short term trader you may as well forget about the rest of the stocks in the OTC markets. For the most part, the penny stocks that are moving on any given day are the ones everyone is talking about. The ones everyone are talking about are the ones that are undergoing advertising exposure campaigns.
If you have any doubt about this, go to pinksheets.com or otcbb.com and see which companies issued news that day. Then check the volume and price, you will notice that most of them barely trade above their average daily volume and have little to no price change.
This is because there are so many companies out there that it is almost impossible to get noticed their own.
When penny stock companies need to get their story out they hire IR/PR firms and media buyers to put together advertising campaigns designed to generate exposure to the investing community.
When you see a penny stock making a BIG price gain, and it seems to have come out of no where, chances are it didn’t, the move can almost always be traced back to one of these exposure programs.
HOW IT WORKS
IR firms (investor relations) and media buyers are hired to generate exposure of a company. These firms can use TV, radio, print advertising, pay per click ads, newsletters, and banner ads to name a few methods. They can also use trade shows, investor conferences, and road shows to name a few more.
When the exposure campaign begins, hundreds of thousands to millions of new investors see the story in a short period of time.
Smart traders jump in right away as soon as a new campaign starts knowing their odds of booking a profit are the highest at this point. (this needs to be you)
Some investors will see the advertisement or hear the story and like what they see so they buy the stock.
This can create a spike of above average trading volume and the price often heads higher early in the campaign.
Now the stock shows up on market scans investors are using to find out what the hot stock of the day is.
Some of these people will jump in as well. This creates even more buy side volume sending the stock even higher.
At this point the message boards and chat rooms may heat up as more investors are trying to find out what is going on.
Some of these people will want to get in on the action as well sending the stock higher still.
This frenzy lasts anywhere from HOURS to weeks depending on the size and length of the advertising campaign and how good the story is.
Can you see now how exposure effects the OTC markets?
Can you understand why we specialize in these stocks?
Smart traders in the OTC market find out what stocks are being advertised and get themselves in a position to profit from a potential price gain from this exposure.
Smart traders look to take advantage of these price moves and get in early. If the move happens, sell at a profit. If the move doesn’t happen they sell right away and get ready for the next one. No matter how good a story looks do not fall in love with it.

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