tradersrule; I also agree with what you said in this post about there not being much downside;
"I agree... And like I posted yesterday, I do not believe there is much downside from here"
IMO, the only reason this would head down would be Convertibles, and in Feb the Company told us that they had been stopped for 6 months while they put more "Friendly" financing in place. I have not seen any signs of any Convertibles hitting the open market since then, the selling we have seen has been retail IMO. And someone is sitting at the Bid Gobbling up whatever the Scardy Cats Fleeing for their lives are willing to dump, thats a good sign to me!
As far as the merger deal is concerned, the silence from the company certainly means that it is NOT Completed yet, But That DOES NOT Mean that the Merger deal is off. Many times these are complex deals that don't happen overnight, and "Most of the Time" Take Longer than they should, so I for one am not ready to throw the towel in yet. I know I have not been here as long as many of the Longs here, but I've been Trading for many years and my biggest mistakes I ever made in Trading Penny stocks has always been, "SELLING TOO SOON"!!!
I Rarely hold any Pink Penny stocks, but there are that 5% of them worth going long on, and this being a "FULLY REPORTING" Pink, (Needs to be on the BB really), I've watched this for a while now but didn't buy in until Feb. and I believe this is one worth holding.
Heres a short story of myself and the couple Million$$ I missed out on in 2005/06 trading a company called "Foamex International", they have since went private now, but when they were Publicly traded on the NASDAQ they were one of the Top 3 "Global" Manufacturers of Foam & Memory Foam, for anything with foam in it, Car seats, couches, chairs, beds, boats, planes, ect.
Keeping this short, back then I was playing mostly Toxic Financing Penny plays, and I also Traded BK (Bankruptcy) stocks, and Death drop/Dead Cat bounce plays. Risky but profitable plays and I did very well on over 90% of my Trades.
But on Foamex Intl. I missed the boat, and all because "I SOLD TOO SOON" and was not Paying close enough attention, like I normally should have. And thats because I had TOO MUCH Attention on a Pink Penny I was Long on (One of that 3-5% of Pink Penny stocks I would ever be a Long in).
Anyways, in 2005 the Board of Foamex was using the Company as their Personal ATM, and drove this $8.00/Share NASDAQ Stock into BK, dropping the stock to .15 when news of possible BK Filings hit the press. I bought in at .15 and sold a few weeks later on the bounce, (3-5 Bag).
Well they fired the CEO and rest of the board, and hired a CEO with a Proven Track record of bringing Companies out of Bankruptcy. And an Impressive New board altogether. They filed for "Reorganization Bankruptcy" in Oct. 2005 about a month after I bailed on the bounce. I kept Foamex on my Radar, but did not watch it close like I normally would have.
In Jan. 2006 the stock was trading at .02 and the Company was not saying much at the time, but I had done my homework on this company 6 months prior, and knowing the size of the company, ONE OF THE TOP 3 FOAM Manufacturers GLOBALLY, had shown profits and solid revs and growing year after year, until the CEO and board got GREEDY, LAZY, and just plain STUPID! I knew the company would bounce back. I was going to buy at least 500K or a Mil shares in Jan. of 06 when it was bottomed out at .02 but I was playing heavy on a Penny Pink and just plain "FORGOT" To pick up some Foamex stock to just sit on. Well just 3 little months later in April of 2006, after trading as a Pink at .02 and being "TOTALLY SILENT FOR MONTHS" the Company announced they were "Coming out of Bankruptcy" AND APPLYING FOR RE-LISTING ON THE NASDAQ! The Stock ROARED FROM PENNIES TO $6.00 A SHARE in the course of a week or 2!!!
I Almost Cried for weeks, knowing I forgot to pick-up at least 500K or a Mil shares at .02 just 3 months prior, after doing my homework and I knew the company would be back. 500K shares at .02 would have turned 10Grand into almost $3 MIL.
