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Re: None

Sunday, 05/12/2013 12:22:59 AM

Sunday, May 12, 2013 12:22:59 AM

Post# of 943
Key Points on Promos: While we wait for the next APS Pick I thought I would reiterate a couple points on Promos to those that might be newer out there and reading.

Penny Companies compensate Promo companies such as APS and others typically in the form of shares of their stock to promote their company in an attempt to rise the PPS at which time the Co sells shares/dilutes into those gains. The Promo company will typically be aggressive with sending email alerts along with hard mailers during the Promo campaign. Always remember that this is being done literally so the company can sell shares of their own stock at a higher PPS during the promo. Also remember that the Promo company also has their compensated shares which they will sell during the campaign. With that, there is money to be made on promos but also there is risk. A couple key points:

* Never believe in the PR's that come out during a Promo no matter how great they sound.

* Never believe that the Promo will last as long as they state it will.

* Never believe that the PPS is going to the projections they make.

* Never believe that a Promo is a long term hold.

* Never believe in Board Posts stating that the PPS is going to the Moon or on the reverse side that it is going to crash, TIMBER etc.... Many times those are scare tactics to get you to sell your shares on fear. Learn who and what to believe on the Boards and go into these Plays with an open mind and always remember the goal is to get out with a decent gain and never look back at "If I had only held for a couple more days".

Good luck to everyone playing the next Promo.

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