Sure Trace (SSTY)

[mike306oh]

*****To all SSTY folks:

Re: "There is only one market maker on this stock and becaue of the risk, it is only match trades and the market maker wants a huge spread."

Thanks John,

Do you know the name of the sole MM here? Just curious. TIA

Good luck to you with this stupid thing. Someone of your determination could do a lot better with undervalued legit stocks, if you adopt the right strategy in selecting them.

To All (sorry experienced investors: I'm well aware you already know about these thinks):

If you or anyone else losing money here care to know about a winning strategy: here's mine, and which works. Although I also go for large caps, in my experience best results can be made with hand picked OTC:BB stocks. My criteria for good OTC:BB stock are: (i) proven revenue, (ii) positive book value, (iii) agressive Y over Y, and Q over Q growth, (iv) already EPS positive (or close to it), (v) with a Price/Sales < 1 (the lower, the better), (vi) low OS, (vii) yet sitting at or near the bottom. If you are aware of such a stock(s), I would very much appreciate you letting me know. Over the last month or so, using the above criteria I alerted (see those boards): PMED (@ 0.004), and IGAI (@ 0.015). Yesterday PMED went to a HOD of 0.027, and IGAI went to 0.045. I'm using the above strategy for about 3 years, and it works. It helped me pick many winners, like MOBL in Dec. 03 (average In @ 0.025, and Out @ close to 0.4 last year).

Examples of two good OTC:BB stocks (that satisfy the above criteria) and which after the SEC fillings next month are prone, IMO, for at least a 3 MOMO:

1. VFIN:OB, it's sitting near the bottom @ 0.19. Not for long, IMO. The Price/Sales (P/S) ratio it's of ONLY about 0.28 (Comparing to an average of 1.5 to 2 for an average promising penny stock).

http://finance.yahoo.com/q/ks?s=VFIN.OB

Compare the P/S of stocks you have with this one. Some OB pennies have a P/S of over 100, i.e., CPVD:OB (P/S of 304); SKFT:OB (P/S of 225); MTNA:OB (P/S of 157), and MKOS:OB (P/S ~ 115).Since the company has a Total Cash Per Share almost as much as the price per share (PPS), and the company is near breakdown (in fact for several recent Q's it was EPS positive), the PPS, IMO, should be at least five (5) times higher, or at least $0.95 (assuming a P/S of more than 1.5), and much higher given the potential for growth after the two recent acquisitions. Check out VFIN's (one of the MM's) Y over Y, and Q over Q finances, the latest news, etc., and I think you'll like it as much as I am. Do your own DD, and do it well.

2. GDVI:OB (P/S ~ 0.6, already EPS positive, and experiencing an explosive growth), yet sitting near the bottom (@ < 0.07 right now), and poised for a good move, IMO.

Again, do your own DD on the two stocks above. For a good DD, I'm using:

1. Basic DD:

http://www.marketwatch.com/tools/marketsummary/screener.asp?exchange=118&view=5&lookup=Look+...

I.e., for 52 weeks low OTC:BB stocks, and R/S history. I don't want any stocks with a recent R/S history, and those with multiple R/S's are excluded. You can also look at the 52 weeks lows of the other exchanges (it gave me a 16+ MOMO on Nortel -NT, some 3 years ago. Bought it at < 0.5, and sold it a year + later @ 8.2 average) and to the other goodies there.

2. Yahoo finances:

http://finance.yahoo.com/q/ks?s=gdvi.OB

for P/S, P/B, OS, etc. Also check out the finances for the Y over Y and Q over Q revenue growth rate, and the net gain evolution.

3. For a better DD, go to:

http://www.ddmachine.com/default.asp?s=gdvi.ob

Learn this "machine." Go through everything to familiarize yourself with this. You can also take a fast look at what some boards are saying, while over there.

4. Message Boards (Board Central, the best):

http://www.boardcentral.com/gdvi/gdvi.cgi

5. SEC Fillings:

http://www.pinksheets.com/quote/quote.jsp?symbol=vfin

6. Best DD:

http://www.finitesite.com/irishbull/

Go through everything, as an exercise. It helps.

PS: I prefer stocks with a PPS below 0.2 as an entry point. If you like my strategy, and care for a good exchange of winning stock ideas (not SSTY-type), or if you find a good one (e.g., SEVI type, which last week gave me a 3+ MOMO before I even managed to do a good good enough DD on it), please let me know about it in one of my other boards (this one is too crowded).

Have fun!

Mike