here's just what the doctor ordered...LOL>>>>>>>
A Journey into Yesteryear; Will History Repeat Itself?
By Daryn P. Fleming
Published by OTCBB News Network
10/29/2001
There is a fifth dimension, a dimension not only of sight and sound but of mind. No we are not taking a trip into the Twilight Zone, but rather a ride into a time machine that will take us back to the latter 1990s. For those of you who were trading back then you will not be hearing anything new. However, for those of you who are new to the world of OTCBB you will find the following information interesting.
In 1997, hundreds of tiny unknown start-ups became publicly traded companies as they listed on the OTCBB for the very first time. These new companies entered the stock market arena at precisely the right time, as a whole new hoard of investors entered the game due to the invention of online stock trading.
Many of the new online investors would look for anything and everything that traded for pennies. As a result of the new onslaught of buying, many of these stocks quickly ran from pennies to dollars as they were “discovered” in a feeding frenzy. As a result, many millionaires were created virtually overnight and rags to riches stories hit the headlines. Here are some examples. In 1998 a company called BAT International created a media frenzy when the stock price ran from .03 to almost $3 in a matter of days. That same year a company called Digicom ran from .40 to almost $8. In 1999, Ebaseone Corporation ran from .30 to the $6 range. A tiny unknown shell called Light Management ran from .20 to $25 as it merged with a company called Forlink. In the early part of 2000, Electronic Identification ran from .40 to the $6 range. Luminon Innovative Lightwave Technologies ran from $1 to $25 and actually went on to list at NASDAQ. The list could go on and on. Many stocks ran from pennies to $15 to $20.
By 2000-2001, these kinds of short-term gains began to dissipate. 100% moves still happened but not with the kind of regularity as the OTCBB boom of the late 1990s. The multi-year bull market winded down and the economy started to slow. Ever since then we have seen sparks of interest in sector areas like oil, alternative energy and recently biotechnology (anthrax). But most of these stock moves only sputtered, providing returns not anywhere near that of the rally peak of the late 1990s.
Regardless of what happened, these stock moves managed to captivate the attention of not only the OTCBB investor but the general public as well. It became obvious that a savvy investor in penny stocks could get a much higher return than those who invest in larger cap stocks.
So where do we go from here? What will the early warning signs be of a new OTCBB bull market? Will the new bull market be like the old one where almost any OTCBB stock will rise to astronomical levels and bring about 1000% gains? Or will the returns be a little more modest? We analyze hundreds of OTCBB stocks on a daily basis and are looking for the signs. One of the indicators that we are looking for are the number of stocks that are able to rise past the $1 area. Since the turn of the new millennium such moves have been few and far between. Much more common are the stocks that run from .25 to .50 or .75 (still outperforming the larger stocks).
The largest gain we have seen in quite a while has been Vital Living Products (VLPI). We reported on the stock a couple of weeks ago at .40. Within days it ran to over $2, but has since retreated back toward the .50 level. Would the stock have ran to $10 had it been 1999? The VLPI stock run is the kind of move that investors are looking for again. Repetition is the key and in my opinion if similar moves start to happen more frequently, then it would be fair to say that some kind of new OTCBB bull market is struggling to unfold. Since we cannot rely on crystal balls and Psychics like John Edward, historical analysis in the only tool that we have. Wherever the market goes, we will be here to report on it.
24/7 indeed Greg...lol
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