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Mango

03/29/08 11:14 AM

#5185 RE: Randazzio #5180

I'm not familar with FRAE.
I do think EESO has life left in it. It looks very strong so far. That is JMHO.

But for an overall general reason as to why so many sub-penny stocks trade the way that they do, to put it as basic as possible, just think of supply and demand. When a stock gets a lot of "buzz", whether it is based on technicals, fundamentals, news, pumping by an individual or group, or some combination of these, many additional traders may see the positive attributes (if they are there) and jump on the bandwagon (becoming buyers). This buying (demand) outstrips selling (supply) and consequently we have a rise in the PPS. This can often times create a snowball effect (momentum) where more traders/investors hear the buzz about the stock and jump in too. This buying crescendo can continue until enough traders start taking their profits (sellers), that they begin to overcome the new buyers (demand) coming into the stock, and we have reached the peak in PPS, at least on this first momentum cycle. Since so many traders in the sub-penny market are momentum traders, you will very often now have a shift to downwards momentum (more supply than demand) as more and more traders start selling, to take profits, before the PPS goes even lower. If the story behind the stock is strong enough, at some point you will get a rebound, and the process can start all over again with upwards momentum. However, in the OTC market, quite often these companies start getting holes pierced in their story, as new information comes out, and the interest wanes, the momentum dies, and the stock settles around its original PPS. Please note, that there are many other factors that can come into play, with dilution (supply) being the most common, that can have a huge effect on how a stock trades. I hope this helps and GLTY





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strongtower

03/29/08 12:31 PM

#5191 RE: Randazzio #5180

see this market is not like the bigboards, the bigboards stay up because people invest and keep their money in it but in pinky land if you invest you will lose it all. pennies run off of momentum only so when the momo dies the stock dies, there ARE NO solid companies in penny land. Forget what posters promise you, just play the momo and and follow L2. On this board we only post if it is moving, or thinks it might move, we do not not post to invest in anything here. If you invest in any penny what is going to ultimately happen is that the CEO will slowly dilute the stock to trash and RS all over again.