Replies to post #508 on *** ALL THINGS MONEY >>>> ATM ***

[auroradude]

GREAT question and WELCOME!

I hope you get a bunch of replies to this, as I am sure we all have some different thoughts.

First of all, I would say that there are several types of runners.
SLW was around $2.50 almost 2 years ago and has had a run since then to around $27 as of now - more than a 10 bagger, and was a fairly safe and consistent ride up. It is a solid company with earnings in a sector that is going up. In the more established companies, I look first at the sector (SLW is in metals) and then try to find the star within the sector.
Different world, IMO, for pinks. Few runners can sustain upward movement over a long period and more risk is there (i.e dilution, scams, p&d, etc.) IMO pinks are the toughest way to gain wealth, though they can offer a big % gain in the short term. If there was 1 secret formula everyone would be rich! Personally, on pinks I like to sell into the strong upward moves based upon very short term charts and watching L2, then buy back on the dips IF the charts, L2, momo, etc. warrant it. But my first nature is to cash out green - making money is what it is all about I do not look back at $$ I left on the table. There will ALWAYS be another one and as long as you are cashing out green you are heading in the right direction. To me, it is ALL about winners - no matter the size. I HATE loosing $$ much more than loosing out on more gains.
Winners cause you to accumulate wealth.
If I am in a pink that actually has a product, good apparent mgmt., unlikely to dilute with low OS and AS, I will try to trade my way to ride freebies and continue to sell into rallies.

Just some thoughts and again, WELCOME!

[Matt_Chart]

Fundamentals ultimately should drive a stock but there are usually other eliments other than just what the company itself is doing. Companies usualy are valued on revenues and profits, but many smaller companies may have valueable intelectual property such as a patent or pending FDA approval(biotech stocks) that can be speculated upwards as a future value of a company.

But there are a lot of behind the scenes that takes place as well such as...

There are news letters that will hype up a stock. This happens a lot in penny land where pump n dumps are frequent. Pennystockchasers was recently taken down by the SEC for penny stock pump n dumps

There are insiders loading early up or dumping before news comes out. This can affect a stock before anything fundamentally is public.

There are naked shorters or shorters that profit from selling shares to drive down the price.

There are message boards and twitter that quickly transfer rumers or news faster or slower.

Keep your eyes wide and open in this digital age of technology. There can be elements you may not be seeing influencing the price of a stock.

[Rhythm88]

I would like o give my 2 cents.

What makes a runner... how I spent my summer vacation...jk

A runner is basically the perfect storm.
A pump and dump is misiing one or more of these qualities.

1. The company is a real company selling a real product that you can, see on a website, order yourself or verify somehow.

HLNT falls into this catagory.
It must be something that "everyone wants" or can see the use for and is excited about it.
The ceo must be on board with the share holders and not dilute into a run... or at least do it very responsibly.

Dilution is a major thing in the pennies... the TA must be ungagged so the transparency is there.

Anything that is hyped on... "we just got someone to do our sales, or we are now building our website...ect.
Who cares. I can build a website.

Also.. take a look at who the players are that are "hyping" the stock. Do you trust them or the judgement they use? Are they gone in 48 hours on to the next thing?

Basically, is the stock something yo are excited about being a part of and will get others excited because you are.
Runners are very psychologically driven.

Forward looking events are always involved as well. The next new contract, or deal or buy back of shares.
So you see... the more of these elements the better.
Make your list and see how many good things you can put on it.
Hope this helps!
:)

[Bobblehead]

Thanks for your opinions on this. Company dilution is the biggest killer I've seen.

Looking for another runner.