Thoughts on the Penny Stock Market 9-23-2009

Thoughts on the Penny Stock Market 9-23-2009

I did not enter any trades in the five companies listed yesterday on the watch list.  However, I did sell one of my penny stock holdings. I have been holding XOMA for about 10 days or so. I sold today at .99 after it moved quickly upward when a press release came out in regards to a $2.2 million grant it received having to do with the ever popular H1N1 flu. I didn’t think it was overly impressive news so I exited the trade. I had purchased at .88. It was a little more than a 10% gain for me.

However, I did buy ADLR.  It is a pharmaceutical company with a decent cash position and near the bottom of a trading range.  I decided to stake a position in it at $1.65.  I believe it closed at $1.63.  Here is a chart of the stock for you.

Adolor CP

I think the stock could slip to about $1.55 but I was willing to stake an initial position here.

Of the stocks listed yesterday only GRO moved up. I will probably remove CASM from consideration because the daily volume is so low that it makes it difficult to get in and out of. I think it will still move upward at some point but I am not comfortable putting a few thousand shares into it. I may also remove CPRX from consideration after doing some fundamental research on the company.

However, I still like FREE to slowly climb and look for GRO and MRNA to respond nicely. Good luck tomorrow!