Penny Stocks Trading » penny stock

Whether To Buy Penny Stocks or Not

troy — Tue, 13 Apr 2010 01:20:22 +0000

To buy penny stocks or not to buy penny stocks. That is the question. OK, it is not exactly Hamlet but it is a question that many traders ask themselves at some point in their trading life. If you are not a trader then I can answer the question for you rather simply. I would avoid penny stocks is you are a buy and hold investor. Maybe the only exception that I would make would be companies like Citigroup that find itself in the land of penny stock status. If you believe they have the ability to return to their former glory then you should consider buying penny stocks.

However, the question of whether to buy penny stocks (or to sell penny stocks for that matter) is really one for an active trader. Penny stocks don’t present you with the greatest of fundamentals so of necessity they are more trading vehicles. Make your profit and get out and visit them sometime again in the future when they look attractive for a short term gain.

I am going to make a case to buy penny stocks. There are many reasons that cause me to come to this conclusion, however, for the sake of brevity I would like to focus on just three. Let’s dive in.

Penny stocks are volatile. If you are a trader you know that you need stocks to trade that are volatile. It will not do you much good to spend your time trying to trade some $50 company that moves in a range of 15 cents each day. Stability may be great for long term holds but it won’t help you out if you are a trader. Why are penny stocks so volatile? Simply because the slightest news can be something very beneficial or negative for the company. Most penny stocks are in a make or break mode. You can use this in your favor.

Penny stocks are cheap. Cheap penny stocks help the active trader in the sense that he/she can buy many shares of a company rather than a few hundred. Let’s look at a little example. If you were to buy 200 shares of a $50 stock, it would cost you $10,000. This same $10,000 could be used to buy 5000 shares of a $2 stock. Now if each company would move 20 cents you would make $40 on the higher priced stock and you would make $1000 on the penny stock. That is not a bad chunk of money. That is the power of penny stocks.

The final reason is that penny stocks can make large swings in very short period of time. This is due in part to their volatility. The swings that penny stocks can make are massive on a percentage gain basis. It is quite common for penny stocks to move 10% in a given day. That is something that you cannot get out of higher priced stocks. In other words, penny stocks give you great bang for your buck. So if you are contemplating where or not to buy penny stocks I would suggest that you give them a try. Just learn to be a disciplined investor. You can find other articles on this website that will give you pointers on how to do this.

Penny Stocks to Watch

troy — Fri, 19 Mar 2010 02:40:37 +0000

Penny stocks to watch is a term that is often searched for on the internet. It may have even brought you here. Before you move on listen to what I have to say. You need to be careful who you are listening to. Often the sites that you will land on will be a site that is paid to pump certain stocks. What they don’t tell you is that their list of penny stocks to watch is not based on any research that they have done but rather what they have been paid to push. You must ask yourself if you really want to invest in these types of stocks.

Other sites aren’t necessarily paid to pump penny stocks but they have a large readership with a newsletter. They stake positions in penny stock and then they put out an alert to their newsletter readers. A large number of people buy blindly and the owner of the newsletter takes profit and his readers are left holding the bag as the stock sinks back to where it came from since the buying frenzy is over.

If you want to be successful in penny stock trading then you need to learn how to trade penny stocks. You need to have a penny stock trading strategy and learn about entry and exit strategies. If this is not something that you are familiar with then you can learn about penny stock trading at the Penny Stock Digest. The site is not complete but the information there is quality and free. Check it out. At some point the site will be complete and it will serve as a manual on penny stock trading, one that you would expect to pay quite a bit of money for.

The profit potential in penny stock trading is enormous but don’t go around chasing penny stocks to watch. Learn how to trade penny stocks and you will have a skill that can be used to make money rather than depending on someone else. Who knows maybe someone will come to you in the future looking for hot penny stocks.

BoldStocks.com: Hot Tips on Bad Stocks

troy — Tue, 17 Nov 2009 03:58:13 +0000

Published by Vancouver Sun

By David Baines

It started last Saturday with a teaser. A penny stock promotion service called BoldStocks.com sent me an e-mail saying it was going to recommend a stock on Monday. The stock’s identity would remain a secret until then, but “Mr. Bold” offered a hint: “It could not be more timely.”

On Sunday morning, there was another hint: “Don’t leave home without it.” And in the evening, yet another: “More than 10 years in business with stable management and key researchers.”

On Monday, the mystery company was revealed: Skinvisible Inc., a Las Vegas-based company that has developed a hand sanitizer to prevent the spread of the H1N1 virus.

Boldstocks.com is one of several Internet tout services run by Pentony LLC of Frisco, Tex. The disclaimer revealed that Skinvisible had paid Pentony 500,000 restricted shares to stage this little game.

At the close of business on Monday, “Mr. Bold” proudly announced that Skinvisible, which trades on the OTC Bulletin Board in the United States, had closed up seven per cent on double the usual trading volume. But keep in mind, this is a penny dreadful where percentages can be very misleading. The absolute increase was one cent, to a grand total of 15 cents.

Skinvisible claims its “DermSafe chlorhexidine hand sanitizer has been tested against many bacteria and viruses. It has been proven to kill / inactivate a number of influenza A viruses; including a strain of H1N1, the swine flu virus.”

But there are lots of effective hand sanitizers already on the market (including plain old soap). The difference is that Skinvisible claims it has a patented ingredient that fights germs up to four hours after washing, but this has not been proven.

In the United States, the product requires Federal Drug Administration approval before it can claim to combat swine flu. It has not received that approval. In Canada, the product has been approved by Health Canada for personal use only.

A few days ago, the company announced it has sold licensing rights to a distributor for all of Singapore, Malaysia, Thailand, Indonesia and the Philippines. This might be encouraging, but for two things: Payment terms were not disclosed, and the announcement was made by Terry Howlett, the company’s president and CEO.

Howlett is well known to me as a former Howe Street denizen who learned very early in his career that a promoter, like a virus, has to adapt quickly to its environment to survive.

Howlett’s first Howe Street adventure, Presley Laboratories Inc., was listed on the Vancouver Stock Exchange in April 1987.

It began as a multi-level marketer of “Lady Love” cosmetics and hair products, but soon switched gears and announced it would acquire Modern Electronics Inc., which had developed a security system for buildings.

By June that year, the company was referring to Modern as its “wholly owned subsidiary” and projecting sales of $500,000 the first year and $1 million the second. But several months later, Howlett announced the “proposed” acquisition had fallen through. More premature exclamations would follow.

In September 1988, Howlett announced Presley would market a telephone touch-tone order entry system developed by a person named Jerry Hodge of Irving, Tex. (A dozen years later, Hodge would pop up again in Skinvisible.)

In February 1989, Howlett announced a letter of intent to sell 10 systems worth $665,000 to a Calgary company over the next six months. Projected sales over the next year were $3.3 million.

But within several months, he announced this deal had also fallen through. Instead, the company would sell marketing and software rights to the ordering system to a Vancouver company for $5.5 million. This also fell apart.

In January 1990, Howe Street bon vivant Harry Moll — who was building a VSE mini-conglomerate called Pineridge Capital Group — acquired a controlling interest in Presley from Howlett.

Howlett — who remained as chairman — kept churning out good news. He said the company’s Canadian dealer would buy $6 million worth of product over the next 12 months. And that was just Canada. Marketing in the U.S. would start in September 1990.

As always, the proof was in the financial statements. Total sales for the two years ending July 1991 — when Howlett was promising millions of dollars in revenues — were only $98,000, and losses were a whopping $1.3 million.

In 1992, Moll’s mini-conglomerate collapsed in scandal. It was revealed he had sold hundreds of thousands of dollars worth of shares in Presley and several other Moll-controlled companies to the Wolverhampton municipal pension fund in England. That raised the question, what was a supposedly sober fund like this doing in flaky stocks like these?

The fund manager was later fired, raising suggestions that he had been taking bribes. Moll denied he had provided any special incentives: “Just lunch, and a cocktail or two,” he said.

Then-B.C. premier Glen Clark was sufficiently alarmed by Moll’s antics that he commissioned a government inquiry into regulation of the exchange. VSE officials, meanwhile, blackballed Moll from any association with its listed companies.

In the wake of this scandal, Moll returned control of Presley — which by this time had been renamed Voice-It Technologies Inc. — to Howlett.

Without missing a beat, Howlett announced the touch-tone ordering system would be used in a venture called Talking Flowers, which enabled people to send flowers and talking messages to their loved ones. It was also a flop.

Howlett made more breath-taking announcements that never amounted to anything. By June 1997, he resigned as director and president. The company limped along until March 1999, when it was suspended for failure to file financial statements, then delisted for failing to pay its listing fees.

In 2000, Howlett reunited with his old pal Hodge and his buddy Moll — even though he had been thoroughly disgraced by now — and took Skinvisible public on the bulletin board.

In his usual style, Howlett has been spewing a steady stream of boosterish announcements, but they haven’t amounted to much. During the six months ending June 30, the company reported $146,976 US in sales while racking up another $879,621 in losses, raising its cumulative losses to $17.8 million. Total assets were only $195,938 against $746,484 in liabilities, which means the company is basically insolvent.

Howlett said during a brief telephone interview this week that he now lives in Las Vegas, where the company’s head office is located. He said Moll and Hodge are no longer involved.

I asked what he thought of the BoldStocks.com hype. He said he had nothing to do with it, which is strange considering that Pentony says the company paid 500,000 shares for the service.

Asked what he thinks of that style of promotion, he replied, “I have no opinion on it.”

That was an astute answer. I mean, who wants to spoil their own party?

Link to Original Article: http://www.vancouversun.com/life/Bold+serves+stock/2196188/story.html

New Opportunities in the Penny Stock Market

troy — Tue, 10 Nov 2009 03:38:33 +0000

I found an interesting article that relates to trading penny stocks. See what you think. It is about a service called J.E.D.I. Trader.

As the market bottoms, it creates new opportunities – here are several.

There is nothing more exciting then grabbing a penny stock and riding it for huge gains!

In this report, we’ll scan the market for such opportunities. With several thousand stocks in the market, finding trades is a challenge for every investor.

Penny stocks, by my definition are stocks that trade under $5 per share. And while these stocks are ‘high’ risk, and I wouldn’t allocate the same capital that you would a normal portfolio position, they are also high reward, so you can take much smaller risk amounts of capital – and the rewards can be worth it.

These are not ‘bad’ stocks. They’ve just been forgotten by the market. When the market goes through a bearish move, liquidity comes out of the market. It can be a hedge or mutual fund that simply needs to meet redemptions, and are forced to sell holdings, good or bad. These smaller stocks see their prices drop – significantly.

Trading tactics:

Trading these issues can be more difficult. The shares are much more volatile, so you may not be able to utilize tight stops. They need a little more room to move.

The smaller cap stocks can be easily manipulated – which can be a good thing if it is to the upside.

The best returns are going to be as the market re-inflates – when liquidity returns, as they say, a rising tide will lift all boats – and it is no more evident than in these low priced issues. The liquidity effect is so evident here as mutual and hedge funds put new money back to work – usually in the same issues that they were forced to sell. You see, some of these low priced stocks are not bad companies, it is merely a case when there is not enough liquidity to go around, and it has to get pulled from somewhere. And vice versa.

If you are going to use a stop, I’d apply the 3:1 rule off your projection- so if you think you can obtain 60% profits, which isn’t unheard of, you can keep your stop around the 20% level.

Patterns to look for:

These stocks are just like every other stock in the market – so you can apply the same tactics that you apply with other stocks. Here are a few points to consider though.

First and foremost, stocks that go through a large move lower, will tend to have a symmetrical move back up as they re-inflate with the market.

Break out trading – this is my favorite play. Low priced stocks will peak out at a level or resistance. Place a BUY STOP MARKET ORDER just above resistance. This will get you in the trade.

Trend trading – to employ longer term tactics, look at a weekly chart and use a 10 week moving average as your stop. Try to enter on a break of the 10-week moving average. However, if you miss it, you can wait for a pull back to the 10 week before entering.

Pattern Trading – like break out trading, I’d employ a strategy to enter on the break of the pattern. Remember, you also want to see the pattern break on volume. So if you enter and the break is not on volume, then tighten your stop. It doesn’t mean that the trade isn’t going to be successful. It just means the likelihood of success is less.

Swing Trading – The interesting thing about penny stocks during an advance phase, is that they tend to step higher, so you may not get the swing you are looking for. Look for this stepping action and try to buy near where the step meets the riser.
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Other considerations:

Float is still a consideration with Penny Stocks. Low float stocks can move even more than high float stocks. This is definitely something to consider based on your age. Younger investors should be looking at smaller companies with more potential to grow.

Why? Because 100 shares in a young growth company can become 6400 shares after the 6 stock splits the top growth companies normally goes through over a decade. Older investors, looking for more stability (yes, even in penny stocks), should look at larger companies.

Capital allocation strategies:

There’s a saying in Wall Street that goes “Buy when they sleep, sell when they leap.” If you’re investing – obviously you can spread around smaller amounts of capital to more potential trades and give yourself a higher likelihood of capturing a larger gain. But the more you spread your capital around, the less you will make.

Everyone’s perspective is slightly different. What I should be doing is different from you and different from the person next to you. Some seek more growth and some seek more stable income.

Capital allocation is such an individual concern based on your own financial position.

However, one basic example and strategy that you can employ is – say you were to invest 10k normally in a stock. Instead, take that 10k and divide it up into 10 potential trades. Identify 10 stocks to trade off our list and place your conditional orders. As each order gets executed, then employ a strategy to reallocate the capital in the orders that haven’t been executed into the stocks that have been executed and are moving higher. For example, if 3 positions are entered, make it a rule to double your investment every week that the stocks close higher. That will focus your 10k into the stocks that are moving higher.
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Penny Stock Tip: Might Mundus Be a Breakout Stock?

troy — Sat, 31 Oct 2009 21:10:39 +0000

Del Mar, CA – One of the many lucrative niche markets Mundus Group will focus on is be the movie production industry. With AirStar Productions boasting patented aerial VTOL UAV photography in addition to their previous successful collaboration with Warner Brothers, the growth potential for MNDP stock is boundless.

For the Terminator movie, Warner Brothers contracted AirStar Production engineers. AirStar Productions created a unique sound stage in order to capture the sounds of helicopters to generate “futuristic UAV cyber droids” flying and hovering. AirStar provided UAV VTOL helicopters and CamCopter operators that were flown around the microphone stage in order to capture the unique phasing sounds of each flying drone machine. The successful end result once again proved MNDP as a solution oriented aerospace company which has a rich diversity of niche VTOL UAV business applications.

Click here for an interview with MNDP CEO & President:

http://www.stocksource.us/videoplayer.html

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Featured Stock:
MUNDUS GROUP INC.
(OTCBB: MNDP)
www.StockSource.us/focusstock.html

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Should You Really Invest in Penny Stocks?

troy — Sat, 31 Oct 2009 21:03:41 +0000

I found an interesting article I thought you might have an interest in. You can find the original article here.

An email from David regarding investments in stocks trading at various price levels:

As a separate, but interesting aside, I’m curious as to your record of success with various price levels of stocks; for example, do you find more success in the $1 to $5 range, or in the .10 to $1 range, or in the under .01 range? Is there a difference in the percentage of winners among your picks in these respective ranges?

VFC’s Take: In order to properly respond, let me first clarify my position on what I consider to be a ‘penny stock’. In VFC’s House, a penny stock is a stock that currently trades and has historically traded for sub-$.01. However, I don’t consider penny stocks to be stocks that had previously traded for respectable levels and got beaten down to about a penny as a result of bad news or a market crash (Titan (TTNP.PK), MHAN). I know that is not the broadly recognized definition of a ‘penny stock’, but the term can be misleading because most of those that trade sub-penny stocks do so strictly for trading purposes. That’s a different game than finding a TTNP or MHAN that trades for about two cents but is still largely a news-driven stock.

For all intents and purposes, I don’t mess around with ‘penny stocks,’ meaning if it trades for below a penny, it’s not my game.

However, I’ve had the most success with stocks that trade for between one and five cents, only because a small investor can load up on those stocks – if you find one with potential – and come out huge if the stock makes it. For instance, Celsius Holdings (CSUH.OB) and Titan Pharmaceuticals, both of which I loaded up on at sub five cents, instantly became the largest two positions in my portfolio during their respective runs earlier this year – even after I sold off some profit – but before the huge percentage gains they were far from my top holdings. Manhattan Pharmaceuticals (MHAN) and BioElectronics, while not yet posting the gains of TTNP and CSUH, still had my portfolio way in the green because – while each only posted about a six cent gain – it was still a triple in price from where I had purchased each stock.

How long is a small investor going to sit around and wait for their investment in Microsoft (MSFT) to triple, let alone post the 3000% gains of TTNP?

Don’t get me wrong, you need the stable stocks in your portfolio for the long term and for the kids’ education and the such, but the majority of the ‘night on the town’ money should go to finding stocks that have potential that are still trading under the radar. That’s where, in my opinion, the biggest gains can be had and it just so happens that in my portfolio, the biggest gainers (and now some of the biggest holdings – profit taking aside) are the stocks that I had purchased for between one and five cents.

Next – and keep in mind this is strictly referring to my own portfolio – I’ve had pretty good success in the twenty-to-fifty cent range. I loaded up on Antigenics (AGEN), Cel-Sci (CVM), EpiCept (EPCT), etc. while the market had those stocks trading at or near twenty cents. While EPCT has not yet reached the dollar mark, the other two are more than doubles, if not triples for me this year – however, since I still like the long term prospects of both, I’m ‘averaging up’, but by no means am I buying now at the rate I was when these stocks were twenty cent stocks.

My logic in accumulating speculative stocks is this (keep in mind this is during what I term ‘accumulation phase’, barring any news & even driven price moves): The higher the stock rises, the more risky the buy. The lower the stock goes, the more I’ll pick up the accumulation (average down). Common sense. However, the strategy will vary after either good or bad news is released.

Another item to note is that when these low priced stocks start to pay off, it’s imperative to take profits and/or start trading a few shares because just as easily as they go up, they can go back down.

I like the stable, higher-priced stocks for my IRA and kids’ education funds so that I know there’s money there when I need it. Whenever my ‘night on the town’ money pays off, I always transfer some of it into the stable stuff so I don’t have everything in the gut-wrenching speculative plays. I even have a few ETFs that I invest in, but I’m not a fan of mutual funds – although one or two of my IRAs that I do not personally manage use them.

Additionally, I think that which stocks you invest in has a lot to do with how much time you have to research stocks and then keep an eye on them so you can buy and sell as need be. These low priced stocks are highly volatile and you’ve got to be in a position to be able to spot news releases and then to buy and sell quickly enough to make the risk and the stress of investing in those stocks worth it.

I also don’t recommend these highly speculative plays for those that have weak stomachs and little tolerance for risk. You’ve got to have the cast-iron cajones sometimes to watch a stock drop 50% overnight and then make a rational decision as to whether it is just a better buying point or if it’s bail time. For instance, I purchased my very first shares of CSUH for just over sixty cents, then a few more in the twenties and then some in the teens; however, I loaded up at below five cents because while the stock was dropping, the company continued to have the same potential that I thought it had when I bought those first shares.

I’ll admit, it hurts to buy stocks as they’re dropping and you’ve got to be very confident in your Due Diligence to do that, but if you get a good one that pays off, that one stock could instantly turn your entire portfolio into ‘house money.’

A huge disclaimer: You’ve got to be responsible for your own DD, don’t invest just based on a stock tip from a friend, news source or a blog – anyone. As I’ve emphasized before, have an entry and an exit strategy for your stock and be happy taking profits on the way up and be patient and remain stable if the stock drops; and never look in your portfolio and see a stock that you can’t instantly identify the reason that you bought it.

Remember, the larger portion of society has been trained to believe that a fifteen percent annual gain is great; but VFC doesn’t want to be old and drooling all over himself when it comes time to spend money. I say stay home a few nights out of the week, since it’s play money and play time anyway, use it to find some good speculative plays with potential and pick up a few shares accordingly.

If it pays off, then take your vacations now while you can still enjoy them instead of waiting until you need Sally from the United desk to wheelchair your butt onto the tarmac in Los Cabos.

Back to the question at hand, I think that a full portfolio should have a little bit of everything, but much of what you decide to invest in has to do with your own comfort level and tolerance for risk. Maybe most importantly, you’ve got to identify you level of patience. While we all love quick gains, some stocks take years to pay off, and your level of patience in a particular stock should be a part of your entry/exit strategy.

This is all just my own opinion based on my own experience and strategies. Do your own Due Diligence and identify your own levels of risk and comfort before investing in any particular stock.

Free Stock Market News Alerts by Penny Stock Pick Alert

troy — Tue, 27 Oct 2009 23:58:44 +0000

Penny Stock Pick Alert (http://www.pennystockpickalert.com/) is a leading Stock Market News Alert website which offers free Stock Trading Alerts to investors. We track various stocks, small cap stocks, and hot penny stocks which are poised to make big gains.

Those who choose and pick stocks can not always be very precise and accurate, but over time, the average is generally a positive one. In fact, there are many opportunities to jump on hot stock picks through the years. Learning the art of knowing which ones to jump on at the right time takes practice but if you do this process right, this will translate into wealth. Picking the wrong stocks or doing it the right way at the wrong time can certainly make you part with a lot of money.

Penny stocks are quite risky and that’s a defining factor while deciding what picks to recommend. In fact, great pains are taken to minimize risks by as much as possible but that risk is always there, and this is more so with penny stocks. As a general rule, you should never invest more than 20 percent of your portfolio in penny stocks.

A number of factors are used to calculate a good pick and these can be followed on your own or you can also, follow our trends – that is picking those that we recommend. A couple of factors that should be taken into account include recent industry information, news and buzz; upcoming company marketing campaigns, and also, the growth history. There are other factors that come into play in this calculation.

Watching the industry of a particular stock is quite important and the behavior of a stock depends on the direction and trends of the industry that it falls under. Penny stocks are sensitive to this; like for instance, if you own a penny stock in the oil industry and the price of oil starts going down then you won’t be making much money. This is not to say that the value of stocks can’t or won’t go up during an industry spiral; since they can but in general, it is quite the opposite.

So, if you can get your hands on a juicy piece of information about a company before it hits the stands, then you are going to make a kill. Generally, the best and the most accurate information which helps is the information that a company is about to launch a new marketing campaign; marketing means more stock awareness and that means more investors, and which means more money. So, stay on the edge, and you will profit tremendously.

Past performance is not and can’t always be a good predictor for future performance however, if the history of that stock has been consistent, then you have no reason to think that the future would be any different. In that case, the past performance may be a great factor in deciding whether to invest in that stock.

We have our own ways and take into consideration, our own factors which we use to determine our best penny stocks and that is a formula that has been successful over time. So, create your own list of factors to vet a stock or just follow our picks. Never invest money that you cannot afford to lose since in that scenario, if you lose, then you would be in deep loss.

Penny Stock Market Thoughts

troy — Fri, 02 Oct 2009 00:37:36 +0000

Tough market today. I have been expecting this day to come. I did purchase some FREE today. I have been talking about this stock for awhile. Yesterday, one of the penny stock tip newsletters came out with a recommendation on it. That was the reason for the initial pop at the beginning of the day. It has consistently sold off since then. I do think it represents an interesting trade possibility so I stepped up and purchased some today at $1.68. Unfortunately, it closed at $1.61. Keep an eye on the market. It is overdue for a correction. Don’t invest your entire account just yet. Hold some in reserve to take advantage if we do take a plunge. Often an entire month’s returns are made in only a few days. So be poised and ready should it happen. If we stabilize here before long then you can step in and invest in a more regular manner. I haven’t paid much attention to the other stocks that I have talked about here. It has been a busy day. I will look at them in the next day or so and give an update over the weekend.

Thoughts on the Penny Stock Market – 9/24/2009

troy — Fri, 25 Sep 2009 02:13:17 +0000

The market for penny stocks has not been too good over the last couple of days. It appears as if the market wants to make a little bit of a pullback. It is well overdue but every time I think it is going to retreat a little in continues its upward march.

Penny biotech stocks have been especially hit in the last couple of days. In the near term I made a decent move getting out of XOMA since it gave up all of its gains yesterday. I will keep it on my watch list since I like the stock. If it pulls back into the low 80’s I will probably re-enter.

I made no trades today. GRO pulled back a little today but I like the way it is looking. MRNA also pulled back but still looks OK. However, FREE sort of collapsed today. It dropped below the 21 EMA and looks to have broken its slight uptrend. I will wait a few days before re-evaluating it.

One stock bears watching. It is PED, Petroflow Energy. This stock has recently landed on two different penny stock pick email lists. It was recommended only a few days ago and is now trading at .90 which is below where it was recommended. If these newsletters follow their standard pattern they will once again suggest this stock to their subscribers in the coming days. This may be a good spot to get in. I will look for something around .85 as an entry point depending on what the market is doing tomorrow.

Happy trading!

Thoughts on the Penny Stock Market 9-23-2009

troy — Thu, 24 Sep 2009 03:28:35 +0000

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!