A few internet penny stock promoters have released their “fearless picks” tonight. I enjoy following many of these so called gurus to evaluate their ability to market a stock and see the caliber of company they agree to advertise. Now, I’m not knocking on these promoters, touters, or companies… heck, many of the companies don’t even know they are being highlighted. Many of the resources used for advertising purposes come from a 3rd party such as a large shareholder and/or an investment banker/venture capitalist.
For those that frown upon this activity, remember this, these companies most likely do not meet hedge fund and IRA investment qualifications. Companies need to find investors more creatively, and that is usually via the internet. Companies have products or services to develop, bills to pay, payroll, etc. so it is important to have their shares maintain some liquidity or volume. Many times, start up companies found on in the penny stock world use their shares as collateral or a means to raise capital to fund the future of their company.
Last, there are 9,561 OTC companies alone (8,181 are pink sheets) that are fighting for your investment dollars. Because of the limited investment money, that is why we often see these stocks “hot” for a week and then forgotten as short term traders, swing traders, day traders and momentum traders bounce to the next one. Does that mean it’s bad to hold a penny stock for more than a week? The answer is no and maybe? Some companies are more solid than others. This means they may have better management, better product, better service, in a better sector… and are more likely to grow long term versus a company that lacks in the previously mentioned areas. Sectors get hot, depending on world news and events and stocks seem to trade in cycles. Press releases and anticipation of news or deadlines also seem to drive investor interest also. The anticipation of it all, and guess when to buy and when to sell is what dictates whether you are a good trader or not.
So, here are the few we received tonight:
Atacama Resources International, Inc. (ACRL) (0.21 x 0.23) avg volume 30 day = just 3,560 shares. The promotional piece was creative, comparing their Good2Drive app to SnapChat lol. Here is an exert from the email: “Ever hear of a little company called SnapChat? Well, its multi-billion dollar valuation wasn’t made up by thin air. The user experience and future potential is what had investors scrambling to get a piece of the pie. But what (ACRL) now holds, may truly determine the difference between a life and death situation!” Based on the low 30 day average, if the newsletter creates share volume due to his advertisement, it could be a interesting open followed by a slowwww afternoon.
Holiday Island Holdings, Inc. (HIHI) (.027 x .032) avg volume 30 day = 22,885 shares. $HIHI has goals of becoming one of the fastest growing communities in Northwest Arkansas. Confidence is drawn from the strategic location of Holiday Island, located near these three major cities: Bentonville, Fayetteville and Branson, Missouri. Here an exert from the creative piece “The firm’s stock price has traded in a range between $0.032 and $3.00 over the last 52 weeks. There is huge potential upside if the stock can recapture it’s 52-week highs. If it can get there again, traders will be looking at gains north of 9,275%. Yeah, we can all use a 9000% winner!
Did you get a newsletter pick this weekend? Let us know and COMMENT BELOW.
