Keiko, 99% of gold stocks are shells. Worthless.
The only way they make money is by selling worthless stock.
Nothing has changed since Mark Twain wrote of the Nevada
mines in "Roughing It". (Very entertaining.)
The cycle is well described, even in literature from my discount
broker (a bank): accumulation, markup, distribution, markdown.
These phases overlap.
ACCUMULATION: volume and price are low. Promoter plans his hype,
miner plans his drilling. Both buy stock quietly.
MARKUP: Promoter begins his act, places his ads. Miner may start to drill.
Volume and price rise.
DISTRIBUTION: overlaps markup. This is when smart money sells to suckers.
Volume will peak, price will peak.
MARKDOWN: Smart money is out. Volume crashes. Price crashes. Suckers
panic, sell at loss.
There are other names for the 4 phases of penny stocks, you could call
them Cheap, Inflated, Dumping, Panic.
Or Worthless, Greedy, Popular, Suicidal.
Excuse my lecture. I owe $20 in overdue book fines to the North York
Public Library for books on Penny Stocks, Managing Risk, etc.
Penny Stocks are mostly a zero-sum game. A lot of fun until you wake
up in the morning.
imho
Fred B.
PS, PUG is in the news again today----FP says it is "edging up". Hell, it
is in distribution phase (dumping). This is the peak caused by April 16
Press Release I think. Expect it to drop viciously to 0.24 or less until
the next cynical drill result is announced. Time to buy after that if
you like risk.
NSU? let me change windows. Strange one. This is dead on its feet.
Like a gory scene from FULL METAL JACKET. Last trade 13.35, bid 7.30, ask 14.
Vol 500. Volume is very low because holders cannot believe the prices
offered for their stock are so low. They refuse to sell, but the
market value is between 7 and 14 dollars--quite a spread. They CANNOT
cash out much over $7.30
Nevsun could decline very soon unless good news comes quickly.
A cynical manipulator at this point would buy a hundred shares at the asking price,
just to register another trade at the high value. See the news reports on
www.cdn-news.com especially Feb 19 1996----assay and drilling.
Looks like an OK company.
If it declines, it could rise again, above the $13 level.
'bye again. :-) |
