Roger, don't swear off penny stocks forever. Just don't hold them!!
Most penny stocks run-up due to promotion by people close to the company so they can unload shares for a profit. As long as you understand this and sell into the strength you'll be ok. Lot's of money was to be had off of GIFS, FTEL, GRNO, DCTC, MPEG, SYCR, etc.
I made a killing off of IDID last year. Anybody with half a brain in their head could have figured out it was time to sell IDID around $1-$2. They had over 600 million outstanding! At one point the company was valued at $1 billion! They only had $90,000 in sales!
Remember when I mentioned AVTH here a week or so ago? It was bid 25/32 ask 7/8. They released the news that I had predicted (go read the AVTH thread) and it shot up to bid 1 1/8 ask 1 1/4. I said see ya! 28% gain in less than a week. The FDA approval sent the volume up and I sold into the strength. I knew it would back off.
BTW, I don't think AVTH is a scam. I just think that insiders have lot's of shares and need liquidity to take some profits. Hence, they sell into good news. They still have plenty of shares left, but if you had been sitting on a stock for years waiting for something to happen you would want to sell some to buy your wife a new car or something. |
