These were big blocks being sold, 65,000 shares were sold at 1 7/8 and then the same number (same shares?) were traded at 1 29/32, which was probably a sell as well but could've been a buy as it was on a slight uptick. I haven't checked all the Edgar filings but there has been good volume recently (for a stock with 1,000,000 in the float, 10% of the float has been trading) and no movement, so perhaps what we're seeing is dilution after all.
Either that, or short term traders got in on the contract announcement in hopes of a move to $3 and are now taking a loss after seeing it stuck around $2.
Let me tell you a story though, that might raise your spirits - Last spring I held IFCI as it went from 1 1/2 to 2 1/8. There was significant dilution on the horizon, I think to the tune of 2 million shares. I sold at 2 1/8 because I was afraid of the dilution, and sure enough the stock fell to 1 3/4 again. Feeling I had made a smart trade, I forgot about IFCI for a while. Next thing I know I check it and it's at $4 a share. I had a nearly identical experience with COBR which I owned at $3 a share last spring.
I admit I haven't done enough due dilligence on PENC, mostly because my position is still quite small. But if it is in turnaround, and does have a number of new contracts in addition to the recent whopper, a share price of $4 is easily achievable in the coming year. I have to get an investors package, and I have to read all the Edgar filings, but I still feel good about it in the long term. Turn around penny stocks always seem to have thier dance in the sun, but I find it very difficult to time. If you find a good one, though, the 100% return they often give is worth waiting 6 months for. I have trouble leaving money around without messing with it, so that's why I didn't put much into PENC. I might average down now depending on what it does tomorrow. |
