Penny stocks can live and die by day trading, which is what is going on with SFAD at the moment. Since these stocks don't normally report to the SEC (SFAD does, however), they are subject to wild swings from emotion, hype, "inside" information, etc... IMO, SFAD enjoyed a nice, albeit short-lived ride (as I predicted) due to expectations based primarily on emotions/word-of-mouth, since no major PR's have been released for a while. The appearance of their website perhaps caused favorable expectations for the devout followers, resulting in a momentum play. I expect SFAD to bottom around $.06 until the next wave (occurs on an almost regular cycle). This may also be viewed as a long-term play due to the association with the internet. My views, while neither popular nor perhaps correct, are that SFAD came to the table with too little too late. Day trading will keep this one extremely volatile.
Obtaining credible information can be quite difficult with these stocks. Until SFAD was merged with INI, for years they had an answering machine take all their calls. But calling the company direct is a good start. The internet is a good source for phone #'s, etc... SI is a fair place to start as well. Happy investing........... |
