Small Float Picks. . .
Lots of talk this week about playing small float stocks, mostly on the fishing thread and other penny threads, etc.
MTMC, FCCN, ECIC, ALFN, etc.
A few things to keep in mind, when playing these.
1. First thing is that obviously the more low float picks you play at any one time, the less sting there will be to any one of them. This could result in owning a bunch of a stock and hoping others will come along and buy same. . .or in getting trapped by a slick MM that reads these threads and decides to yank the bid down below where anyone bought in.
2. SIEB, JBOH and BNBGA did not rocket strictly because of their float. The entire sector was being traded, including these. For each 100k that was traded, tho. . .perhaps only 5-10k was being held long. . . there was buying building up to this event. . .float had to churn over and over. . .then when the drum was at its tightest and there seemed to be no shares to come by, the daytraders hit it with buys with all their might sending it into orbit.
3. Muriel Siebert was not about to part with her shares, but Mr. OTC, CEO may be just waiting for the chance for his company to be bid up to some ridiculous price so that he can dump a huge amount of shares into the float. Sure it will drive the price back down and ruin the party, but look at how much money he has to gain for either him or his company.
With these OTCs, we don't have the benefit of so many daytraders getting involved. I honestly don't know how many will be playing these, but it concerns me that there are so many being played with the same strategy at the same time.
Rande Is |
