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Microcap & Penny Stocks : Short Term Picks From the 'Whiz' Kid -- Ignore unavailable to you. Want to Upgrade?

To: onlygains who wrote (1479)	2/23/1999 11:11:00 PM
From: David in Ontario	Read Replies (2) \| Respond to of 9115

'onlygains' - I only have a 1,000 questions for you :) Welcome to SI. I've read your posts and you could be a good guy to know - time will tell - as it does for all of us here. I'm taking you at your word that you've 'fessed up' as a broker - so I'm going to ask my questions if I may. Looks like I'm first in line with a bunch of questions for your good self. (1) If you don't mind me asking which are the 4 SI threads that you really like? (2) What are the key funamentals that you look at in selecting a penny stock? Do P/E's mean that much here if the company is still in R&D mode - thus earnings are light, but potential may be very good? Do you have a number for the float above which it's best to avoid the company - either because it would take way too much inertia to move it, or because there's always a danger of a reverse split? How concerned should I be about share dilution when pennies raise capital through PP's and offer options/warrants/shares? Does one offset the other in some cases? What significance is there to the date/execution price of warrants/options? If the exercise date has a two year life and the stock is trading at $0.50 and the warrants/options were purchased also at $0.50 and it's 'known' the stock will go to say $5 in two years - should I care as a shareholder? Or should I just be thankful that the company was able to still raise cash and stay in business? (3) I haven't picked up any of Dan's pick's (sorry Dan), but I enjoy reading his posts. I also only came across Dan a short while ago. Some of the pennies move way too fast for my liking (e.g., MPTV's ridiculous chart). I like (or want) to select undiscovered pennies (in the sense of the broader market) that have very good upside potential. I then let - or want - and pray that the fundamentals will drive the stock up to new highs and well above where they were when I picked them up. I do take profits when presented, but I like to leave a good chunk on the table as well if I believe the company has very good upside potential out to a twelve month horizon. What's your view of the very short-term momentum penny plays? Are they best avoided? I don't want to become a penny day trader or a very short term penny trader. I have my real job to do as well and I can't follow the markets intraday, everyday. Most of my portfolio is in large blue chips which I don't have to watch that closely, but the pennies are fun to play. (4) If possible - could you give a detailed post of how MM's do their job? I read so many posts on the momentum threads about how posters believe the MM's are doing this or that - or that it's an MM fake - or that MM's don't want the stock to go here or there. I know they make their $$ via spreads and volume, but how much control do they have? Can they initiate sell-off's or upward surges? How do MM's work together if they are from different firms? Do they all watch the same market depth screen's for that stock and then fill order's in a coordinated manner? Is an MM obliged to pick up a Bid or Ask if it's reasonable? When they alter the spreads between the Bids and Asks what's going through their minds? I know that stocks with enormous spreads are best avoided, but what crtieria do they use to set the spread? How much discretion do they have in controlling the overall market for a stock? Yes - they're 'Market Makers', but what are their bounds? I don't know - that's why I'm asking. (5) Last questions on TA. Thanks for you Moving Average comments. You use 30 & 50 day MA's - simple or exponential? Is one better than the other? Big charts has a default MA setting of 9 - does that mean anything - probably not? Different folks use different day averages, some 13, 21, 200, etc. Why have you selected 30 and 50? Why do others select other day averages and what criteria are they using? What's you view of TA? Is it a good research tool to use? Are some TA indicators better than others? Are candlestick charts worth learning about. I have Steve Nison's books - not yet fully read. There is a lot there to learn - I just don't want to waste my time. I also have DeMark's book and several others on TA. I'm also considering picking up some TA software (Mathematica's Technical Trader in my case). What do you think of TA software? I know that experience is the best teacher. However, at the end of the day it's our finger on the trade execute button on our computer terminal or we execute on the telephone through a broker - but we also need tools to assist us in coming to that final Sell/Buy decision and I'd like your comments on where you think TA fits in. What do you mean by 'front running'? That's enough for one day :) David. Ps. Can you PM me your telephone # so that I can call you at work? Ha ha :)