Gold figures prominently in the future of two of the three potentially hot penny stocks.

A few potentially hot penny stocks loom today and over the next week or two, including two that we’ve highlighted consistently and one which fell off our radar screens for a time. Both NEOM — which is being touted by many investors as a stock that’s probably going to improve yet again — and GDSM have been mainstays lately. CFGX (Capital Financial Global, Inc.), which quite frankly hasn’t done much of anything recently, may prove to be a real winner in the days ahead.

GDSM (chart) opened today’s trading well off its highs from just two weeks ago but it soon enough began a series of moves that has seen it to an 11-plus percent improvement on heavy early morning trading volumes. It released news today, though, and penny stocks typically tend to improve in price whenever news about them is released. View the release here and judge for yourself.

Investor chatter, as well as intelligence gleaned from several professional traders, about NEOM (chart) is that it has yet another major price improvement in store over the days to come, though at present it’s trading at 0.041, down from its morning open by about 2%.

CFGX (see chart here) has been somewhat of an underperformer, steadily losing share price since November of last year, after a heavy bout of trading over a three day period saw it’s value reduced from more than 2.5 cents to where it is today, at 0.0056. CFGX, though, issued a news release today that may improve its value over the next several days.

Though not a mining or minerals sector company itself, CFGX came into possession of a US mining interest that may prove quite profitable in the near future, as its gold mining operation, according to the news release, has now been proven to have the actual precious metal, possibly in great abundance. If so, CFGX will most likely improve drastically in share price as word gets around. Getting in at current prices would be a good entry strategy, though more research is needed to determine an effective exit point.

Keep an eye on all three stocks today for entry and exit points that could prove to be highly profitable for smart and savvy trader.

Monday could be a good day for many hot penny stocks

Several hot penny stocks we’ve been highlighting the last few weeks will open trading today after mixed performance over the course of the last week.

For example, NEOM (NeoMedia Technologies), which had had almost an entire week of extremely nice performance driven by news of a several million dollar investment by a California billionaire finally came down to earth last Friday, finishing at 0.03 after opening at nearly 0.035. Trading is expected to be just as vigorous today.

The winner of the day last Friday was ISIM (Insight Management Corp.), which opened at 0.0031 and closed trading at 0.0034, a nice improvement. Investor confidence in the stock is high, and many expect a bullish reversal pattern to continue for at least today. Trading also should be high volume for the stock right from the opening bell.

Li-ion Motors Corp. (LIMO) had a good trading day as well, closing at 0.32, two cents above its opening bell mark. The stock is expected by investors to continue upwards in price, with some expecting a breakthrough at the 0.34 resistance point, at which time the stock should improve in price nicely. That’s pure speculation on investors’ part, though, so be wary when setting an entry and exit point on this particular stock.

GDSM (Gold Coast Mining, Corp.) experienced another day of price declines, finishing at about 0.0081 after another day of sell-offs and profit-taking activities on the part of traders.

In all, trading should be very interesting today, as it’s the last trading day of the month and investors in many hot penny stocks or most OTC stocks in general expect the companies in which they’ve invested to start releasing news of various subjects such as financial audits, progress reports and the like. Keep a close eye on your stocks and be ready to move at a moment’s notice to take advantage of price swings.

Fridays on the OTC markets often turn out to be golden for investors.

Fridays are normally the last trading day of a regular week on all stock markets (the last trading day is often just abbreviated EOW) and when it comes to many potentially hot penny stocks the last trading day of the week can be quite interesting. Stocks that have been lagging all week can take off suddenly and rise to new highs but they can also undergo large sell-off numbers and lose share price very quickly. That’s just the nature of the penny stocks world, it seems.

Given the above, it may be a good idea to take a brief look at several different stocks of note and then decide what to do about them if what you’re in hot penny stocks for is to make the smart and savvy daily trading play. If you’re in for the long-term investment potential of a stock, it may be a good time to sit and wait until the stock begins selling off greatly and then adding to your portfolio when the price dips.

The time-honored trading strategy, then, which applies to both major index as well as over-the-counter (OTC) stocks is always: “Buy low, sell high.” Today, it’s often expressed this way: “Buy on the dips, sell into the rallies.” Both sayings mean the same thing, it’s just that the second one is more expressive and descriptive of what goes on when it comes to OTC stocks for both day traders and long-run investors.

So, then: Let’s quickly look at where a few of our highlighted stocks are:

- GDSM: Opening this morning at 0.0084, up 0.0002 from its open yesterday, the 22nd. Strong volume stock with many small ups-and-downs in price over the last few days. Could be a good vehicle for solid day trading, though many of its investors feel it’s a solid bet for long-term success.

- ISIM: It will open today at 0.0031, down from its 22nd opening bell price of 0.0035. ISIM has been a top performer over the last two Fridays, though, and investors in its market feel that it’s set up for a nice run today. Buying at the bell and then exiting today at some point above the open is a good strategy.

- LIMO: It, too, lost share price to finish yesterday at 0.301 from an open of 0.306. Investors in the stock are split about the stock’s ability to perform to its previous activity levels earlier in the week and this stock may be one to just sit and watch today, though Fridays have also been good to it in the past.

- NEOM: This particular stock had another solid performance day on the 22nd, opening at 0.033 and finishing at 0.337 after spending much of the day experiencing a great deal of profit taking on the part of investors. It finally broke even about 3:30PM spiked up slightly before a bit more sell-off activity occurred and then settled in at its closing price.

NEOM’s stock chart (here) candlestick for the 22nd features a classic hammer, with a long lower shadow that indicates a lot of selling pressure. Today could be day for further consolidation and accumulation, though, and there may be potential for more profit if the right trades are made.

NeoMedia Technologies turned into a molten hot penny stock yesterday.

Of the (potentially) hot penny stocks we’ve been highlighting lately, most experienced negative performance marks yesterday (the 21st), except for NEOM (NeoMedia Technologies), which did land office business during the March 21st trading session. More on that stock in a bit.

GDSM (chart) continued a gradual price decline to finish at 0.0082, down 17.17% from its opening bell price of slightly below a penny per share. We’re going to put this stock to the side until selling pressure slackens off.

ISIM (chart) also lagged, losing 0.0003 to finish 7.89% down at 0.0035, off its opening price of 0.0038. Investors in the ISIM market continue to hope for a rise to at least 0.007 if not a full 0.01 share price, but it hardly seems likely at this point. The stock has been on a four-day losing streak, though today’s candlestick, albeit red, did feature a longish upper shadow and a reversal could actually occur later this week.

LIMO (chart) lost ground yesterday, after experiencing improvement in share price the day before. It finished at 0.306, 9.47% off the opening bell mark of 0.338, which is quite a drop, relatively speaking, for a microcap and (potentially) hot penny stock. Overall, in the long-term, the stock has lost value since October 2011, so keep this in mind when considering trading for the long run with this security.

Our winning stock of the day has to be NEOM (chart), which finished up 67.51% at 0.033 per share on more than 248.2 million shares traded. Its candlestick featured a short white body with long upper and lower shadows (the lower, or selling pressure, shadow is a bit longer than the upper, or buying pressure, shadow).

NEOM was buoyed by news of a California-based billionaire buying up nearly $7 million worth of stock (see filing here), and the bounce from that bit of data alone was worthy of a serious run upward. On the technology front, the company was awarded a patent for its mobile barcode management technology, ensuring a steady revenue stream at some point.

We’re cautious of NEOM today, for the simple reason that day traders are bound to be looking to sell into an anticipated morning rally but only time will tell if this is the case or not. There may still be some buying pressure while investors continue to digest the import of a nearly $7 million share buy. At some point soon, though, the stock will be overbought and the inevitable correction will then ensure.

A stock to watch today could be TIVU (Tivus, Inc.), which saw a 20% improvement in share price (up 0.0001 to 0.0006), perhaps on speculation by investors that a meeting involving the company’s largest potential customer, hospitality industry giant Host International will involve certain Tivus tech. The meeting to be held is at the Philadelphia, PA, Marriott, a Host property which has undergone a full installation of Tivus’ proprietary HDTV technology.

Investors in Tivus stock speculate that part of the meet, at which much of the management and leadership throughout the Host system will be participating, will be a full-blown display of the capabilities for in-room revenue capture from guests of a hotel or other property that Tivus, Inc. says is an integral part of its system. Stay tuned for more info as this story develops.

Some hot penny stocks may be ripe for savvy day trading activities.

Yesterday saw very minor gains for a couple of recently highlighted hot penny stocks while several others either saw no gain (but plenty of volume) or even small losses. GDSM (Gold Coast Mining Corp., chart here), for example, finished the day at 0.0099, up 0.0006 from its open.

GDSM stock also saw a high well above 0.0102 though speculators then put the stock through a roller coaster of buying and selling. Watch the stock closely and be prepared to enter and exit in order to quickly maximize profits, in other words.

Another stock we chose to continue watching, at least for a few more days, was ISIM (Insight Management Corp., chart here), which lost another 0.0002 of value to finish the day at 0.0038. Again, speculators had their way with the stock yesterday, with the chart showing three days of decline.

Investor chatter in the ISIM market, though, maintains that 0.007 to 0.01 is possible this week. Be cautious of a possible promotion on this one for now.

Neomedia Technologies (NEOM, chart here), went through a second day of profit taking though the chart could be signaling a possible slight upturn due to an oversold situation. Some investors in the market feel that today’s opening price of 0.0197 may make a good entry point. If the stock does turn — which is an open question right now — savvy investors could be positioned to profit nicely as it moves to the mid-0.02s or better.

Our newly highlighted stock from yesterday, LIMO (Li-ion Motors Corp., chart here), was buffeted greatly by speculators who put the stock through an all-day series of negative-side (i.e. “in the red”) peaks and valleys before it finished at 0.338. It had opened the morning’s trading session at 0.33. Overall, the stock’s chart shows a short, thin (but white) candlestick with very short upper and lower shadows and an RSI of 56.87.

Overall, the trend line on LIMO stock has been downward since October of 2011, though smart traders can make a tidy profit on daily activities. We’ll continue watching this one today, mostly out of pure curiosity. All of today’s hot penny stocks have been fairly volatile the last several days so be prepared to rapidly move into and out of all of them, if need be.

Hot penny stocks suffered a so-so day yesterday.

Highlighted stocks we’ve been following lately, including NEOM (NeoMedia Technologies), all had so-so or negative performance trading days yesterday. GDSM finished at 0.0093, .0005 off its morning open. There was a mid-trading day bump where it ran to above 0.0011 but profit takers ended up driving the price lower. Its candlestick, with a very short red body and a longish lower shadow, could presage a bullish reversal over the coming days but this isn’t certain.

Tivus, Inc. (TIVU), held steady at 0.0006 though it mainly traded below that mark for much of the day. We’ll be putting this particular stock to the side until something of note begins occurring with it yet again.

SNPK (Sunpeaks Ventures, Inc.), which for a time was being promoted by investors, finished a full penny below its morning open of 0.495 (at 0.485). The stock was handled roughly by traders and went through a serious fall/bounce cycle, making the likelihood of a 0.7 to 1.0 rebound dim at this point. We’ll return to highlighting this stock if things change but as of now it’s being taken off the highlight board.

ISIM (Insight Management Corp.) lost another 0.001 to finish at 0.004, though chatter among investors indicates they’re waiting for an expected rebound at the end of this week so we’ll continue checking in on it just to see if any solid trends can be detected. At present, though, the stock seems less likely to do much as each day passes.

Yesterday’s newly highlighted stock, from NeoMedia Technologies (NEOM), suffered a fallback as profit taking — after three days of steadily increasing share prices — finally kicked in. We’ll watch it for today to see if any sort of reversal forms up or if more selling off of the stock is the order of the day.

A new stock on the radar for today is LIMO (Li-ion Motors Corp.) a development stage company that focuses on the development and then marketing of of lithium (battery)-powered vehicles and products. It also has a presence in the market for most other wheeled vehicle Li-ion batteries, which are the most popular form of batteries for cars, scooters and other products.

LIMO stock opened yesterday’s trading at 0.3 and finished the day back at that number after experiencing several jumps that saw it swing from 0.3 to as high as 0.33, a full three pennies worth of value increase. Profit taking over the last hour of trading reduced share price from about 0.315 down to its opening bell mark. RSI is middling, at 52.66 (see LIMO chart here) and a reading of its candlesticks shows a possible sustainable increase in share price could ensue, though more study is needed to determine whether that is actually the case.

Keep an eye out for hot penny stocks on the rebound.

End-of-week trading last Friday in many penny stocks or OTC stocks finished in the red (i.e. being worth less than they’d opened the day at). For the most part, last week’s trading session was a mixed bag, with a few days of price increases driven by strong buying pressure that was then followed by sell offs and profit taking. Last Friday was an example of selling off of shares in order to take such profits.

In truth, and given the nature of hot penny stocks, selling off in order to take profit is exactly what should be done in the vast majority of these securities. By not letting emotion enter into the buying-selling equation when it comes to microcap (“micro capitalization”) companies and their issued stocks, a savvy investor helps to limit his risk. Still, there’s always an outside chance that one or two such stocks may eventually become long-term investment-grade securities.

Given the above, let’s take a moment to run through several of the stocks we’ve been highlighting of late:

- GDSM (Gold Coast Mining Corp., chart here) closed at 0.0098, well off from highs earlier in the week. Friday was characterized by steady selling that saw the price move downward in fits and starts, though a bullish reversal could be in the offing either today or tomorrow. More study will be needed today to make a determination of such reversal, though.

- TIVU (Tivus, Inc., chart here) descended back into “triple zero” range to finish the week at 0.0006 per share. Investor chatter is split on whether further price declines are waiting in the wings or if the price has stabilized at this point. A great deal of selling in order to take profits (the stock was well above a penny per share earlier in the week) occurred last Friday. The prevailing sentiment for now is that TIVU stock will continue to wallow and slightly decline still more.

- SNPK (Sunpeaks Ventures, Inc., chart here) stock was characterized on Friday by a huge hammer-shaped red candlestick with a very long lower shadow and an extremely small upper one. It’s had two days of losses (it finished at 0.495) and many investors in the SNPK stock market are betting that it’s due for a reversal and a climb back up to the 0.70 to 1.0 range over the next several days. We don’t make stock price predictions, though.

- ISIM (Insight Management Corp., chart here) stock also closed out last week down a bit, at 0.005 per share. The prevailing sentiment among investors is that the stock may possibly see 0.007 in the absence of any positive news of note. Speculation about news, though, says a penny per share is possible. We’ll have to see about that, since 0.01 per share would be exceptional from this particular security at this point.

Other stocks to keep an eye out for this week include NeoMedia Technologies (NEOM, chart here), which is coming off three straight days of excellent performance. It had a Friday RSI (relative strength index) rating of 92.79. Average daily trading volume exceeds 16.5 million shares, and it closed last Friday’s trading at 0.056 per share, up from slightly more than 0.02 per share in the morning. The stock may be overbought at this point, though, meaning a sell-off and subsequent price decline could be in the offing at some point this week.

Apply a simple trading ruler to all your hot penny stocks.

As we noted yesterday; by their nature, penny stocks or OTC stocks (both generically known as microcap stocks) can be volatile, meaning their prices can often turn positive or negative very quickly. Potentially hot penny stocks can also fall victim to what are called “pump and dump” schemes, whereby a stock is “pumped” or inflated using wild claims of profit potential and the like or, conversely, “dumped” on so as to deflate its stock price. Smart traders and investors understand these facts.

Given the above, it’s wise to keep several simple rules in mind about penny stocks whenever trading or investing in them is being contemplated:

1. The most important and simple rule to keep in mind is that doing a little bit of research — both about trading in penny stocks as well as on the stock to be traded itself — should ALWAYS be done. If you’re receiving wild emails claiming that Stock XYZ is about to “take off,” spend some time finding out why it would do so.

2. There are literally hundreds of online penny stock brokers out on the Web, many with little-to-no past history. Some are outright frauds, just waiting to collect some basic information about customers signing up before selling that same information to data brokers or, worse, criminal gangs intent on stealing money from those customers.

Remember: Always carefully check the background of an online stock broker out before committing to it. In the end, it’s usually smarter to go with a low-priced, but well-known, discount broker before giving any information or money to an online broker nobody’s ever heard of.

3. Keep emotion out of the trading equation. Don’t marry a penny stock, no matter how “hot” it is, and then ride it down into the ground because the belief is that “prosperity is just around the corner,” to quote U.S. president Herbert Hoover’s mistaken observation (or desperate plea) that the Great Depression was just about over (in 1932, though it had nearly a decade more to run before World War II finally put an end to it).

4. Take advantage of the stock trading software just about every reputable online broker provides. It should be enough to give you up-to-the-second data on trades of the stock being invested in (called a “Level 2″ or “L2″ stream), at the least. Real-time streaming quotes can help you manage your stock better than just about anything else.

5. Leverage existing and available technology to help keep you up on your stocks at all times. Google, for example, has the ability to notify you of any news or other alerts about changes to the company which has been invested in. Just go to their ‘alerts’ section and add in the info and Google will keep watch until told otherwise.

6. This last rule is one we’ve emphasized on more than one occasion:

Never, ever invest in penny stocks with money that you’re not absolutely prepared to lose. Consider hot penny stocks — no matter how solid their performance looks at that given moment — to be speculative in nature only, and not likely to stay hot forever.

As far as potentially hot penny stocks for today’s end-of-week (often abbreviated “EOW” by traders and investors) trading, we’re going to continue to keep an eye on GDSM, TIVU, SNPK and ISIM. If NTRO manages anything out of the ordinary for today we’ll also add it to our highlight list, though at the moment it doesn’t appear to have anything of note to remark upon.

TIVU (Tivus, Inc.) saw a huge amount of volume at more than 120 million shares traded today though the price declined steadily from about 11:45AM until the market’s close, where it finished at 0.001. That price is down more than 55.5% off the morning’s opening price of 0.0023. TIVU’s chart is here. It’s characterized by a candlestick that’s all red body with a tiny upper shadow, meaning much of the day’s activity was centered around steady selling, as investors sold off in order to take profit. They may come back in at the lower price point in the final day of trading this week, though that isn’t certain.

NTRO (Nitro Petroleum, Inc.) also finished down for the day by 6.15%, finishing at 0.0122 on nearly 389,000 shares traded. Check out the NTRO chart here, and note the relatively long lower shadow, very small red body and miniscule upper shadow. The stock, once it recovered its equilibrium after a strong sell-off at about 10:45AM, did manage to stay mostly on an even keel, that it still was at a price lower than when it opened the morning.

Two other stocks of note — SNPK and ISIM (Sunpeaks Ventures, Inc. and Insight Management Corp.) — also came back up on our radar screens, though for different reasons. SNPK’s stock is most likely the subject of some speculation and promotion and it finished the day down about 4.4%, at a price of 0.669 on a trading volume of a bit more than 7 million shares. Investor chatter about the stock seems to be centered on the belief that it may run to at least 0.8 per share, if not more (though a dollar per share is still a stretch goal, in our estimation). See the SNPK chart here.

ISIM, on the other hand, had an excellent day in finishing at a share price of 0.0053, up more than 43.2% on volume of nearly 36.6 million shares. Take a look at the ISIM chart here and take care to note the candlestick (a long white body with no lower shadow and a nice upper shadow, indicating strong buying pressure). Many investors in the ISIM market believe it’s possible that a 0.007 to 0.01 price is in the offing, though we have our doubts about that upper range and investors in this market are notoriously optimistic, sometimes too much so.

As always, never invest in hot penny stocks with money that you’re not absolutely prepared to lose and never forget that the nature of penny stocks makes them volatile, meaning their prices could easily go up or down almost within a few seconds. We’ll have more to say on that subject in future posts.

Be ready to trade your hot penny stocks right from the opening bell.

Both highlighted stocks (GDSM, TIVU) that we’ve been following lately had an excellent trading day yesterday, placing them squarely in the hot penny stocks category. Pre-opening bell chatter among investors seems to point to another day where gains are expected to outpace losses, in fact.

GDSM (Gold Coast Mining Corp.) finished yesterday’s trading session up more than 53% to finish at 0.0118 on a volume of about 46.5 million shares traded. It opened trading at 0.0077 and stayed above that opening mark the entire day, which was marked by a generally upward series of price movements. See the GDSM chart here.

Tivus, Inc. (TIVU) had an even better day than GDSM, improving in price per share to 0.0023, up nearly 77% on more than 49.3 million shares traded. It began the trading day at 0.0013 and reached a high of 0.0025 before settling in at its closing price.

Early morning discussion today among investors predicts an opening price of 0.0029, after broadcast of an interview conducted with the company’s CEO, Shiva Prakash, about upcoming initiatives on the part of TIVU (chart here). Note the stock’s candlestick, with a long white body, no lower shadow and a nice upper one. The stock, as yet, doesn’t appear to be overbought, in other words.

Keep an eye on both stocks, though we almost never recommend chasing stocks on the rise. Still, a good entry point is still possible to lock in while working out a profitable exit price at some point this week or the next. Be careful with Tivus, though: In the past, in the face of nice bullish runs short sellers and market makers have stepped in to quash serious potential breakouts. Be prepared with both stocks to move quickly to take profit, if need be.

Another stock on our radar screens today is NTRO (Nitro Petroleum, Inc.) which also sits in the burgeoning hot penny stocks energy sector. Year-over-year, from January, 2011 to January, 2012, the company has managed to increase revenues by nearly 370% while reducing operating expenses by more than 30%. NTRO still isn’t showing a profit, as yet, but investors remain bullish on the stock and expect a concerted breakout in the near future. See the NTRO chart here.

Of today’s three highlighted stocks, TIVU looks to be the best-positioned for high performance, given what technical indicators (candlesticks, MACD and MA) are showing. MA for TIVU currently sits at 200 and the MACD is pointing to solid gains as well.

Never forget, though, that the nature of penny stocks, even if they’re currently hot penny stocks, means that their prices could turn at any moment. When “playing” (managing the investment in a stock) these securities keep a sharp eye and a ready trigger finger in order to take advantage of your personal investment strategy.