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.
