Penny Stock Awareness: February 28, 2011

Sundays are always great days for me.  It's a day that the fast paced stock world is relatively still and investors can do a lot of research.  The weekends give us time to figure out what's going on.  It's a period of time where we can learn about what's going on in industries that we haven't been able to keep track of during the week.  Most of us have day jobs, and need that day off to figure out our investments.

I love Sundays.

Today I have looked through a few penny stock forums to see what the buzz is about.  This is important.  As I stated in the past, the value of stock prices rise and fall based on the emotions of the traders.  You always want to get an idea of what the people are thinking and reading.  These forums build a list of potentially wise investments.  Today, I put together a list of 17 companies that I narrowed down to 2.

EYSM   UTRM

EYSM aka http://thedirectory.com has had consistent revenue growth over the past year.  Closed at .0025 on Friday.  The CEO will be interviewed on TradersNation.Com on Tuesday.  Social Media is one of the fastest growing industries.  If this company continues to break it's on revenue records, the volume of trading will increase.

UTRM has patented a reasonably prices Waterless Toothbrush.  See it for yourself at http://www.thewaterlesstoothbrush.com.  This company has been involved with a lawsuit that shut down operations for a while.  In a recent announcement to its shareholders, UTRM has stated that this lawsuit has been settled, and now they are working to fulfill the orders that have been halted.  This stock closed at .0093 on Friday.  I expect the declining value trend of this stock will improve.

My generalization have been very broad.  I haven't included all of the notes that I've taken on the two companies.  I am not getting paid for this.  Once again, my objective is to put in idea in your head.  Always do your own research on companies and their management before you buy shares of that company and remember the risk.

Invest Wisely

Be Careful

Many people are so blinded by the potential of an action that they do not consider the risk.  Trading Stock is a risky business.   Even secure investments have some risk.  It is a fact that the more risky investments have a higher potential increase.  It is also a fact that the more risky investments have a greater loss.

This post is not to push you away from trading.  I am writing to make sure that you are aware.  Although there are many laws, fines and regulations, there's still a lot of funny business in trading.   A popular misconception is that the company's performance determines the value of the stock.  Get this bullshit out of your head.  The mood and beliefs of traders dictate the value of specific stocks.  When the company files, the numbers influence the minds of investors, but it is ultimately the mood of that individual trader buying, selling and setting their price that determine the value of the stock.

There are many blogs, news, reports, and whatever else you want to call them on the internet.  Some are straight forward.  Some are straight bullshit.  It's becoming hard to distinguish what is good, when the evil is so convincing.  There are many ways to make money in the trading industry.  Of course, buying and selling is included in this list.  There are also many schemes in the business.  One of most popular is called the Pump and Dump that I will explain in a later post.  Writers, with a strong influence on novice investors, are also being paid tens of thousands to give inaccurate reports to the public.

All in all, there is a lot of money that can be made.  I will continue to put important news feeds and reports in front of you to help you make great decisions, but always follow your heart.  Don't do it because I said it was a good investment or because someone else said it was good investment.  My objective is to provide information for you to make the decision yourself.

Feb 22 Stock At Half Price

Motley Fool reports three stocks trading at 50% of their normal trading price or less.  (REPORT)

FEED    CLNE     MNTA

As of 3:10 PM eastern, CLNE is the only, of the three, in the green, trading 9% above opening price.  FEED and MNTA have lost value so far today, -2.89% and  -1.92% respectfully.

Yahoo finance's 1 year estimate on MNTA is close to double the amount that it is being traded for today.  Thomson Reutors and SmartConcensus reports are both saying sell and avoid.

Yahoo Finance's 1 year estimate on FEED is more than double the amount that it is being traded for today.  Thomson Reutors report is encouraging traders to purchase.  Smart Consensus report says hold.

Yahoo Finance's 1 year estimate on CLNE is about 25% higher than the amount it is being traded for right now.  Thomson Reutors report says sell. Smart Consensus report says hold.

My speculation, of the three stock, FEED has the best resume.  The professionals expect the most from this "undervalued" stock.  As we take a look through the news of AgFeed Industries, Inc (FEED), we see that the previous Chairman has recently relinquished his position and a new Chairman has been appointed along with a new CFO.  The next step is to research the new management. Google searches make this very easy.

In conclusion, it appears that FEED is good decision.  Of course there are many risks in the fluctuating stock market and you should not expect it to double over night and stay away from day trading.  I have decided to purchase shares of FEED as a short term investment.  Once traders are enlightened about the opportunity, it will prove successful.

FEED has definitely been added to my portfolio.