To OTC Journal Members: 
 

August Was Ugly, But We Kicked Butt

Well, the first business week of the best part of the year is behind us now, and I for one couldn't be more excited.

This is the time of year I absolutely love- Why? Glad you asked- Because seasonally, we are rolling right into the best time of year to MAKE MONEY IN PENNY STOCKS!!!!!!

I have found over the years penny stocks usually make their annual lows somewhere between July and August 15th. If you have a 4 to 5 month window, this is the best time of year to be a buyer.

September tends to be a bit of a "shake and bake" month, with the market showing signs of life, but not really running. October is generally the "Bear Killer" as it has been so many times in the past.

August tends to be a kind of lazy, low volume month with a slight downside bias. While that's normally the case, this year August was anything but. I was genuinely getting seasick during the most volatile August I can ever remember.

Global equities got absolutely destroyed in August as investors couldn't decide whether the threat of default on Sovereign Debt in Europe was better or worse than the massive and building US deficit and our Government's grid lock on acting to alleviate the problem.

I'm particularly proud of the OTC Journal track record in August against the backdrop of the larger market getting beaten to a pulp. In August I introduced 5 new ideas, and 2 of them ended up being giant wins.

That's a batting average of .400, which will get you a $40 million contract in Major League Baseball and a place at Cooperstown in the Hall of Fame.

Which brings me to another point that's very important going forward. With every idea, I provide a suitable entry level, a profit projection, and an SSL. The most important thing to pay attention to is the SSL. If you're wondering what this means- SSL is an acronym for "Suggested Stop Loss".

I am going to find winners. I have found dozens of them in the 13 years the OTC Journal has been published. That's a given. The key to making money is to minimize the losers.

Here are the facts from August: There were 5 new ideas. If you had put an equal amount of money in each one, sold the 3 that traded poorly at my SSL, and held the 2 winners to Friday's close, you would have a 20% return on your investment dollars.

Now- 20% doesn't seem like a fortune, but remember, this is only over a few weeks. On an annualized basis- that's a damn good return.

Considering it was August and the markets were getting murdered, I'd say that's a huge win.

But, there are much better things ahead. October to April is the best time of year for penny stocks. September could be very strong this year as August was such a mess.

I'm going to try to keep the Sunday program rolling- this seems to be when we get our best result. This week I won't have anything until after the close on Monday- a day later than perfect, but nevertheless this one looks red hot.
 

Two Gigantic Wins

Let's look at our big winners in August, and the second one has been a very pleasant surprise.

On August 14th I published my first edition on Lone Star Gold (LSTG)- the company that is smack dab in the middle of the best gold country in Mexico.

I put out the buy recommendation at $.90, and set our short term upside target at $1.25. My apologies- the stock has only been to $1.22 since August 15th, but seems to want to work higher everyday on darn good volume.

This is one gold stock that has really captured people's imagination.

The other big win was a bit more of a surprise. I wasn't sure how investors would respond to this story, but they are loving it and seeing the value in this unique technology.

GreenCell (GCLL), my August 25th idea, has been the standout winner. This stock has made the trip from my suggested entry level of $.45 to a cool double in a couple of weeks.

GCLL is the materials company that can "Take The Heat".

This is an innovative technology company that has developed ceramic composite materials that remain completely stable at 1800 degrees Centigrade- that's 18 times the boiling point of water.

The applications for a product like this in any engine environment are endless.

These are two really profitable ideas, but only if you take your profits, so there's nothing wrong with cutting back a little at some time if you're way up.

The next profitable idea will come out Monday post close. Get ready for the rest of the year to be profit heaven.

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