To OTC Journal Members: 

As Promised- A Changed Approach

In my first edition of 2012 I promised a different approach to penny stock coverage. I promised no more one day wonders. I pledged to stick with each idea for a month or two and provide some follow up. I don't believe the penny market is well served when newsletters give 3 ideas a week. They tend to blip up so temporarily it's almost impossible to make a profitable trade, and then a day later it's on to the next idea.

I'm determined to get a little more old school this year, and try to get you out in front of stocks that you can jump into when they are cheap, and sell when they rally. I'll try to position us to have the time to take a profit in these ideas, and deliver ongoing coverage. Today is my third edition on FROG.

I hope you are watching my idea on March 15 calls on CALL closed at $2 offer- that's up from $1.40 late last week, and looking better every day. This is the kind of idea you have some time on. LUVU hit $.24 today in the early going, which is a new post coverage high, but then gave some ground late in the day. At yesterday's close, the stock is still 23.5% above the entry level earlier this month, and looking to get even better.

I'm 2 for 2 on entry levels for FROG-and today is follow up #3, as pledged. I believe this model will serve you- the penny stock investor- far better than the 2011 model of 1 day wonders.

And, speaking of the FROG- another surge up, another pullback, and another good entry level. Technically, now is the time to jump back in if you're game. Check out the chart...... 

FrogAds (OTC BB: FROG)- The Lows and Highs Are Getting Higher

I called the last FROG bounce at $.30, and it bounced to $.40 in two trading days. If I had suggested you pick up a stock at $30, and you could have sold it two days later at $40, you would think it was the trade of a lifetime.

It's the penny market, and investors don't always see things that way. We all realize $.30 can go to $.20 in the blink of an eye as well, so there's two sides to that pancake. Market makers generally trade these smaller stocks from a short position, so their agenda is usually to drive the stocks down. They realize a short sighted penny stock trader can be spooked out rather easily, making for easy money for market makers.

Back to FROGads. The success of this company is 100% related to the amount of traffic and popularity of their newly launched site. Last night I decided to do my own research, and get some traffic reports on www.frogads.com.

Most internet analyst will look at the Alexa ranking, which are a bit like the Nielsen ratings of internet sites. WWW.Alex.com follows browsers around the internet through an embedded tool. It's a bit like a Nielsen box on your TV. However, Alexa is flawed. Programmers have been known to create clever online robots designed to deliver exaggerated traffic ratings.

An alternate traffic service that is more accurate in my view can be found at www.quantcast.com. Quantcast requires the site owners to allow their service a certain level of access so traffic can be independently reported.

The company has not registered to be tracked by Quantcast, so we can only get limited traffic information there. In December, Quantcast reports the www.frogads.com's traffic was up 463% in December. This makes sense, as December was their launch. The Quantcast rankings have risen in the last week as well. It looks like the traffic to the site is growing about 2% weekly- which is huge on an annualized basis.

The action in the stock was telling yesterday. The stock had a big, low volume drop, but bounced generated a 60% rebound of the day's sell off. This suggests the stock is going to bounce back again tomorrow, and perhaps another trade into the $.40 range is in the cards.

With the ranking services showing increasing traffic to the site, some level of success is inevitable at the company.

Yesterday the market makers tried to spook traders out of the stock by selling it down rapidly on low volume. It looks to me like either bargain hunters surfaced, or sellers just didn't materialize as they had hoped, and they had to cover.

Look for the bounce to continue today, and perhaps there's another trade here for $.40- a 33% jump from yesterday's close if this is Deja Vu all over again. If you're trader, get in early and keep a watchful eye.

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com