Note: You are reading this message either because your browser is not standards-compliant, or your browser failed to load our css files.

Home Page :
Email Questions or Comments To: [email protected]

To OTC Journal Members: 

Thinly Traded Stocks

While it's nice to see volume in the penny stock arena, it's panicked markets like yesterday when it works against you. The more short term traders you have in a stock, the worse it will trade when everyone is petrified and running for the exit door. The more thinly traded stocks with loyal shareholder base's hold up better.

Take Midas Medici (MMED)- the weirdest stock I've ever seen. My first feature on the company was on June 12th. Since the stock had never really traded publicly, and it was bid $2.02, offered at $2.60, and trading no volume.

If there were a Top 10 events in micro caps like there are Top 10 plays in ESPN, this stock would have gotten it. The next day, after publishing my report, the stock traded ZERO volume. It wasn't that no one wanted to buy it. There were bids for the stock at $3. Market orders might have taken the darn thing to $20. I cautioned to use a limit order.

Not one single share was for sale. Since then it has loosened up a bit, and there are a few shares around. Yesterday, MMED traded 27,000 shares- the highest volume day yet. Of course, with the DOW down 600 points, the stock got hammered.

But wait- MMED actually went up yesterday. Imagine that! Today it has traded over 17,000 shares and is well over $3- $3.38 at last trade. That's up from the original $2 starting price where you couldn't buy it anyway, and amazing considering this bipolar, schizophrenic market.

MMED's latest acquisition puts it over $85 million in annual revenues, so it's just a question of time until this gets discovered.

Lesson learned- sometimes thinly traded stocks can be a safe haven in a bizarre world.

And, speaking of thinly traded stocks, tomorrow morning before the open I'm going to answer the question- how are we going to feed the Mars Colony? Stand by.

Home Page :
Email Questions or Comments To: [email protected]

Click Here to View the OTC Journal Disclosure

China Energy Recovery, Inc.
RSS Subscribe

To subscribe to our newsletter, please enter your email address below.

VRAL Up 50% Already!- More 411
November 22, 2011
One Red Hot Penny Stock
November 20, 2011

Market Summary
Nasdaq 2460.08 -61.20 (-2.43%)
Russell 2K 674.34 +0.00 (+0.00%)
S&P 500 1161.79 -26.25 (-2.21%)
S&P 100 524.03 -11.33 (-2.12%)
Quotes are delayed 20 minutes.

Add to Google

China Stocks and Penny Stocks - Discover Tomorrow's Winners Today

© 2011 OTC Journal