Friday, August 24, 2007

It was one shell of a week in the penny stock market

If any of you decided to take this week off, then you missed some memorable runs in the penny stock market. Toward the middle of the week many shells were getting volume in the hopes of capturing some of the euphoria from the start of the week, most notably those that were associated with Joseph Muese and Belmont Partners.


It all began on Monday morning - right out of the gates TDWV began a 1000% run in less than 10 minutes time. It opened at $.001 and quickly shot straight to a penny. "What a great run" you must be thinking. If you had been lucky enough to grab some cheap shares you surely would have sold at $.01 after turning a 1000% profit... right? Hopefully you didn't because the fun was just starting. At 10:20AM, less than an hour after the market opened, TDWV surpassed $.02 for a 2000% gain for the day. Now isn't a 2000% profit good enough?

Throughout the rest of the trading day TDWV continued an impressive run reaching a high of $.068 or a gain of 6800%, before closing the day at .049 up 4900% (It closed today at $.02 up 2000% for the week). TDWV set the stage for one shell of a week. POYS, THDS, AZTC, FCRZ, SHAR, AINI, ITSW and many other shell stocks saw some pretty significant gains.

The only difficult part with the shell game is liquidity. The volume is usually thin, the support is non-existent, and the last one out is holding a bag that no one wants to hold. Many of the shells that were pumped now find themselves at a lowewr price than before., or with shareholders willing to part at all costs.

The ironic part is that shell stocks are your only true long term play in the penny stock market. There is no company to dilute - so the price usualy remains pretty stable. If you somehow ended up standing when the music stopped don't panic. Someday you might be able to sell your shell for a price 6000% more than you paid for it.

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