Sunday, October 31, 2010

DKGR - Company Business Goals Released

DKGR has once again updated its shareholders. As I have said previously DKGR is a stock to watch going forward. A gold stock trading for a mere $.0014 a share? At some point I expect that to change. This weekends blog could change that.

This has been copied right off the company's blog:

With the launch of the new Company web site, Drake has received a lot of requests from shareholders for additional information. Please review the below outline.

  1. Objective 1 - Corporate Organization
    1. Launch of Corporate website & blog - complete
    2. Start Company newsletter
    3. Settle share accrual and outstanding obligation to better prepare the company for acquisitions & developments
    4. Settle debts on balance sheet to better prepare the company for acquisitions & developments
    5. Official appointment of Chief Financial Officer
    6. Release current financial statements and post to corporate website
    7. Release OTC Markets disclosure statement with financial statements to OTC Markets
  2. Objective 2 - Business Development
    1. Release first addition to corporate portfolio
    2. Release Company business plan
    3. Release letters of intent on new acquisitions
    4. Release new acquisitions for corporate portfolio

The above working outline does not represent a time line or order of completion and is subject to change. Updates will continue to be made as developments reach points of completion. You can find this outline, additional updates on the "About Us" section and be sure to utilize the contact page to sign up for the coming Company newsletter.

Drake Gold Resources Inc. is an early-stage mining company that focuses on the exploration and production of precious metals. Several projects have been identified in North America, including a pre-production site in Georgia which is currently being permitted and an additional mining project in Arizona.
Diversification, as well as innovative exploration tactics, are part of an overall strategic plan being carried out by the company's formidable team of natural-resource development executives. Diversification plans include the development of gas, oil, gold, silver, and industrial-metal producing projects.

Monday's Stocks To Watch - PGCX, STAU, PCFG, AWYI

PGCX I don't think they updated their filings on Pink Sheets for no reason. Just like PRGJ, which recently ran from $.005 to over $.04 a share, PGCX looks to be starting a new upward trend.

STAU this incredi-stock is sitting right near its all time lows. Traders have moved on to other stocks and forgotten about this one. What better time to buy when others are not looking.

PCFG the recent consolidation phase looks to be nearing an end. While I am no chart Guru, the recent action appears to have formed a bull flag, which means more gains are likely. With gold back near all-time highs this is a stock to watch in 2010-11.

AWYI with the first company press release in two years, investors have to be feeling pretty good about this stock. While there was some value at $.0001 as a shell at $.0005 you are getting a stock that traded at $.012 when it was last active. With the company clearly behind its shareholders, this stock should see more gains in the days ahead.

Friday, October 29, 2010

Equityfeed - A Must Have For Retail Penny Stock Traders

If you aren't using Equityfeed then you are losing money.  Equityfeed is hands down the best information service for trading penny stocks.  Streaming customizable news, charts, amazing level II.  It is a must have for the active trader.

Give it a test run, you will be amazed.

Chart of the Day - CLRA

Thursday, October 28, 2010

Friday's Stocks To Watch - AWYI, BFHJ, HTLJ, EPGL

AWYI this stock has found its way onto the Regulation SHO Threshold List. Essentially millions of AWYI shares have been sold without actually owning those shares. This equates to a naked short position in the stock. If the buying continues then these phantom shares will likely need to be covered adding to the buying pressure.

BFHJ this stock is getting hot again. The money volume is up and the stock looks poised to break higher.

HTLJ this stock is sitting near recent lows. Interest has dried up and the euphoria over the almost $1 million in insider purchases seems to have abated. With over $4 a share in revenue this $.16 stock epitomizes the term undervalued.

EPGL the company released news today. They have a major announcement coming on November 17th. It could be a profitable trade buying into that press.

Chart of the Day - LOCN

Understanding Pink Sheets Stock

Say "Pink Sheets" and most people think, "Stay away." Why is there a stigma attached to the stocks that trade on the Pink Sheets? Many people don't know much about them except that the SEC doesn't regulate them. Since many attractive Canadian mining companies' shares trade on the Pink Sheets, we thought it would be worthwhile to talk with Kevin Hudak, an investment advisor who specializes in helping his customers buy shares that trade on the Pink Sheets and educating them about the pros and cons. Kevin, with Financial Network Investment Corp. in Albuquerque, NM, specializes in energy, precious metals and uranium, and says he "can trade stock sold on any major exchange in the world."

Some Background on the Pink Sheets

The Pink Sheets — named for the color of paper the quotes were historically printed on prior to the electronic system — are secondary market sales of stocks that are available on the U. S. Over-the-Counter [OTC] market. "Market Makers" — the brokers who commit to buying and selling the securities of OTC issuers —use the Pink Sheets to publish bid and ask prices.

A company named Pink Sheets LLC, formerly known as the National Quotation Bureau, publishes the Pink Sheets in both hard copy and electronic format. Pink Sheets LLC is not registered with the SEC as a stock exchange, nor does the SEC regulate its activities.

We asked Kevin how a Pink Sheet is created. "Pink Sheets are created by market makers who handle individual stocks. These market makers are people who specialize in one or more individual stocks and their purpose is to help the market remain fluid. They will buy and sell out of their own account, depending on what individual investors want or need. That's the way it's supposed to work," he says.

"However," he adds, "this is one of the reasons why you have to be very careful when your broker places a market order - a market order can be anything the market maker wants it to be; whereas a limit order has very specific parameters. I use limit orders 99% of the time just for this reason - I don't want my client exposed to what a market maker thinks the market should be at that point in time. This is one reason why you don't want to be in a hurry buying companies on the Pink Sheets."

The fact that shares traded on Pink Sheets are unregulated makes some investors wary. And many Broker-Dealers steer unsophisticated investors away from them. In fact, under SEC regulations, brokers are not allowed to solicit the sale of the shares if they are under $5; they can only respond if asked about them.

Do Your Homework

We asked Kevin how he deals with the pitfalls of the unregulated aspect of the Pink Sheets. "They are definitely an unregulated secondary market," he responds, "although there is an inherent risk in all the stock markets. However, Pink Sheet securities carry more risk because they do not require the companies to register with the SEC or stay current in their financial statements. This is a case where an investor needs to know the company's management (extremely important), history, and future prospects."

He adds:

However, if you look at just Canadian public exploration and mining companies, there is a level of disclosure in that Canadian Securities Administrators have what is known as the NI 43-101. National Instrument 43-101 is a law that sets conditions under which public exploration and mining companies are required to publish technical reports. The content of the reports and the qualifications of their authors are specified by the Instrument. The purpose of the Instrument is to ensure that securities commissions and investors are informed on technical matters materially affecting the financial status of the listed companies.

The Instrument may be viewed here or here.

How does a company get traded on Pink Sheets? A market maker has to be willing to trade the stock. Says Kevin, "Many companies want to be traded in this secondary market for exposure to U.S. investors. This is beneficial to the company, since they are always looking for new money to expand their business. That's the only place in the U.S. market where they can be traded, owing to their size and/or nationality. The primary market covers larger companies with higher market caps, greater name recognition and stricter regulation. However, some companies don't realize they are on the Pink Sheets and I know of a few Canadian companies that do not want to be traded in the United States." He adds, "Reasons vary as to why this is so. Maybe it's national pride, desire to remain local, distrust of the U.S.? I really don't know why —I've asked and never really got an answer."

Easier than Buying through Canadian Exchange

We asked Kevin what advantages there are for U.S. investors if they buy shares of Canadian companies using the Pink Sheets instead of purchasing shares on the Toronto Stock Exchange [TSX] or the TSX/Venture Exchange.

For a U.S. investor, buying a Canadian company listed in the Pink Sheets means you don't have to open an account with a Canadian broker or find a broker who has Canadian access. Plus, you avoid the cost of currency exchange, both ways.

Pink sheet securities are OTC securities. They are not listed on exchanges, but are quoted in the daily publication issued by Pink Sheet LLC. They are all traded on-line; it's just a question of whether you use a broker or do it yourself. In the case of the Pink Sheets, the more eyes and ears you have, the better off you are because it is an unregulated secondary market. Read your newsletters, attend conferences and remain educated.

How liquid are pink sheet stocks? Kevin says occasionally he will run into one with no volume, but that's rare:

I assume all of us know that liquid means that we can buy and sell the stock in question in a specified period of time. The majority of the stocks traded on the Pink Sheets are traded every day, some are not. This is when a broker can be beneficial to the investor.

Would he say that Pink Sheets are hard to trade?

Saying they are hard to trade can be misleading. They can be time-consuming in reaching your goals using limit trading and watching market trends. The best way to invest in Pink Sheets is to know your market, the companies and the history of the stock market as a whole — the ups and downs that are temporary glitches and the long-term adjustments dictated by macro economic trends

Wednesday, October 27, 2010

Thursday's Stocks To Watch - AWYI, SNEY, DKGR, PCFG

AWYI once again touched recent highs, and then sold off hitting $.0004 briefly before closing at $.0006. The bid support was weak, but the buying picked up later in the day. Those 100k blocks have now changed to 200k blocks. I can not explain them, but anyone willing to accumulate their shares in such a manner must know what they are doing.

SNEY this stock has been on my watchlist a few times, and it has broken out in a big way from its $.0012 low. It hit a high of $.0087 today, and the recent money flow could take this stock over $.01 in a hurry.

DKGR another day where the $.0021-$.0022 area remains unbroken. I would reallly like to see another update or even a press release to let shareholders know where they stand. With gold sitting near all0time highs, this company could capitalize on this opportunity.

PCFG another gold stock that looks to be consolidating. I could see this stock posting a 150-250% short term move from here.

Looking Through Pink Sheets for Value Investments

There is a world full of stocks that many investors are either unaware of or just not comfortable with due to the fact they do not trade on one of the major U.S. stock exchanges. That world is known as the Pink OTC Markets (Pink OTC). The Pink OTC is a service where many stocks that do not trade on the major exchanges can be found including many international stocks. This marketplace used to be known as simply the “Pink Sheets”, deriving its name from the color of the paper the quotes for these stocks were printed on several years ago and distributed by brokerage firms.

I am always looking for investments that are closer to their bottom than their top. Under certain circumstances, individual securities that trade only through the Pink OTC marketplace will give me this opportunity. This will be the first in a series of articles where I will discuss stocks that trade through the Pink OTC marketplace that I believe to be of investment quality. However, before I discuss any individual securities, I want to dedicate this article to explaining the Pink OTC marketplace and a few guidelines to consider before making a purchase.

The Pink OTC marketplace is essentially a quotation service that collects and publishes on its website quotes for Over-The-Counter securities. There are many reasons companies trade on the Pink OTC. One reason is to give their investors a market in which to trade their stock without taking on the laborious and expensive reporting requirements of the SEC. In fact, many of the companies were once traded on one of the major exchanges only to delist in order to save the cost and time of SEC reporting. (Many thanks to Sarbanes-Oxley law.)

Even though many of these companies do not report to the SEC, they do make their financial information available to potential investors either by request or via their website. In addition, several large foreign companies are listed on the Pink OTC because they desire a presence in the United States, but their financial statements are not prepared according to Generally Accepted Accounting Principals (GAAP). While GAAP does help to standardize reporting, it will not save you from making a poor investment. Anyone remember Enron, Worldcom, HealthSouth? I think you get the point.

Generally the nature of the companies that are listed only on the Pink OTC make researching such companies much more difficult, given that the key to research is the availability of information. Since the companies listed on the Pink OTC are not always required to report, financial statements and news may not be readily available. This presents a great opportunity as many investors do not want to put forth the extra effort and therefore, do not even look at these companies as potential investments.

While some of the companies listed on the Pink OTC have an active market for their securities, many of the securities of Pink OTC-listed companies are illiquid and trade infrequently. This is where you want to be very careful and understand what you are getting yourself into if you are inclined to invest. This is not a marketplace for a novice investor or an investor not willing to do their own research.

Below are a few tips for buying the securities of companies listed only on the Pink OTC:

  • Research, Research, Research. I cannot emphasize this enough. While you should always do plenty of research before buying any security, it is even more important when buying into companies that are not required to report.

  • Always use limit orders. A limit order is the price you set with your broker as the price you are willing to pay for a particular security or the price for which you are willing to sell.

  • Be very patient. Many of the stocks that are listed on the Pink OTC have very little liquidity. Therefore, the bid/ask spreads can be wide. Let the price come to you by using limit orders as discussed above.

  • Analyze your own financial situation. Very seldom are Pink OTC investments going to be short-term trades, but rather long-term investments. Make sure you will not need the cash you are about to invest for at least 2-3 years. As mentioned earlier in this article, many Pink OTC companies lack the liquidity that might be needed if you need to raise cash quickly. You may be forced to sell under your desired price if you are in a must sell situation. As with any investment in the stock market, make sure it is money you can afford to lose.

  • Do not get caught up in the story of a penny stock. Make sure the company has a long-term track record and a real business and not just a concept. While these concept stocks can move quickly to the upside and you might think “what if”, many move quicker to the downside and become worthless.

  • Be very wary if you see a company self-promoting and issuing too many press releases. Also, many of these companies will hire so-called analyst to promote their stock. Quality companies generally do not have to use these tactics to get the attention of the investment community.

  • Beware of the “pump and dump”. These are stocks, generally trading for just pennies per share, that get promoted aggressively and even bought early by the promoters to push the price up and then dumped by the promoters leaving late comers “holding the bag” as the price plummets. You will find these stocks being promoted primarily on message boards, blogs, unsolicited faxes, and through spam email. Please ignore these attempts to suck you in and do your own research. There are always exceptions, but most stocks that trade for pennies deserve to trade for pennies.

In recent years, the management of the Pink OTC has made serious efforts to improve both the reputation and the transparency of the securities listed on the Pink OTC. They have added several new market tiers within the Pink OTC from Pink Sheets Current Information to the buyer beware Caveat Emptor. They have also added a couple of additional listing markets that include the otcQX and otcQB. The otcQX is primarily an alternative U.S. market listing for foreign and domestic securities offering investors transparent trading and quality information. The otcQB is a market that will help you identify companies that are current with reporting requirements to the SEC or a U.S. banking or insurance regulator. Click here to visit the Pink OTC website to view a complete listing of the current market tiers and descriptions.

With the many improvements in the Pink OTC and the fact that many quality companies have made the decision to delist, it may be a great place for experienced investors to begin looking for values. One company in particular that might be worth a look is Pink OTC Markets, Inc (PINK.PK). This is the company that provides the listing platform for the Pink OTC. The company has a clean balance sheet, increasing year over year revenue and has been profitable for the last 3 years. This is not necessarily the typical value play I look for on the Pink OTC, but it is looking like it could be a great growth story. It is worth noting that the company announced on August 6, 2010 that it will restate certain financial statements dating back as far as 2006 due to $1.3 million in accounts receivable from the company’s Market Data Licensing line of business that may be uncollectible primarily due to errors in collection procedures for market data sales reported by third-party vendors during the period from 2003 through 2008.

The Pink OTC is also a great place to find foreign stocks that trade in the U.S., but not on any of the major exchanges. You might recognize companies such as Daimler A.G. (DDAIF.PK), Volkswagon A.G. (VLKAY.PK), Nestle S.A. (NSRGY.PK), Roche Holdings Ltd. (RHHBY.PK), and Bayer A.G. (BAYRY.PK), just to name a few.

I will be making you familiar with other Pink OTC traded stocks, both foreign and domestic, in my upcoming series of articles focused on this marketplace.

Disclosure: No positions at the time of this writing.

Chart of the Day - SNEY

Tuesday, October 26, 2010

Wednesday's Stocks To Watch - AWYI, DKGR, IGSM, PGCX

AWYI this stock continues to gain momentum. Today the stock hit new highs, and with the company finally getting the wheels turning again, shareholder could be in for a nice ride. As I have said previously this was a $.012 stock a few years ago. The potential is there for a tremendous rally from current prices.

DKGR this gold stock could get hot in the coming days and weeks. The company has promised its shareholders a complete turnaround. If that is the case then this stock could be heading back toward $.01 and beyond.

IGSM volume has dissipated and the price per share has stabilized. Investors are awaiting company news to decide if this stock is worthy of more accumulation. I think now is the time to be getting into this stock ahead of any new positive developments. With such a low float, this stock could get explosive down the road.

PGCX the company recently released new financial documents to Pink Sheets in an effort to get caught up on filings. I like these type of stocks, because you don't update your filings for no reason. To me this is an instant increase in a stocks value. This is a stock that has dropped from $.90 a share to close today at $.0041. To say there is more room for upward price movement is an understatement.

Chart of the Day - MLXO

This chart is looking stronger every day. We've seen many stocks this year run big from $.001. This could be the next LBSR type stock. LBSR went from $.001 to $.20 over the span of 3 months.

TTDZ - Something Stinks

TTDZ - How Does A Stock Trade 1 billion Shares When The Float Is Only 90 Million and Go Down In Price?

I was very curious about TTDZ yesterday and today as the company seems to stick behind its 90 million share float story. Essentially the company states that there are only 90 million shares in circulation. The question I ask, with this supposed 90 million share float, is with over 1 billion shares traded today how does this stock have no bid (or teetering on no bid, as a few market makers have come back as I type this post)

A 1 billion share day on a 90 million float stock should send it 500-1,000% higher, not send it down. While shorting may have something to do with some of the volume, as well as people flipping the stock, there is no doubt the trading the last few days just plain stinks.

Obviously someone is making money on this stock. Almost $200k have traded hands today, yet it sits at no bid. Who could be selling? I doubt its the retail trader who bought in on the recent string of press releases.

Triton Ensures the Market and the Shareholders

TIBURON, CA, Oct 25, 2010 (MARKETWIRE via COMTEX) -- Triton's (PINKSHEETS: TTDZ) management decided to place this press release to eliminate any confusions, misrepresentations and distortions, of the facts. Additionally, to confirm to the Market and the Shareholders the actual essentials regarding the previously announced Corporate Action to Buyback Common Shares.

It is definitely a fact that on October 15, 2010 the Company through Action Stock Transfer Corporation, its Transfer Agent, completed the retiring of 43,817,855,923 Common Shares or 99% of the 44,007,866,636 issued and outstanding shares of the Company. At the time of this corporate action by the Company the Market Capitalization was $ 0.0001 per share.

Following this action the Company's present Market Capitalization is as follows:

TOTAL OUTSTANDING SHARES AFTER THE EXCHANGE: 190,010,173 of these 100,000,000 shares are owned by insider Shareholders, Management and employees, making the current public float 90,010,173 free trading shares. Absolutely and categorically no new shares have been issued. Subsequent to the above mentioned Capitalization the present market price of $ 0.0001 per share does not reflect the Company's Market Capitalization just prior to the reduction in common shares and is not suitable. So based on the present Capitalization the market price should be higher.

All Shareholders were advised of the actual facts of the corporate action via an extensive mailing and the Transfer Agent was and is available to answer all questions regarding the Company's activities.

"Shareholders and the Market should be confident that we executed the Corporate Action to Buyback 99% of the Common Shares as dictated by law. Our priority is to strengthen the Company and make it ready to accept new Financing and additional Shareholders," said Gregory Lykiardopoulos, Chairman and CEO of Triton Distribution Systems, Inc.

Monday, October 25, 2010

DKGR - A Gold Stock To Watch

With gold pushing record highs it seems any stock associated with gold/ gold production is catching a bid. One stock that seems to have slipped under the radar is DKGR, Drake Gold Resources. This stock was recently reinstated after almost two years of dormancy. This looks like a new start for this stock and its shareholders.

The company's new website and blog seems to confirm that. In that blog these two sentences really caught my attention: "The Company is working towards a complete turn around, bringing both tangible assets and an expanded Company focus. Management's plan includes a focus on expanding its investment portfolio to include property holdings in real estate and precious metals."

When DKGR was actively traded years ago, it was over $.01 a share, or 700% higher than current prices. With the company clearly stating a turn around is coming, you would have to think a return to previous price levels could be in the cards, especially when precious metals and gold is concerned.

With gold at record highs, investors are looking at every chance to take advantage of it. Anything associated with gold is hot right now and I expect DKGR to be a part of that trend. With the company renewing its efforts and ready to update its investors, now is good time to be looking into this stock.

AWYI - Breaks Through Resistance

Today AWYI broke through its 2 year resistance and the stock remains under steady accumulation. With the company issuing its first news release in over two years, this run could be just the start of something much bigger. Before everything crashed in October/November 2008 AWYI was a $.012 stock. Could we be looking at a price recovery back to those levels? Anything is possible.

With AWYI looking to restore shareholder value and the chart showing next resistance at $.002, we could be looking at a significant run for this stock.

AWYI - Issues First Press Release In Nearly Two Years

Ariel Way, Inc. Issues Letter to Shareholders PR Newswire    "Press Releases US - English "

WASHINGTON , Oct. 25 /PRNewswire/ -- Ariel Way , Inc., (Pink Sheets: AWYI) Chairman, President and CEO Arne Dunhem issued the following Letter to Shareholders:

Dear Ariel Way Shareholders:

You have all been concerned about Ariel Way , Inc. and several have called me or sent messages to me. I would like to take this opportunity to provide some updates on the Company.

Ariel Way is a technology and services company for highly secure global communications, multimedia and digital signage solutions and technologies. We are focused on developing innovative and secure technologies, acquiring and growing profitable advanced technology companies and global communications service providers and creating strategic alliances with companies in complementary product lines and service industries.

Most companies, including ours, were hit badly by the economic downturn in 2008 and 2009. Some larger equity investments into Ariel Way got cancelled and we also saw during end 2008, like for many other public companies, a dramatic sell-off of our stock, which in turn caused our stock price to drop to the very bottom.

We are actively working on revising and upgrading our business plan and we believe we have a strong opportunity in the business of technology enabled multimedia communications services. This includes services and technologies for networks for digital signage.

Activities we are working on also include:

Returning to full OTCBB trading by becoming fully SEC compliant after filing outstanding quarterly and annual reports;
Improving our financials and balance sheet by working out certain settlements with various creditors to reduce outstanding debt and liabilities and to improve our capitalization structure for future growth;
Further strengthening our operational and financial management team;
Up-dating our Web-site and introduce new media technologies.

Critical is to bring solid business back to the Company and we intend to have active discussions with potential strategic acquisition opportunities that we believe could provide for solid consolidated revenue and earnings results. We still have a positive relationship with the Syrei management team and owners, while the Lime Truck owners had some internal management problems and we decided, at least for now, not to further pursue a transaction with them.

In closing, I would like to personally thank each and every Shareholder for your support. I am proud to be your CEO and look forward to be part of building Ariel Way into a large, profitable operation.


Arne Dunhem

Chairman, President and CEO

Ariel Way , Inc.

About Ariel Way , Inc.

Ariel Way , Inc., a Florida corporation (" Ariel Way " or the "Company"), is a technology and services company for highly secure global communications, multimedia and digital signage solutions and technologies. The Company is focused on developing innovative and secure technologies, acquiring and growing profitable advanced technology companies and global communications service providers and creating strategic alliances with companies in complementary product lines and service industries.

More information about Ariel Way can be found on the web at

Forward-Looking Statements: Certain of the statements contained herein may be, within the meaning of the federal securities laws, "forward-looking statements," which are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. See the Company's latest Form 10-KSB for a discussion of such risks, uncertainties and other factors. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. These forward-looking statements are based on management's expectations as of the date hereof, and the Company does not undertake any responsibility to update any of these statements in the future.

SOURCE Ariel Way , Inc.

Friday, October 22, 2010

The Pink Sheets Tries to Change Its Colors

As Stock Marketplace Seeks to Broaden Its Mandate, Its Regulator, Finra, Pursues Grab in Its Data Business


NEW YORK—The Pink Sheets operator won't be pink much longer.
The nation's biggest marketplace in shares of companies that don't list on exchanges is expected to drop "Pink" from its name, going from Pink OTC Markets Inc. to OTC Markets Group Inc. by early next year. The change, subject to shareholder vote, comes as the company strives to show it has evolved from its reputation of a stomping ground for murky enterprises to a broader firm where respectable companies want their shares to trade.
The firm now quotes nearly 10,000 stocks, including roughly 3,000 that also are quoted on its main competitor, OTC Bulletin Board. It has broken its listings into tiers, ranking companies by how forthright they are in divulging information and affixing graphics, such as a skull-and-crossbones, for issuers it maintains merit more caution. Unlike the Bulletin Board, a quote-listing service, Pink for several years has allowed electronic trading, after investing in technology upgrades.
Still, a major player isn't ready to cede Pink all the OTC territory, and that player is the Financial Industry Regulatory Authority, or Finra, the Wall Street regulator that is sole overseer of the over-the-counter market.
Finra owned Pink competitor OTC Bulletin Board before agreeing in September to sell the Bulletin Board's website and trademark to Rodman & Renshaw Capital Group. The firm, which has an investment bank, said it plans to use the Bulletin Board to diversify its product base.
Finra isn't bowing out of the space altogether. Instead, it is gunning for a lucrative corner of the market where Pink competes—supplying OTC data.
Finra last year proposed to the Securities and Exchange Commission a plan that would require Finra members, such as brokerages, to supply Finra in real time with their best quotes on over-the-counter stocks. Those quotes would become part of a Nasdaq OMX data feed that Finra supplies with Bulletin Board quotes; Finra currently reaps about $8 million a year for that service, it says.
Finra said its statutory obligations as a regulator mean it should be corralling the best prices for all unlisted stocks to provide investors information.
It also noted the expanded feed would help it oversee the market, though Pink already submits all its quotes to the regulator daily for surveillance purposes.
But adding a fuller range of OTC quotes to data nearly everyone already purchases would threaten about half of Pink's market-data business, a business that represents an estimated 40% of Pink's revenue, said R. Cromwell Coulson, chief executive of Pink OTC Markets.
"It is very hard for a bakery to make money selling bread if there is a policeman forcing every patron who walks in to buy a loaf of bread that the policeman has confiscated from the bakery," Mr. Coulson said.
The regulator says it has no plans to compete with Pink. The nonprofit's revenues go to cover the cost of regulation, said Steven Joachim, executive vice president of transparency services at Finra. While currently Pink is the only other OTC marketplace besides the Bulletin Board, that could change, making a comprehensive data feed more important, he said. And, he notes, Finra's data feed won't include prices far from the best bid and offer, which Pink supplies.
The industry has widely come out on Pink's side, in numerous comment letters to the SEC. "The vast majority of the volume takes place on the Pink Sheets right now," said Leonard Amoruso, general counsel at Knight Capital Group, one of the most active OTC market makers, in an interview. Finra's proposal would generate information "already being provided by the Pink Sheets."
SEC staff is considering comments and preparing a recommendation for the commission, an agency spokesman said.
As for stringency of oversight, Mr. Coulson acknowledged that investors should be wary of some OTC issuers. Pink allows some listings to trade without SEC registration, though it alerts investors of that status; the Bulletin Board requires issuers it lists to be registered with the SEC.

Earlier this month, the SEC filed a lawsuit against Larry Wilcox, who played Officer Jonathan "Jon" Baker on the 1970s-1980s television show "CHiPs," alleging a kickback scheme involving a company traded on the Pink Sheets. A lawyer for Mr. Wilcox didn't respond to a request for comment.
Mr. Coulson said most companies that Pink quotes don't deserve a shaky reputation. That is the main reason, Mr. Coulson said, that in early 2011 the business will be rechristened OTC Markets Group.
No longer will the company's downtown Manhattan office look like "Barbie's playhouse," he said. The pink M&Ms in the reception area will be joined by orange and green ones.
As for his office, he said, it will have "a pink photo my wife gave me for Christmas, an orange rug and a green painting."

Thursday, October 21, 2010

Friday's Stocks To Watch - EIGH, AWYI, PCFG, HESG

EIGH I noted in my chat room this afternoon that today's EIGH press release was a positive one. EIGH ran from sub $.06 to $.085 before pulling back. Compared to the canceled dividend press release, this one actually gives you hope that this stock will rebound back to $.10+. I think its at least heading back over $.10.

AWYI another great day for shareholders. There is a lot to like about this stock. Could it see its old high of $.012? I don't think so, but I think short term $.001 is not out of the question.

PCFG I think we see this stock come back tomorrow and post a better session. Gold is just too hot right now.

HESG I'm not ready to jump back into this stock quite yet, but due to its history of posting big gains, I think it is worthy of some attention heading into the weekend.

AWYI - Right On the Cusp Of A Big Breakout

AWYI for the sixth straight session made some positive strides toward a price breakout. The volume has been decidedly on the buy side, meaning people are either holding there shares or selling them judiciously on the offer. This makes for a very healthy run.

The big question from here on out is can AWYI break the resistance at $.0005? If so I think AWYI will see $.001 come in short order.

These stocks can get a mind of their own and when the money flow picks up there is no telling just how high a stock can go.

With AWYI still being active, I think any company update will send this stock much higher than it is trading at today. That is what investors are trading on today. The potential of this stock and the history of its price. This was a $.012 stock from these same levels.

AWYI a break of $.0005 tomorrow should be a sign of more significant gains on the horizon.

Penny Stocks Can Make You Rich And/Or Make You Broke

The penny stock market is a cruel animal. It can take away all your money in an instant. It can also turn a small investment into an amazing sum of money.

Last month Pennystockguru Subscriber turned $199 into $7,000 in the span of a few hours trading CMGR. CMGR, as I have noted before, is not a stock you want to hold, but it shows how even the worst stocks can make you a lot of money. The chart above show's the day Boxer made his 3,500% gain and the previous 3 months of CMGR trade.

For Boxer and the few out there who successfully traded CMGR for a huge profit, there are many out there who did just the opposite and are sitting on huge losses. I imagine there are people still buying this stock in the hopes of landing a 3,500% gain. I hate to break the news to you, the odds are not in your favor. If you had bought CMGR at anytime outside that one day phenomenon you would have lost a lot of money.

Look at this chart after CMGR went from sub $.01 to $.24.

That is a scary chart and the reason why you should never hold these stocks for too long. Tkae your profits or cut your losses.

There is a very small window with most penny stocks. Experience, research, and luck will help you find that window, for the rest of the retail traders out there, you might as well be throwing your money out that window. Which is why you should never invest with money you can not afford to lose.

Chart of the Day - DYER

Wednesday, October 20, 2010

Thursday's Stocks To Watch - AWYI, IGSM, HTLJ, HMIT

AWYI this stock is gaining some serious momentum.  At this rate AWYI could see $.001 before the weekend. This is a stock that went from these same levels to $.012 a share.  Could this be the start of a similar rally?  We will soon find out.

IGSM this stock continues to see support and I expect company updates will help propel this stock to a new level.

HTLJ the stock was under pressure in the morning.  I think the current prices offer a great opportunity. 

HMIT I think this stock could start heading higher again and test recent highs.  If that were to happen you are looking at at least a 300% gain from today's close.

Chart of the Day - SAEI

Tuesday, October 19, 2010

Wednesday's Stocks To Watch - AWYI, BFHJ, KATX, THES

AWYI the $.0003's continue to be bought and at this rate I do not think there are many left before the stock upticks to $.0004. AWYI could gain some forward momentum in the days ahead.

has held its ground the last few sessions and looks ready to take a another stab at recent highs. Absent some news worthy impetus, the stock could see some buyers come back into the stock after witnessing its recent strong support.

could see a decent bump as it has traded to $.07 from $.26 with not much of a bounce. I could see KATX doubling from these levels in the next few trading days.

THES this stock is regaining investor interest, the chart is beginning to look like a buy, and the company could release reverse merger news at any time. THES, according to changes made at its secretary of state, looks to be reverse merging with a property management company. I think THES could give recent highs a test and possibly break out from there.

How to Intelligently Trade Penny Stocks

First off, if you are going to "play" the Penny stocks, you should be trading the majority of them and not investing in them. You'll understand why shortly.

Penny stocks are normally those that have a share price of $5 or less, with many being under a penny. Those stocks that sell for less than a penny are called "subbers", as they are a sub-penny in value. Some actually trade in the hundredths of a cent.

The majority of the pennies and subbers trade don't trade on the higher exchanges, such as the NASDAQ or AMEX, but rather on the Pink Sheets or the Over the Counter Bulletin Board (OTCBB). This is due to them not meeting the minimum requirements of the higher exchanges, primarily because they are emerging, small companies in the development stage.

Before getting into the actual nitty gritty of the trades, you will need to meet your own requirements before trading:

- Most importantly, never trade with money you can't afford to lose! Read that again. Too many people take money out of savings, their paychecks, etc., that is needed for their daily expenses. The worst case is taking out a loan to "invest in a sure winner". Greed kills. Mortgage or rent goes unpaid, marriages suffer, etc.

- Find a broker that has online trading AND also will allow you to trade in penny stocks on the Pinks and OTCBB. Not all do, and you don't want to take the time to set up an account and find out later that you can't trade the penny stocks. Check first before signing up!

- You will eventually migrate to a trading forum board on the Internet and discover all sorts of great picks - not! The message boards are dangerous to your trading account for a variety of reasons. More to come on this below.

- Learn this term and apply it every time you think you want to buy a certain stock: Due Diligence, or DD. This involves researching everything you can find on the stock, and only factual, verifiable information. Some of the resources are the company's own web site, official press releases (PRs), web sites such as The Pink Sheets, InfoQuotes, etc. One thing that is NOT DD is getting info from the message boards, unless there is a verifiable source.

- Have an entry point and an exit strategy. Don't buy into a buying frenzy, as the stock will most likely retrace down shortly after. Look for a good buying opportunity entry point. Decide on an exit point: how much do you want to safely make? You can put in a "stop" on your account that will normally automatically sell your shares if the price drops to the level you set your stop at. Some people want to risk only 30%, for instance, and set a stop for a 30% loss. A really good method is to use a "trailing" stop to lock in profits. If you set a trailing stop for 30%, as the share price climbs, your stop trails along behind the new share price.Message boards - these are very dangerous due to the anonymity of the people posting messages both for and against the stock. You have no idea who or what agenda the posters have. "Pumpers", who continually post outlandish positive claims that are outright lies or exaggerations, and "Bashers" who do the opposite, inhabit these forums. Their agenda is to drive the price per share up or down, depending on their particular agenda.

The amateurs, or "newbies", that sign onto these forums will wind up following the posters who tell them what they want to hear, regardless of reality. We all want our stocks to skyrocket, so we tend to listen those pumpers who satisfy our psychological needs and ignore the people that question not only the pumpers but also the company itself. A really good board will allow free discussion of both sides as long as the posters can substantiate their claims. Flame wars are all too prevalent on a lot of these forums, and should be avoided. It's nothing but noise and distraction. By the way, DD is NOT listening to a pumper or a basher on the boards!

I mentioned in the beginning that you should trade and not invest in these penny stocks. The land of pennies is littered with the victims of scam artists, both involving the companies themselves and people not affiliated with the company. You see, penny stock companies trading on the Pink Sheets have almost no responsibilities to the "investors" or to the SEC. They don't have to report their financial figures nor the number of shares authorized and outstanding. This leads to unscrupulous people who set up a penny stock company very easily and then issue millions, and sometimes billions, of shares. They then pump themselves on the message boards and give the false impression the company is going to make millions of dollars on something. The price per share goes up, people notice and start buying more, and the buying frenzy starts. But, the company CEO and his henchmen start selling into the frenzy, making a fortune. Guess what? You lose.

The other hazardous maneuver is the "group play". A few people get together, buy up tons of very cheap shares of a pink sheet company that's going nowhere. They then start pumping the hell out it on forums and sometimes emails to subscribers. The buying frenzy begins, people don't want to miss out and load up with more shares, and the scammers sell their shares into the buying frenzy similar to the CEO scenario above. They make a killing; the price per share starts dropping back to the original price or a lot of times below it. You lose. Again. Get the picture?

Bottom line: don't invest long term in these companies. Watch the trading patterns, get into one that starts going up, and take a quick profit and get out. Repeat this a number of times and you start building up your
account. DON'T get emotionally involved or married to the stock. The vast majority of penny stocks go out of existence and leave the "investors" with worthless stock.

If you really feel that the company just might be a good long-term play, you should sell just enough shares when the price rises to get back your original cost. Then you have "free" shares riding for the long term. If it skyrockets in a year or two, you have a great profit that cost nothing. If it goes bankrupt, then who cares - it didn't cost you anything and you still have the original money to play other stocks.

Play it smart and learn everything you can from the tremendous resources available on the Internet. And good luck!

Avoiding Social Network Stock Scams

Avoiding Social Network Stock Scams

NEW YORK -- The news earlier this week that an alleged electronic pump-and-dump stock scheme was uncovered among workers at the New York-New Jersey waterfront highlights the risks of following random stock picks on internet social networks.

"Social networks can spread a scam faster than typically in the past," certified financial planner Katherine Holden says, adding that these networks, while not inherently the problem, allow scammers to sucker in their targets at a much faster pace. At the same time, information about a bogus deal also travels faster on such networks. Regardless, more people fall for the scam than you may think.

"People fall for this stuff for the same reason they buy lottery tickets," says Jim Heitman, a financial adviser with Compass Financial Planning. "Easy money sounds like, well, money that comes easy.

"How can the average person protect themselves from being enticed by similar schemes? MainStreet consulted experts affiliated with the National Association of Personal Financial Advisors to find out.

Be Wary of Making Stock Picks Through Social Networking Sites

All stock suggestions should be handled with care. However, those obtained through social networks should inspire diligent fact-checking.

"Stock tips in 140 characters or less really should be viewed with suspicion, especially true if the stock price in pennies is less than the number of characters in the tweet," Heitman says.

If you are particularly loyal to social networks, though, only take suggestions from big names or basic sources such as MorningStar, Standard & Poor's or TheStreet's own StockPickr.

Rely on Third-Party Verification.

Always double-check that whoever you are taking stock advice from does not have a vested interest in the stock they are trying to sell. If you find yourself drawn to a certain stock through outside influences, take the time to go to someone with no connection to the investment before you commit to what the person is selling.

"Always ask the question, 'Why would someone be providing free advice?' " says financial planner Jennifer Hartman of Greenleaf Financial Group.

Those unfamiliar with the stock market shouldn't shy away from paying someone for financial advice. Of course, finding a credible financial planner requires some research as well. At the very least, you should require that your financial adviser be certified, which means they are recognized as an expert by the Certified Financial Planner Board of Standards in the U.S. Don't be afraid to ask them for a more expansive list of credentials as well.

Don't Purchase Penny Stocks.

It's easy to see why a stock novice would consider purchasing a penny stock. After all, it is, by definition, a stock that sells for under $5 a share. Some can cost as little as 1 cent, hence the name. Buyers, however, need to be increasingly aware of anything valued so low. Penny stocks tend to be traded on obscure markets, are not followed by analysts and are not subject to the rules and regulations of the Securities and Exchange Commission.

As such, Heitman compares buying a penny stock to planting a seed in a minefield. "It'll work out just fine if you survive the plowing, and the seeding, and the weeding, and the harvest," he says. "That's a lot of 'ifs.' "

Consider Initially Sticking to Index Funds

First-time stock buyers should consider investing in index funds, which allow investors to purchase multiple securities in large companies in the market. The S&P 500, for example, allows investors to purchase stock in a large number of publicly held companies that trade on the New York Stock Exchange and the NASDAQ. These companies include Apple, Verizon, AT&T and Bank of America. These types of funds traditionally provide broad market exposure, low operating expenses and low portfolio turnover. In other words, they're a safer investment with less volatility. "Index funds are the extreme opposite of buying a penny stock," Kaplan says, explaining that they allow investors to purchase a snapshot of the market without having to make any big decisions about how a particular stock is going to perform. "They're as safe as you can get when you're investing in stocks."

Monday, October 18, 2010

Tuesday Stocks To Watch - AWYI, PRGJ, HTLJ, UWRL

AWYI this is a great triple zero stock, one that could see significant gains in the future.

PRGJ hit $.044 today.  I hope some of you heeded my call at $.007 last month.  I called this stock as a $.05 stock.  Looks like I hit another nail right on the head.

HTLJ the buying picked up today and this stock looks poised to breakout.  This will be another stock you wished you had bought when the Guru brought it to your attention.

UWRL we need the skull and cross bones removed to get this moving.  When that happens we will see the fireworks.

AWYI - A Triple Zero Stock To Watch

Triple zero stocks can be some of the most lucrative out there.  While they can fall 50-75% any given day, they can also rise in deft defying fashion, leaving onlookers and investors alike in a state of awe.  Finding the next big triple zero stock takes time, experience, research and intuition.

With AWYI I have done my research,I have taken the time to weigh the risks with the potential rewards, and I have utilized my experience to tell you that I believe it is the next next triple zero stock to post big gains.  Why?

AWYI is active at its secretary of state.  Default companies see their stocks run every day, for absolutely no reason.  AWYI, on the other hand, is current in their filings, which means to me that they are intent on restoring value into this stock.  If AWYI and its management had folded up shop and moved on AWYI would be revoked, instead it is active and I think this is a great sign.  It indicates that this company is ready at any moment to restore faith in the stock and the company.

The last time AWYI came out with press at these levels, it soared to $.012 a share.  A 10,000% gain is in the cards if it hits that level again.  History is saying the potential for huge gains is there, its only a matter of time.

Sunday, October 17, 2010

Stocks To Watch Monday Oct. 18th: AWYI, UWRL, HTLJ, IGSM, BFHJ

Here are some great stocks to watch the first day of trade:

AWYI this $.000 stock looks poised for big gains down the road. I'm usually spot on with these type of stocks and I would not be surprised to see this one post a nice run from here.

this remains my favorite stock. Need I say more?

HTLJ insiders have used their money to do the talking. Insiders have purchased nearly $1 million of stock! This is a company with a $4.9 million market cap. With over $4 per share in revenue I do not think this stock stays at $.21 much longer.

IGSM this is a stock that has resiliency in it. It has traded strong the last few weeks, and I think it will trade stronger in the days and weeks ahead.

BFHJ like I have said in previous posts, BFHJ has a lot going for it. The online casino alone makes this stock, in my view, one that deserves a much higher price per share valuation.

Friday, October 15, 2010

Chart of the Day - PRGJ

This stock continued on its upward ways today hitting a high of $.0379. Anyone that has been listening to me about this stock (do a search for it on my blog and you will see what I have been saying) could be sitting on a 500% gain.