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.

BFHJ 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.

KATX 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!

http://www.associatedcontent.com/article/153995/how_to_intelligently_trade_penny_stocks.html?cat=3

Avoiding Social Network Stock Scams

By Jeanine Skowronski 10/08/10 - 05:02 PM EDT

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.

Stock Market Strategies

"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."


http://www.thestreet.com/story/10884327/2/avoiding-social-network-stock-scams.html

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.

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.

UWRL 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.

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.