The 3,000% Question?

The last week of trading has seen some impressive gains for penny stocks. Today CMGR, one of the more unattractive stocks out there, went from $.0028 to $.225. Yesterday INOL went from roughly the same levels to over $.10 a share. DMGM went from $.003 to $.35.

The question for Friday is which stock is next in line to post a 3,000% or better gain in one session.

You could the speculative spirit growing today as stocks like ARFR and EYSR popped dramatically only to fall back to almost where they started.

Chances are that Friday sees another one of these explosions and the money will be flowing into the penny stocks yet again.

Monday's Stocks To Watch - UWRL, BFHJ, XYNH, DMGM

UWRL Friday's volume was the highest its been since early July, almost two months. There were a lot of buyers at $.0011 and $.0012 on Friday, and I think they will be very happy short term. As I have said previously, it is my opinion that this stock will trade to $.006 and beyond. I am not wrong often and I don't think I will be on this stock.

BFHJ I think this stock has great potential going forward. The stock closed at $.0015 yesterday and I expect it to trend higher from here. There are some great things going on and the stock also has a superb share structure. The stock trades quickly and I think at some point it will post a rapid ascent. It looks like investors are accumulating at these prices in anticipation of a nice rally in shares. That rally could get going this week.

XYNH closed down a few ticks on Friday. The stock is still consolidating after the recent surge higher. The stock is holding gains despite a lack of volume. This is great news and corresponds with my view of a move above $.003 and to $.01.

DMGM after surging several thousand percent, can this stock sustain this rally? I think so. It will be a volatile day tomorrow, and certainly an interesting one to watch.

DMGM - Will The Rally Continue Tomorrow?

Shareholders of DMGM are wondering exactly what their shares are going to open at tomorrow morning and close at tomorrow afternoon. After posting arguablly the most impressive buying session in recent memory, when it rallied from $.002 a share to $.225, shareholders are wondering if they made the right move holding over the weekend.

For those of you a little slow with the math, if you had purchased $1,000 of DMGM at $.002 they would have been worth over $110,000 at the high on Friday and are still worth over $75,000 right now. The big question now is what the stock will do tomorrow and throughout the week.

Will the stock open at $.20 or $.10? If Friday's trading action is any indication DMGM could open at $.30, or $.40. You never know. That is the fun and exciting part about penny stocks. You can truly make a fortune in a short period of time.

Back in the summer of 2007 SMXT went from $.005 a share to $.60+ literally overnight on news that hardly compares with DMGM. Also consider DMGM's small share count and the volume it received on Friday. There had to be market makers filling orders with shares not in their possession. Imagine selling shares you didn't have for $.05? Why not? The stock was already up 2000% it can't go any higher??? Or can it.

At $.15, Friday's closing price, those phantom shares are 300% in the whole. If the stock goes to $.30 that is a 600% loss. It can add up rather quickly and if the stock keeps heading higher with no sign of falling back shorters will be forced to cover their positions or risk losing a substantial amount of money.

When you short a stock or sell naked shares your loss is UNLIMITED. Your gain, however is limited. DMGM could hit $.50 and that market maker who sold 100,000 shares at $.05 thinking the stock had no chance of going higher is now $50,000 in the hole. With a small outstanding share count it might be literally impossible to buy back legitimate shares to cover that position without having a drastic upward movement on the stock. My point is that Monday, if DMGM continues it rally out of the gate, the stock could see an unbelievable short squeeze.

Either way it should be good for a trade or two on the dips and rips.

DMGM - $300 into $20,000 in Four Hours

The lucky soul who purchased 100,000 shares of DMGM this morning for $300 could have sold those same shares just a little while ago for $.20 and locked in a nice $19,700 profit. The stock just hit a new high of $.225.

I'd say the penny stock market is getting back on its feet.

DMGM - Chart of The Month? Year?