Contrary to popular belief - Promoted stocks do run

Just because a company is paying someone to pump its stock it doesn’t mean the stock won’t increase substantially in value. Actually the stock could see serious volume and a high level of liquidity, which are two very important things to look for in a penny stock. Just like any other penny stock remember that the rug can be pulled out from underneath you at any point in time. Also watch for the “sell on the news” phenomenon. It can be like clock work with these promoted stocks. The key to promoted stocks is to get in before the crowd and out while the stadium is still sold out. Otherwise you’ll find yourself stuck in the mad rush for the exits.
We can all be jealous about the huge sums these companies dole out to have their stocks pumped. We find ourselves using our hard earned cash to purchase positions while these unscrupulous promoters are simply handed shares/cash just to tout a stock. How hard can that be? Just be wary before buying any penny stock and know whether or not its being promoted, because a promoted stock always has a final death plunge in it, and you surely want to avoid that.
Finally, never believe the hype. Enjoy it, bask in it, but never believe it. Just trade it and you’ll do just fine.

PGYC - And There She Goes!

AS I type this post PGYC hit $.01. It also released news this morning. Remember yesterdays post:

If I had to guess I say PGYC breaks $.01 tomorrow or Monday and the company releases some news soon. I don't know this stock well this is all a hunch, but if you look at the chart you will see what I am talking about. This was a $.04 stock a few months back. I see at least $.01 if not $.02 or better within a week. Just a hunch, as is all of the posts here on this blog.


Lets see where PGYC heads from here. There should be a few more up days left in the gas tank.


PGYC press release today:

Patriot Energy Corporation Taps Into $225 Billion Dollar MarketPatriot Energy Corporation Taps Into $225 Billion Dollar MarketMONTREAL, CANADA -- (Marketwire) -- 01/30/09 -- Patriot Energy Corporation (PINK SHEETS: PGYC) is excited for the opportunity to capture a significant percentage of the $225 billion dollar market with the distribution of the H2O OxygenatorSystem.Tectane Technologies' Business Plan highlights that presently, there are approximately 450 million vehicles in circulation globally. With the average American household owning 1.9 vehicles, The United States of America has the largest vehicle market in the world. As a result, there are a total of 204 million vehicles in the United States of America. Based on a US$500 retail price, the total globalmarket has the potential for a $225 billion retail value for the H2O OxygenatorSystem.Patriot Energy Corporation will market Tectane Technologies' global warming solutions, including but not limited to, the patented AQUAHOL Fuel and Fuel Systemsenabling the injection of water and ethanol into conventional automobile engines."With characteristics such as; flexibility and compatibility with all other technologies including gasoline, ethanol and hybrid cars; the least expensive systemat a retail cost of US$500; applicable to any vehicle, including marine engines; efficient to increase mpg by 25% or more; and effective to reduce CO2 emissions by 25% or more, the H2O Oxygenator System has the potential to become the leading solution as an alternative fuel technology", said Tony Bisante, President and CEO of Patriot Energy Corporation.For more information on TECTANE and its Technologies, please visit the company'swebsite at www.tectane.com and view the documentary on the company and its technologies.www.teltecksolutions.comAll statements in this news release that are other than statements of historicalfacts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.A number of factors may affect our future results and may cause those results todiffer materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the tradingprice and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions

PGYC - Sometimes it isn't too late to jump on the bandwagon

I usually shy away from stocks that have big runs because I think that their price appreciation has run its course and the stock is ready to sell-off. In penny stock land the sell-off usually is more painful than the rise in price, because supply at the top always wins out over demand on the way down. A penny stock run that lasted weeks or months can come to a crashing halt in a matter of days or even hours as promoters, company insiders, and the like rush to squeeze every last penny out of the stock before its inevitable demise. The defenseless retail investor who bought at the top on a tip from a "friend" is left to average down with his daughters college money thinking the stock will enjoy the type of gains it had in the past. We all know how that story ends.

With that being said there are numerous times where buying at the top can make you a lot of money. Take DLAV for example. DLAV - Dealer Advance was a dormant company and the stock was thinly traded before it ran from $.0004 to $.04+ a year or so ago. The run took at least a week with many, including yours truly, thinking the run was over with each new high the stock made. But it kept going and going and going. And those who sold out early were the ones crying later.

PGYC pops on the Pennystockguru radar because the chart is showing a sizable increase in volume with a nice pop in price. If I had to guess I say PGYC breaks $.01 tomorrow or Monday and the company releases some news soon. I don't know this stock well this is all a hunch, but if you look at the chart you will see what I am talking about. This was a $.04 stock a few months back. I see at least $.01 if not $.02 or better within a week. Just a hunch, as is all of the posts here on this blog.

Happy trading.

FFGO - Start Your Engines

FFGO is now officially off to the races. For anyone who missed the action on FFGO today, you missed out on a high octane fight for shares that began at mid-day and ended at the closing bell. There were three market makers asking to be bought at .0002. This looks like the same scenario that developed in the summer except this time FFGO appears ready to move on less volume. This would be a great sign to shareholders that the stock has less outstanding shares then in prior runs.

A few weeks ago we posted this:

Thursday, January 15, 2009

FFGO - Back In Play?
Some of you may recall our posts regarding FFGO back in the early summer. The stock rose from $.0001 to a high of $.0009 on huge volume and investor interest. The stock has now settled back down to the $.0001 level with no bid.Volume has returned to this stock and one might wonder if a run is in the cards again. With penny stocks, history does tend to repeat itself. FFGO should prove no different in this regard as the SEC filings have returned in earnest. SEC filings are positive when dealing with a $.0001 a stock as long as they don't start with the letter "S". FFGO might fester around the $.0001 area for a few days or a week, but when you least expect it the buyers will far out number the sellers and the stock will take off. FFGO should be a stock worth watching going forward.


Don't say you weren't warned. FFGO looks poised to post another multi 100% run here. We alerted you when there was no bid and the market makers were trying to give shares away. Currently there are 8+ market makers wanting shares at .0001 and only a few selling at .0002.

FFGO could head higher as the week progresses. Keep your eyes on it.

JNIP +71.43% today - Could there be more on the way?

JNIP just another one we nailed for you. Up 71% today on a huge volume day. It just goes to show you that momentum and volume move a stock, as long as the supply stays low. Share registrations can be a hinderance, but in order to sell the stock you need to have a bid. And JNIP was being bid up all day long.

JNIP might have a few more days of upside in it, but I wouldnt tempt fate twice with this one. If you played this pop, pat yourself on the back and move on to the next one.

JNIP - ready to bust the move?

JNIP -Juniper Group, Inc has been mired in the triple zero range for more than half the year. The drop started not long after its 200-1 reverse split back in July and the price has stabilized down here for the last few months.

Reverse splits are awful for current shareholders, but they do provide a great opportunity down the road. Why? Because a reverse split is like is like a dog that pee's in the house. If it happens once, its likely going to happen again, and again, and again.... until you do something about it, or get rid of the dog.

Most people who purchase a reverse split offender either do it because they like getting pissed on or because they can't get rid of the dog. Here is where the smart money steps in. Wait for the reverse split offender to hit bottom, buy on the bounce volume. Sell before the dogs legs give out. Its an ugly but profitable strategy. Or you can just hold for the next reverse split. The choice is yours.

JNIP may never reverse split again. It may soar to the penny level or more. Anything is possible. But remember every dog has his day. And JNIP will certainly have its day. Just don't be the one left holding the bone.

SGLS - What Did We Say? Up 100%+ From Yesterday

Yesterday we posted about SGLS and the unusually high volume on that stock. We said that it could see serious upside from $.0014. You could have grabbed some $.0012's on Friday morning before the stock surged to $.0035 for almost a 200% gain.

The funny thing is that this is likely just the beginning. SGSL filed a 15-12G recently. This was likely done to reduce costs. \This filing indicates that the company is ready to merge. This could explain the recent surge in volume and price. This might also lend another reason to be buying shares before this stock hits .01.

Now that would be some call here. But we've done it before and we'll do it again.

Have a good weekend.