Me 3 , I get all excited when I read a post and its packed with a 7punch ......Going to the moon, going to be a monster3 no no none of those. The ones that make your hair stand up with chills and knocks you right on your Azz literately.
I really like those make for good home work.
So because we are waiting I wanted to post this again penny stocks that sky rocket with 6different scenarios ...................It’s Kool gets me excited hope you all enjoy it again.
See if these numbers make your hair stand up because they have always made my hair stand up while I scratch my head................3
Get the number puzzle right and get ready to get knocked on your Azz.................lol
How do you know when a penny stock is undervalued or overvalued? If you are new to penny stock trading this is very important. The difference in your timing of getting into a penny stock can be either huge gains or huge losses. We prefer the huge gains.
TheStockWizards.net What we are going to do today is look at a few examples so you understand when you should be getting in a stock or getting out of a stock. We are talking about penny stocks not big board stocks in these examples just to make that clear.
Let’s use some examples of penny stocks that made huge gains in 2009. This was a year of biotech, medical equipment and pharmaceuticals in the penny stock arena. So the stocks we will use are from these sectors.
The first stock that we will talk about is the one that could’ve made us all rich and well-off, if we just had 20-20 hindsight.
VRMLQ: This is a stock that was a life changer for a few traders in the penny stock world. The stock went from .05 to as high as $23, that’s right $23. Now you are wondering what made the stock go so high
1- VRMLQ is a biotech stock
2- VRMLQ had great news
3- The last and most important aspect of the whole article, the company had an outstanding share count of 5 million shares, that’s right 5 million. What does this mean to traders and investors? Why is it so important?
If you learn just one thing about trading penny stocks it’s Market Capitalization. Most penny stocks have no revenues, most will never have any earnings to justify a high price and maintain a high price. So we evaluate companies based on market cap or market capitalization.
On September 11th VRMLQ (of all dates 9/11), the company announces the following:
U.S. Food and Drug Administration Clears Vermillion’s OVA1(TM) Test to Determine Likelihood of Ovarian Cancer in Women with Pelv.
The stock went from .05 and closed at 1.29 for the day. In terms of market capitalization, the stock is at only a 5 million dollar market cap. Let’s stop right here and talk about how if a stock is overvalued or undervalued based on TheStockWizards.net guidelines.
TheStockWizards.net uses a guideline of $40 million as a reference point (equilibrium) for market capitalization. When any penny stock is trading at a $40 million market cap we have to take a serious hard look at the stock at that point in time. So if we use a guideline of a $40 million market cap in the example of VRMLQ you can see that at a $1.00 it only has a market cap of $5 million which is still very undervalued based on our $40 million dollar guideline for penny stocks.
When we saw that the share structure was only 5 million shares outstanding we knew the stock could easily go to $10 based on that kind of news. So here’s a stock that goes from .05 to $10 ($50 million market cap) in the matter of roughly 3 weeks. At its peak it hit a market cap of roughly $100 million.
VKNG: Here is another stock that was a life changer for some traders and again the reason why it ran big was very simple. The market cap was very low. On October 29th Viking Systems was trading at .0030, the low of the day, and on November 18th it hit an intraday high of 1.10. That’s right, in three weeks it ran up to a 1.00 from .003. Again you’re thinking how could a stock go that high that fast. As you can see the stock started out as a sub penny stock.
It boils down to a couple of things: share structure + being in the right sector at the right time + being very undervalued. The share structure of Viking Systems was $40 million shares outstanding. Which meant based on our guideline of a $40 million market cap that we use at TheStockWizards.net we felt the stock could go to a 1.00.
At a $1.00 the stock hit our 40 million market cap target right on the money. And you could see the stock sold off after that.
Smart traders recognize an undervalued stock in a hot sector and take full advantage of it. The stock caught fire and absolutely exploded in a three-week period.
This is the reason why people play penny stocks. All you have to do is hit a couple of these and it can change your financial situation in her hurry.
NEPH: here is another biotech play that had a lot of hype (forward-looking event) and the stock exploded to the upside in a big way. The stock went from .10 cents on May 19th all the way to an intraday high of $2.63 on August 20th. Again you’re probably saying how can the stock go so high so fast?
-it had a forward-looking event (FDA approval hype)
2-it had the right share structure with an outstanding share count of 40 million shares outstanding. So at a $1.00 the market cap was 40 million,
The stock went as high as $2.00 which had a 80 million market cap at that point .
Compensating Factors
When evaluating companies based on market capitalization there a few other considerations to make when the company that you are investing in has a high market cap. There can be some compensating factors.
Let’s talk about compensating factors.
Traders and Investors use compensating factors such as revenue stream and earnings in stocks they are holding that have high market caps. These compensating factors can keep a trader or investor in the stock until something changes.
IMGG: Here is a stock that we feel that got a little bit ahead of itself. With an outstanding share structure of $375 million the stock traded as high as $2.00. The stock definitely got a little bit ahead of itself having a market capitalization 750 million at that point. And as you can see most profit takers and short-sellers agreed with us as the stock got hit hard and pulled back.
The stock ran up on a forward-looking event (FDA approval) pending so that brought a lot of excitement and anticipation into the stock. Once they get FDA approval, everything can change in a hurry, but to support a $750 million market cap they will have to have earnings and revenues and most traders know that. Also, there’s been speculation that the company could get bought out.
One day DUTV might have it’s own page like this.................Have fun with the # puzzle too. If you nail it let me know.
$$ DUTV $$
I really like those make for good home work.
So because we are waiting I wanted to post this again penny stocks that sky rocket with 6different scenarios ...................It’s Kool gets me excited hope you all enjoy it again.
See if these numbers make your hair stand up because they have always made my hair stand up while I scratch my head................3
Get the number puzzle right and get ready to get knocked on your Azz.................lol
How do you know when a penny stock is undervalued or overvalued? If you are new to penny stock trading this is very important. The difference in your timing of getting into a penny stock can be either huge gains or huge losses. We prefer the huge gains.
TheStockWizards.net What we are going to do today is look at a few examples so you understand when you should be getting in a stock or getting out of a stock. We are talking about penny stocks not big board stocks in these examples just to make that clear.
Let’s use some examples of penny stocks that made huge gains in 2009. This was a year of biotech, medical equipment and pharmaceuticals in the penny stock arena. So the stocks we will use are from these sectors.
The first stock that we will talk about is the one that could’ve made us all rich and well-off, if we just had 20-20 hindsight.
VRMLQ: This is a stock that was a life changer for a few traders in the penny stock world. The stock went from .05 to as high as $23, that’s right $23. Now you are wondering what made the stock go so high
1- VRMLQ is a biotech stock
2- VRMLQ had great news
3- The last and most important aspect of the whole article, the company had an outstanding share count of 5 million shares, that’s right 5 million. What does this mean to traders and investors? Why is it so important?
If you learn just one thing about trading penny stocks it’s Market Capitalization. Most penny stocks have no revenues, most will never have any earnings to justify a high price and maintain a high price. So we evaluate companies based on market cap or market capitalization.
On September 11th VRMLQ (of all dates 9/11), the company announces the following:
U.S. Food and Drug Administration Clears Vermillion’s OVA1(TM) Test to Determine Likelihood of Ovarian Cancer in Women with Pelv.
The stock went from .05 and closed at 1.29 for the day. In terms of market capitalization, the stock is at only a 5 million dollar market cap. Let’s stop right here and talk about how if a stock is overvalued or undervalued based on TheStockWizards.net guidelines.
TheStockWizards.net uses a guideline of $40 million as a reference point (equilibrium) for market capitalization. When any penny stock is trading at a $40 million market cap we have to take a serious hard look at the stock at that point in time. So if we use a guideline of a $40 million market cap in the example of VRMLQ you can see that at a $1.00 it only has a market cap of $5 million which is still very undervalued based on our $40 million dollar guideline for penny stocks.
When we saw that the share structure was only 5 million shares outstanding we knew the stock could easily go to $10 based on that kind of news. So here’s a stock that goes from .05 to $10 ($50 million market cap) in the matter of roughly 3 weeks. At its peak it hit a market cap of roughly $100 million.
VKNG: Here is another stock that was a life changer for some traders and again the reason why it ran big was very simple. The market cap was very low. On October 29th Viking Systems was trading at .0030, the low of the day, and on November 18th it hit an intraday high of 1.10. That’s right, in three weeks it ran up to a 1.00 from .003. Again you’re thinking how could a stock go that high that fast. As you can see the stock started out as a sub penny stock.
It boils down to a couple of things: share structure + being in the right sector at the right time + being very undervalued. The share structure of Viking Systems was $40 million shares outstanding. Which meant based on our guideline of a $40 million market cap that we use at TheStockWizards.net we felt the stock could go to a 1.00.
At a $1.00 the stock hit our 40 million market cap target right on the money. And you could see the stock sold off after that.
Smart traders recognize an undervalued stock in a hot sector and take full advantage of it. The stock caught fire and absolutely exploded in a three-week period.
This is the reason why people play penny stocks. All you have to do is hit a couple of these and it can change your financial situation in her hurry.
NEPH: here is another biotech play that had a lot of hype (forward-looking event) and the stock exploded to the upside in a big way. The stock went from .10 cents on May 19th all the way to an intraday high of $2.63 on August 20th. Again you’re probably saying how can the stock go so high so fast?
-it had a forward-looking event (FDA approval hype)
2-it had the right share structure with an outstanding share count of 40 million shares outstanding. So at a $1.00 the market cap was 40 million,
The stock went as high as $2.00 which had a 80 million market cap at that point .
Compensating Factors
When evaluating companies based on market capitalization there a few other considerations to make when the company that you are investing in has a high market cap. There can be some compensating factors.
Let’s talk about compensating factors.
Traders and Investors use compensating factors such as revenue stream and earnings in stocks they are holding that have high market caps. These compensating factors can keep a trader or investor in the stock until something changes.
IMGG: Here is a stock that we feel that got a little bit ahead of itself. With an outstanding share structure of $375 million the stock traded as high as $2.00. The stock definitely got a little bit ahead of itself having a market capitalization 750 million at that point. And as you can see most profit takers and short-sellers agreed with us as the stock got hit hard and pulled back.
The stock ran up on a forward-looking event (FDA approval) pending so that brought a lot of excitement and anticipation into the stock. Once they get FDA approval, everything can change in a hurry, but to support a $750 million market cap they will have to have earnings and revenues and most traders know that. Also, there’s been speculation that the company could get bought out.
One day DUTV might have it’s own page like this.................Have fun with the # puzzle too. If you nail it let me know.
$$ DUTV $$
