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Penny Stock Price Action Video Lesson #1 For PennyStocking Silver Subscribers

March 19, 2010 at 11:45 am
by Timothy Sykes

Watch these 7 free video lessons on how I became a millionaire

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  • Baron Kimble

    Another stark contrast between ZANE and HMNA is that ZANE had very ‘positive’ PR. So there was always an incentive to be ‘long’ ZANE for bagholders.

    When someone sees that they sold $14 mil contracts, and the CEO made bullish remarks, the average momentum trader, or person in general probably bought into ZANE (not even knowing what cost of goods sold is), or made it easier for them to buy into these bullish remarks, and was much harder to give up their shares (and infact we saw a lot bigger bids on ZANE as well), even when it had it’s first red day.

    But both stocks were similar besides that fact:
    1) They both traded 4 times their float in a single day
    2) They both traded in very high volume to their usual volume
    3) They both received NASDAQ delisting notices.

    ZANE also did have a larger run-up from 30 cents, rather than 1.10s

    Also, you didn’t do that much research into HMNA, as you found out ZANE CEO had strong financial connections, i.e. PIPE deals. And a similar connection could exist in HMNA.

    I was afraid HMNA would release some kind of positive PR since both stock were so similar in nature, yet one fundamental difference was no positive or fundamental reason the stock should have been up.

    Yet also I believe that is the threat for every stock that rises suddenly, and for almost no reason (positive PR release) (TEAR comes to mind as well, positive ‘fluff’ PR days after the run-up and it spikes hard for a 20%+ gain).

    In retrospect, even though the stock was trading in high volume, no positive news existed, it was a no-brainer short.