Monday, July 18, 2016

The lure of green energy - Aurora Solar Tech (ACU.V)

For anyone who is new to this blog expecting to see a bullish write up on ACU.V with lots of fundamental information and projections of monster growth potential and all that other stuff you typically see on stock promotional sites.....you're probably going to be disappointed.

That's not my style.

Stocks are risky, and the risks with penny stocks are even greater.  So are the rewards of course, but you have to be careful.  Typically penny stocks get promoted and pumped after they've already made big gains, when volumes are spiking and there's lots of news out to get the retail herd excited and buying. Social media sites and message boards become filled with pumpers

If that's what you're looking for, then you should probably move on because ACU.V doesn't qualify. Volumes are thin, on the Canadian TSX Venture exchange average volume for the past 3 months is 73,782.  For a stock trading in and around the 15 cent mark that's only about $11,000.00 changing hands on an average day.

Those who've been reading this pathetic and nearly invisible little blog, or if you followed me at other sites like SeekingAlpha (Joe_Retail) StockTwits (growacet) Stockhouse (ledrog)....this should all be very familiar.

My view on stocks in general, and with penny stocks in particular....is that if you're hoping to make big gains, then you have to get in BEFORE the herd shows up, BEFORE social media sites and message boards light up with pumpers screaming BUY BUY BUY!!!  If a SeekingAlpha contributor with thousands of followers starts talking about a penny stock as a "Great Investment", or touting a price target that would translate into a 500% gain...Then you're likely going to find a stock that's already jumped 500% or more with a lot of the upside potential already realized in my opinion.

As far as fundamentals go, my opinion (hardly a unique view) is that they are already "baked in" to the PPS.  There are three fundamental realities I DO NOT WANT to see.  They are what I consider to be the Unholy Trinity, they are: Promotion, News and Hype.
  • Promotion is used to get investors watching a stock, putting it on a watch list
  • News comes out and because of Promo gets read by the retail herd
  • Hype hits the picture when the PPS starts moving, with the sheep convinced the prospects must be good because the share price is climbing
Regular readers already know that there are two sides to a trade, a buyer and a seller.  If the herd is being whipped into a buying frenzy, then there have to be others willing to part with their shares at the higher prices.  That's the market in a nutshell, and its the reason some players are able to buy low and sell high while the retail players often end up on the wrong side of the trade, buying high instead of selling high.

Do I think this will happen with Aurora Solar?  I don't know to be honest, but I do think its possible. If it doesn't I still think ACU.V is a better risk than buying into a penny stock that's already gone from 10 or 20 cents to $1 or $2 on lots of the aforementioned Promo/News/Hype.

Why do I think its possible?   The first reason is right there in the subject line, the lure of green energy.  This sector is heating up, and I don't see it calming down anytime soon.  Stories of global warming and the need for Green Technology and Energy are all the rage.  Tesla and Lithium batteries have caught the attention of investors, 

Interest in Lithium stocks spiked around 2010 before cooling off, now many Jr Lithium miners have seen their share prices explode over the past year.  Could the same thing happen with Solar?  No way to know for sure, but I do see the potential.  I've started getting emails touting Solar energy plays as a new "Golden Oil".  

And who knows, maybe Aurora Solar with execute on their business plan and become a major player in this sector.  They're actually not a maker of solar panels, instead they produce measurement and control solutions to help manufacturers improve yield, lower costs and achieve higher margins.

They recently announced (May of this year) an MOU with an unnamed "major solar panel manufacturer".  When it comes to news I'm something of a cynic, and a MOU is not a signed contract. But I doubt this news was read by many investors given the lack of promotion currently going on.

A big thing to look for with penny stocks in my opinion is financial strength, or weakness as the case may be.  With a 15 cent penny stock I'm not expecting profits or a robust balance sheet obviously, but I do want to know that a company has sufficient cash on hand to fund operations into the foreseeable future.  Aurora recently released news about a Private Placement which brings in about $775,000.00 which satisfies that criteria for me.

I also want to know how many shares have been shorted.  If there are bears placing big bets on the short side, that for me is a definite warning sign.  Shorting is incredibly risky, and with penny stocks the risks are even bigger.  With ACU the short interest might as well be zero, its only 2,000 as of June 30th 2016 or just .01% of the 33.2 million issued shares.

Finally there is the chart.  Frankly and unapologeticly I love it.  That doesn't mean its a slam dunk sure thing.  Sure things do no exist in the stock market, anyone who says otherwise about any stock is an obvious pumper.  But in the ACU.V I see a lot to like.




The stock has been trading in the 14-16 cent CDN range since the start of June, and back as early as May if you discount one short lived spike up to .20 cents.  In other words its trading close to its historic lows and I like to buy low, not high.

I include 3 moving averages, the 20 (near term) 50 (mid term) and 200 (long term).  At 16 cents the PPS would be above both the 20 and 50 dmas.  MACD (Moving Average Convergence Divergence) is just a hair below the 0 line.  I would see a break above that zero mark as a bullish technical signal. And stochastics, the fast line (black) has turned bullishly upwards and has crossed over the slow line (red) from an oversold position at the 20 line.

Finally OBV which stands for On Balance Volume.  OBV counts a day's volume as positive (+) when the PPS climbs and negative (-) when the PPS falls.  The OBV chart gives an indication of accumulation from April/May forward.  Given the lack of Promo/News/Hype I consider it possible that those who have been buying, that they might be what I like to call the "smart money crowd".

That's it folks.  I've taken out a position in ACU.V so my opinions are obviously biased.  If you want to look at the US side the symbol is AACTF with Aurora trading OTC Foreign.

To sum up my reasons for being bullish and why I view Aurora as having a good risk reward profile:
  • Thinly traded and near its all time lows
  • Only 33.2 shares issued as per stockwatch up to June 30th 2016
  • No discernible Promotion or Hype and very little News
  • A chart suggesting the possibility of accumulation
  • In a hot sector (Green Energy) 
Good luck, and remember...if ACU or any stock makes gains for you...nobody ever went broke taking profits.  



Harsh truth or a tasty lie - Which would you prefer?

Given a choice between lies and the truth, almost everyone will say they want the truth. Reality is quite different however.  To quote Jack Nicholson in the movie ''A Few Good Men'' most people can't handle the truth.  Honesty, they say, is the best policy....but all too often lying is more lucrative.  


Years ago I worked with an African gentleman from the Congo, (back then it was stilled called Zaire, yes I am old) who related to me an old African parable that I will share with you now.

Two brothers, Truth and Lies, had been walking for many days when they came upon a small village. Truth said to his brother:  ''We both know people prefer the truth to lies so let me do the talking''. 

They come upon a woman tending a garden outside of a hut and Truth speaks to her saying:  ''My brother and I have traveled many days without food or rest.  Could we stay here a while and have something to eat and to rest up before we continue our journey''?  

The woman says she can't make a decision, that she'll have to wait for her husband to come home from hunting.  When the husband returns the wife tells him that if he lets these two strangers stay that she will leave him:  ''I  have enough work to do cooking and cleaning for you, I won't do it for these strangers as well".   The husband apologizes to Truth and Lies, but says if his wife leaves him that he'll have nobody to look after him.

They travel on and the next day they come to another village where a big feast is taking place.  Truth is horrified to see that the elderly in this village are hardly being given anything to eat, they are left to pick over the scraps and bones of what is thrown away.  Truth admonishes the villagers for their behavior, saying that the old villagers should be honored and given first choice of the bounty.  The villagers drive Truth and his brothers out of their village.

When they come upon a third village the following day Lies says to his brother:  ''You have done the talking twice now, and we still haven't had rest or food.  Now I will speak for us''!!!

When they get to the third village they learn that the chief is in mourning over the death of his wife. Lies tells the villagers:  ''I am a great shaman, I can bring your chief's wife back to life''.  Lies and his brother Truth are quickly brought before the chief who exhorts Lies to perform his magic and restore the life of his wife.  ''This is a difficult task'', Lies tells the chief, ''It will take all my power and energy and my brother and I are weary and hungry for we have traveled many days now without food or rest''.

The chief sets them up in a comfortable hut and provides them with all the food they can eat.  The following morning the chief sends for Lies and asks him to perform his magic.  Lies tells the chief that he is still too tired and that he will need one more day of rest and nourishment.

The next day Lies asks to be taken to the hut where the chief's wife is lying in state.  He has everyone leave and then starts speaking in strange unknown words, chanting and singing. Finally Lies lets out a loud cry and the chief comes running in, expecting to see that his dead wife has been brought back to life.  

Lies explains to him that as he was performing his magic that the ghost of the chief's father appeared before him.  Recognizing the magic and skill that Lies possessed, the spirit of the chief's fatehr asked Lies to restore his life instead of the chief's wife, saying he would give Lies and his brother one quarter of the village to rule over as a reward.  The chief is mortified, if his father comes back to life then he would no longer be chief and would lose his wealth and power.  He offers Lies the same 25% of the village to restore his dead wife's life instead.

Lies begins as before and again lets out a loud cry.  This time he explains that the chief's grandfather had come to him from the spirit world asking that his life be restored instead, offering fully half of the village in return.  The chief sees where things are going and tells Lies that he can have half the village to rule over with his brother in return for stopping all efforts to restore his wife's life.

The moral is quite obvious.  Most people will take a lie over the truth any day of the week, and lying is often far more profitable.  


Sunday, July 17, 2016

Spotting the pumps easier than going long

This blog is not even three months old, and already I have managed to identify some stocks that, in my opinion, were inflated and due to come down.  Taking the PPS from my first write up on the following companies, here is how my bearish calls have performed as of this past Friday's close.

  • May 8th  RYU.V   Down -18.9%
  • May 5th  ZIOP     Down -27.2%
  • May 17th KTOV   Down -54.9%
  • June 12th ABRW  Up    +04.0%
My scorecard on bearish calls isn't perfect, but if ABRW does what I expect in the coming weeks and months, then I'll have to give myself an A+.  

As much as I'd like to pat myself on the back for my genius skills at sniffing out inflated stocks, it really wasn't that hard.  The way I see it this was all "low hanging fruit" so to speak.  Three out of those four companies, ZIOP, KTOV and ABRW were all hyped and promoted by an email blasting promotional outfit called StockReversals.  

I followed StockReversals long before I started this blog, and I've seen them pump a number of stocks that have all tanked.  In no particular order I've witnessed them pounding the proverbial table to drum up buyers for SBOT, MOBI, CLDN, LEJU and WBAI over the past 3+ years, touting long term value potential.  

If you want to check the charts on those stocks be my guest.  Those buying in expecting price appreciation over the long haul got creamed.  

RYU.V on the other hand was a stock I saw getting spammed all over a site popular for Canadian listed stocks, stockhouse.ca.  They'd just announced that Gwenyth Paltrow was going to promote their clothing line. I've seen so many celebrity endorsements for penny stock companies over the years, and have yet to see one deliver long term value to shareholders.

So why is identifying inflated stocks so much easier than finding companies with low share prices poised to make gains?

That's pretty easy to explain in my opinion.  Inflated stocks that are poised to drop big, they are SCREAMING for attention.  Why?  Simple....the smart money holders who want to sell need dumb money suckers to come in and pay the inflated price.  

Companies that are trading at or near their lows on the other hand, the good ones in my experience aren't experiencing heavy volume and don't have much in the way of news.  So it can be hit and miss trying to discern which ones might be good candidates.  

I have put out some bullish opinions on a couple that have born fruit though.  I wrote up EGT.V when it was 14 to 15 cents and it got up around 40 and is still trading in and around 28 to 30 cents.  And HMPR was at $1.81 when I expressed my reasons for being bullish and it just closed up over $1.90.

Hampton Road Bankshares is actually a company that I truly believe has the potential to deliver long term shareholder value.  That's not to say it is without risk, but to my eyes the fact that they are turning  a profit gives them a lower risk profile as compared to companies using their shares as capital to stay afloat.

Ultimately I think its every bit as important to know what to avoid as it is to know what to look for. Who wants to pay $6+ for a stock like KTOV only to have half your money wiped out in a matter of weeks.  

I've also mentioned some stocks that have come down, RVX.TO is one that I wrote about when it was trading at $1.34 and this past Friday it closed at $1.23 for a drop of 8.2%.   With RVX though I haven't seen any suspect pumping and table pounding all over social media....if that happens my opinion will change in all likelihood.  And if that does happen it might be reasonable to expect to see the PPS climbing well above even $1.34....only time will tell.  Ideally I'd like to see them succeed with the Phase III clinical trial.  

News Hype and Promotion boys and girls.  In my opinion that is the Unholy Trinity of the stock market that should be avoided.  Beware when something looks too tempting, things are not always as they appear.






Saturday, July 16, 2016

Is Ziopharm guilty of fraud?

According to Running USA it takes the average man 4 hours 19 minutes and 27 seconds to run a marathon.  (SOURCE)

What does this have to do with Ziopharm?  You will see.

Imagine a sports drink company having 10 runners drink their product before running a marathon. Now imagine that all 10 beat the average time it takes to run 26 miles.  That might seem impressive. Maybe a press release would be put out citing the results.

***************************************************************

July 16, 2016  ATB Energy Drinkers Excel At Marathon

ATB Industries, (Symbol POS.OTC) the makers of sports drink ATB Energy, is pleased to announce that at the recent Quahog Marathon ten male runners drank our product before running the race. While the average time to run a marathon for a man is over four hours, the ten runners who drank ATB Energy before the race had an average time of just under 3 hours.

ATB CEO Peter Gryphon had this to say about the results:  "We are very encouraged by this news, although ten is not a large number it strongly suggests that using our product might provide a net benefit to individuals looking to increase their performance.  And if these results are any indication it could be reasonable to expect that athletes in other sports could perform well above average as well".

**************************************************************************************

Sounds good of course.  But maybe those 10 runners were all veterans of the Boston Marathon, where men aged 18-34 must qualify with a time of 3:05 or less.  Maybe one of them was even a previous winner of the Boston Marathon where winning times are typically a little over 2 hours.  That would certainly improve the overall average.

Aren't numbers fun?  Taking the hypothetical PR at face value without asking any questions....investors  might just storm in and buy ATB Industry stock, perhaps giving it a lift.

Would this be an example of fraud?  Personally I don't think so.  Nothing in the PR states that ATB Energy caused these runners to run outstanding times, its merely suggested that there might be a benefit.  But what if subsequent to the marathon 3 of the runners died of acute kidney failure after they continued to consume the product?  Would the company be guilty of fraud if they failed to disclose this fact to their investors in a timely fashion?  What if the company also failed to notify the appropriate regulators?

So what does this fictitious example have to do with Ziopharm?

On May 18th Ziopharm put out a PR with the headline:


The PR cites median survival rates for patients with glioblastoma as being between 6 and 7 months for those who have had multiple recurrences, and just 3 to 4 months for those who have failed salvage chemotherapy with drugs such as temozolomide and  bevacizumab.  

The company then went on to report that 10 of 11 patients enrolled in the study are still alive, which caused many social media participants to tout Ziopharm's therapy as the reason for their survival, cause and effect.  

What the PR failed to mention (as with the ATB Energy drink example) is any of the details on the patients.  How long they'd already been living since being diagnosed or had any of them undergone chemo that succeeded in shrinking their tumors.  The purpose of the PR seems perfectly clear to me, its right there in the subject line.  The company wanted to highlight survival results, even though a Phase I trial isn't even designed to measure survival.  The primary objective of a phase I clinical study is to prove safety, or efficacy for those who like the fancier term.

Thanks to the fact that one of the participants in the trial, (a Mr. Charles Peacock) authors a blog we know some details on at least one patient.  Mr. Peacock's blog reports that he was diagnosed with glioblastoma back in April of 2012, over 4 years ago.  So obviously this courageous individual has already beaten the averages and then some....like the Energy Drink users above, this guy is already a champ.  

His blog also relates how he had successful chemo treatments with temozolomide.  I wrote a blog piece already on this warrior and his outstanding spirit here:


Now....In my opinion Ziopharm's PR of May 18th, it isn't an example of fraud.  I do think touting survival rates in a study not designed to measure that variable is a bit suspect  and I consider it possible it was put out to support Ziopharm's falling share price.  

After trading up around $9 in mid April 2016, by  mid May the PPS had fallen all the way down to about $7.  Did the PR help the PPS?  Well it didn't hurt, by early June the PPS had recovered to as high as $8 per share.  

Now let's fast forward to the present, the news that came out Friday July 15th 2016, that the total number of deaths of patients in the trial has now climbed to three.  


The first two deaths were reported as being at 3.7 and 6.9 months after treatment.  But the news doesn't give any details on these patients, such as how long ago they were diagnosed or if previous chemo treatments were successful or not. The company asserts that the deaths were unrelated to the study drugs.  The third and most recent death they say "has just been reported to us", with this brain cancer patient suffering a cranial hemorrhage.  The PR calls this "an isolated" case.  

I don't like fuzzy words, and "just" is fuzzy.  Was it "just" today, "just" last week or "just" last month? The PR goes on to say that they haven't yet notified the FDA of the most recent death.    

Enter the lawyers:

Two PRs came out from law firms saying they are investigating possible violations of security laws, specifically about sections 10 (b) and 20 (a) of the Security Exchange Act of 1934.  Section 10 deals with misstatements or omissions made by a company that could constitute fraud while 20 seems to relate to the question of individual and/or corporate liability. 

Just as my medical background is restricted to high school and university science courses, my legal bona fides are equally thin.  With that being said I believe a lot will depend on timing.  How long did Ziopharm have this information before it was released to the investing public?  

The legal PRs also state that Ziopharm was engaged with an investment bank in an effort to raise 50 million dollars, however the news says that the deal has now been abandoned.  Those who have taken the time to read Ziopharm's SEC filings already know that the company does not have sufficient capital to fund operations to the completion (if successful) of clinical trials and that they'll be in need of financing by the end of 2017 or possibly even sooner.  

For investors wanting to make inquiries of their own, here are the relevant PRs from the law firms announcing their investigations:

http://finance.yahoo.com/news/important-investor-alert-goldberg-law-001600961.html

http://finance.yahoo.com/news/federman-sherwood-investigates-ziopharm-oncology-202100911.html


Disclosure:  I have no current position in ZIOP however I may in the future, in all likelihood going short.

Friday, July 15, 2016

Avoid The Bag weighs in on the U.S. Presidential race....

As a Canadian some might say I don't have any real 'skin in the game' when it comes to whom Americans elect as their next president.  That's true, but only to a certain extent.  The U.S. is still the world's largest economy, and is Canada's biggest trading partner.  In fact its often remarked here that when the United States sneezes, Canada catches a cold.

Obviously the next occupant of the White House will have influence beyond the borders of the 50 states, whether its Donald or Hillary.

All I can say at this point to my American friends is...."good luck".  What a choice!!!  To be perfectly honest and frank, I don't know what I'd do if I had to choose between those two.  On the one hand you have Clinton, with views that seem to change with the wind depending on her audience.  First opposed to Gay marriage, now a champion of same sex unions and the LGBT community.  Then there's her Bosnia story about running for cover after debarking from a plane due to sniper fire, while video shows her smiling and accepting flowers from a little girl.

And Trump???  A trust fund rich kid who inherited a fortune, who places a value on his name in the billions but who cheapens it by putting it on failed casinos, vodka and steaks.  A guy who used to support the Clintons who now is running against one of them.  A guy who hasn't met a complicated intricate problem that he doesn't have a glib simple solution for.

In terms of the markets, and who would inspire the most confidence from Wall Street and investors....its hard to say.  I'm leaning toward thinking Trump would be better, but then again maybe not.  I think many retail investors would see a Trump presidency as a positive for business.  But the professional investment community also prefers the known to the unknown....and while Clinton seems to be for sale and willing to bend, will the Donald show equal flexibility and a willingness to cater to big business interests?  How will big capital (much bigger than DT's net worth) react if he's unwilling to listen?

Anyway my Yankee friends, its your choice, such as it is.

I was living in the US during the 1972 election between Nixon and McGovern.  My public school had a straw vote, and they let me vote even though I wasn't an American citizen.  Anyway I voted for Nixon, and he won my school's mock vote by probably the same margin that he swept the country with.

When I got home my mother asked me what happened at school.  When I told her about the election she asked who I voted for.  A lifelong left wing liberal thinker...she just about hit the roof.  Years later, whenever we disagreed during a political discussion she'd always say:

"Well, what do you know anyway?  You voted for Nixon"!!!

Somehow I think years from now...there will be people saying the same thing to those who voted for the eventual winner. Whether its Trump or Clinton who ends up getting the job as Commander In Chief, I think its the American people, and maybe even us Canadians too, who will end up the losers.

Wednesday, July 13, 2016

Lithium Americas (LAC.TO) $1.00 resistance becomes $1.00 support....

LAC.TO still hasn't seen the "clear sky break out" I've been anticipating from the Cup & Handle chart pattern I've remarked on in earlier posts.  Perhaps it never will, I still like the chances but there's no such thing as a slam dunk, not in the public markets.

But something positive has happened.  

After butting up repeatedly against resistance at $1.00 CDN the stock finally broke through on June 30th 2016 and from that day until now it has not closed below one Canadian dollar.  From July 4th (Canadian markets are open on the 4th, closed on July 1) to present the lowest LAC has traded is 97 cents during the trading day.  But even on the two days shares dipped to that 97 cent level, bulls pushed it back up to at least $1 at the bell.

Does that mean LAC won't fall back below $1 CDN?  No, again...there are no sure things in the markets.  But it is a bullish technical indication going forward when a level of resistance becomes of level of support, which is what the chart shows.


Also take note of the volumes.  The green bars represent volumes when the PPS closed up for the day, and the red bars correlate to days when the PPS closed down.  Another bullish indication is when prices climb on heavier comparative volume and fall when trading is lighter.  LAC closed down .01 cents on the TSX Wednesday (July 13th 2016) but volume was only 737,411 on the various Canadian exchanges, and only 530,134 on the main TSX.  

That's about one quarter of the 3 month average volume on just the TSX, which is 2.1 million. Should volumes pick back up into the 5+ million range I expect to see another + spike in the PPS.  And maybe even that clear sky breakout I believe the Cup & Handle chart has been predicting.

How high do I think LAC might go?  That's a tough question, but the first obvious line of resistance in my opinion is that $1.15 price level that shares hit on July 4th.  If LAC can get above that $1.15 CDN mark then I'm looking at the US side where Lithium Americas trades with the symbol LACDF.  

Just as $1 CDN proved a point of resistance, I think $1 USD could likewise translate into another psychological barrier.  The volumes on the Canadian TSX exchange are more robust, but volumes south of the border are nothing to sneeze at either.  Average daily volume for the past 3 months for LACDF is just a hair shy of 700,000 per day.  

$1 USD is around $1.30 Canadian at current exchange rates.  And full disclosure, I have an order to sell a portion of my shares in around this level.   Will my sell order fill?  I like the chances, but for a third time now....obviously, there are no sure things.  

If history is any guide, I have a habit of selling too soon in any case, witness Nemaska.  If LAC busts through $1 USD and keeps climbing....oh well, I'll cry into the money I made.  But not too much, I'll still be holding what I consider a significant position having only taken profits on a little over one third of my shares.

As I say so often here at Avoid The Bag, repeating the lesson my late great father taught me, nobody ever went broke taking profits.

Good luck and please take note of the disclaimer at the very bottom of this blog.  Also comments are always welcomed provided the tone is reasonable and absent of the usual pumping and bashing seen on most message boards.



A penny stock poised to make MASSIVE long term gains!!!


You've probably come here because you're tired of watching penny stocks take off for big gains and missing the boat.  Maybe you have a friend who bought a stock for something like 10 cents and then saw it explode to $1 or $2 allowing them to realize incredible profits of 1,000% or even higher.  

Wouldn't you like to be one of the players turning hundreds of dollars into thousands, thousands into tens of thousands, tens of thousands into hundreds of thousands....maybe even millions.

You're probably familiar with what is generally called a "pump and dump".  And its not just penny stocks, it can happen on more senior exchanges like the Nasdaq as well.  Hype and promotion are not exclusive to the OTC.  Typically you're looking at companies that have negative earnings, businesses with a history of using their shares to fund operations and for things like rent and to pay salaries.

But that's not what you're looking for.

  • You want to "invest" in a solid company.  
  • You want a low priced stock that you can tuck away in your portfolio without having to worry that one day the share price will collapse.  
  • You want something stable that will deliver long term value.

If you're a momentum player, a penny flipper, someone who likes to catch onto pump and dumps with an eye to day trading for small percentage gains....GET LOST, THIS INFORMATION ISN'T FOR YOU!!!  

I am only interested in sharing this with genuine investors.  With people who are looking for a penny stock play with solid fundamental prospects for incredible gains and little to zero risk. I only want people who have a long term value perspective, even if it is just an OTC pink penny stock.

If that is you, then keep reading.

Are you ready for this information?  Are you salivating at the prospects of monster gains?  I won't make you wait any longer.....here it is.

YOU ARE A MORON, AN IDIOT, SOMEONE WITH MORE MONEY THAN BRAINS!!! YOU ARE, WITHOUT QUESTION, DUMBER THAN DIRT!!!

Do you really think someone is going to share information like this openly and freely on some pathetic blog or investor fourm?

If there is someone who knows about a penny stock that's going to explode, they're not gonna be looking for every Tom, Dick and Mary, giving this information away freely to anyone with a pulse and a trading account.

If someone knows about a 10 cent stock that's going to make monster gains they might let some close friends and family members in on it.  But they're not gonna start pumping and promoting it until they're ready to turn their shares into money by selling.  They'll keep mum until that time when they're looking to take those 10 cent shares and turn them into dollars, lots and lots of dollars.

My advice?  Grow a brain and come back to the markets when you're no longer a gullible fool.

Not convinced?  Still think you can search message boards, stock promotional sites, blogs and other social media outlets for hot trading ideas and find a solid OTC penny stock that will deliver incredible gains and long term value?  Well....you won't have to look too hard.   Click on those ads promising big gains, sign up for newsletters, troll some investor forums....it shouldn't take more than a few minutes.  

Before long you'll have an expert telling you all about some company with supposedly solid fundamentals that is pretty much a lead pipe cinch to be a big player in any number of industries.  It could be technology, a drug company, sports drinks, health food, retail, mining....you name it.

And anyone that dares to suggest its just some pump and dump....they'll be told "this one is different", that they don't understand the fundamentals.  They'll be accused of trying to talk the PPS down so they can buy cheap, or of being short.

Like carnies running the ring toss at your local county fair, stock promoters are looking for you long term players right now.  For people who think you can invest in an OTC Pink penny stock based on the prospect of forward looking fundamentals.  Don't let them down, and enjoy the comb.