Penny Stocks
A good friend of mine recently sent me an email saying that he had made $300K profit on a $23K investment in a penny stock.
I dont know how he held on to a 10 bagger like that, but I do hope he sold because the stock is now back to the price he bought it for!
as you've been around the block in the penny stock arena and know the endless disappointments associated with them compared to "back in the day". At one time I was in the process of writing a book on penny stock trading, but knowing what I do now would never want to influence anyone in that direction who is inexperienced in the stock market. The high majority of penny stocks are total scams, even moreso since the financial apocolypse of the past few years. Big money instead runs those 2XX and 3XXX ETFs which act like penny stocks on speed, dilution and reverse splits included, but at least they are liquid. Pennies were actually a very good learning platform for the ETFs. I appreciate your technical calls on those and have actually been making money on them. You just have to be VERY careful of entry points and position size.
Anything about HSCC CEO is irrelevant to me at this time, most end up the same. It is what it is. Holders just have to feed the beast regularly and sell some stock to get things moving. You may have been 10% or more owner back when pinksheets.com had a warning up not to hype the stock? If HSCC is in fact a government contractor they likely have to keep a low profile. If they are in fact profitable and low float, yada, yada, this could be the problem with the stock.
First bought HSCC for .0075 9/16/09, sold for .01 next day, saw it run to .07. Bought for .029 3/7/11, then gradually averaged down to where now .0076 and out to in the money. The last two runs were me selling as sick of holding. Now free shares that I'll hold for the "big run," which will maybe happen??
Individuals can rarely just accumulate the majority of the float like in the old days, the market won't allow it, it just kills the stock. I've seen it happen time and again to the point where I'm pretty anti-penny.
Except for those pot (and maybe graphite) stocks of course. :} Yes, I think they have major potential going forward UNLESS the gov "#### the bud" so to speak, so volatility will follow. Personally, I think they should legalize pot and delegalize cigarettes, a known carcinogen. A pothead will be a pothead and an alcoholic will be an alcoholic. There's a broad area of inbetween.
You can checkout any time you like,
But you can never leave (with your money)! until they see their money coming in - maybe someday.
Pot industry being what it has been (illegal), this may be HSCC's chance to make it big, so this guy is more interested in keeping his government job than supporting the shareholder base, which means dead money for as long as it takes.
Of course, if sellers sell blocks at or near their entry points the stock will rise a point at a time to the next "get out" point for the next seller. It's a fact.
Sold: 10/2/12 25000 .005
10/5 sold 10K .0075
11/30 sold 10K .006
1/24/13 sold 5000 .008
1/25 sold 5000 .01
1/28 sold 5000 .015
1/29 sold 5000 .016
These were all my sales, which drove the price higher. If I sold my whole position all at once they would laugh in my face and have a major run within days (sometimes hours) of my selling out. Consequently I hold the rest and wait until whatever, trapped in the Hotel California. This is the story of the never ending penny stock dream/nightmare/addiction - scams.
I do hope your investment pays off big for you though, someday, maybe sooner. In the meantime I did make money on the other pot stocks this week and will accumulate on some. Thanks!
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