I haven't been back into the stock mode yet this year...and that is a good thing...for now..
I am out working and want to build enough money to get back into the big board again. I don't know what possessed me to start the penny movement, but it seemed like "easy money". Well, everybody found out that it isn't that...it is shear luck at best. Take a run and bail before it is over, or you have a 99.99% chance of losing.
I still am very hesitant about big boards also. There is something really bad that is going to come down with this economy. Too many things are coming to a head. Truthfully, it really scares me. When we have a healthcare bill that is coming to fruition and we are not allowed to see it...all done in secret, and taxes being evoked everywhere...I don't know what to say or do. I am kind of like a deer in the headlights...frozen, and immobile.
I don't like it. I am not being negative...I used to chart the market here everyday, but now am not sure where this country is going...at all. I think that I may be one of the guys that go to goldline.com and buy gold instead. I am really thinking this over in a sincere way...any suggestions or comments are appreciated!
Here's the rub with CBAI summarised - Borrowed from the shrub;
Posted by: mike71394 Date: Wednesday, January 06, 2010 7:29:01 PM
In reply to: None Post # of 17985
Wednesday, January 6, 2010
CBAI - Outstanding Shares Growing At An Alarming Rate
For anyone that actually does research before investing in the stock market, it wouldn't take you long to realize CBAI's outstanding shares have been growing at an alarming rate.
In August the outstanding shares were:
2,611,087,327 as of Aug 10, 2009
In November the outstanding shares were:
4,568,253,327 as of November 9th, 2009
That is an almost 2 billion share increase in one quarter. Factor in the latest dilutive SEC filings and CBAI's outstanding shares are likely close to its almost 7 billion authorized.
No matter how you try to paint this pig, it still looks ugly. The business model can be pretty, but with the amount of shares that are being dumped, demand will not be enough to keep up with supply, and the stock will inevitably fall.
I'd like someone to explain to me how a company that almost doubles its outstanding shares in one quarter deserves a $100 million market cap. It defies logic.
Today's press release is vague. Just how did they retire the debt? They didn't say how. Are people just letting them have the money? I think not. It was likely converted into equity, meaning MORE dilution. The balance sheet might look better, the debt load may decrease, the company may have a bright future, but the amount of shares will continue to increase... and when you are a shareholder in the company more shares equals less of a stake in the company, which isnt' what you signed up for.
Pretty decent board there actually, a lot of info shared.
Here's another bit:
One thing for certain, the chatter level is sky high on this right now ...
Macro\micro - Caught a bit on the radio driving home last night from one of the better stations out here. He was taking this whole health care behind closed doors to task, replaying all the campaign promises of Mr. O to publicly air these sort of things on CSPAN - Included in this were some outtakes to Nancy P from some journalists questioning her about that very fact, including a letter from the president of CSPAN asking why they have not been allowed to do this very thing ... The response was the usual waffling.
Elsewhere, caught some very interesting takes on the possible illusion being created by the supply and demand model as excess inventory has been taken up and the newer production is painting this to be better than what meets the eye.
On the micro ... Still like these pennies and am glad the route ran through this last year. Have learned a great deal ... Maybe it's pure idealism and hopeful - wishful thinking but I want to support that very thing that this whole economy and what is\was our backbone - Small business owners. Real start-up companies - Organic, home grown, job producing ventures ... Dare I say it, "Made in the good ol' U.S. of A." - Weeding through the gutter of these exchanges to find them is tedious, but maybe it's the stinky-pinkies for the most part over against the OTCBB that at least has some ... regulating, if that's the word. "Requirements" might be better.
Good morning guys.
I dont remember, but did I mention that the board I'm following in the hub mainly deals with big board stock and only allows a few pennies? I like that mentality alot.
I again encourage all of you to give the board a quick glance. It is quite impressive.
Sometimes I read iHub not to find new investments, but simply to try to learn more about investing in the slum stocks. Yesterday I came upon a forum with this post. Thought I'd share it with you all.
Feel free to form your own opinions about it.
Posted by: vantillian Date: Sunday, July 20, 2008 7:34:32 PM
In reply to: None Post # of 3510
Title: Top 25 Axioms Of OTC Investing
Subtitle: Understand These And You Might Have A Shot At Surviving The OTC Marketplace
Author: vantillian http://investorshub.advfn.com/boards...asp?user=94357
I am calling these 25 points "axioms" in that they are propositions that are not necessarily proved or demonstrated but rather are self-evident to those who trade/invest on the OTC. In other words, these truths should be taken for granted and serve as a starting point or a foundation when deducing or inferring other propositions about OTC investing. I will not seek to prove these axioms to you...they just simply ARE. An axiom appeals to no other authority for verification...it stands on its own as the truth. Therefore, with these axioms we are dealing more with beliefs and less with facts. But without fundamental beliefs, you will have nothing whereby to interpret the facts. So sit up and pay attention because the following are very important ideas that could keep you from losing your shirt and help you to win nicely at playing the OTC market.
1. The Center Stage Axiom
The longer an issue stays in the spotlight...the worse. There's always one or more good reasons as to WHY a company is trading on the OTC...especially if it is a sub-penny company. There have been many times in the past couple years I thought I had found that "true gem" that was going to be another Yahoo. I believed in it big time. I bought into it big time! But after the initial run and a dead-cat bounce or two...things began surfacing that were completely damaging to the demand for the stock. Simply put, the higher a stock climbs in the investing world, the more its rear end shows...and OTC butts ain't pretty. Are there the occasional rule breakers here? Yes (usually they are reverse merger plays). But those stocks are few and far between and they generally uplist very quickly to a higher exchange. As a general rule, the longer a company stays in the limelight, the more enemies it will attract. Bashers. Shorters. Bidwhackers. Apathy. New shares from various and sundry places (especially DILUTION and restricted shares coming off restriction). It's always a war to make the PPS (read: Price Per Share) go up on any issue. Don't stay too long at the war. Fight as long as you are advancing and retreat the moment you see the enemy reinforcements gathering. Or possibly better yet...retreat before you think you even heard the enemy reinforcements. Remember, it's not your job to make a stock PPS go up, it's your job to make your portfolio grow. OTC valor is much different than armed forces valor.
2. The Carpe Diem Axiom
Always take *some* profit when you're sitting on significant gains 50% or higher. Unless you are already independently wealthy and view OTC investing *only* as gambling for FUN (which isn't an altogether bad thing to view it as), take profit. The way to accumulate wealth playing OTC issues is to always exit too soon. Furthermore, it leaves one feeling pretty dern good when he left some on the table for the next guy and was not the chucklehead that singlehandedly killed the run. If it does make you feel good that you were the chucklehead that killed the run, shame on you. Always remember...you do not know the next time buying pressure will allow you to leak out of shares without injuring a stock and/or your portfolio! Seize the day. Seize the opportunity strong buying pressure provides.
3. The Itchy Trigger-Finger Axiom
Someone always has shares to sell to ruin a run. Read it again: Someone ALWAYS has shares to sell to ruin a run. Make this statement your computer desktop and/or screensaver. Say it to yourself ten times whenever you start your trading day. Paint it on the ceiling above your bed so it's the first thing you see in the morning. Please understand that someone owns a whole lot of whatever stock you're jazzed about at much lower average than you -- and often times they own it for NUTHIN' (i.e. compensated promoters, debtors, relatives of CEO, etc.). Also, if you think that YOU are the ONE that is holding all the shares that could potentially ruin a run...think again. Only God knows where all the shares are or will be coming from...because who knows what kind of shorts will attach themselves to your play and sell you nothing but VAPOR.
4. The Domino Effect Axiom
Almost everyone that loses money playing the OTC looks to point a finger somewhere. They want someone or some entity to blame for their loss. Forget that the CEO sold 100M shares into the open market, they'd rather lash out at the popular poster that promoted, endorsed, and otherwise "pumped" the stock. Here's what folks like that should understand...there is a domino effect of people getting screwed. Here's an illustration: the CEO legitimately plans NOT to sell shares but some emergency comes up...and believe me..."emergencies" almost always come up for these guys! Selling shares is the easiest way for him to raise the money and "After all," the CEO justifies to himself, "the reason I went public in the first place was to raise money." The problem here is that the CEO failed to tell his promoters and/or closest investors about his need to raise funds and that group of people is living under the assumption that the share structure is stable (i.e the supply will remain the same). So the CEO got screwed by somebody and had to pay up. He screws the promoters and his closest investors and they had to pay up. Now the promoters and close investors will probably screw another batch of investors. Scenarios like this have happened more times than I can count! When something goes wrong and you're holding several thousand dollars worth of stock, you're not going to be looking to inform the world about things that will negatively affect the stock's PPS! You're looking for ways to bring in buying pressure, not decrease it! Folks love pumpers/promoters when they are helping the stock they are in go up. Folks hate those same pumpers/promoters when their stock is going down. Heroes and zeroes in the microcap world are one and the same...it just depends on the day. Remember this though...if the guy at the top decides to take advantage of people...he most certainly will succeed. What you need to know is your place in the food chain. And friends, if you're a rookie to the OTC world...you are a bottom feeder that gets caught eating the crap of all the other fish in the ocean when the "Domino Effect Axiom" kicks into high gear.
5. The Vapor Shares Axiom
If you see a poster battling the idea of shorting OTC issues with determination and vigil, sit up and pay attention...that poster is either a short himself or working on behalf of the shorts. People and/or groups with the right connections can and do short OTC issues...many times they short stock into oblivion with the full approval and consent of the leadership of the company. Contrary to popular belief, many OTC CEOs don't give a flying fig newton what their stock price does...what they care about is getting their hands on YOUR MONEY. There is alot of money to be made when a stock goes up. There is even more money to be made when a stock goes down if you were selling vapor all the way down to .0001 and cover there. Microocap hedge funds exist. Microcap hedge funds manipulate stocks and steal the money of good people. Unless you are a microcap hedge fund yourself, you can almost never win a battle against a powerful microcap hedgie that is shorting the snot out of your beloved stock. Remember, this is an "axiom" that stands on its own. I will not seek to prove the validity of this point to you. You must simply either accept it or reject it.