posted
I guess this thread title could also have been:
"What News DOESN'T Make A Stock Go Up"
It seems to me, and I am just born here, but it seems to me that news of profits, even really great ones, don't make pennies run. Hell, they don't really make the big boards run either; usually quite the opposite.
Revenue doesn't seem to make them run, either. Just because there was a revenue increase, they may still be operating in the hole, so this seems to keep a stock from running.
So if profits don't make these pennies run, what does? It seems to me that the thing that most often makes it happen is the POSSIBILITY of great profits. If a company gets a patent or FDA approval, that's gonna run! But what if they just have a really cool unique idea, that MIGHT bring a lot of money? This seems to make them run like gangbusters! Why? Maybe the average investors imagination is worth more than all the good profit reports on Wall Street.
I am looking for input here. Please bash me or tell me what you think of my kindergarten insights. Or feel free to tell what you have learned in this space.
Thanks for being a great group of people to learn from!
I agree with your theory...I was told once to look for words such as merger and acqusition...I'm sure there were others...I know them when i see them...but there doesn't seem to be much news that will make the stock move...and then at times...it moves 2-3 days AFTER the news is out...is it slow readers or MMs?? Don't know...but it seems that theory of buy on rumor sell on news...is a very outdated theory...
If you end up figuring out what "news" works...please share it...
GLTY!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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Just kidding. I have only been here for 2 months and I have learned that the market can change drastically. In March and April it seemed easy to grab a stock and make slow gains with an occassional run. Oil stocks were especially easy. May, however, has been very different. Everything is momentum and based on BS. The FDA approval of CRDM's product seems legit, but aside from that everything I have played has either risen or dumped for absolutely no reason. There are way too many stocks that trade 15 million shares one day and 0 the next, thats how you know it was all BS. Al these 200% runs that dump back down to where they began are simply momentum manipulation. You can make money, or you can hold the bag. Right now I have a bunch of freakin bags......
-------------------- "I will smack you in the mouth, I'm Neil Diamond"- Will Ferrell
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posted
agree with you king.. i've been doing big stocks for almost 5 years now, and just recently got into pennies after settling all my big stocks into excellent potential companies.
you did leave out two very important factors. for big stocks, actually it matters if rival has financials bad, so if intel doesnt meet expectations, then AMD stock shall rise and vice versa. another big thing is acquisitions. hedging is what it is called. another is lawsuit settlement. settle a lawsuit and your stock invariably rises 5%+. similarly, many other criterion which drive big stock.
for pennies, its 3 fundamental things IMO. one thing is contracts. huge contracts is the key. defense/homeland security etc. kind of big contracts and the stock generally flies. second is revenues in financials. if the revenues are like 500%+ increase, that drives stock upto almost 25+%. third is entry and exit points in the stock.
most important in pennies IMO is not losing the money. you dont need lots of profits, getting 10-15% on one stock in one week is good enough to double your money fairly consistently, so you just need 3 stocks that would run around 5% green in one week, but you should definitely not take losses > 10%, irrespective of weather stock makes comeback or not.
thats what I think is good for pennytraders. however, ofcourse we all have our own techniques.
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