Hi. About a week and a half ago I began trading stocks online, for fun, and hopefully some profit.
I was wondering if anyone else here trades and if you have any hot tips. I’m into the high risk penny stocks. That is, stocks trading preferably for less than $5 USD. All dollar amounts I post will be in USD, btw, just for ease of typing.
Here is a short list of the tools I’ve been using:
http://www.lowtrades.com – This is the discount broker I’m using. They are one of the cheapest at only $4.95 per trade, which is important when profit margins on trades are small. They were very helpful when I called to have them explain some of the contents of the contract you need to sign and mail in. They also execute my orders very quickly, usually in a matter of minutes of my placing it.
http://finance.yahoo.com – This is fantastic for looking up detailed information about companies. It is very complete and updated in nearly realtime. The lag is 20 to 30 minutes I believe, but LowTrades supplies up to the minute prices, but not as many details.
http://screener.finance.yahoo.com/fscr/us/launch.html – This opens the Yahoo Java stock screener which is a cool little program that allows you to put in whole bunches of criteria and it will filter out companies whose stocks meet your specs. You can then type their symbol into the Yahoo Finance site to get more details.
News Websites (specifically the Money or Buisness section) – This is a great place to get tips or ideas for industries to look into for the lesser known companies. MSN is my homepage, so I check out their money section each time I log on.
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So here I thought it would be fun to talk about scouting tactics and picks you have. If you (the community) shows interest, I’ll get back to post a few picks I’ve made a little later.
I have about $500 in mcti.ob (.20) and more in MOSY the chip manufacturer for the new nintendo system and the xbox plus dvd players, etc… but MOSY is 7.58 right now. I think it’s going to go way up when the nintendo wii does well though, and it used to be 6.30…
Oh, I have been watching Gateway (GTW). it is only $1.80 right now, has a lot of debt, but still has quite a big name, so I think it could end up being a great rebound… much like when AMD was $3 in 2003.
on first glance, NMKT is pretty good looking. Actually profitable, which is nice, and a P/E under 15, excellent price/book (1.1), but a pretty low profit margin (only 5%)
They do look good… however. But penny stocks aren’t quite what they used to be, since they can be traded in penny or less increments, as compared to the days when they could only be traded in 1/8ths.
anyone know what it means if a stock is trading at triple or quadruple the normal volume, but still falling? is that a good sign? should I pick it up when it bottoms out or is that everyone selling off like crazy?
high volume sell off is usually a bad sign. It means alot of people are buying the stock cheap, so they will be willing to sell it cheap. Its a sign of strong downward momentum. Be sure and see what the deal is, usually moves like that have some kind of news attached.
Cool. NMKT, MCTI, and MOSY are definately on my close watch list. Here’s three that I’ve been watching/trading:
NGNM.OB - NeoGenomics Inc.
NWD - New Dragon Asia Corp.
MRY - Memry Corp.
NGNM was my first find. It’s numbers are relatively good, but their share prices have a good recent history. When I started watching it it was around $.50. Over the last week and a half it spiked from $.98 to over $1.50. Now it’s back down a little.
NWD is a good idea, I think, not only because of the gigantic growing Chinese economy, but because of it’s share price chart. Its IPO was around $2, and then it fell and remained around $.75 until mid July of 2005 when the stock jumped up. It did return down, but it has never gone back below around $1.40 since then, which means something good and permenant happened. Their numbers are also almost all in the black.
MRY had the same good numbers as NWD. What caught my eye was a pattern in their share prices. It spikes up and then drops a little, then spikes more, and drops. You can see this pattern for about the past 5 years. If it follows these trends, I predict it will be at $3.50 by November 2007.
Watch my stock IVAC tomorrow… too bad I bet the wrong way, and jumped out expecting the estimated results, (0.17 per share) and a price drop. Instead it came in at 0.45 a share this quarter. I just missed out on winning the lottery.
I’ll keep my eye on that. Trouble is, it’s not really a penny stock at $20+. They will get a huge boom in the next few days due to their amazing financial report, though. The afterhour trading already boosted it 25%.
If anybody runs across a stock with no or very little debt, and a running history of profit margins 10%+, and a P/E under 15… please, share the wealth…
Just did a quick screen and found these: SPM, NTO, QCC, TGA, ZL, HEC, EPM, ZIF, ATA, FXX. All of these meet the following criteria: Total Debt <= 0, Profit Margin of trailing 12 months >= 10%, P/E <= 15, Current Price <= $5.
I noticed a few of them have a rather large amount of red concerning return on assets.
Look for upcoming Q3 conference calls and financial reports. MCTI happens to have one at 4:30 PM EST today. I suggest a buy, if even a small one. It’s at $.24 as I’m writing this, which is already 9% up from the open price. I’m going in for 250 shares of it with a limit at $.23. With the holiday season coming up, meaning booming technology sales and retail, if anyone has a tip on a good stock, now is the time to get in on them.
I have over 2,500 shares of MCTI, more for the long run than day trading, they are a backbone of the semi-conductor industry which has been out of control recently
I’m also looking at ATVI (activision) they have a lot of games coming out this quarter and MMTC.OB
and MOSY has been steadily climbing since I got it (made about $500 on them so far) - I think their tech is really strong and is about to become integrated into a huge number of upcoming products (toshiba electronics, nintendo wii, XBOX, etc) for which they get royalty fees on every unit sold. so they are looking to double their profit in two or even one quarter, with no debt and litigation they just settled
Instead it came in at 0.45 a share this quarter. I just missed out on winning the lottery. 
