Too Hot Investment Thread

The lucid merger must be close

 

Trust me and sell it all unless you really believe in the concept and want to hold for 5 plus years. Very few Apples, Amazon’s etc. I’d take my winnings and diversify in fourish other risky stocks and some very low risk ones.

 

Made a fortune in the last couple months with FORW.. bought about 2.1 million shares over a year ago and it went over 1.00 recently, totally unexpected

 

I put some FORW profits into some other pennies and have gotten really lucky recently with GCAN, ALST, PHBI.. I got on a hot streak and now I am gun shy and don't want to ruin my streak and not sure what to invest in next.

 

I remember almost getting into WDLF in the past. The one stock I mentioned ALST, I still own, it ran from .05 to .30 and has settled around .15 - .18 and seems to have good support there if anyone wants a "safer" penny. Market cap is only $2 million, they have gotten a couple covid contracts and if they get a few more, I think this stock can easily trade between .50 - 1.00, I've got a bunch and I'm holding until then. But of course, like you say, this is a crapshoot!

 

This is a great thread. Hopefully it keeps running. I recently just started investing so a lot of this is very new to me.

 

The country has been more or less shut down for a year. As the vaccination program is set to reach critical mass in the next few months it should unleash a pent up demand for travel, demand for gas (anticipate of this may explain recent gas prices increases) , businesses that weathered the shut down will inherit the business and clientele that would have been scattered across wider choice of options for consumers and may seek to expand. What would be wise investments to take advantage of this? Gas/oil stocks, cruise lines, large retailers? Will it hurt some other stocks i.e. zoom and Citrx?

 

Do you ever have problems selling large amounts of shares in penny stocks. I do not ever look at them, I am just curious.

 

For anyone playing the penny stocks, here is my formula that I have been successful with recently:

1. Use otcmarkets.com as your primary source of info, make sure the company is current on it's filings (no stop signs, warnings, or caveat emptor) I'm not saying those can't make you money, but you will feel more comfortable with companies that are current.

2. On otcmarkets.com, make sure the market cap isn't too far out of whack with what the company is doing and it's potential. You don't want to invest in a company that is losing money and has a $100M market cap. I have been most successful recently with companies under $10M market caps. But the higher the market cap, the more revenue or potential you need to find in the company.

3. On otcmarkets.com, check out the share structure. What is the authorized share count compared to the outstanding share count. If the numbers are close, a reverse split could be in the near future. Check the numbers again in a few days. Have they increased? Could mean the company is diluting.

4. Go to investorshub.com and see what the investor sentiment is. If most of the posts are disgruntled shareholders bashing the company and the executives, probably good to stay away. If there is a lot of optimism, it could be a winner. Also check out what kind of following there is on stocktwits.com.

5. Once a stock passes those checks, add it to your watchlist and watch how it trades for a week before considering buying. Never buy in the middle of hype unless there is a real reason for it, otherwise you will get left holding the bag.

Disclaimer: penny stocks are risky and can make big swings both ways.

 

Depends on the stock and how many shares you own. With FORW I bought 2.1M shares around .01 and was selling from .30 all the way to 1.30 but there was a lot of hype around this one so never a problem selling. I still own over 600k shares, just letting those ride. But I know what you mean, some of these stocks hardly have volume at times and if you need to sell, you are stuck. With penny stocks I think the best strategy is to buy when the volume is low and sell during the hype, but be prepared to hold until there is enough hype to sell it.

 

If you want to buy something to sit on for a little while, look at IOTC
Provider of Internet of Things Connectivity and Energy Solutions | Iota
Press Releases | Iota

Going around .30/share.

The plan is to build out and sell the company. A similar company went for around 30 bucks a share.

I'm in with 5500 shares and adding.

I have a client who is 200,000 shares in plus warrants. He turned me on to this company.

 

Am I the only one here interested in Bitcoin? It is over $52k currently. It's absolutely insane.

 

I won’t invest in anything that doesn’t have intrinsic value. People can and have made money off of Bitcoin and congrats to them, but tomorrow it could drop to a dollar and would still essentially be priced fairly, because fair is only how many people want it. Not my cup of tea, especially since I’m not chasing returns right now.
At some point I might drop a few dollars into one of the lesser ones on a lark, but that would fully be money I expected and could afford to lose.

 

I get that. I put in a good chunk back in early December knowing that it could all disappear. I didn't put a penny in that I wasn't emotionally prepared to lose. I also think the risk of it dropping to nothing is very low at this point. Widespread adoption is starting to happen with major players. I completely understand the reasons why people are staying away though.

As far as the intrinsic value yes, it isn't based off of something physically worth something. It does fall in line with pretty much every other currency however the built in scarcity limits inflation.

 

The best comparison people have made for it is gold. But good has intrinsic value for countless products and reasonable, including a several thousand year history.
Other currencies are managed by governments and can be predicted and somewhat controlled. They also trade against each other which regulates their fluctuations and baselines their comparative value.

Bitcoin has none of that, which is why some days it loses 20 percent, others it makes 20. Again, more power to you if you make money with it, hope lots of people do. But if someone wants to explain to me exactly why it’s worth 1000 times more than it was a couple of years ago, I am all ears.
And the other issue is that it hadn’t even really figured out what it is, a commodity or currency (or a mainline investment tool for that matter). One day it behaves like one, the next day the other. It is purposely scarce to drive up value, but a currency’s most important characteristic is its liquidity. Hence the massive fluctuations, when that happens with the dollar the fed lower rates, opens up the trading window more etc. What can Bitcoin do?
Again, money to be made in it for sure, but the downside risk is higher than almost anything else out there.
/rant

 

The value has gone up due to trust (in the idea and in the integrity of the blockchain). As more financial institutions, whales, and companies trust it the higher the value goes. I think ultimately it will end up being what it is intended to be: a currency. As far as liquidity right this second I can convert it to any fiat currency I want.

I'm not trying to sell anyone on anything because I'm waaaaaaay too new to all of this. I'm just trying to explain why I have long term trust in cryptocurrencies.