Invest like a skeptic not a Copenhagen Climate Change-ologist!
December 07, 2009
– Comments (7) |
RELATED TICKERS: F
Invest like a skeptic not a Copenhagen Climate Change-ologist!
Ever get into a high risk, low priced, penny stock and wonder if you just opened a position on a pump and dump scheme stock?
Well... my advice as a moron front slash nerd...not one of those smart people analysts....
Is to make sure to get into penny stocks (if you must get into them at all) that are from company's you can at least see their products/services everyday.
Like a beverage or candy bar or clothing company that indeed sells their stuff at your local grocery store or 7/11 or Big Lots.
If you have such a stock then take some time during each quarter to make sure people are actually interested and buying the products...
Trucks come in on Sunday's and so re-stocking occurs first thing Sunday Morning. So do not go in on a Sunday Morning and look in dismay as the shelf is full of your product without a single buyer!
I've done that already...fretting that no one is buying Dr. Pepper and forgetting that it was 9:00 in the morning on Sunday. Sure enough when i went into the same place on Wednesday....1/3rd to 1/2 the stock was sold.
So......
Is your stock a pump and dump scheme? Not if you strongly believe in the company's next earnings release base on your customer observations....It may seem silly to be a "secret shopper" and not get paid for it.... but in effect you are getting paid to be a "Secret Shopper."
And better to be a secret shopper than an idiot wondering why his/her penny stock is trading sideways to down for days/weeks/months. Don't invest in a stock like Al's Ouija Boards if you can not find a single Al's Ouija Board at Toys R Us....
Don't invest in a high risk stock you have no visibility on....
Cause with visibility of sales and customer attention/curiousity... it makes you that much smarter and able to *laugh* and *shrug off* assaults and attacks from the SHORTS labeling your stock as just a pump and dump scheme.
I am sure there are plenty thinking stocks like (F) FORD are pump and dump scheme stocks.... They've been proven wrong in 2009.....let's prove em wrong again in 2010.
RSS Headlines
Fool UK