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Message: Structure of a penny stock

Structure of a penny stock

posted on May 15, 2009 12:01PM

After such a rousing reception from my intro,I had better follow that up with something with a lot of meat on it and live up to advance billing. Before getting going,Im happy that this board is so full of life characters and diversity. One ? i do have...can this be used as a dating board as well. ???Clavis can you clarify that?

MS Altakahashi is the mix of brain and beauty I adore. thought id give myself a plug before pming her. HI AK *blush*

I have no formal education, but consider 30 years on the trade floor and in related 'activities' to be akin to a PhD in the penny Market. I know little of the inner workings of majors, but am skilled and insightful on what to look for in the pennies

Todays penny market tutorial concerns something rarely addressed outside broker talk in the bar after a few scotches.....Structure of a penny deal

Structure is taken from the same as a construction site...the framework of the paper itself. Who owns the free and escrowed...at what price...whats the insiders history.?? is the president a front man for a promotional group? or maybe mobster types? What price was the ipo done at? where has the vend ins or pps been done and by whom?, These all form the 'structure' of a stock.

For instance,when an ipo is done at a dollar years ago the stock is refinanced say at 35c and falls over time to a 5c where it is rolled back and refinanced again by a new group, this is the type of structure I would look for. even better if the company stock price is lower than the pp on the rollback. It means there is no resistance on the way up to the first strategic resistance point, or financing price on the rolled back shares. As traders we refer to this as a thin or skinny stock.

Structure is as important to a penny player as the business and competency of management, in my opinion. Marriage to a penny is usually not in the cards (sorry AK) as we are here to take the easy money off the table by using our heads. By doing this and ensuring you buy cheap. it nullifies the downside and gives you a pretty good shot at a multiple type ROI, without the heavy lifting

I dont know if we discuss this stuff much here on the 300 jetclub, but feel free to pm me.

royrogers




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