The Promoters

One on of the facts of the penny market is simple promotion. Some people want to believe that stock prices move on their merits alone but the fact is that its simply not true. This is mainly due to the fact that there are thousands of companies that have their shares trading. There is just no way to know about all of them, theres just no way to follow all the venture capital ideas and business plans. 


Still these companies in the early stages of their development are reliant on the price of their stocks to exicute their game plans, for aquistions and fundings. How do these companies try to solve this problem and have their share followed among the thousands of companies competing not only in their fields of business for also for investment dollars.


Promoters in the industry host websites and are paid to tell the stories of the trading issues, it there form of advertising. You can find these websites all over the net some have ads on this page. These promoters begin what is a self fulfilling prophecy the stocks that get volume and movement are ones that people know about its that simple. 


I like to report on stocks that have huge changes in there are volumes because often that means that there is some type of promotion accompanied with positive news releases of some kind. Then I wait for rebounds in the stock price, it has just jumped for .10/shr to .24/shr it is almost certian that some investors will take profits leading that price back down. Once it aproraches the prior trading range is when I would buy and hold for the next move or major shift in the price. There are a hundred different ideas and this is one I have felt comfortable with. I also never invest more then half my available dollars at on time, always leave room to average down.


Say a company has a great idea and is experiencing some success and say I bouhgt it at .05/shr, if my timing isn't perfect and it won't be then if it hits .035/shr its a chance to double my position and lower my cost.


The key to remember is that promotion is good, it gets the story heard, find some good reliable sights and follow some of the issues. Don't pay any mind to their outrageous clams, do your own home work. Write if you need ideas. 

peix

Pacific Ethanol Inc (PEIX)

Pacific Ethanol Inc (PEIX): last weeks news that production could pick up significantly has sent the price of PEIX shares from .585/shr to 1.01/shr as the volume went from the ave 519k/day to 13.6m today 

Pacific Ethanol Inc. could resume ethanol production at its 60 million-gallon-a-year facility in Burley, Idaho.

Sacramento-based Pacific Ethanol (Nasdaq: PEIX) suspended production of ethanol at the plant in February because of unfavorable market conditions for producing ethanol. Now, the company could begin production as early as January.

The company put much of its operation into bankruptcy protection in May. This year, the company halted three of its four production plants — in Burley, Idaho; Madera and Stockton. Only a plant in Boardman, Ore., is still operating.

Pacific Ethanol also owns 42 percent of Front Range Energy LLC, a plant in Windsor, Colo.

The plants combined have an operating capacity of 220 million gallons a year.

The company could restart the plant because of the expected increased demand for ethanol production in California, from about 950 million gallons this year to about 1.6 billion gallons in 2010. Gasoline sold in California is blended with almost 6 percent ethanol, and that will increase to 10 percent next year.

However, a restart of production at the Burley plant in January depends on a number of factors, including approval by the bankruptcy court, rehiring and training staff, and restocking corn and other raw materials. Pacific Ethanol’s ethanol-producing divisions filed for bankruptcy protection, but not the parent — and publicly traded — company.

The bankruptcy court is set to consider the matter Dec. 14.

Pacific Ethanol produced 40 million gallons of ethanol last year in California, before the plants were idled, according to the California Energy Commission.

What to Watch For

MY OPINION

Several times a week we locate issues that have for good reason or for no reason at all have had a significant increase in price and huge jumps in volume. The fact is that stocks go up and down. What we try to showcase are stocks that are active, money is made or lost on stocks that move. The key is to watch stocks that jump wait for them to correct then get in. I like to play the exciting issues that show activity. Especially when stocks move up for no real reason at all. 

When stocks move due to fundamental improvement then there is a good chance that the issue is going to create a new plateau and move up. Hope this helps. Remember the key to making money in speculative stocks is buy near the trading lows. A rule of thumb that I like to follow is to find the issues that carry volume and buy them when they are no higher then 20% above the 52 week low price. We all have our methods this is a key one for me. I also never by a spec stock without checking out the CEO's background. If they have been successful before they are likely to do it again. And for heavens sake never buy stock in a company you can't call during normal business hours and talk to someone. Play the active charts, check the 52 week highs and lows.