Ex-Dividend Date on Forward Splits and Dividends

March 10th, 2010 by admin 5 comments »


Someone showed us an interesting dividend site yesterday although we have our own article about dividends

This excerpt is from the site Ex-Dividend Date

The Ex-Dividend Date is the most important date when you are playing a stock for a dividend or forward split! There are so many dates involved during the dividend process that some traders don’t actually understand when they are eligible to receive dividends. It is important to understand how the dividend process works and what role the ex dividend date plays when compared to the record date and payment date.
A trader who lacks the understanding of the dividend process can lose out on profit. Trading is a difficult occupation as it is, no being able to capitalize on trades for maximum profit is unacceptable. Failure to understand the dividend process can lead the trader into selling his stock to early which may mean taking an unneeded loss. Selling early will also mean the trader is ineligible for the dividend payout. Holding the stock to long after the dividend is paid out can bring other problems. Many traders may sell a stock after the dividend is paid out causing a dip in price. This dip will decrease the traders chance of maximizing profit.
The EX-Dividend Date is the first day a stock trades without the dividend attached. If you buy a stock on the Ex-Dividend Date you are not qualified for the dividend. Therefore, if you’re very interested in receiving a companies dividends, you must own prior to the Ex-dividend date.This also means you can sell a stock on the Ex-Dividend date and still receive the dividends even though they have not been placed in your account yet. Some of the other names sound more formal, such as record date and payment date but the one you need to focus on is the Ex-Dividend Date.
The Record Date is when the company begins to work on dividend payments to the shareholders, or the shareholders on record.
The Payment Date is when the company expects the payout to shareholders to be completed.
It must be noted that this can all happen rather quickly but that there can be a long period of time between the ex-dividend date and the payout date and that is very important in case you feel the need to exit ownership of a stock but would like to receive the dividend first.
For those long term buy and hold traders these problems will never arise unless your planning on buying a stock for the dividend or selling one after you receive your dividend. Most long term traders will hold a stock through the price cycles.

EX-Dividend Date and Penny Stocks
Dividends with penny stocks follow the same rules as every other company. With penny stocks problems have arisen during forward splits because a company may not understand how the process works and begin to sell shares they do not own yet. Not only is this a bad sale on the part of company ownership but now those shares are elligable for the forward split. These mistakes have been known to increase the share amount beyond the authorized share limit with the SEC having to step in and halt trading.
The main issue with penny stocks and dividends is the ability to pump and dump the dividend excitement. Pumpers create scams that drive the price of a penny stock up so that others may sell for higher profit and leave those traders waiting for dividends at a loss. There are a few ways these scams are perpetrated, anyone who has traded penny stocks for a while will notice these scams immediately. Hopefully they weren’t victims of these scams themselves. It can be a tough lesson to learn.
A reason companies often exploit penny stocks in this manner is their ability to manipulate penny stock traders who are often novices to trading and can easily be duped. One way a penny stock company will exploit the dividend process is to announce a dividend in advance of actually filing it. The press release will say something to the effect of: Company XYZ trading at .015 has just announced they are issuing a .02 per share dividend to each share holder pending shareholder approval. This causes excitement in the penny stock world, a 100+% dividend! Thats a big dividend for a penny stock company and then the pumping begins. After purchasing company XYZ they begin to place the dividend announcement on ever penny stock forum and penny stock chat room they can find. This causes the volume in the stock to rise which in turn causes the price of the stock to rise. While the price rises, those who own the company and own the majority of shares begin to sell into the excitement. This allows them to sell at a better price without worrying that the amount of shares they are dumping will drop the price per share. The may even continue to issue press releases that remind traders of the promise of the company and the fact that they are issuing such a large dividend. At a time in the future they will announce that there will be no dividend as a majority of shareholders voted no. Being that the same people who write the press releases also own 51% of the company this is obviously a fixed outcome and a very simple penny stock scam.

5 comments »

Posted in Penny Stocks

Tags:

Penny Stocks List- week of March 7

March 7th, 2010 by admin 1 comment »


If your new here, don’t forget last weeks results, some of them are continuing on our watch list. Last weeks Penny Stocks List

This Weeks List of Bottom Picks:

AMNP .30 pos divergence
PTOS .275 weird one, never goes up but….low floater.
SNDZ .50 Careful this one just dropped down from 2.00

This Weeks Runners

APNT-.35 Probably bad, currently setting up neg divergence and a bad candle friday but…its close.
SCLX .70 was a beast friday for 30% closed at HOD an made a new 52 wk high
TBIO.83 let it rest, rocked all week, Friday was low volume red. look for short pullback and entry.

Those are usually are longer lists but we can only call them as we see them.

STCA .22 right on bot ma’s coming down hard. look for a bounce from here. wait for positive volume, yes we see how scary it looks.

Remember, these are all chart thoughts, no insight into news or filings with no company contact.

Good Trading!

1 comment »

Posted in Penny Stocks List

Tags:

Our weekly penny stock list for Monday-results

March 5th, 2010 by admin No comments »

The Penny Stock List was posted there over the weekend and here are results midday friday.

AEXP holding that bottom keep on next watch.

BFRE holding that bottom but looking a little less promising

CPCF holding the bottom keep on watch

NVLT holding the bottom keep on watch

ATTUF quick pop to .55 mid week for a 50% gain.

BETM did nothing after that one day pop we talked about. Probably a pump.

RBYC up about 25% but looking less strong

CLSP is boring remove from watch.

SPBU up .02 and still looking ready for a move

ELTP on the upside of the 50 dma, thats what we were looking for, lets see how it closes WATCH CLOSELY

Not a bad watch list, the movers were easy to play, nothing tanked and thats always good. New penny stocks list over the weekend.

No comments »

Posted in Penny Stocks List

Penny Stock Trading Business Style

March 3rd, 2010 by admin No comments »


Penny stock trading is like any other business. Your goal is to maximize the return on investment. When trading, your inventory is how much money you have in your brokerage account. You then take this amount of cash and try to grow your account.

When trading, not every trade is profitable, you will need to figure out what are the situations that make for profitable trades. The only way to gain this knowledge is by trading. As you reflect back on your trades you will realize which situations were profitable and which weren’t even when your not in a trade. You can paper trade or open a practice account but when your out in the world think like a trader and realize how stocks are actually doing. You must do this yourself, headlines are worthless.

If you start trading with cash before you have enough experience, you may lose some or all of your account before you learn enough to be successful. This may turn you off from the stock market before giving it an chance. It takes years of trading to be successful at all sorts of trades. Still to this day I’ve met many traders that are able to trade runners better than me, but I can nail the dips in a stock trade before they can. Often I’ll make my money on the contrarian end of the trading cycle. Your main investment should be time, not money that way you will learn your way around the market and find out what actually moves a stock compared to what your being told.

Plan your trade before you enter it, what are you expecting to make, what will you accept for losses. Do not buy penny stocks and hope for the best. You are dealing with the unknown, you don’t know what news will come out tomorrow good or bad and thats just in regard to the stock, something in the world may effect the sector your in i.e. gold/oil/tech. There could be a terrorist attack, what you are doing is making an educated guess using all the knowledge you have.

Keep a record of every trade. Why you entered, what you were thinking then you can look back over months or years and evaluate your trades. Which trades were good ones, which ones were bad, do you have better days? How were you feeling on those days? If you’re not keeping these kinds of records your not doing your best to be successful and you’ll probably end up failing. When trading, there are too many factors involved that you will not remember when you look back at that awful trade of xyz 6 months ago.

When your review your trading log, whether it be yearly or quarterly you may find out that trading after a night of partying is bad for you or trading a certain sector for you is good. This information is invaluable. You may be great at swing trading but not be great at getting in and out for a dime. This knowledge should help you shape your trading plan.

Don’t let anyone fool you, trading is a very difficult process because of all the unknowns you are dealing with. Thats why the best traders are just making an educated guess if they say anymore than this they are simply not being honest. When analyzing a sector to invest in you will always find contrarian information and advice this is inherently stressful and you need to trust your knowledge. The better you are at being right by trusting your gut, the more likely you will succeed as a penny stock trader.

When you trade, you are alone, this is very solitary and I like it best this way. Others like to use chat rooms and trade in groups, some very large and some very small. Try different groups to see if you gel with them. Personally I find myself making more bad trades in a group as the chat room people are constantly excited by one stock or another. Keep it in perspective though a chat room is a great place for the pump and dump crowd to get in and pump up their penny stocks to make a buck off of unsuspecting beginners.

With all this in mind, the rewards of being a successful trader are huge. There is a lot of money out there to be made. You will probably work from home or the office and develop your own schedule. Just don’t try to take care of 5 babies and trade from home. Your environment needs to be conducive to trading. An easily manageable area that you are completely comfortable with minimal distractions.

No comments »

Posted in Penny Stocks

Tags:

Marching in the new list!

February 28th, 2010 by admin No comments »



Penny Stock List to keep an eye on. Our double bottom play from last week is OPMG should continue.

PENNY STOCKS BOTTOMS:

AEXP .25 this one looks great. Sitting on the bottom with positive divergence, its a MUST.

BFRE .38 bottoming.

CPCF .69
IXMD .30
NVLT .25 not ready yet but bottoming

PENNY STOCKS PUSHING THE TOP

ATTUF .39 its a 52 week high and has been for a week, tight sideways 50dma ready to push it up.
BETM closed at .30 began at .16 nice one day pop. Needs to be watched.
RBYC .31 Been watching this one walk up weekly since the teens. Still Going Low Volume

Other Bullish Penny Stock Picks

CLSP .41 was .50 higher 2 days back and all candles are bullish.
SPBU .20 staircase up since .10 and room for more.

ELTP .09 trading between the 50 and 200, support is the 200 dma and the 50 dma is resistance, .09 and .10 could go either way but when it pops it goes up 100%….check the chart :)

Don’t run out and buy them all, chart them and lets get ready to rock this week!

No comments »

Posted in Penny Stocks List

Tags:

We caught OPMG on that double bottom!!

February 27th, 2010 by admin No comments »

Nailed it, OPMG took offon a fairly slow Friday. Our list came out Sunday and we had plenty of time to get in as it held the double bottom and traded sideways. Hopefully it runs for a few days, it pulled back a little towards the close of Friday. If we run expect some resistance at the 50 dma. If we pull back its a good buy (triple bottom) where we just left. Keep an eye out for news or filings that can change everything.

No comments »

Posted in Hot Penny Stocks

Penny Stock Tools

February 25th, 2010 by admin No comments »

We all know that Penny Stocks are a risky investment. To reduce the risk of trading these stocks you must work on some basic guidelines of what the company looks like as well as the chart of the specific penny stock. The more knowledge you have about reading charts and the back grounds of penny stocks, the better off you will be.

Research is the key to finding successful penny stock picks. You will need a stock screener to find stocks that meet your first criteria. You will also need some help with reading about a companies financials and how to dig through their SEC filings. You must learn charting basics. We have a helpful forum on our site but still, don’t just trust, gather ideas and investigate.

Once you find a stock and the chart looks right, watch it trade for a day or 2 and then plan your trade. What price are you willing to buy at and what price will you sell. How can you determine this?

This type of research can be a chore, it can be difficult and tiresome. Finding ideas on our penny stock site will help you. Then you find a chart you like and then dig through the company. If you dig through a company before checking the chart, you’re wasting your time.

There are some things to speed along the process. Join our forum and become active, ask questions about stocks, read our newsletters, look at our picks and our screened stocks. Use the forum to bounce your fist picks off of others. We do a good job of getting rid of the pumpers, dumpers and other scammers but some still get through. So don’t just trust, do your own research and read our newsletters.

Your knowledge and gut instinct are the best tools out there, we like to provide a site that facilitates your learning about penny stocks and helps you spread your knowledge. To other learners we love if you place your picks and we can watch them run. As professional traders we love watching other people make picks, the more good eyes watching the market the better chance we have to score big! There are also plenty of articles we have published that can help you get acquainted with these inexpensive stocks and the difficulties of trading them.

The best part of The penny stock blog is the knowledge you can find everywhere you turn. Because crazy constant pumping is not aloud, the board seems quieter than other places where penny stock pumps are why the board was created.

You don’t want to use any one tool for determining how to trade these otcbb stocks you need to use all the tools mentioned and lean which ways work best. Sometimes, sitting on the sidelines is better than attempting poor thought out trades.

No comments »

Posted in Penny Stocks

Tags:

Penny Stocks Picks List-Feb 20.

February 21st, 2010 by admin No comments »

Penny Stocks Picks Below! If you buy penny stocks, watch these, don’t rush out and buy, this is a watch list. These are stocks that should be put on your watch list after charting. The lower volume stocks should be watched for positive volume alerts while others should be watched for reversals.

Penny Stocks List at their Bottom:
BTML .24
FSWA .35
SRGZ .45

Double bottom OPMG .038

Penny Stocks List Breaking Out.
APNT .37
EQPI .35
SBAT .30

Short list this week, Good Luck!

No comments »

Posted in Penny Stocks List

Strategies when Buying Penny Stocks

February 12th, 2010 by admin No comments »

We’ve written a lot of articles about picking the right penny stocks. This is obviously a very important step, the next is timing your purchase. When should I buy and how many shares should I buy are also important questions to think about. You should have your strategy mapped out before you make your trade.

The goal is to make money and you are able to do this if you buy low and sell higher. This will not always happen and you have to have your strategy in place. Be prepared to take a loss, will your sell be triggered by a certain % of loss or will it be triggered by support breaking. Set your stop loss and forget about it. You are buying the stock because you expect the price to rise, when it doesn’t there was a flaw in your strategy or your penny stock picks. Look back at our articles on how to review a company and what to look for in share price as well as share structure. If you do your due diligence and the stock drops in price you need to have that stop loss set. A penny stock can and will have you lose every cent you’ve invested in it if your not careful. Being able to minimize losses is a must when trading these low priced over the counter stocks.

Some traders will buy a company at a support level but will be prepared to add more shares if the company dips again where they will then add more shares. This can be a solid strategy but its risky as the stock may continue to fall and now you’ve lost more of your initial investment. The strategy can payoff by buying a second lot of shares and the price rises, you can sell, mitigating the loss on the first batch and sometimes covering the cost all together.

You sell shares to gain profit as the goal. Selling to avoid losing more money locks you in for a loss but that loss can be a lot smaller than full loss of investment. In the penny stock market you will take a lot of losses and have a lot of runners. What you need to be able to accomplish is let the winners run and maximize profit while dumping the mistake and lessening your losses. Cut your losses and let your runners run and never ever look back.

Selling for a profit is even tough. You may think its easy but its not. Your trading a thinly traded stock with a low float, you make the right call and news comes. The stock takes off and every tick is 30% gained and the amount keeps getting higher. Not selling has been reinforced now the stock begins to dip, if you sell here you lose a percentage of what you could’ve had, as you hesitate, the stock dips more. You hope it goes back up to the high and don’t sell. This happens all the time. Thats why we never look back. You will sometimes sell at the top and sometimes you’ll miss you can’t look back. Penny stocks are a quick trading game. Sometimes a split second is the difference between a thousand dollar gain or a hundred dollar loss. You need to be able to take quick profits as well as realize when you have the runner. Plan your trade out before time, entry and exit, then remember to trade your plan. Never fall in love with a penny stock.

No comments »

Posted in Penny Stock Investing, Penny Stocks

Penny Stock Picks: 6 rules before you Buy Penny Stocks

February 5th, 2010 by admin No comments »

Penny stocks are high risk, high reward stock plays. When buying these high risk stocks you must pick the right stock to buy at the right price. If you pick the wrong stock or you time your purchase poorly you will lose some money, maybe all of your investment. On the other hand with the right stock and the right timing you could make a huge profit on a small investment. This is stock trading and all stock trading is unpredictable, this becomes even more apparent in penny stocks. Even with research you will pick wrong some times, limitting the losses and riding the profits will enable you to be successful and limit your overall risk.

1. Its a safer to play the listed penny stocks or the over the counter bulletin board (OTCBB) stocks than the pink sheets. Especially when your just learning. The OTCBB stocks must file with the SEC so there is more information available on the company such as the share structure and financial background. You can also find plenty of low priced stocks trading on the major exchanges such as the nasdaq.

2. Look at a companies history, watch out for reverse splits, look for a long record of trading without manipulating stock price or operating shares. These companies will be safer. There is a lot of fraud in the penny stock market and looking at a companies history will help you weed out some of the bad ones. At first avoid “penny stock picks” especially of new companies, just watch the price you could buy at and outcome. They are not usually a good investment, but may be good for quicker trades once you know what you’re doing.

3. Find out what makes the company valuable, do they have a lot of land, oil, gas or diamond mines. Are they ripe to be acquired by another company, are they making their own acquisitions. Do they have patents on their products or patents pending. What is their reputation in the field. If you live in their area or know someone in that area, go visit the facilities.

4. What are the negatives of a company, what do they owe, what are they’re debts and liabilities? If a company you like has too much debt, when that debt is called they may need to sell shares (dump) into the market to raise the capital. Ideally you want a company with no debt for the time frame you wish to own it.

5. Penny stocks in the areas that are running on the major exchanges are usually a good bet, if oil is strong look for oil penny stocks. Same for gold et al. Emerging markets and fast growing industries are also ideal for investment. Stay on top of the market in general take that knowledge to these low priced stocks. Research what will be hot over next few years and then dig through these low priced companies.

6. Decide how much money you will spend/invest on penny stocks. Just a little bit of money, a small percentage of your portfolio and then don’t go over your budgeted allotment. Always be safe with your money, don’t fall in love with a stock, don’t risk money you don’t want to lose. Often traders will allocate 5-10% of their portfolio to the riskier stocks.

No comments »

Posted in Penny Stocks

Tags: