Wednesday, February 3, 2010

Find Out If Your Speculative Stock Is Being Promoted

Find Out If Your Speculative Stock Is Being Promoted
Stock Promotion
If you have followed speculative stocks for a while you should know that their is a degree of promotion or manipulation when it comes to small companies. What these companies do is higher a stock promoter to promote their stock by sending out mass e-mails, P/R, “Research Reports” ect.. Most of the time those stock promoters are compensated in freely traded shares or actual cash money. With promotion comes spikes in stock price followed by a dump, knowingly called a pump and dump.
In this article I will show you one place were you can type in your small cap, micro cap, speculative stock or if you just have suspicion in a company’s ticker symbol. This tool will bring back a listing of promoters if your stock is or has been promoted. This list will also have have dates when issued and if that promoter was compensated or not. Let me show you how.

Finding The Promoters
1.)Go to , I have found it best if you register to use this site, so go ahead and register an account. It takes not time at all, I also suggest using a e-mail account that you don’t care about because they will send you daily news letters with the latest promotions, if that is something you want to get then by all means use your regular e-mail account.
2.) Once registered and you verified your account, login and navigate to the left hand side of the page and look for the “Search” text box.
3.) Enter the ticker symbol that you want to check out and click search. For this example I will use NXTH as my ticker because I know for a fact it has been promoted in the past.
4.) Explanation
So here is the list of Promotions, it includes the promoter name and the date the promotion starts. What is funny is sometimes those promoters are on StockTwits and do a little promotion there as well. so as you read those lists keep an eye out for familiar names. One example form the list above is “OTC Picks” they are on StockTwits and pump there picks on there as well, just something to keep in mind when reading those tweets on StockTwits.
5.) If you are following along with me click the first link or the company name, and a list will appear with the promotions. I have pictured just one of the many promotions, highlighted are the most important aspects to pay attention to.
6.) Note
The key information is the promoter, the date, and how the promoter was compensated. If the promoter was compensated in cash then they will just do what they were paid for and push out some e-mails or a research report. On the other hand if they were given freely traded shares that promoters is going to pump really hard so they can sell into the pump and dump their shares on the suckers that bought into it.

Profiting From The Promotions
So if you find your stock is being promoted how could you profit from the promotion? Well I do not recommend buying into the pump fore you do not know when it dumps, although some have gotten lucky buying in. So, we wait for the signs of selling when the promotion is over and short the stock! I mean we know it will not hold those $1 plus spikes, we do know it will sell off and crash, which is the only predictable thing we have. When you spot a promotion and see it spiking hold back that trigger finger and gut felling to buy into it as this is your first instinct. Do not think you are missing out on easy gains, the easy gains come from the fall of the stock, have patients. The hardest part of profiting from the sell off is finding shares to reserve so you can short it. If you can get your hands on some shares then you are set when the sell begins.
You can also see theShort Interest in a stock to see just how much of the float is betting against the stock in the first place. So when the dump is on you will know, it usually will be the first sell/red candle day as well as the volume starting to fade as buyers leave. All signs setting up for the sell off.
This is what happens!

The promotion, nothing but green days, then out of no where the huge dump!!! This chart is classic and is ridiculously funny, which makes for a prime example.

Combine This with….
Combine this tool added with my ways of finding those spec stocks and you have built your self a speculative stock strategy with an edge!
Check out these 2 articles:
Finding high growth speculative stocks
Finding the latest HOTT stock picks!

Hope you enjoyed, please share your thoughts below

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