I've said it before and I'll say it again - what traders say doesn't mean anywhere near as much as what they do with their money. So, when real money plows into real penny stocks on a net buying basis, I listen. Yesterday, the most purchased (net) penny stocks were Spongetech Delivery Systems, Inc. (SPNG), Syndication, Inc. (SYNJ), BioCentric Energy Holdings, Inc. (BEHL), and newcomer to the list, Warrior Girl Corp. (WRGL). Care to know why?
Spongetech Delivery Systems, Inc. (SPNG) It's back. I'm pretty sure I've looked at SpongeTech no less than a couple dozen times in the last three months.
The M.O. since April's surge has been sell at the peaks and buy on the dips, since this penny stock is still a 'trading' stock more than a stock that's priced based on a logical valuation.
So are we ebbing, or flowing now? I'd say we're getting ready to flow (go bullish) again. Yesterday's low of 10 cents was the second time in a few days we pushed off that level (read 'support'). And, volume tends to peak and trough along with the stock's price..... and volume has all but dried up this week. In other words, perhaps the sidelined buyers are getting ready to plow in again.
Oh, for what it's worth, yesterday's news should be more than enough fodder to prompt said buying. The company reported $6.9 million worth of orders so far in July, and then announced they'd purchased Dicon Technologies. Dicon has retail distribution channels that SpongeTech can tap into right away. Investors should love it today, since they only had an hour to love it yesterday before the market closed.
If the $6.9 million figure is for real and sustainable (a fair enough question to ask, given how unbelievably positive the whole SpongeTech story has been), then the company's now on pace to do annual revenue of around $250 million.
Syndication, Inc. (SYNJ)This isn't our first encounter with Syndication Inc. either. I suggested buying it strictly as a momentum/hype trade (at $0.0007) on
June 4th, I then recommended you take your profits at $0.004 (yes, a 385% gain) on
June 8th. Good thing too... the stock was crushed the next day.
So how did I know to get out at that time?
It was nothing the company did right or wrong. It's just that I've seen this kind of crap a million times in the penny stock world (where BS and hype run rampant). Syndication is a non-reporting pink sheet company that's controlled by the pumpers and dumpers. Rather than gripe about them, I'll just ride their coattails (and I did).
Anyway, though volume's been low of late (a pivot sign?), we've seen the closing price recover fairly well - off the low - over the last three days. Maybe the pumping effort is building up enough steam for another go?
BioCentric Energy Holdings, Inc. (BEHL)Actually, though BioCentric was one of yesterday's most-purchased penny stocks, I'm pretty sure the interest came from the 'chasers' who saw Monday's 120% gain and wanted to get on board - we really haven't seen the same enthusiasm since then. You can bet almost anybody who was in a position before this week is looking to sell whatever BEHL they've got to whoever is willing to buy it. (I would anyway).
So, this isn't the kind of net buying I like to follow. I'd actually be more inclined to short it if the support at $0.025 broke down.
Oh by the way.... the company posted a really strange press release this morning, that was basically a speech rather than information. CEO Dennis Fisher welcomed Barry Cohen to the viewing of the first run of BioCentric's photobioreactor (sounds like bad science fiction, but it's a real thing).
I suppose it's possible that the stock's runup was in anticipation of today's running of the Photobioreactor. As riveting as watching a Photobioreactor sounds, better Barry than me.
I'm guessing the odds of "Buy the rumor, sell the news" are good, in support of my pessimistic opinion. (Just for the record, I'm not short BEHL.)
Warrior Girl Corp. (WRGL)
OK, you at least have to give the company some credit for a creative name.
I do like that this stock rallied from Wednesday's closing price of 35 cents to Thursday's high of 68 cents. I don't like how this penny stock fall back to a close of 45 cents by yesterday's close... though it's still a 28% gain.
The prompt for the temporary surge is actually pretty cool. The company's Pyrolitic Hydrocarbon Concentrator unit (where do they get these names?) is being tested this week. If it works, it will be able to extract oil from tar sands and oil shale. Investors loved it for most of the day.
At the very least I see this is a good trading stock... lots of hype, and not a lot of certainty. The company's doing a great job of keeping good news flowing too - the kind of stuff buyers like to latch onto.
Since it's a non-reporting pick sheet penny stock, I'd normally just leave it at that. This technology though.... maybe there's actually something to it.
In the short run I'd trade downside reversals at the ceiling of 68 cents, and I'd possibly trade a breakout above 68 cents. And, I'd buy on any excessively sharp dips. As for right now (today) though, I wouldn't do anything other than put it on your watchlist... I'm not yet sure what to make of yesterday's bar. Stay tuned; I'm sure it'll be trade-worthy soon.
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