{"id":46484,"date":"2014-01-20T05:35:02","date_gmt":"2014-01-20T10:35:02","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=46484"},"modified":"2014-01-20T05:35:02","modified_gmt":"2014-01-20T10:35:02","slug":"penny-stock-accidentally-blasts-1900-higher","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/01\/20\/penny-stock-accidentally-blasts-1900-higher\/","title":{"rendered":"Penny Stock Accidentally Blasts 1,900% Higher"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> \"Penny<\/p>\n

On January 13,<\/b> Google<\/strong> (GOOG<\/a>) made a big splash into the home automation market by scooping up privately held Nest Labs for $3.2 billion.<\/p>\n

The very next day, Nestor Inc.<\/strong> (NEST<\/a>) – a Rhode Island-based company that traded over-the-counter for less than one penny – watched its stock soar 1,900%.<\/p>\n

What gives? Investors confused the two companies, of course.<\/p>\n

Not just a few investors, either. For two days in a row, close to two million<\/em> shares<\/em> of Nestor traded hands.<\/p>\n

(And we wonder why Wall Street calls us the “dumb money!”)<\/p>\n

It’s not even the only case of mistaken identity that we’ve seen recently.<\/p>\n

Back in October 2013 – when social media darling, Twitter <\/strong>(TWTR<\/a>), announced its highly anticipated IPO filing – investors bid up Tweeter Home Electronics Group<\/strong> (THEGQ<\/a>) by 1,800%. (Its ticker symbol at the time was TWTRQ.)<\/p>\n

Naturally, both penny stocks have since come crashing back down to Earth, handing thousands of investors big losses and a big dollop of embarrassment.<\/p>\n

Forget the mix-ups, though. I’m not here to belabor the point that you should look twice before you hit the “Buy” button. That goes without saying.<\/p>\n

Instead, I want to drive home how extremely sensitive penny stocks are to news – and, more importantly, why that’s a reality we can exploit for serious short-term profits…<\/p>\n

Ever See a Stock Double Overnight?<\/strong><\/b><\/p>\n

Despite the misconception that all penny stocks are frauds, there are real companies – with actual businesses, sales and profits – that trade as penny stocks. Thousands of them, in fact.<\/p>\n

Of the almost 19,000 stocks traded on all U.S. exchanges, roughly 6,000 are penny stocks, trading for less than $1 per share. And among those penny stocks, more than 2,000 are profitable, which is as real as it gets.<\/p>\n

So what do you think happens when one of those penny stocks announces legitimate<\/em> news? Well, shares often double (or more) overnight. And they don’t come crashing back down, either.<\/p>\n

Want proof? Look no further than cloud-based videogame provider, TransGaming<\/strong> (TNG.V<\/a>), which happens to be an active recommendation in our premium newsletter, WSD Insider<\/em><\/a>.<\/p>\n

On January 6, the company was trading for $0.19 per share, at a market cap roughly equal to its annual sales.<\/p>\n

Then, on January 7, management announced its GameTree TV platform would be offered on smart televisions made by the $170-billion market cap Samsung, the world’s largest consumer electronics company.<\/p>\n

Sure enough, the stock rocketed 105% higher on the news… in a single day.<\/p>\n

Lest you think I’m merely cherry-picking an example, think again. Price doubles for penny stocks occur with incredible regularity.<\/p>\n

During any given month, there are upwards of 890 overnight doubles, which works out to an average of about 30 per day.<\/p>\n

\"\"<\/p>\n

In fact, based on our analysis, it’s not uncommon for the number of overnight doubles to average as high as 40 per day – like they did in 2012.<\/p>\n

Of course, with over 6,000 penny stocks trading on U.S. exchanges, the trick becomes distinguishing the good penny stocks from the mediocre (or the downright rotten).<\/p>\n

It can be done, though. Our experience with TransGaming serves as the latest proof. Be sure to tune in tomorrow to find out how. That’s when I plan to share my 10 Golden Rules for Investing in Penny Stocks<\/strong>.<\/em><\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post Penny Stock Accidentally Blasts 1,900% Higher<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Penny Stock Accidentally Blasts 1,900% Higher<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com On January 13, Google (GOOG) made a big splash into the home automation market by scooping up privately held Nest Labs for $3.2 billion. The very next day, Nestor Inc. (NEST) – a Rhode Island-based company that traded over-the-counter for less than one penny – watched its stock soar 1,900%. What gives? Investors … <\/p>\n

Continue reading “Penny Stock Accidentally Blasts 1,900% Higher”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-46484","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/46484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=46484"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/46484\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=46484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=46484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=46484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}