Comments InvestSource Blog:
Some Performers in a Really Bad Market[09.23.2008]
By Tom Allinder, New River Financial Group, LLC
There is no question that this is a slow time for traders of OTCBB and Pink Sheet stocks. Liquidity has become a big issue for all sorts of investments because of the sub-prime lending practices and the bill that has to be paid for that mess. Add in the credit crisis, high fuel prices and commodity prices going completely out of sight and you have a lack of liquidity that has not been seen for many years. When liquidity goes, it goes from the bottom up; this is to say that the lowest priced stocks will be affected first. I could go on and on about the lack of volume and interest for OTCBB and Pink Sheet stocks but as I have always said, performing stocks, though few in number are easier to spot in this market. Good companies with the right strategies can also separate themselves from the crowd as well. Finally, many weak companies are being weeded out of the market as more and more stocks sport and offer but no bid. On the other side, there will be a much better market despite the pain we are seeing out there now.
Stocks that are doing well in a bad market…
JAG Media Holdings Inc. (Pink Sheets: JAGH) has been very thin on news lately but nevertheless, the stock has been on the move… Late in August, the stock moved from around .15 to over .40 in just a few days. Since then, JAGH has been basing around the .40 level. Will the stock break up or down from here? Only time will tell but it sure has held up well after that run in late August and early September.
Collexis Holdings Inc. (OTCBB: CLXS) stated in their most recent news release (earlier this month) that they were a leading developer of semantic search and knowledge discovery software. Meanwhile the stock has begun trending up the last few days. On 22 September the stock closed at .48, up .02 for the day on well above average volume of 378 thousand shares. It is noteworthy that the stock has traded up 4 consecutive sessions now… See www.collexis.com for more info on CLXS.
Zippi Networks (Pink Sheets: ZIPI) for all practical purposes began trading on 11 September, 2008. While the company has been publicly traded for a while, it has never traded more than a few tens of thousands of shares a day. On 22 September, the stock closed at .275 on well above average volume of just over 600 thousand shares. Before this move began, ZIPI only traded an average of 5,000 shares a day. What is even more noteworthy is that it did so during a period of time that is probably the wildest that Wall Street has seen in many years… The stock has closed higher an incredible 8 consecutive days…
For more information on Zippi Networks, see: www.zippi.com
It is important to point out that there are many good companies out there. Just because a company is trading very little and at a low price does not mean that they are in terrible shape. They are a victim of the market conditions over the last year and a half. It takes a lot of thinking and work to figure out how to get recognized in this market. It can be done. A few companies out there realize the opportunity for what it is worth and are taking advantage of it!


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