and Pink Sheets August 19, 2011 PSW Staff |
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unlisted securities is to screen for volatility. OTC BB and Pink Sheet stocks are inherently much more volatile than listed stocks, so rest assured that even the least volatile of the bunch will still make bigger day-to-day moves than their blue chip counterparts. We'll take a look at the five most volatile and five least volatile stocks on the OTCBB and Pink Sheets, and see if we can find any glaring differences, and possibly stumble upon some opportunities in the process. We eliminated stocks trading below 10 cents because had we not done so, the list would have been dominated by them. You will still notice that the bulk of volatile stocks are lower priced, and the bulk of non-volatile ones are higher priced. We also eliminated stocks doing less than 25 trades per day because some of the very lightly traded stocks will automatically make big moves from day to day as a lack of market makers means wide spreads between the bid and ask. Highest Volatility Issues POTG (Portage Resources) Price: $0.17 Revenues: $0 Total Cash: $533 Shares Outstanding: 637,000,000 UTOG (Uniontown Energy, Inc.) Price: $0.40 Revenues: $0 Total Cash: $30,000 Shares Outstanding: 225,000,000 PUNK (EPunk) Price: $0.33 Revenues: $200,000 Total Cash: $20,000 Shares Outstanding: 25,000,000 (Recently Underwent 1 for 100 Reverse Split) HDSI (HDS International) Price: $0.29 Revenues: $0 Total Cash: $4,000 Shares Outstanding: 538,000,000 BERX (Bering Exploration, Inc.) Price: $0.52 Revenues: $0 Total Cash: $532,000 Shares Outstanding: 24,000,000 Lowest Volatility Issues FUQI (Fuqi International) Price: $2.92 Revenues: $476,000,000 Total Cash: $173,000,000 Shares Outstanding: 28,000,000 ADGI (Allied Defense Group, Inc.) Price: $3.02 Revenues: $142,000,000 Total Cash: $34,000,000 Shares Outstanding: 8,000,000 GALT (Galectin Therapeutic) Price: $0.91 Revenues: $0 Total Cash: $8,000,000 Shares Outstanding: 74,000,000 LOGL (Legend Oil and Gas) Price: $2.24 Revenues: $62,000 Total Cash: $52,000 Shares Outstanding: 63,000,000 ADPT (Bering Exploration, Inc.) Price: $2.78 Revenues: $0 Total Cash: $350,000,000 Shares Outstanding: 108,000,000 The obvious take away here is that less volatile unlisted stocks are of higher quality than high volatility ones, but it important to understand why. Heavily promoted stocks will see big one or two day moves on no news, and then will see even bigger one or two day moves when the promoters and high risk lenders decide to dump their shares. This means that on any given day, the highest volatility stocks will likely be in the midst of a pump and dump. The lower volatility issues are more likely to have seen steady price movement in the past, and will see more sustainable price action in the future. This is because they probably do not constantly issue press releases, and then spend more time disseminating them than actually growing the business. Yes, you may not be able to acquire gigantic positions in these higher priced, higher quality companies, but you may still find substantial short-term gains and more importantly, live to trade another day. Unlike most penny stock websites, PSW provides completely UNBIASED analysis. In other words, we do not accept compensation in any form from companies or third parties to promote their stocks. This means that you get analysis and opinion on Small and Micro Cap stocks that is untainted and completely transparent. This is in stark contrast to 99% of all “Free” penny stock reports and “services”. Sign up below to get our free, unbiased, weekly newsletter delivered to your inbox, or follow us on Facebook, Twitter and LinkedIn. You will also receive a free, no strings attached two-week trial offer to access our premium service. Here, you'll get full article access, member exclusive articles and access to our real-time, unbiased portfolio that is up more than 8000% since 2003, as well as our weekly members only portfolio update. |