SlideShare a Scribd company logo
Hottest Penny Stocks – Part II




Hot Penny Stocks to
      Watch
Disclaimer
Stock speculation is very risky
Do not trade with more than you can afford to
lose.
Seek professional investment advice.
This is not investment advice.
No warranties, you are on your own.
This is not suitable for all investors
Penny Stocks to Watch
My favorite type of penny stocks to watch are the
public shells that can be used for reverse mergers
A reverse merger is when a private operating
company is acquired by a shell (non-operating)
public comapany.
This is done so the private company can go public
fast.
Reverse Merger Price Jumps
With the merger, the shell may go from a small
market value to a large market value in a few
months
For example, the shell may have a market value of
from $100,000 to $500,000
The shell shareholders get to keep usually 5-20%
of the new merged company
The merged company may be worth millions
Hypothetical Jump in Value
Do the math, if the shell was worth $100,000
The operating company is worth $10 million
Then the value of the merged company should be
more than $10 million
So if the shell shareholders keep 5% of the total
new, merged company, they have stock worth
$500,000 or five times their original investment
Reverse Merger Example
    (chart courtesy of Stockcharts.com)
RMDM
RMDM was a speculative, sub-penny stock that
took off after a reverse merger
Huge profits were made by the original holders
Note that it went right back down again
 For more such stocks see my YouTube video
        “Hottest Penny Stocks Part I”
RISKY!
While large gains can be made by sophisticated
players in these stocks, they are very risky
Most OTC shells will not merge in a given year
They have little or no public information and
what is there may be incomplete, misleading or
even deliberately false.
Merger stocks tend to rise and fall FAST!
Never risk a lot of money in them
Where to find them
Reverse merger shells are found in the Pink
Sheets and on the OTC Bulletin Board
Pink Sheet shells may not be providing public
information
There is no subsitute here for educated, tedious
research
Experience and knowledge can pay large
dividends here – ignorance is expensive
Learn More
Subscribe to my YouTube videos
Subscribe to my blog
www. investing-performance.com
Read My Book on Amazon.com
               How to Pick Hot
               Reverse Merger Penny
               Stocks
John Lux
Trader, investment banker, former
OTC Market Maker and attorney
Lux.Investor@ gmail.com




            Copyright ©John Lux 2011

More Related Content

Similar to Hot penny stocks to watch

Good penny stocks for 2011 2
Good penny stocks for 2011   2Good penny stocks for 2011   2
Good penny stocks for 2011 2
Practice of Law
 
7 Categories of Stocks that Every Investor Should Know.pdf
7 Categories of Stocks that Every Investor Should Know.pdf7 Categories of Stocks that Every Investor Should Know.pdf
7 Categories of Stocks that Every Investor Should Know.pdf
Insights success media and technology pvt ltd
 
Stock trading strategy - when to sell your hot stock
Stock trading strategy  - when to sell your hot stockStock trading strategy  - when to sell your hot stock
Stock trading strategy - when to sell your hot stock
Practice of Law
 
Penny stock tips
Penny stock tipsPenny stock tips
Penny stock tips
Practice of Law
 
How to pick Quality Stocks.pdf
How to pick Quality Stocks.pdfHow to pick Quality Stocks.pdf
How to pick Quality Stocks.pdf
Shreya292338
 
How to pick Quality Stocks.pdf
How to pick Quality Stocks.pdfHow to pick Quality Stocks.pdf
How to pick Quality Stocks.pdf
Shreya292338
 
Stock trading tips - view stocks like a market maker
Stock trading tips  - view stocks like a market makerStock trading tips  - view stocks like a market maker
Stock trading tips - view stocks like a market maker
Practice of Law
 
Naked short selling
Naked short sellingNaked short selling
Naked short selling
Practice of Law
 
PROFILE OF A SUCCESSFUL INVESTOR
PROFILE OF A SUCCESSFUL INVESTORPROFILE OF A SUCCESSFUL INVESTOR
PROFILE OF A SUCCESSFUL INVESTOR
SREENIVAS IYER
 
Penny stocks site
Penny stocks sitePenny stocks site
Penny stocks site
germvanish
 
Whose Hand Is In YOUR Pocket?
Whose Hand Is In YOUR Pocket?Whose Hand Is In YOUR Pocket?
Whose Hand Is In YOUR Pocket?
Diane Bender
 
Seed Valuation Primer
Seed Valuation PrimerSeed Valuation Primer
Seed Valuation Primer
tepatton
 
Against Index Funds
Against Index FundsAgainst Index Funds
Against Index Funds
Christopher Devlin
 
How Wealthy People Use Professional Money Management
 How Wealthy People Use Professional Money Management How Wealthy People Use Professional Money Management
How Wealthy People Use Professional Money Management
freddysaamy
 
Definition of a stock
Definition of a stockDefinition of a stock
Definition of a stock
labibmouri
 
10 investment mistakes
10 investment mistakes10 investment mistakes
10 investment mistakes
MarkDavison38
 
Ninja trading system
Ninja trading systemNinja trading system
Ninja trading system
stockpickssystem
 
Guide To Understanding The Stock Market
Guide To Understanding The Stock MarketGuide To Understanding The Stock Market
Guide To Understanding The Stock Market
Lakesia Wright
 
Katalyst wealth a guide to grow your wealth by 190 times
Katalyst wealth   a guide to grow your wealth by 190 timesKatalyst wealth   a guide to grow your wealth by 190 times
Katalyst wealth a guide to grow your wealth by 190 times
Katalyst Wealth
 
Why Average Investors Earn Below Average Market Returns?
Why Average Investors Earn Below Average Market Returns?Why Average Investors Earn Below Average Market Returns?
Why Average Investors Earn Below Average Market Returns?
Peter Lim
 

Similar to Hot penny stocks to watch (20)

Good penny stocks for 2011 2
Good penny stocks for 2011   2Good penny stocks for 2011   2
Good penny stocks for 2011 2
 
7 Categories of Stocks that Every Investor Should Know.pdf
7 Categories of Stocks that Every Investor Should Know.pdf7 Categories of Stocks that Every Investor Should Know.pdf
7 Categories of Stocks that Every Investor Should Know.pdf
 
Stock trading strategy - when to sell your hot stock
Stock trading strategy  - when to sell your hot stockStock trading strategy  - when to sell your hot stock
Stock trading strategy - when to sell your hot stock
 
Penny stock tips
Penny stock tipsPenny stock tips
Penny stock tips
 
How to pick Quality Stocks.pdf
How to pick Quality Stocks.pdfHow to pick Quality Stocks.pdf
How to pick Quality Stocks.pdf
 
How to pick Quality Stocks.pdf
How to pick Quality Stocks.pdfHow to pick Quality Stocks.pdf
How to pick Quality Stocks.pdf
 
Stock trading tips - view stocks like a market maker
Stock trading tips  - view stocks like a market makerStock trading tips  - view stocks like a market maker
Stock trading tips - view stocks like a market maker
 
Naked short selling
Naked short sellingNaked short selling
Naked short selling
 
PROFILE OF A SUCCESSFUL INVESTOR
PROFILE OF A SUCCESSFUL INVESTORPROFILE OF A SUCCESSFUL INVESTOR
PROFILE OF A SUCCESSFUL INVESTOR
 
Penny stocks site
Penny stocks sitePenny stocks site
Penny stocks site
 
Whose Hand Is In YOUR Pocket?
Whose Hand Is In YOUR Pocket?Whose Hand Is In YOUR Pocket?
Whose Hand Is In YOUR Pocket?
 
Seed Valuation Primer
Seed Valuation PrimerSeed Valuation Primer
Seed Valuation Primer
 
Against Index Funds
Against Index FundsAgainst Index Funds
Against Index Funds
 
How Wealthy People Use Professional Money Management
 How Wealthy People Use Professional Money Management How Wealthy People Use Professional Money Management
How Wealthy People Use Professional Money Management
 
Definition of a stock
Definition of a stockDefinition of a stock
Definition of a stock
 
10 investment mistakes
10 investment mistakes10 investment mistakes
10 investment mistakes
 
Ninja trading system
Ninja trading systemNinja trading system
Ninja trading system
 
Guide To Understanding The Stock Market
Guide To Understanding The Stock MarketGuide To Understanding The Stock Market
Guide To Understanding The Stock Market
 
Katalyst wealth a guide to grow your wealth by 190 times
Katalyst wealth   a guide to grow your wealth by 190 timesKatalyst wealth   a guide to grow your wealth by 190 times
Katalyst wealth a guide to grow your wealth by 190 times
 
Why Average Investors Earn Below Average Market Returns?
Why Average Investors Earn Below Average Market Returns?Why Average Investors Earn Below Average Market Returns?
Why Average Investors Earn Below Average Market Returns?
 

More from Practice of Law

Reg a hitting the market
Reg a   hitting the marketReg a   hitting the market
Reg a hitting the market
Practice of Law
 
Can You Use the New Regulation A +
Can You Use the New Regulation A +Can You Use the New Regulation A +
Can You Use the New Regulation A +
Practice of Law
 
What the New Regulation A Really Means to Your Company
What the New Regulation A Really Means to Your CompanyWhat the New Regulation A Really Means to Your Company
What the New Regulation A Really Means to Your Company
Practice of Law
 
M&A Uses of Going Public with an IPO or Reverse Merger
M&A Uses of Going Public with an IPO or Reverse MergerM&A Uses of Going Public with an IPO or Reverse Merger
M&A Uses of Going Public with an IPO or Reverse Merger
Practice of Law
 
Why short sellers attack your stock
Why short sellers attack your stockWhy short sellers attack your stock
Why short sellers attack your stock
Practice of Law
 
Ipo maximize your offering price
Ipo   maximize your offering priceIpo   maximize your offering price
Ipo maximize your offering price
Practice of Law
 
Secrets of a fortune 500 ceo for growing your company
Secrets of a fortune 500 ceo for growing your companySecrets of a fortune 500 ceo for growing your company
Secrets of a fortune 500 ceo for growing your company
Practice of Law
 
Pink sheet company - free consulting
Pink sheet company   - free consultingPink sheet company   - free consulting
Pink sheet company - free consulting
Practice of Law
 
Go public - free consulting
Go public   - free consultingGo public   - free consulting
Go public - free consulting
Practice of Law
 
Go public - free consulting
Go public   - free consultingGo public   - free consulting
Go public - free consulting
Practice of Law
 
Reverse merger - Free Consulting
Reverse merger  - Free ConsultingReverse merger  - Free Consulting
Reverse merger - Free Consulting
Practice of Law
 
Reverse splits - good or bad
Reverse splits  - good or badReverse splits  - good or bad
Reverse splits - good or bad
Practice of Law
 
Canl cannabis reverse merger CannLabs, Inc.
Canl cannabis reverse merger CannLabs, Inc.Canl cannabis reverse merger CannLabs, Inc.
Canl cannabis reverse merger CannLabs, Inc.
Practice of Law
 
SEC Regulation D, Rule 506 C, Advertising Your Private Securities Offering
SEC Regulation D, Rule 506 C, Advertising Your Private Securities OfferingSEC Regulation D, Rule 506 C, Advertising Your Private Securities Offering
SEC Regulation D, Rule 506 C, Advertising Your Private Securities Offering
Practice of Law
 
Groupe Athena, Inc. GATA
Groupe Athena, Inc. GATA Groupe Athena, Inc. GATA
Groupe Athena, Inc. GATA
Practice of Law
 
Venture funding - real purpose of corporate finance
Venture funding  - real purpose of corporate financeVenture funding  - real purpose of corporate finance
Venture funding - real purpose of corporate finance
Practice of Law
 
Stock trading tips - trading expectations
Stock trading tips  - trading expectationsStock trading tips  - trading expectations
Stock trading tips - trading expectations
Practice of Law
 
Stock trading strategy - mind of a successful trader
Stock trading strategy  - mind of a successful traderStock trading strategy  - mind of a successful trader
Stock trading strategy - mind of a successful trader
Practice of Law
 
Naked short selling - cellar boxing
Naked short selling  - cellar boxingNaked short selling  - cellar boxing
Naked short selling - cellar boxing
Practice of Law
 
Buy cheap stocks
Buy cheap stocksBuy cheap stocks
Buy cheap stocks
Practice of Law
 

More from Practice of Law (20)

Reg a hitting the market
Reg a   hitting the marketReg a   hitting the market
Reg a hitting the market
 
Can You Use the New Regulation A +
Can You Use the New Regulation A +Can You Use the New Regulation A +
Can You Use the New Regulation A +
 
What the New Regulation A Really Means to Your Company
What the New Regulation A Really Means to Your CompanyWhat the New Regulation A Really Means to Your Company
What the New Regulation A Really Means to Your Company
 
M&A Uses of Going Public with an IPO or Reverse Merger
M&A Uses of Going Public with an IPO or Reverse MergerM&A Uses of Going Public with an IPO or Reverse Merger
M&A Uses of Going Public with an IPO or Reverse Merger
 
Why short sellers attack your stock
Why short sellers attack your stockWhy short sellers attack your stock
Why short sellers attack your stock
 
Ipo maximize your offering price
Ipo   maximize your offering priceIpo   maximize your offering price
Ipo maximize your offering price
 
Secrets of a fortune 500 ceo for growing your company
Secrets of a fortune 500 ceo for growing your companySecrets of a fortune 500 ceo for growing your company
Secrets of a fortune 500 ceo for growing your company
 
Pink sheet company - free consulting
Pink sheet company   - free consultingPink sheet company   - free consulting
Pink sheet company - free consulting
 
Go public - free consulting
Go public   - free consultingGo public   - free consulting
Go public - free consulting
 
Go public - free consulting
Go public   - free consultingGo public   - free consulting
Go public - free consulting
 
Reverse merger - Free Consulting
Reverse merger  - Free ConsultingReverse merger  - Free Consulting
Reverse merger - Free Consulting
 
Reverse splits - good or bad
Reverse splits  - good or badReverse splits  - good or bad
Reverse splits - good or bad
 
Canl cannabis reverse merger CannLabs, Inc.
Canl cannabis reverse merger CannLabs, Inc.Canl cannabis reverse merger CannLabs, Inc.
Canl cannabis reverse merger CannLabs, Inc.
 
SEC Regulation D, Rule 506 C, Advertising Your Private Securities Offering
SEC Regulation D, Rule 506 C, Advertising Your Private Securities OfferingSEC Regulation D, Rule 506 C, Advertising Your Private Securities Offering
SEC Regulation D, Rule 506 C, Advertising Your Private Securities Offering
 
Groupe Athena, Inc. GATA
Groupe Athena, Inc. GATA Groupe Athena, Inc. GATA
Groupe Athena, Inc. GATA
 
Venture funding - real purpose of corporate finance
Venture funding  - real purpose of corporate financeVenture funding  - real purpose of corporate finance
Venture funding - real purpose of corporate finance
 
Stock trading tips - trading expectations
Stock trading tips  - trading expectationsStock trading tips  - trading expectations
Stock trading tips - trading expectations
 
Stock trading strategy - mind of a successful trader
Stock trading strategy  - mind of a successful traderStock trading strategy  - mind of a successful trader
Stock trading strategy - mind of a successful trader
 
Naked short selling - cellar boxing
Naked short selling  - cellar boxingNaked short selling  - cellar boxing
Naked short selling - cellar boxing
 
Buy cheap stocks
Buy cheap stocksBuy cheap stocks
Buy cheap stocks
 

Recently uploaded

University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
tscdzuip
 
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
Falcon Invoice Discounting
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
AntoniaOwensDetwiler
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
beulahfernandes8
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy Visa
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaNew Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy Visa
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy Visa
Amit Kakkar
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
5spllj1l
 
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
28xo7hf
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
yeuwffu
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
5spllj1l
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
bresciafarid233
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
28xo7hf
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
k4ncd0z
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
KishanChaudhary23
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
How to Use Payment Vouchers in Odoo 18.
How to Use Payment Vouchers in  Odoo 18.How to Use Payment Vouchers in  Odoo 18.
How to Use Payment Vouchers in Odoo 18.
FinShe
 
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
qntjwn68
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
shruti1menon2
 

Recently uploaded (20)

University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
 
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy Visa
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaNew Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy Visa
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy Visa
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
 
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
 
Detailed power point presentation on compound interest and how it is calculated
Detailed power point presentation on compound interest  and how it is calculatedDetailed power point presentation on compound interest  and how it is calculated
Detailed power point presentation on compound interest and how it is calculated
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
How to Use Payment Vouchers in Odoo 18.
How to Use Payment Vouchers in  Odoo 18.How to Use Payment Vouchers in  Odoo 18.
How to Use Payment Vouchers in Odoo 18.
 
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
 

Hot penny stocks to watch

  • 1. Hottest Penny Stocks – Part II Hot Penny Stocks to Watch
  • 2. Disclaimer Stock speculation is very risky Do not trade with more than you can afford to lose. Seek professional investment advice. This is not investment advice. No warranties, you are on your own. This is not suitable for all investors
  • 3. Penny Stocks to Watch My favorite type of penny stocks to watch are the public shells that can be used for reverse mergers A reverse merger is when a private operating company is acquired by a shell (non-operating) public comapany. This is done so the private company can go public fast.
  • 4. Reverse Merger Price Jumps With the merger, the shell may go from a small market value to a large market value in a few months For example, the shell may have a market value of from $100,000 to $500,000 The shell shareholders get to keep usually 5-20% of the new merged company The merged company may be worth millions
  • 5. Hypothetical Jump in Value Do the math, if the shell was worth $100,000 The operating company is worth $10 million Then the value of the merged company should be more than $10 million So if the shell shareholders keep 5% of the total new, merged company, they have stock worth $500,000 or five times their original investment
  • 6. Reverse Merger Example (chart courtesy of Stockcharts.com)
  • 7. RMDM RMDM was a speculative, sub-penny stock that took off after a reverse merger Huge profits were made by the original holders Note that it went right back down again For more such stocks see my YouTube video “Hottest Penny Stocks Part I”
  • 8. RISKY! While large gains can be made by sophisticated players in these stocks, they are very risky Most OTC shells will not merge in a given year They have little or no public information and what is there may be incomplete, misleading or even deliberately false. Merger stocks tend to rise and fall FAST! Never risk a lot of money in them
  • 9. Where to find them Reverse merger shells are found in the Pink Sheets and on the OTC Bulletin Board Pink Sheet shells may not be providing public information There is no subsitute here for educated, tedious research Experience and knowledge can pay large dividends here – ignorance is expensive
  • 10. Learn More Subscribe to my YouTube videos Subscribe to my blog www. investing-performance.com
  • 11. Read My Book on Amazon.com How to Pick Hot Reverse Merger Penny Stocks
  • 12. John Lux Trader, investment banker, former OTC Market Maker and attorney Lux.Investor@ gmail.com Copyright ©John Lux 2011