Penny Stock News

Penny stock news is all about the latest press releases and volume upticks on the biggest names on the otc and otcbb markets. Depending on the news type, the stock can either become a rocket or plumb for the depth.

Penny Stock News Types

Press Releases

This is the bread and butter of penny stocks. The right press release can send a stock gaping pre-market or make it into a midday runner. The wrong fluff PR can send the stock hitting rock bottom. A savvy trader needs to know what is what and past history of the stock. If they are a PR machine, you cna pretty much discount them. If they are known for flying off press releases then it may be a time to place it on your watch-list.

Promotional Campaigns

The seedy underbelly of penny stocks. Stock promotions can send a stock flying for the heavens in the blink of an eye. Look at recent promotions like SNPK, NSRS and LEXG. Definitely money can be made. Typically the setup for promotional campaigns is via email. Big lists will be compensated for the ‘pick’ and begin sending out massive number of emails to their opt-in lists of subscribers.

Another technique is hard mailers. This technique was used for the LEXG pump of 2011. Promoters will hire a design and copywriter firm to develop a newsletter to be sent to physical addresses. Probably one of the more expensive forms of penny stock promotion, it still proves to be effective.

De-Listing

Depending on the type this is either the end of the stock or becomes a day traders haven. If they are already in the otc system and have the Caveat Emptor tagged attached to them, this typically spells the end of the stock volume wise.

The flip side is big name companies that go bankrupt and relist on the otc market as a Q stock. These are loved by the message board trollers and chatrooms. High liquidity makes them a day traders dream. Extremely risky. Risk is on par with a pump and dump so traders should be nimble if you want to play the game.

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