Small is best, but hedge the political risk OTC :Small is best, but hedge the political risk by investing in that opportunity choosing the safer route OTC : FLKI
Unless you like the high of loss and figure among the family of day traders betting on odds of 1080:1 you’ll insist on these rules as a precondition of your dollar’s transmission.
You know things are out of whack when the press reports overwhelming confidence by Americans because the nation only lost 11,000 jobs in the current month, and traders call a stock that returned 1,900% in the last 52 weeks and the swing traders among them 890% then 390% then a final 40%, and in 2010 is repeating the pattern by its current downswing, a pig.
For the first item after all, the unemployment rate did come down to “only” 10%, the worst in decades, for the second to hell with the facts and fundamentals, the history and record, the to easily manipulate volume and the chart that’s what’s important and that of course is what is contributing to the remarkable success story of these individuals, 1080 of them lose money to every one that makes some.
Consistent with both examples is that there is no real end in sight. U.S. unemployment is expected to remain in the stratosphere for years to come, the best projections putting it at 8 percent for 2014. “The average American will not be better off in five years – unemployment will remain high and wage growth will continue to be flat,” said chief among the gurus George Soros who forecast n “age of wealth destruction” four months before the crisis hit.
As to the second item, volume and charts are wholly irrelevant, flat is the new up with two to three swing trades provided for the short term hungry, setting up the next high.
And while the first will be pumped with billions – to a point - to prevent job losses from being worse, nothing but fools will pump up the traditional day trader’s heaven, Pink Sheet non reporting, no information, no business but great hype and web sites entities that fill the interest of gossip in chat rooms.
Things are different and require different measures. In the first instance growing debts will not allow the governments anywhere to spend much more for dubious results. In the second every investor and trader can change his destiny, notably with the high yield potentials found on Pink Sheets.
Beware of your reaction. Pink Sheets finds hundreds of behemoths companies like Toyota amongst its ranks. And with them hundreds of small companies, with real businesses, real products, real potential, innovative management : one common feature, they are “reporting companies” which on Pink Sheets means they hold the designation “Current Information”. Any company proposed that does not hold a “Current Information” should be dismissed from consideration at once.
Among the “Current Information” companies there are tell-tale signs of concerns. Ambiguous unverifiable press releases, no press or industry reports or articles present on a Google search of the symbol, the horrific mention of “over priced” in relation to their stock by industry analyst, the ever present projections relating to income, and products and approvals forever to come and flower the bed of anxious shareholders and example that comes to mind is SPGN and there are hundreds of these chat room sweetheart that have tanked investor hopes and bounties.
This is an era where normal is defined otherwise. Flat is the new normal. Crash the stock will drop 15 to 25%, bang it will take its time (two to three months) to pop back up and establish a new base above the last. It will do this two to three times during the year. Volume and charts are of no consequence for these stocks, what goes in goes out the same way, in chunks of 10,000 in and 5000 out. Due diligence has changed. Go right to management or to the internet shop, buy (do not ask for free samples), use, touch, smell and witness the reality of the product, call the company or better address a note to the dedicated Email line for shareholders – ask where and how you can buy the products. Best still write the communication officer – not the IR or PR firm… the communication officer of the company. Beware a communication officer who turns to be the President, CEO or some other high ended “title” his or interest will be to promote shares not the business.
There are key differences in this recession and past ones. Small is best. By small I mean companies with a market capitalization of no less than 10 million, a float of no less than 4 times the number of shareholders, and total shares outstanding of no more than 75% of the currently authorized. Unless you like the high of loss and figure among the family of day traders betting on odds of 1080:1 you’ll insist on these rules as a precondition of your dollar’s transmission.
Remember debts, the ratio of current assets to current liabilities is crucial in these times of difficult money. Strike immediately any company with current liabilities superior to current assets.
Globalization continues to take a toll on US based companies, and this is reflecting in the job market, now even white-collar. Emerging markets have come out of the financial crisis richer and stronger. Hedge the political risk however, invest in that opportunity choosing the safer route a small (market cap between 10 and 50 million) company rated “Current Information” on the Pinks who is well positioned in emerging markets putting the focus of its investment and new business development there. Finding this is relatively easy, Google the press on the stock symbol, seek reports on activity in emerging small countries.
Note that these targeted countries have better educated, more-productive workers which are increasingly able to perform jobs higher up the food chain. Demand is just beginning and the prize will go to the product or brand that present, will aggressively indoctrinate the populace of these countries, jump starting and then keeping their interest.
I am an analyst in the Automobile After-Market Industry, and am conscious that this article begs the question of what company do I know that meets all of the prerequisite criteria to merit your investment dollar. I can only answer in respect to my industry, and there I can only underline one such company, Falken Industries, a small ($ 30 million market capitalization) New Jersey based publicly traded company (symbol FLKI) whose award winning product conceptions are present globally and whose aggressive strategic leadership on establishing landing platforms in countries such as Egypt, Bulgaria, Russia etc is well known. One by one and unambiguously the company historically meets these investment criteria. The stock has recently been hit by heavy profit taking and is positioned to enter its first swing trade for 2010 – I’m buying, what more can I say?
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.