Tuesday, November 17, 2009

Special note of caution for the inexperienced

On Financial Tides I will give you investing ideas. Occasionally, very occasionally a stock will come up on my screeners that I'd like to share with you for technical reasons alone. It may have spiked in volume, hit new highs consistently and is interesting for its speculative value.

If you are an investor or even a day trader stay away from anything that is under $5 and traded on the OTCBB. These stocks are not for you. They may lose their following, turn illiquid or have a tremendous price gyration for reasons that are beyond comprehension.

My highly speculative stocks are not stocks I'm promoting, just stocks I find interesting. I'll try to flag these stocks as highly speculative but if you are not a seasoned investor, willing to take a small flyer, please stay away from these.

CLHR -- Clear-Lite Holdings (OTCBB) trading recently at 1.34 and NXTH -- NXT Nutritionals Holdings (OTCBB) recently trading at 1.20 were 2 such stocks. They were covered because they had recent positive price appreciation, had hit new highs in at least 50% of the last 20 trading sessions, had volume of at least 100K per day and also had recent press coverage that made them visible.

They were not investments, they were fliers -- lotto tickets.

I'll give you the same advise the old Sarge gave on Hill Street Blue: "Be careful out there"

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com.

Disclosure: I do not hold positions in CLRH or NXTH at the time of publication

No comments:

Post a Comment