What forms (and its sections) are best at inferring whether there might be an offering in play? Is it very likely a penny stock will have an offering if they grow >30% and they haven't had an offering in over a year? What other indicators could there be?
Posted Jul 6, 2020, 3:20 PM UTC
Usually gotta look for what their cash on hand is, and how long they will be able to go without looking for more funding. Also helps to look at their past history of offerings, to get a timeline of what points they may need financing.
The easiest way to go about it is to see if a company will have a reason to fund themselves in the future, whether it's because they're out of cash or they have a big venture coming up.
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Thanks, I learned alot in the past weeks through your resources!
Couple Questions:
I've noticed that you will continously buy the dip into a stock regardless how much it goes down. Is this primarily attributed to your confidence in the DD you performed?
Was there anytime you realized you were bag holding and cut your losses? Do you give yourself a certain amount of time without any growth before selling?
And you don't have to share exact secrets, but how do you screen stocks to DD?
Yes, I don’t go in at all unless I am confident of my DD and the probable catalyst. Also want to be confident enough to avoid the big three threats. 1) offerings 2) warrants 3) reverse splits
I have cut my losses only once! When a penny stock I was in was bought out by another company for less than the market price. Took a massive hit on that one!
Otherwise I haven’t bagheld for long on anything. I have a 100% track record on pennies in the last year.
Read the 10-K and 10-Q reports
They will usually say in there we have funds that will last us through Q3 or 2021 etc
Gotta do your homework