So much for September being a historically down month for the market. Or maybe it is ‘at least we had an up day before another sell off.’
On the big boy market the start of September was greeted by an insane boost across the board as, well, the non farm payroll went down for the first time which proved, I suppose, that we’re not going into recession. Apparently this illogical response was nothing to do with animal spirits and the big boss coming back into the office with buying on his mind, but the fact that manufacturing was doing better than expected. Sure it was.
Well in the OTC market we have irrational and massive boosts and dives all the time. We’re where real men go fishing for sharks, with their bare hands, blindfolded. So what’s going to excite the real men in the middle of this week in the OTC stock jungle?
If you were going to short any stock, it would have to be those weird bank receivership shares, but although the biggest faller was a bank its still functioning. Go figure. CommunitySouth Financial Corp (CSBO) seems like the big loser. Not much trading, if I’m honest. A package of 10,000 shares, but diving faster than a jet plane that’s dropped its engines. 93% fall in one day. If you’re going to go, go like that.
CommunitySouth owns the Community South Bank & Trust in Greenville. Its even giving free freshly baked cookies away, although if I held shares in it I’d think that was a fair swap for my certificates. There’s no board up on investor hub at the moment and there’s no news on Google, however there is a warm and fuzzy page up on Wikipedia. Its owned by the local community, but someone in the local community wants to drop it fast. Why? This is OTC, where you can lose 93% of your value and not know why.
I won’t go on about losers but Marine Exploration (MEXP) lost money again on Tuesday, getting into the losers board with another 50% sliced off. As they went from 0.05 cents on Monday to 0.02 cents last Tuesday (then back up again) the fact they’ve rallied again doesn’t really mean much. Meanwhile some investors are accusing the directors of a pump and dump. No guys, you paid them to go sailing and looking for treasure.
So after dousing you with fear, let’s pump you up with greed. Biggest gainer? InoLife Technologies Inc (INOL). Three figure percentage gains are for wimps with this stock, on Wednesday it gained 3,381.48%. Yes that’s four figures. Thirty five times its value in one day. These guys are not quite bio tech, in that they develop and market rather than do the raw research for medicine. It’s about to market a “proprietary metabolizing test to physicians and practitioners to identify how a patient’s genetic makeup may affect the body’s response to Plavix”. This is a bestselling anti clotting agent which has come under FDA pressure, and this may make it OK again.
This is why OTC is worth it. If you had around $30,500 in these shares at the beginning of the day, you’d be a millionaire by the end of it. With 59 million shares traded and ending the day at just under 10 cents there was some real money changing hands there, probably around about $4 million taking into account mid day prices.
Another gainer on the general feeling of euphoria is Towne Bancorp (TWNE) a former NASDAQ stock that’s gone on to over the counter. Former delisted stocks. It owns Towne Bank of Arizona in Mesa which, and you’re ahead of me here, is being wound down by the Feds. Mortgage trouble in Arizona? What next. Despite the big rise there isn’t that much volume on this stock and no news, and even the bulletin boards are asking what’s going on.
The Electric Car Company (ELCR) is still being actively traded, a reflection on what a really low share price can do for volumes.
One active stock I’ve liked for a while is Liberty Star Uranium & Metals Corp (LBSR). They’re looking at a joint venture deal with Northern Dynasty at the moment which has been driving their price up throughout the month, although a recent lawsuit may cloud the company’s future.
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