Take A Look At These Two Penny Stocks
New Customer Questions About Penny Stocks
Last weeks article on customer questions inspired a whole new round of emails.
Remember, if you have a question on a stock, shoot it over to me and Ill give you my opinion.
It is worth repeating: Itchy and Twitchy My two crackerjack attorneys are asking that I remind you these are not recommendations just my opinion penny stocks are risky and you can lose everything even if I think the stocks are great . And you trade at your own risk.
So with the legal stuff out of the way, here we go
Whats Your Take On Baja Mining (BAJFF)?
This question comes from Tony C.
He notes the stock is all over the place and its been bouncing between $0.02 and $0.06.
Well, my first observation is this isnt a US based company and the stock does trade on the TSX Venture Exchange there Baja Mining Corp. has the symbol BAJ.
Now heres a teaching moment
Baja files their legal documents up in Canada and to get to those documents, you need to go to SEDAR.com its the Canadian equivalent of Edgar here in the US.
Anyway
The documents have a ton of information in them
Heres what Ive uncovered Baja is looking to start up mining operations in Baja, Mexico. But they ran into financing issues for the project.
You can read all about the drama on pages 5 and 6 of their latest financial filings.
Look this company is a risk. They might strike gold… they might go bust.
But as of right now, they dont really have any operations and right now have ZERO revenue. And from what I read, their ownership in the mining interests is dropping like a rock from 70% in 2012 to about 10% today.
So the future doesnt look too bright.
What you have here is a lottery ticket… not an investment.
Treat it as such.
Now a new question .
What About Penny Stock PSID?
This question is from Jacco V.
Well Jacco, we actually talked about PSID back on July 18th when it was written up in our Pump & Dump Alerts
Find the article here: PSID Pump And Dump Alert July 18, 2014
I decided to give it another look.
So the first thing I did was pull up a chart.
As you can see, the stock slid lower after we warned you about the company. And now its getting more volatile.
I take it as a sign of continued manipulation and promotions.
Whats happened is the company is jumping on the Ebola threat saying their product can help detect these biological problems.
Might it work?
I hope it does a product like this could help save the world from the spread of dangerous diseases like Ebola
The problem is, we wont know for a while
According to their financial filings, they still have a going concern issue which means theyre about to run out of money.
But on the good side, they made their first sale. $420,000 from a government contractor working for the Department of Defense. But dont get too excited the purchase was for an evaluation of the product.
I like that theyre getting sales. But, I hate the financial situation the company is in.
And I dont like the stock volatility
So PSID is a mixed bag I can see how a big order in the near future for their products could really turn the business around but will the company survive until they get that order?
Its a risky proposition not one Id take personally right now but definitely a company to keep an eye on
More Questions On Penny Stocks
I dont have much more room for today, but if you have questions on penny stocks you own or are considering buying shoot me a quick email and let me know what company youre looking at and what concerns you have.
Ill try to get to as many questions as I can!
Profitably Yours,
Penny Stock Research
Category: Penny Stock Tips
