3 Pennies on Fire 2

[David Randolph]

Good morning !

On this thread me and Ramsburg we'll pick 3 penny stocks to probably buy at today's open.

Keep in mind Penny Stocks are risky investments (or speculative ventures? well, not always).

The 3 Pennies on Fire Portfolio started yesterday with just $10,000 and we allocate no more than 10% of the capital to one single stock pick.

Let me present you today's penny picks.

Have a nice day !

[Ramsburg]

PlanetLink Communications, Inc., (PLKC.OB) a development stage company, provides international telecommunications and wireless services principally in Georgia.

PLKC is a small company with low market cap (1.39M according to Yahoo), it caught my attention one month ago when it had a 1 day big move... After that, the stock had been down to the base, showing that the $0.0035 is a strong support level.

Volume increased on the last few sessions, with special attention to yesterday's session, where PLKS tested the $0.0059 resistance zone...

This is just an alert... this stock can be a potential candidate for the 3 Pennies On Fire Portfolio today...

Best regards !

[David Randolph]

U.S. Gold Corporation (USGL.OB). The Group's principal activities are the exploration for, development of and the production and sale of gold and silver, as well as base metals. The Group's mining activities include exploration, land acquisition, geological evaluation and feasibility studies of properties, development and construction of mining and processing facilities, mining and processing and the sale of gold and other metals and by-products. The Group owns the Tonkin Springs gold mine property, which is located in Eureka County, Nevada.

On Friday Rob McEwen, a gold visionary that made GoldCorp what it is today, became the largest shareholder of the company:

Rob McEwen Becomes U.S. Gold's Largest Shareholder

I was so stupid not to buy it at yesterday's open ... anyway, another company is also buying shares in USGL.OB:

U.S. Gold Reports NovaGold Purchases Stock from Existing Shareholders

McEwen says this:

«"U.S. Gold's Tonkin Springs property is exciting. Its 36-square-mile property position, strategically located on the Cortez Gold trend in Nevada, is in the heart of a promising exploration play. Tonkin Springs has an existing gold resource of 1.4 million ounces within the upper 250 feet over a relatively small area of the property. The exploration potential of this property has increased over the past few years as Placer Dome, which adjoins our property to the north, has continued to discover several multi-million ounce gold deposits, some of which have reached to a depth of 2,000 feet. Tonkin Springs is a great asset, and I intend to aggressively explore this interesting property," said Rob McEwen, U.S. Gold's incoming Chairman and CEO.»

1.4 million ounces at a price of $450 an ounce is $630M, for a company which market is just about $16.57M.

The future seems bright for USGL.OB with this man taking charge of the company. He has the know how from Goldcorp, the most efficient gold producer in the world (it takes gold out of the ground at $60 an ounce).

The stock shot up 107% yesterday, but I see no stopping here for the bullish run ... I will buy $1000 of this at the open, just hope it isn't too high.

[David Randolph]

I have little time left to dig much about this company, but I see a technical pattern that gives me some safety on buying this stock at today's open.

We've had a breakout with volume above average yesterday, as you can see in the chart below:



A technical breakout with volume. I don't need to know more to buy this stock, the risk is simple and low, sell if the stock is set to close below $0.045, otherwise let the profits run.

I don't know nothing about this company but that doesn't mean, at all, this won't be the best Penny Pick for today's session. Well, we'll see ...

I'm buying $1,000 of ACHI.OB at today's open or near the open, really wouldn't like to buy on a big gap up ...

[David Randolph]

Our team bought PLKC.OB @$0.052, USGL.OB @$0.92 and ACHI.OB @$0.05.

I will just put these trades on the 3 Pennies on Fire Portfolio, which you can find on the menu bar of this website.

Thank you !

[stocky]

Have you actually bought it?

b/c it shows traded volume of 146,000 [at the time of this post] which is less then even 800$

i mean PLKC  146000 x .0052 = 759$

[David Randolph]

I see what you mean stocky, PLKC.OB is with a very low volume, that was Ramsburg's pick, he told me he would buy it at the open so I wrote the message, but apparently he didn't buy ... he went for the bank and probably didn't got home in time to buy this (he's still not at home). It was a fortunate thing, since volume is so low ...

I'll talk to him later, in the meantime I'll erase PLKC.OB from the portfolio ... (it shows a nice profit but with this volume I'm sure he didn't buy any).

Thanks stocky !

[Ramsburg]

I confirm that we didn't bought PLKC.
I was not in the office during the opening bell, and David thought that I was buying it on the open.

I was expecting a breakout of the $0.0059 level (that would be the major signal), so PLKS is out of the play right now on the 3 Pennies Portfolio.

Sorry about any confusion on this one.

regards,

[gmarc66]

ACHI doing very well..nice pick David and Fredrick.

Can we expect tomorrow continue the movement up? How high to you anticipate it will go?

Wondering if I should risk getting in tomorrow.

Thanks very much,

have a great trading day!

julia

[Ramsburg]

Hi Julia

ACHI just had another BWC (Big White Candle) with increasing volume... This trade is David's responsability () but in my opinion there's no reason to sell it right away... The move is on the move

But off course, you must do your own DD, and don't forget that we have only 10% on each position... The strategy is to expand our holdings, and by doing that to expand ou chances of owning a 10 bagger and to minimize the damage of any potential loss on other positions...

[gmarc66]

Thanks Ramsburg,

If I don't get in....good luck to all of you on this trade!

julia

[David Randolph]

We should have done this on separate posts, now it is too late to take the two picks appart, since there were some good questions and answers on this thread. So we'll continue with this thread for USGL.OB and ACHI.OB, two of the 5 stocks we already own on the 3 Pennies on Fire Portfolio.

Remember we commit just 10% of capital in each penny, and we have a maximum of 10 different stocks to hold. Today I'm not buying any, I don't know about Ramsburg, perhaps he will tell something about it ...

Well, let me analyze USGL.OB and ACHI.OB, actually two good picks, so far at least ...

[David Randolph]

I bought USGL.OB really high, probably my timing could be better on the intraday, but it doesn't matter, I see a lot of upside from current levels. At least $2 seems to be a sure thing, the stock has been there just about a year ago, and then there weren't two big long term knowledgeable investors buying stock. 

After the open the stock pulled back but it came up again by the end of the session, after closing the gap up. That's bullish behavior.

Holding USGL.OB for the expected medium term rise.

[David Randolph]

Didn't I tell you this could be the best pick, although it was just a technical play? The market usually knows better, and if this is the best chart, probably it is the best pick !

Volume increased a lot yesterday, in fact those 10 million shares was the record for one day trading in ACHI's shares. I believe at least $0.15 is in sight, but I won't determine my profits, analysing everyday until I sell the stock.

Remember, the 3 Pennies on Fire Portfolio is on the lateral menu on every page of the website, where it says «3 Pennies on Fire»   

[David Randolph]

Just expressing my satisfaction 

The 3 Pennies on Fire Portfolio is already making a good profit, this will be reset on December 15th, 2005, so it is able to continue a Penny Stock Portfolio 

Good trades for everyone !