SUPW - Superwire?

Discussion in 'Trading' started by sunseeker, Jun 26, 2004.

  1. In the last few weeks I started researching a new idea which focuses on pennystocks that have suffered a lot under the bearmarket 2000. My idea is there must be companies that are traded on a OTC market that are way under valued.

    One company I've found is Superwire (SUPW). The entire Market capitalisation is only ~$500'000 and shares are traded at only 0.05. Now i've seen that after two years of no communication the company annouced in February of this year sign a new agreement.

    This for me is a sign that the compnay is still alive and not dead yet.

    I'm wondring if someone on this board here has an opinion about such a move and such companies.. maybe even experience in picking companies that get back into real business.

    k.r. sunseek

    I don't want to get into discussion about to buy or not to buy penny stocks. I'm doing that with 0.3% of my trading capital and so there is no tremendous risk involved.
  2. LouieR


    I would make this observation. First, there is nothing wrong with trading penny stocks as long as you are aware of the pitfalls. This company might have potential but consider this. I just checked the volume and only 2000 shares have traded today at 12:49 CDT. Now some Wall Street genious might say, "great, the stock has not been discovered yet". I say BS. The beauty of penny stocks are that if you get one that has a great idea behind it, you can leverage the hell out of your position and make some serious money. It is not prudent to accmulate a large position in a stock that is not liquid. Having said that, I looked back at the daily volume over the past 30 days and the days with the greatest volume are down days. Not to discourage you but something to think about.

    Good luck

  3. Could be a sleeper. Their business model and target customers seem to make sense. That news release shows that they have revenues coming in. Maybe there are even profits involved. I would try to get financials from the company.

    At 5 cents it's quite cheap. Worth a shot, IMO.
  4. keyser1


    I personally stay away from pinksheets as investments (or trading). But I do own a 2 "penny stocks" -- rmkr, elec.ob. Elec is an old-school phone service and voip provider. i think the voip is going to break out and it has alot of potential. rmkr, i don't know alot about, but peter lynch recently (march statement of ownership) bought stock and now owns over 7% of the company so i figure if peter lynch believes in it i may as well also (plus his abilities to analyze fundamentals far exceed my own and also lynch is a master at finding small undiscovered companies).
  5. Those are some interesting picks, low priced and pre "pump & dump" volume spikes.
    Since we're on the topic of pinksheets, I bought into BRCO, a super thin stock, a few months ago. Found it through checking out the coal index because of FCL. Looked at it as a coal,oil & ags play but they are into coal reclamation, slurry ponds and some other crazy stuff. The company has a long an 80 year history and the insiders hold half the float. They got knocked down to OTCBB from AMEX probably because of their business losing focus after selling Carbonics to Airgas and the McDermott litigation. It seems like a real company to me with real management & owners but who really knows. Insiders still holding a ton of the stock, so even if the pump & dump is gonna happen, the price has got to go much higher in order for the insiders to dump.
    As always, do your own due diligence.