Get The Weekly OTC Momentum Subscription

Our team at OTC Momentum created the newsletter to increase the probability of success on profiled companies. Subcribers, who receive OTC Momentum picks first, profit the most. Free signups can still trade profitably but their probability of success drops. The trick is in the timing. Subscribers receive the newsletter well before the opening of trades on Thursday morning. Highest chance of sustained profits starts at the opening or during the day on Thursday. Free signups receive the newsletter on Friday 2pm EST thereby seeing what was availble earlier and if there is still a decent probability of further success while carrying on the momentum.

Why Momentum?:
OTC Momentum profiles penny stocks on the OTCBB and Pink Sheet stock exchanges that are in the early stages of high upward price momentum or might soon experience this same momentum. Eager penny stock investors just like you discover high price potential stocks and buy creating some momentum upward. Next, 'momentum' investors buy in early and keep the momentum going higher. Usually, this momentum and price appreciation is noticed by more mainstreem investors and institutions and their large capital investments sky rocket the price higher. The original penny stock investors and the 'momentum' investors cashout with huge profits. We wish we could always find the high potential penny stocks ourselves but we can't. We can, though, get in early on the momentum and cash out the same profits as the original investors.

Where are Penny Stocks?:
Most of the companies we feature trade 'over the counter'. For those of you that are on not familiar with the four levels of the OTC, they are as follows: Pink Sheets, OTCBB, Nasdaq Small Cap and the Nasaq National Market. In order for a stock to trade on the NMS it must meet certain minimums qualifications. The Small Cap requirements are a little lower. The minimum requirement for the OTCBB is that the company be fully reporting, and in the Pink Sheets companies can be non-reporting. Pink Sheet stocks are not electronically quoted so the market can be hard to follow.

More About OTC Exchanges:
'Over the Counter' stock exchanges have very little institutional participation, but it is growing. Regulations that were put into effect in the Spring of 1999 forced small and micro cap companies to become fully reporting or be delisted down to the Pink Sheets until they obtained full reporting status. In recent years the NASD has increased the minimum requirements for companies apply for a Small Cap listing. Today's OTCBB is becoming the equivalent of what the NASDAQ Small Cap used to be.

Advantages of OTCBB and Others:
We find the OTCBB and Pink Sheets a very attractive place for individual investors. Institutions generally don't trade here, so the playing field is more level. The companies tend to have smaller public floats and lower market capitalizations, allowing for more upside potential when a company achieves success. Smaller public floats lend themselves to greater volatility to both the upside and downside. Penny stocks which trade on the OTCBB and Pink Sheets are generally not marginable. This has two advantages to the individual investor- you cannot over leverage your account and individual investors cannot short the stocks which helps alleviate selling pressure.
In the past the OTCBB and Pink Sheets had a reputation as a haven for scam artists. The recent changes in the qualification regulations and the stringent review process the SEC has placed on Companies in order to maintain their listings at the OTCBB has helped clean this problem up considerably. Today, even the smallest of OTCBB companies is subject to the exact same reporting requirements as Microsoft or General Motors, and this is resulting in a much greater flow of institutional participation in penny stock investing.

Risks of Penny Stocks:
Investors don't mind risks, but the risk has to have upside potential. Too many companies with $3 million in trailing sales and substantial losses are trading at $500 million market caps. Institutional investors are uncovering companies with the same financial performance, but with $50 million market caps on the OTCBB and Pink Sheets. Often times these companies are not as well financed as their NASDAQ counterparts, so institutions are providing capital at price levels that provide acceptable upside potential. There are over 4,000 stocks trading on the OTCBB today.

UPDATED Important Info:
Sarbanes-Oxley has made it prohibitive for good companies to join the major stock exchanges so a lot of them have chosen the Pink Sheets. Now is the best time to find good companies in the PKs. Rumors that the stock will be moved to the American Stock Exchange AMEX or Nasdaq Small Cap Market in the next couple of months or within a year -hold on to it and you will see tons of price appreciation as investors, mutual funds and institutions pick up the stock Subpenny stocks are best for momentum trades- follow the momentum, it has already begun