Thursday, January 04, 2007

Watch These 2 Graduated OTCBB Stocks

PROFIT FROM OTCBB GRADUATION PATTERNS!

In my book, The Little Black Book of Microcap Investing, I have a chapter devoted to OTCBB Graduation Patterns. I analyzed 30 stocks that graduated from the OTCBB to larger exchanges and found some very interesting patterns! Knowledge is power! If you know the patterns that OTCBB stocks follow when graduating to larger exchanges, you can use this information to your advantage and make a profit!

I won't give away all of my secrets here on this site, but you can get many of them by purchasing my book! For those of you that have read the book, you know that the OTCBB graduation patterns can be complex. My research indicated that upon graduation, almost all OTCBB stocks take a dive. Why is this so? Most likely it is due to the fact that the excitement over the move to a larger exchange has passed. Call it "post-graduation depression" if you will. Graduated OTCBB stocks tend to fall up to 70% after making the jump to the big boards. Ding ding...this may be a time to buy! After taking the post-grad dip, most stocks return to their original graduation price within 3-5 months. If you take advantage of the post-grad dip, you have a good shot at turning a profit. The following stocks recently graduated from the OTCBB and seem to be following my graduation pattern:

Intersearch Group (AMEX: IGO) graduated from the OTCBB on 10/13/2006 at a price of $3.10 and has dropped to a current price of $2.40. That is a 23% drop over nearly 3 months. If this stock follows my graduation pattern, it should return to its graduation price within the next few months.

American Caresource (AMEX: XSI) graduated from the OTCBB on 10/19/2006 at a price of $2.70 and has dropped to a current price of $1.81. That is a drop of 33% over nearly 3 months. If this stock follows my graduation pattern, it should return to its graduation price within the next few months.

Of course, not all stocks follow my graduation pattern exactly. If they did, I would take out 5 mortgages on my house and bet the farm on every stock that graduated from the OTCBB. I have found, however, that many stocks do follow my graduation pattern. As such, you may want to keep an eye on these two stocks. The potential returns are not mind-boggling, but they are respectable...very respectable.

If you want to get all of the details of my OTCBB graduation pattern trading and other great microcap investing secrets, pick up a copy of my book at Amazon.com. Trust me, it well worth the $15 that you are going to spend! For more info on the book, click this Amazon link.

DISCLAIMER: I don't own these stocks and I wasn't paid to write about 'em.

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