Friday, April 03, 2009

Penny Stock News On Fridays Good Or Bad?

One of the things I learned as a penny stock trader is that most penny stocks avoid releasing news on a Friday. Is there something about a Friday that makes news less desirable to investors? Not really, but I have noticed there are significantly fewer market participants on Fridays. Especially Fridays which include a holiday, like Easter!
But really, should penny stock companies avoid releasing press on a Friday? The argument which suggests releasing penny stock news on a Friday is that fewer people will see it. Could it be argued that more people will see news released on a Friday? In some cases I think both are true.
If a penny stock releases news on a Friday its true that there are fewer market participants and they will not be able to buy the stock if noticed over the weekend. However, do you really want that sort of buying coming into your penny stock? I would rather have a long term trader enter my company than a short term trader.
Many news streams remain live over a weekend and many times the company which last released news remains on that page for the entire weekend. This could be a great benefit for the company if it released interesting news! OTCBB.com for instance would feature the last story of the week on its main page the entire weekend or at least until five new stories were poster. However, the likeliness of five new OTCBB penny stock stories being posted would be pretty low considering the stigma around releasing news on Friday and over the weekend.
So, would it be a good idea for a penny stock company to release news late on Friday, I think so! In many cases their story will be featured the entire weekend on many penny stock web sites including OTCBB.com.

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