Penny Stock

[DOGS THAT BARK]

Don't do penny stocks for most part but got a story behind this one and maybe someone can do some research.
Was playing golf with high ranking employee of Desa corp here in Bowling Green and he was raving about this companys air filtering and said they were going to use it on several of their products. I got home and pulled up company and it is about 4 cents a share??
Anyone familiar with penny stocks see any value in it. I do know it is real company that supplies real product but about all I know--symbol is KNOS.

 

[pirate fan]

I uses to be a stockbroker for 10 years and started out dealing with pennies. This is very risky. Find out who the marketmakers are, how much float is in the stock and see if they have or are planning any reverse splits, (this is negative). The marketmakers are brokerage firms that actively inventory the stock and buy and sell it. Usually there is a sizable spread, (difference between bid and ask price) usually larger on lightly traded stocks. You may pay .04 to buy, but if you were a seller, you might only get .02 or .03 a share back, an immediate loss of 25% - 50%. At what price did it come public? If at a penny, then there are a lot of people with profits putting selling pressure on the stock. If at a higher price, watch out for people selling towards the end of the year, taking losses to offset gains in other stocks. In general, I'd stay away, there are a lot of other stock with good potential and reducing your risk substantially. Just do your homework and only invest what you can afford to lose, kinda like gambling.

 

[DOGS THAT BARK]

Agree on marketeers and NEVER buy anything they hype--as far as I know this stock hasn't been hyped any where and basically found out about it per above from employee of another company who is implimenting it in several of their products.
I learned my lesson on these marketeers hyping BS stocks to their pump and dump adv as a youngster
Am certainly not touting this one but just thought it interesting--do have a penny stock in China thread that is horse of diff color--has about 10 PE and pays 5% div--those are kind I like where you have tons of upside and make a little cheese while you wait.

 

[Captain Crunch]

One thing I like to look at with these penny stocks is the rate of dilution by the company. A company that is dumping a bunch of shares on the market is going to have a tough time watching the PPS rise, IMO. (See GZFX) I went and looked at the last 3 10QSB's (last quarter wasn't available), and saw all I need to know.

Sept. 30, 2005 80,230,482 shares issued
Dec. 31, 2005 92,216,677 shares issued
Mar. 31, 2006 116,904,499 shares issued

As long as this keeps going at this rate, I wouldn't bet on much appreciation in the stock price.

Good Luck

 

[Crazy Fingers]

Heavily issued stocks like that will definitely have a tough time rising in price. Two others that fit that bill are GWGO and PAIM.

 

[DOGS THAT BARK]

Valid observations--thanks
As I said I hate penny stocks--but did buy $800 worth on presumption of being a real operating company--with people I know purchasing and liking their product---

 

[DOGS THAT BARK]

good call Captain--has lost bout 25% since post

KRONOS ADVANCED TECH (OTC BB:KNOS.OB) Delayed quote data

Last Trade: 0.0285
Trade Time: 3:57PM ET
Change: 0.0005 (1.72%)
Prev Close: 0.029
Open: 0.032
Bid: 0.0285 x 5000
Ask: 0.029 x 5000
1y Target Est: N/A

Day's Range: 0.0271 - 0.032
52wk Range: 0.03 - 0.20
Volume: 1,645,764
Avg Vol (3m): 713,089
Market Cap: 3.50M
P/E (ttm): N/A
EPS (ttm): -0.045
Div & Yield: N/A (N/A)