Sub Penny Stocks

IDOI, the pinksheet penny stock that you have already heard me mention several other times still has a constructive look to it.

I mentioned earlier in the week that I wanted to see it move by either yesterday or today. Well so far that has not happened and I am willing to give IDOI a little bit more benefit of the doubt.  It is getting some late day hits at the ask here on this slow Friday.

The reason why I am not giving up on IDOI yet is because instead of price continuing a slow and slopping downtrend that it was on track to do, it has instead popped its head up with decent volume and held up above the mid .002’s range quite well so far.

Of course all of this could change in a New York minute on Monday morning, but as of this writing I have to say the behavior of it is quite admirable.  I don’t know if I am going to keep a formal list of recommendations for these sub penny stocks and penny stocks that I cover.  Perhaps I will keep a more informal list just for record keeping.  So basically that means that I don’t think I will keep publishing an updated list.  However I will occasionally publish a list based on what I have talked about and what it ended up doing.

So informally lets put IDOI on the list with an entry of .0025.  I think that is reasonable since I have been talking about it for about a weeks time now.

I think what I will do is create a summary page of all recommended penny stocks and sub penny stocks.  It will not be updated in real time, although I will try to, but that way I don’t have to keep posting the list within the article postings.

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BEHL, a penny stock that trades on the pinksheets is worth watching to me because it has shown 3 signs of strength already since a few months ago and now is in a consolidation pattern that will either be a falling wedge or just a sideways channel.

I like that advance that BEHL has had since a few months ago.  The quality of the volume on the advances and the rapid decline in volume on the consolidations looks good to me.  A lot of times on penny stocks I tend to see heavy volume on the advances but then also excessive volume on the consolidations.  In my experience that has more often than not been a troubling sign.  But BEHL has not shown that and right now price is holding within the range of .02 to .035. 

So .035 is the top of the range.  I do not know how much longer this consolidation will last, but when either of those two blue dotted down trending lines on the chart above are violated, it will be the first sign that change is at hand.  I think there is an outside chance BEHL could do a swing low to .015 before the uptrend resumes, but I could be wrong.

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IDOI, the pinksheet sub penny stock that I have mentioned a couple other times could be at an interesting ‘tipping point’ going into today.

I mentioned in an earlier post that I preferred it to make some kind of move this week otherwise I would not talk about it again.  Well we are almost as the end of the week and price is hovering right near the breakout zone, but still we have no confirmed move as of yet.

The price action the last two days has been constructive and the volume was significant.  But I have to say that IDOI really needs to do something today or tomorrow.  If it doesn’t then it is telling me that something else is going on and I don’t want to be a part of it.

I definitely do not want to see anything below .002 on IDOI either today or tomorrow.  IDOI is in the zone now, has the stage and needs to start dancing, otherwise the show just cannot go on.  That is my take on it right now.

You know these pinksheets penny stocks can really be deceptive sometimes.  I have seen hundreds of them that look very ripe for a breakout only to change their mind last minute and then break down and crash in flames.  So I think the best approach to take on them is that they really have to prove their worth, otherwise it is a complete waste of time and money too.

So anyway to sum up, yes I am giving IDOI still the slight benefit of the doubt up here in this range, but the music needs to start playing and very soon I might add.

IDO security, the company I mentioned a couple other times has managed to break up and through the minor down trendline that has existed since early July.  While this is a positive sign IDOI is not out of the woods yet as far as breakout territory is concerned.

For IDOI to really start heating up we need to see a sustained move above .003 with preferably very robust volume.  Volume is substantial today but not blockbuster volume.  I am a bit weary of these super large ‘total outstanding shares’ type of penny stocks, but I gave IDOI a mention anyway because it has this nice relatively flat base and then volume and price advance coming off the base in the recent month.

Do we get a breakout above .003 ? I can’t answer that. It is just one of those things we will have to wait and see.  If you pushed me to the wall and forced me to give you an answer then I would say yes it can do it based on everything I am looking at now.  But we will have to see on this one.  The real ‘story’ with IDOI is (sorry to repeat again) if a sustained breakout of .003 can be maintained.  That is the real trigger I am looking for.  But today’s action so far is quite positive and helps IDOI avoid the ‘endless price drift downwards’ syndrome.

Unbelievable! In my previous post I wrote about a mega popular world class index representing billions upon billions of dollars, and then this post is a sub penny stock trying to break .003.  Talk about being on opposite ends of the spectrum! Geez!

IDOI Security is still holding its ground more or less today.  This is not the most attractive play in the world but I have still been watching it as long as it does a few critical things next week.

Today was pretty much a non event day for the stock.  A down day on weak volume.

So IDOI is going to do one of two things next week.  The first thing it could do is just meander under this white down trendline pictured above similar to what it did before in an almost endless drawn out selloff that will take it back to the .0015 to .001 range before moving higher.  It is a definite possibility given the large float of this stock.  That type of scenario is definitely not the preferred one as far as good setups go.

The second possibility is that it could start to develop a breakout above this down trend and initiate a big move with confirmed volume.  But right now it is still in idle here and quite frankly there is not too much to get excited about.

It needs to get in that green shaded area before I can start saying something significant is about to happen.  But until then it is dead money. .003 is definitely a significant hurdle to overcome.  If IDOI can do that then it could open the door to .0057.  But for now IDOI has a lot of proving to do.  I may not mention IDOI again if it does not get above this down trendline by end of next week because that would indicate to me that something else is going on, and any upside is going to be significantly delayed.

I have been watching this sub penny stock over the last few days and I thought I would give it a quick mention.  IDOI has a product which scans peoples shoes for explosives or other devices deemed a security risk by the Department of Homeland Security. 

This companies claim to fame is Obama’s quote some time ago where he said, “You will not have to take off your shoes”.  Of course he was talking about the airport security process and the royal pain in the butt it is to have to take your shoes off before going on a flight because normal airport scanning tools cannot detect through shoes.

The problem with this company is the huge total number of outstanding shares, I think close to 1 billion. But does a 1 billion total outstanding shares mean that this stock cannot rally above .003 for a break out to .006 ? Well, not necessarily.  I have seen plenty of sub penny stocks have significant breakouts.  In fact GSPG comes to mind, the gold penny stock that I believe had a total outstanding of close to 3 billion? I could be wrong about that, but that stock ended up going to 4 pennies.

So we will have to see, but I like the volume accumulation. lets see if we can get a rally above .003 in breakout territory.