Penny stocks continue to be the seedy underbelly of the broader market. It is where fortunes can be made in minutes and life savings lost in the next. That has definitely been true over the past few days as we have seen stock promotions shoot up 100%+ only to crash back to earth.
On the broader market, AAPL is ruling the day with the announcement of its buy-back and dividend program. Once a bastion of low-growth stocks, dividends were normally something you put in your portfolio for that security. Like everything else Apple touches, it seems to have made the dividend cool again.
With Apple supporting the Nasdaq, the Dow is being led higher by Bank of America. Housing data helped fuel the turnaround during middy trading. The National Association of Home-builders and Wells Fargo both said their sentiment indexes remained at their highest levels in 5 years.
Investors are hopeful that continued good economic data will help fuel the market to greater heights. Housing will continue to be the focus the rest of the week.
Volatile Penny Stocks
NeoMedia Technologies Inc. (OTC:NEOM) has tanked 50% this afternoon at $0.0277. NEOM shares jumped more than 400% late last week as traders rushed in on rumors of something big happening with the company. These type of trades can be self fulfilling, because if enough traders think something, the buying becomes a positive feedback-loop.
Today’s drop should not come as a surprise as traders are taking the opportunity to lock in profits. This profit taking quickly turned into panic selling. NEOM has traded 186 million shares so far today, well above its daily average of 17.1 million shares.
Sunpeaks Ventures Inc. (OTC:SNPK) is down 2.02% today at $0.4850. SNPK was the latest pump from one of the biggest internet stock newsletters. SNPK shot up from $0.40 to $0.70 in one day and then traded sideways in the $0.60s before falling on Friday. SNPK has traded 31 million shares so far today and trades 33.6 million shares a day on average. Sunpeaks announced today Clotamin to be sold at Sedano’s Stores in Florida. The company has a market cap of 197.63 million.
American Petro-Hunter (OTC:AAPH) is up 17.14% at $0.4110. The company announced today that NOM-3H horizontal well begins commercial sales. AAPH is trading heavy volume today with 2.1 million shares traded so far, well above its daily average of 66 thousand shares.
Solos Endoscopy Inc. (PINK:SNDY) is up 56.06% this afternoon at $0.0109. Solos Endoscopy announced on Friday it will launch new SteriTAP endoscopic instrument line. SNDY has traded over 70 million shares this afternoon.
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