StockOrange and SmallCapSentinel Out on $LUXE
November 9th, 2009 at 12:20 pm Posted by
The Dean’s Virgin Oil and Gas Pick has hit as high as $1.18 today, a potential profit of 44% since The Dean’s Honors Class learned about $LUXE on Friday.
As always, The Dean has his eyes and ears open to the world of penny stocks and has noticed that StockOrange.com and SmallCapSentinel.com have also put out reports on $LUXE.
The Dean thinks that news of $LUXE‘s West Central Alberta C project producing 2,200 barrels of oil and the company having a potential of 20 million cubic feet of natural gas makes $LUXE bullish.
SmallCapSentinel.com released this report on $LUXE earlier today and suggests that recent news from $LUXE “is just the start of a larger more profitable Lux Energy.”
Clearly, an oil and gas company must produce to become a profitable company and the Dean believes that $LUXE could increase profitability by revisiting existing wells and developing other areas in Canada, as previously indicated by $LUXE CEO Shane Broesky.
So far today, $LUXE has traded close to 400,000 in volume and The Dean thinks that the party for DELUXE profits has just begun.
LUXE did very well today. I am new at pennystocks and my goal is to learn as much as possible. Being new, traderbob called my naive, is one of the reasons I view your website and read your material. You always say do your homework and I did. In doing my homework, in no way could I see today, nor did I mean any disrepect to the Dean on the previous post. I have learned from the Dean that promoted stock can do well. The question is how does one know which promoted stock is going to do well and which one is not. how does one learn that?
thanks for your services and look forward to the continued education.
Workhorse
I meant disrespect – sorry
not a big deal work. dean’s a cool guy and I’m sure he’d be happy to teach you stuff. it might be difficult to explain to someone new to penny stocks but increased awareness of a company/stock brings volume. the more volume; the more chances the value of the stock will increase. if you join Dean’s honors class you find out about the picks before there is a lot of volume. So you get in at an earlier price and have a better chance of making larger gains. and you can chat with other daytraders and learn stuff from them too. good luck.
“The question is how does one know which promoted stock is going to do well and which one is not.” good question – I see three reasons why LUXE has not done well since 3:20pm on Friday. First – they should be publishing their press releases near the OPEN not at the Close. Second – for promoters to gain traction, they have to move stocks when Technical indicators help support the timing. LUXE indicated an overbought condition on Friday, so they were discouraging everyone responding to the promoters with skepticism today. Last – anyone with an L2 today can tell you LUXE’s bid/ask did not reflect actual trading activity, so the MM and/or other hidden trader was artificially supporting the stock at $1.10 most of the day. Bottom line is the promoted stocks that do best have Technicians on their side, time the promotion with better coordinated press releases, and get sufficient volume coming in to soften the downticks (Friday’s downtick from over 1.20 back under 0.80 scared most people away from this stock early on). You rarely get all three legs to stand on, but the more of them you do, the better your chances of picking a promoted winner.
HENC, one of the Dean’s pick of the week has a favorable Trend, an actual upward trend coming off an intermediate downward trend, with a good trading range of .40. Only thing is, it is the start of a new upward trend. (assuming it will go back to about .60). A lot of volume today, but not much movement. Why did volume not move this stock more than .02? With trends you can plan a little, but with promoted stocks the fear level comes from some other reason, so I am assuming you take the profit and run very fast. That profit being some percent value, say 10% -15%.