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CHART ANALYSIS | June 4, 2002
This Penny is a Nickel Play
Technical analysis on penny stocks can be futile mainly because of liquidity problems. Thinly traded stocks are easily manipulated and their track records can be dubious. Other problems also occur when there are too many outstanding shares (in the hundreds of millions), with stakeholders that have millions of shares to dispose from previous cheap financings. Having said that, some penny plays without the foregoing problems can display readable patterns.
by Gary Grosschadl
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