Ralom, your post reminded me of an article I saw recently about the 9-10c range. Thought I'd post it here in case others find it interesting, seeing as PYC may now be operating in that range - though punching straight through seems likely - and preferable!
GLA
Why I Hate 10 Cent Stocks - Kerry Sun - Market Index
The order book for any 10 cent stock usually looks something like this:
- Buyersat 10 cents – 4,591,395 shares
- Sellersat 10.5 cents – 7,401,301 shares
With both sides so stacked– The stock does absolutely nothing for a very, very long time.
One of the big problems with 10 cent stocksis that they move in 0.5 cent ticks (so every tick is worth ~5%). But when the stock trades sub 10 cents, they move in 0.1 cent ticks (so every tick is worth just ~1%)
Why does this matter?Picture this scenario:You've just set the parameters for a 10% profit and 2% loss (excluding broker fees).
- Place a bid at 10 cents and wait to be filled
- The bid gets filled and you place a sell order at 11 cents (or 10% profit)
- Set a stop loss at .98 cents (or 2% loss)
Even if this strategy works once and you get stopped out four other times – You're still profitable!
For that reason, you’ll often see stocks like Aurelia Metals ping pong like no tomorrow.
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Last
10.5¢ |
Change
-0.010(8.70%) |
Mkt cap ! $489.9M |
Open | High | Low | Value | Volume |
11.5¢ | 11.5¢ | 10.3¢ | $405.8K | 3.786M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 211132 | 10.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
11.0¢ | 220937 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 211132 | 0.105 |
24 | 2081736 | 0.100 |
3 | 75170 | 0.098 |
2 | 76315 | 0.097 |
1 | 1 | 0.096 |
Price($) | Vol. | No. |
---|---|---|
0.110 | 220937 | 5 |
0.115 | 275918 | 8 |
0.120 | 987215 | 9 |
0.125 | 1995318 | 6 |
0.130 | 576000 | 3 |
Last trade - 16.10pm 28/05/2024 (20 minute delay) ? |
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Last
10.5¢ |
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Change
-0.010 ( 7.24 %) |
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Open | High | Low | Volume | ||
11.0¢ | 11.3¢ | 10.5¢ | 1944124 | ||
Last updated 15.40pm 28/05/2024 ? |
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