As many of you may know, we often mention penny stock scalping on this site and how it is extremely profitable for some traders, but this task is not for the novice, as many of you have witnessed in today’s session. Successful penny stock scalpers basically buy large amounts of shares on the bid and immediately join the ask price as a seller. Even though theses transactions may not be overwhelming on a dollar amount basis, if executed correctly these trades can often generate a fair sized percentage gain. Traders can generate a decent income by just hitting on 3 or 4 of these trades in a day.
Along with Washington Mutual (WAMUQ.PK) and Lehman Brothers (LEHMQ.PK), Cascadia Investments (CDIV.PK) was a favorite of many penny stock scalpers who had a long bias. At one point CDIV had all the makings of a hot penny stock. The IHUB message board seemed very well informed and had a cult like following, the stock was very liquid, and there was a theory that there was a huge potential for a monster short squeeze.
CDIV’s game applications for iPad iPhone
CDIV is a company that’s based it’s reputation and share price on game applications for the iPad and iPhone. On the surface, that’s not a bad place to be considering a company like Zynga are is public and is anticipated to be one of the hottest IPO’s of the year. In theory, the Zynga IPO could potentially bring a sympathy bounce to gaming penny stocks like CDIV. However, there is one catch. The Tacoma based Cascadia Investments was basically just a trading vehicle. and while savvy traders could remain profitable, the chairs often become scarce for the inexperienced once the music stops.
CEO Nazir Maherali did a tremendous job promoting the stock, despite having virtually very few employees, or revenues. Maherali played the game by issuing several PR’s and some involved new applications, but no revenues or profits. The lesson of the story is to take your gains in stocks like CDIV that are solely meant to be traded until they produce legitimate sales. Keep in mind that many Chinese reverse merger names are halted all of the time, and while these companies are often questioned on a fundamental basis, most of them are far more sound and solvent than CDIV.
So basically, don’t hold your breathe waiting for Cascadia investments to open again. While CDIV probably re-opens (Like most halted stocks), it could take some time.
Please check back for more info on CDIV
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