In The Fall of 2009 when Bio-Tech Penny Stocks were dominating the market, The Stock Wizards had noticed a certain group of market makers working together to bring down certain OTCBB stocks. This Group of market makers is as follows: CHDN SSGI NOBL PUMA and STXG.
We have labeled this group of market makers as the RAT PACK. We’ll use another term for these market makers “Gang Bangers”. They look for Penny Stocks that have very high Market Caps. TSW noticed this week that the RAT PACK has an interest in a penny stock called KAT Exploration – KATX on the pink sheets. (See level 2 Example).
We have labeled these market makers as a short selling group. They work together and are very good at what they do. They have done their homework and look to go for the kill. According to pinksheets.com, KATX has approximately 641,603,644 shares outstanding as of 2/10/2010. This brings the market capitalization of KATX to approximately 155 million. A little on the high side even by TSW standards. But remember, this does not necessarily mean the stock won’t go any higher. After all, investors and traders tend to look at future projected growth and forward looking events to justify price appreciation. However, not the Rat Pack these Monkeys are market cap junkies and they don’t take prisoners. TSW has not verified with the transfer agent if the share count has changed at the time of this article.
TSW was actually surprised to see the Rat Pack on KATX since it is a pink sheet stock. TSW can’t recall the last time this group of market makers were working on a pink sheet stock. Their specialty is on OTCBB stocks. However, when these guys smell money, they will go where they have to. They know the market capitalization is very high and they are looking to take advantage of it by short selling the stock.
TSW will be monitoring the level 2 action very closely this coming week as we will watch the rat pack move around on the level 2 screen to see if they start to get aggressive on the right side of the box. It will be up to the Longs to keep the pressure on the Rat Pack and force them to cover at higher prices.
TSW is calling out the Rat Pack. We know what they are up to. We are declaring war on the Rat Pack as we want the Longs to get ready to squeeze these monkeys hard and show them who’s the boss. This is definitely going to be a war in the near future. Good look to the Longs. Lets teach these monkeys a lesson.
For those who are new to penny stock trading here is a great article that we wrote a while back that explains more about share structure and how to understand market capitalization. A must-read if you’re new to trading.
TSW Profiled KATX in our very Popular Weekly Top 10 Newsletter well below .10 cents. We called a near term breakout in the stock. The Weekly Top 10 List spots early trends in penny stocks before they make explosive moves. If your are not receiving our Newsletter, make sure you sign up at http://bit.ly/wttemail
TheStockWizards.net, a Top Penny Stock newsletter presents stocks that have impact news and positive technical charting indicators on the OTC BB: and Pink Sheet markets. In addition to our newsletter, TheStockWizards.net is quickly becoming the fastest growing network destination for Small-Cap, Micro-Cap & Penny Stocks. With over 30 years combined experience; our team of research analyst pride themselves on small cap companies that are diamonds in the ruff.
TSW has not been compensated for this article or to profile Kat Exploration (KATX).
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