Snap into Stock Gains

Friday, July 27, 2012
	Refer a Friend  |  Visit Our Website  |  Unsubscribe   Advertisers
		Snap into Stock Gains   by Rob Goldman     When small stocks are tied to larger ones, investors engage in caution by not buying them if there is some concern about the larger brethren. In cases where the belief is strong with respect to the larger firms, investors throw caution to the wind and buy up the small ones in the hopes of recording greater gains.    For example, two stocks whose fortunes are clearly tied together are Facebook Corp. (NASDAQ: FB - $27.83) and Zynga Corp. (NASDAQ: ZNGA - $3.11). ZNGA, which got smacked yesterday, has its revenue almost exclusively tied to Facebook.  As a result, the stock has been subject to wild swings for months as it serves as a proxy for the large social networking giant. Interestingly, despite the wild swings, the valuation has been pretty reasonable for the most part.   Clearly many investors are down on Facebook and Zynga.  This is not new news.  But just because a company is tied to Facebook doesn't mean it is a negative. In fact, it can be a positive, depending upon the smaller company's model and the extent to which its business is wedded to the fortunes of Facebook and other companies of a similar ilk.      Those of you who have been following us for a while may remember that we had a big hit with online dating leader Spark Networks (NYSEAMEX: LOV - $5.36), which has nearly doubled since our profile in December 2011. I have been combing the web trying to find another similar story, when SNAP Interactive Corp. (OTCBB: STVI - $1.39) caught my eye.     To read more click here >> or visit http://www.pennystockjunction.com     What Goes Down, Goes Down Further   by Rob Goldman     We continuously preach about selling losers early and engaging in self-control by not fighting downward trends in specific stocks.  Furthermore, when one tries to bottom fish a stock in decline, it opens up the possibility of losing more right away.  The investment slang term for this move is stepping in front of a falling knife.    By the way, we are not always right and we sometimes fall into the same traps.    For example, earlier this month we featured SUPERVALU Inc. (NYSE: SVU - $1.79).  The stock is down 40% in about two weeks following bad news.  We thought that most of the bad news was already priced into the stock, considering it was down over 60% for the year.   Oops.   The stock has done nothing but go down since we profiled it. And it was down nearly 15% yesterday.  Bear in mind that this is a retail stock and retail stocks are quickly falling out of favor.  With the potential of food inflation due to the present drought, it becomes even more of a problem.     To read more click here >> or visit http://www.pennystockjunction.com

		Disclaimer & Important Information PennyStockJunction.com is owned and published by Champlain Media, LLC of Richmond, Vermont. Champlain Media is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. We encourage you to review our full Disclaimer and Disclosure policies. To view our Disclaimer Policy, please click here. To view our Disclosure Policy, please click here. You are subscribed with the following email address: ignoble.experiment@arconati.us To unsubscribe from this newsletter, please click here. Interested in advertising with us? CLICK HERE!   Copyright (c) 2012 Penny Stock Junction | Privacy Policy c/o Champlain Media 65 Railroad Street Richmond, VT 05477 PO Box 790