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My OTC Stock to Watch for the Monday 5.20.2019 $GMNI

What Is a Penny Stock: A penny stock refers to a small company's stock that typically trades for less than $5 per share. Although some penny stocks trade on large exchanges such as the New York Stock Exchange (NYSE), most penny stocks trade via over the counter (OTC) transactions. Transactions take place through the electronic OTC Bulletin Board (OTCBB) or through the privately-owned Pink Sheets. There is no trading floor for OTC transactions, and the quotations are also all done electronically.

Jonny Red's Penny Stock Trade Thoughts Below:

The below listed Penny Stock Tickers are all those that meet the criteria of the scanner.  These are tickers that need to be watched and analyzed at Market Open to see if they will continue their Northern Momentum. I have posted a few of the charts for my favorite ones.

GMNI - I am looking for a breakout through the top bollinger band come next week.

Gemini Group Global Corp. is focused on the development and distribution of e-liquid, vaporizers and MODs. The Company is focused on the wholesale/e-commerce market in the vaping sector for the global marketplace. The Company's product offerings include Prohibition, Wild Cat, Moonshine, City Gin, Cat Daddy and White Lightning. The Company produces vapor products through a contract manufacturer. The Company has working interests in oil and gas leases in Haskell County, Texas. The Company has manufacturing operations in California and has a retail vapor shop in Las Vegas, Nevada.

What Are Custodianship Plays

Stocks that end up being taken over through custodianship petitions can offer several profit opportunities for penny stock traders for a number of reasons:
  1. The share prices have often fallen on light volume to relatively low prices (for the share structure of the stock) due to years of inactivity putting some of the stocks in extremely good price ranges and setting them up with the potential for large gains if interest builds for the stock.
  2. Most have seen very little trading activity for many years so much of the float is owned by non-active traders that may not even realize the stock has become active again …. this means the retail/active float is often even smaller than the true float.
  3. Custodianship stocks are automatically considered reverse merger candidates.  As reverse merger plays that allows for the type of speculation that can create big message board/social media pumps
The best profit opportunities often come in stages usually stretching over several months:
  1. When the custodianship petition is filed with the courts.  This can often be the biggest short term profit opportunity for custodianship plays.  Custodianship petitions have been done in several states in the past: Nevada, Florida, Colorado, Wisconsin, Utah, California, Texas, and North Carolina, but over the past couple of years the overwhelming majority of custodianships have taken place in Nevada which is great since Nevada has a court website that offers the public access to all their court filings as they are docketed. We scan the Nevada court site at least a couple times a day for new custodianship petitions so we can get that information to our members ahead of the pack.
  2. When a custodianship petition is granted it can often lead to some short term interest in the stock – both leading up to the court date for the custodianship hearing and after the custodianship is officially granted.  As mentioned earlier, the custodianship hearing is usually scheduled for 4 – 6 weeks after the petition is filed with the court.  We track all the upcoming court dates for our members so they don’t miss any profit opportunities.
  3. When the entity is reinstated at the Nevada SOS it can often lead to some short term interest in the stock.  Some custodians will reinstate the entity right after the custodianship petition is granted.  Others will wait until they have found a buyer for the shell before they reinstate the entity.  We track all Nevada SOS filings in real time so we can catch reinstatement filings as soon as they hit so that our members won’t miss any profit opportunities. 
  4. When the custodian is discharged by the courts (meaning the court has become satisfied with the arrangement basically completing the custodianship process) it often lead to some short term interest in the the stock – both leading up to the court date for the discharge hearing and after the discharge is officially granted.  This usually happens a few weeks up to a few months after the custodianship is granted.  Some custodians put their shells up for sale before completing the process so things move fast after the discharge … others wait until after completing the custodianship process to put their shells up for sale.  We track all the upcoming court dates for our members so they don’t miss any profit opportunities.   
  5. When the shell is sold.  This is usually the other catalyst that creates the biggest moves (besides the custodianship petition being filed).  This is the stage that set off the big LCTZ move.  Once it is known that new owners are taking over control of the shell it becomes a full blown reverse merger play supported by all kinds of yummy speculation that message board and social media pumpers just eat up.  This stage usually will not happen until several months (or longer) after stage 1 (the the filing custodianship petition).
Knowing that the stock can have several stages of price movements, different traders will approach a custodianship play with different trading plans.  Some will try to profit off as many of the stages as possible while others will buy early and take some profits along the way but still treat the trade as a long term play holding shares for that big reverse merger at the end.  The key as with any trade is buying ahead of the pack which means catching the catalyst as early as possible.  That is our focus for our members.
Not all custodianship stocks will turn into good custodianship plays.  So which are the best?
  • Stocks that are in lower price ranges (typical under $.01/share or in the low pennies) with relatively good share structures for the price have the biggest potential to turn into big plays so they usually draw the most interest.  
  • Interest can also depend on who the custodian is for the shell.  Some custodians are more popular than others.  The custodians that were involved in big movers in the past tend to get more attention when they do new custodianships.
We track all active custodianships so we provide our members with a full list of all the players involved (including entities and attorneys used by all of the custodians).  You just never know when one of their tickers might turn into a big runner propelling that custodian into the ranks of the most popular.  As of the date of this report, the most active custodians are:
  1. Rhonda Keaveney (has 9 active plays currently)
  2. David Lazar (has 20 active plays currently)
  3. Richard Chiang (has 9 active plays currently)
  4. The Frederick Bauman/Barbara Bauman/Joseph Arcaro/Jeffrey DeNunzio/Thomas DeNunzio/Paul Moody group (has 9 active plays currently)
  5. Bryan Glass (has 3 active plays currently)
  6. Kelani Long (has 2 active plays currently)
  7. Chris Lolito (has 5 active plays currently)
  8. John Ballard (has 3 active plays currently)
  9. William Alessi (has 4 active plays currently)
  10. Eric Stevenson/Adrian Perry (has 1 active play currently)
  11. Joseph C Passalaqua (has 1 active play currently)
  12. William Bossung (has 1 active play currently)
  13. Robert Stevens (has 3 active plays currently)
Of that group, Richard Chiang and The Bauman/Arcaro/DeNunzio/Moody group would probably be considered the most popular – meaning that their custodianship plays tend to draw the most attention.  

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