Interesting thoughts on why there is only 12% of the OTCBB to follow in this months market!
Interesting Facts about monthly statistics to date:
Shares on the OTCBB with a price level $0.50 and under make-up 2,994 issuers on the exchange 3,458 or 86.6% of the exchange of which 297 where gainers last Friday, 310 where losers, which means only 20% of the listed securities traded on that day within this price range.
On the other hand, shares between 0.51 to 1.00 made up 153 companies or 4.4% of the market’s issuers of which 66 where gainers and 55 where losers and 32 unchanged. In shares above $0.50 79% traded and 21% didn’t. The complete opposite statistically to shares under $0.51. In addition, a higher percentage of gainers by percentage than losers.
Shares between $1.01 and $10.00 make up 7.4% of the market of which 77% traded, again with a higher portion being gainers.
It’s interesting only on the basis that the sweet spot of institutional investors is to invest in companies over $5.00. If I were to take a day of trading or month of trading, or a year of trading, I can only guess that stocks within the $0.50 to $10.00 are more likely to “trade” in a given day, which is good for day traders and or shareholders who want liquidity. Of those shares that trade, you have slightly better than a 50/50 chance of trading up based on this reasoning.
Now you take a good company, with good fundamentals, trading above $0.50, that seems to trade everyday to begin with, your probability is much better than investing in companies that are below $0.50. The only thing missing of course in this theory is the percentage gains and the percentage loses in the performance level by price. It would be interesting to add this to the chart along with value.
What conclusion does this bring me to? Well none actually, I just found it interesting so use these thoughts at your own risk.
However, as an unsophisticated investor, there is only about 12% of the market I should probably be following. So who is the 12%? You will have to keep reading my blog entries to find that answer out.