Penny Stock Prophet Review – Final Analysis
Many readers have been asking for my final Penny Stock Prophet Review so here it is….
After trading the Penny Stock Prophet’s picks for a while I have determined that it is difficult to make money because the price jumps quickly above his buy price after he releases his picks. If you decide to get in above the buy in price you risk a downtrend after his followers start bailing with small profits.
You can only consistently make money if you can get in before the price goes up too much from his follower buying spike, if you get in below the recommended price, I would recommend you get out after 10 or 15 minutes if the stock is doing nothing after the morning spike.
If you are willing to buy enough shares so that a few penny gain is worth your while, you can make some money with this strategy, then again, you need to risk a lot of money to make a few penny gain worthwhile. Otherwise, profits are fairly hard to come by.
In general, his picks follow the following pattern:
Pre-pick: Slow trading stock stock with not too much volatility.
Pick Announcement: Race to get in and stock jumps right at the market open often going past the buy in point recommendation before you can get in.
After pick: Stock starts to come back down to pre-pick levels as followers cash in.
If you have a fast acting online broker you may be able to make a few bucks, but the person making the real money would be the Penny Stock Prophet, that is if he is taking a strong position the day before he announces his pick. I doubt there is a magic algorithm that he uses, his picks go up because he has a lot of followers that buy when he says buy.
A few of his picks have had steady gains but some of those may have been difficult to get in at the buy price target. Others have trended down after the early bump in price. All in all, besides the effect of his followers quickly pushing up the stock price after each pick, it seems fairly random whether the stock pick price will go up, down, or flat.
Below is a snapshot of his recent picks that are no longer in play. If you want to try active picks you need to test his service. On each of the picks below, he either stopped covering them because they touched the sell point or did nothing and just fell off his buy lists.
I list the Penny Prophet’s buy price recommendation, and the target sell price. Look at the charts and decide whether this system is for you. I have mostly put a red line at the morning of each buy recommendation so you can see what his picks do. There is an opportunity to make money but the margin for error is very slim.
10/5/2009
Quick Pick: (These picks are quick in and out picks the PSP gives out)
Pan Global Brands, Inc.
PNGB.OB
Buy Point: $0.17
Sell Point: (look for 20-50% gains)
Long Term Pick: (These are the buy and hold at least a week or two given buy the Penny Stock Prophet)
Uluru Inc.
ULU
Buy Point: $0.22
Sell Point: $0.28 – $0.31 (30-40% Gain)
10/09/2009
Quick Pick:
Fresenius Kabi Pharmaceuticals
APCVZ
Buy Point: $0.65
Sell Point: $0.80 (10-20%)
Long Term Pick:
Metabasis Therapeutics, Inc.
MBRX
Buy Point: $0.55
Sell Point: $0.65 – $0.80
10/12/09
Bionovo, Inc.
BNVI
Buy Point: $0.55 and under
Sell Point: $0.75 – $0.90
InTEST Corp.
INTT
Buy Point: $0.50 and under
Sell Point: $0.70 – $0.90
10/14
Via Pharmaceuticals
VIAP
Buy Point: $0.45 and under
Sell Point: $0.55 – $0.70
10/16/09
Mad Catz Interactive
MCZ
Buy Point: $0.45 and under
Sell Point: $0.54 – $0.60
10/19/09
Regent Communications Inc.
RGCI
Buy Point: $0.64 and under
Sell Point: $0.73 – $0.90
10/21/09
Inuvo Inc.
INUV
Buy Point: Under $0.28
Sell Point: $0.45 – $0.50
10/23/09
ICOP Digital Inc
ICOP
Buy Point: Under $1.00
Sell Point: $1.35 – $1.60
10/26/09
Leading Brands Inc
LBIX
Buy Point: $0.62 and Under
Sell Point: $0.81 – $0.90
10/28/09
Tucows Inc
TCX
Sell Point: $0.72 – $0.80
10/30/09
Cardium Therapeutics Inc
CXM
Buy Point: Under $0.80
Sell Point: $0.90 – $1.00
11/2/2009
Novadel Pharma Inc.
NVD
Buy Point: Under $0.29
Sell Point: $0.37 – $0.45
11/4/09
Zhone Technologies Inc.
ZHNE
Buy Point: Under $0.54 (closed yesterday at $0.47)
Sell Point: $0.60 – $0.68
11/6/09
China Cablecom Holdings LTD
CABL
Buy Point: Under $0.81 (closed Thursday at $0.73)
Sell Point: $0.96 – $1.20
11/9/09
Onstream Media Corp
ONSM
Buy Point: Under $0.37
Sell Point: $0.45 – $0.65
11/11/09
Sunesis Pharmaceuticals Inc.
SNSS
Buy Point: Under $0.38
Sell Point: $0.43 – $0.50
So what do you think? Can you make money playing the Penny Stock Prophet’s picks?
Filed Under: Penny Stock Prophet
About the Author: 
Thank you for your thorough review of Penny Stock Prophets. It is real information like this that is most valuable to me , and I would suspect most others looking into this. Your unbiased review of facts has helped me make a decision that this is probably not for me. Thanks again.
I came upon the Penny Stock Prophet site because I was looking for a stock picking robot equivalent to FAP Turbo which is a trading robot for currencies where the user sets the parameters and the program does the trading automatically. PSP is not exactly what I’m looking for plus it deals with penny stocks which i’m trying to avoid. However, I was curious to know how successful a stockpicker PSP is so I googled for reviews on the program and lead me to this site.
I just wish that he has a program that picks non-penny stocks that trade in the major markets for more conservative swing traders. Also, judging from the charts above, it looks like it’s better to short the stock at the start of the month and cover after 15-16 days. Except for one, all of them closed lower by mid-November.
Is it true that PSP adviser picks the stocks 5 minutes before market open? Wouldn’t it be more beneficial for his members to announce the pick during or after market hours before the actual trading day to buy the stock so one can put a limit order in advance and set conditional orders without having to get up so early (before 6:30am in the West coast)?