As predicted, and why we said to sell it two days ago, the Awesome Penny Stocks promoted TagLikeMe Corp. (TAGG) has crashed in a very dickish way. While many northeasterners are stuck waiting for as much as six hours for gas, many without power at home, broadband or cell service, the group that serves up the kool aid that only comes second to Jim Jones’ have tanked TAGG stock with the help of market makers like Wilson Davis & Co. (WDCO). Now the bounce play kicks in which we said would be huge for all the unsuspected traders who thought Peter Leeds still owned and ran www.pennystocks.com.
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TAGG Stock Chart
Market Cap: 90.68M
Last: 0.2201, down -0.1829 (-45.38%)
Dollar Volume: $18,489,653
Average Trade Size: 9,057
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One new penny stock investor wrote in yesterday with a few questions about our last article:
“what do you think about today’s claims by pennystocks.com and victorystocks.com that “There are strong rumors on the Street that a large hard mailer campaign could start as early as Monday on TAGG! And with such a campaign, TAGG could easily hit $1.00 to $2.00 very soon!”? Also, who would be the main players in the dumpage? According to Fidelity, the CEO and CFO only have 2,400,000 shares, bought on 6/15/2012; if they dumped, how much impact would it have, considering the recent volume (e.g., 53 million shares traded just today) and the large $129 mill market cap?”
Well, this is why we said to sell at $0.39:
Back on June 15th , prior to the 5-for-1 forward stock split effected on July 24, 2012, Westrock Land Corp., a shareholder of 4,200,000 shares, entered into sale and purchase agreements with two separate investors, pursuant to which they sold an aggregate of 4,100,000 shares of common stock of the Issuer, respectively, to two separate unrelated third parties at a per share purchase price of approximately $0.009 and $0.02 per share, respectively. (see here)
Looking back at the botched effort in May to move the shares (see here), the two sales/purchases were for 2,500,000 shares and 2,600,000 shares, respectively. Now lets do some math:
The 2.5 million shares, after the 5-for-1 split, are now 12.5 million shares. The 2.6 million shares, after the 5-for-1 split, are now 13 million shares. The adjusted cost basis for the two purchases is now $0.0018 and $0.004, respectively, but still a total cash cost of $22,500 and $52,000, respectively.
So with 25.5 million shares, at a cost of $74,500, sold at, lets say $0.35 to be conservative, is $8.925 million — a profit, before capital gains of course, of $8,850,500. That’s an Awesome Penny Stocks Pump! At $0.39 its $9.945 million, at $0.30 its $7.65 million — still with a cost basis of just $74,500 all because the 13-D filed in June was there for everyone to see if they just looked.
About TAGG Stock
Bottom Line: Those who are seasoned penny stock traders of the APS group know how to play the bounce and are already seeing gains of . Just like AMWI, NSRS, SNPK, GWBU, CTDT, VLNX, PRTN, TAGG stock is going to bounce more than once.
PWEI will be the next one.
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