to build my knowledge, question inside...

[SixFive]

I have been watching a little stock the last 2 weeks (I think somebody posted about it on here below). It is CNRH.PK Cornerstone Entertainment inc.

here's my question. This stock sat at 55 cents for quite a while. It then had a sudden drop in price down to 25 cents. Then, before the end of the day, it went up to 77 cents where it closed. It never has too much volume (only 800 shares traded today). It has had this wild fluctuation in pricing several days. Why does this happen? I'm really puzzled about this, and thanks if u can enlighten me.

 

[Captain Crunch]

First off, the "PK" means it is a pink sheet stock and that is usually not very good. They are probably not current with their financial stuff for the SEC. Second, welcome to the wonderful world of bulletin board stocks. These stocks are controlled by market makers and they react a lot differently than stocks on the bigger exchanges. I don't know if anyone could explain to you why there was such a drastic price fluctuation during that time period. The MM's like to pull a lot of crap on the OTB.

One other bit of advice, always buy your securities with a "limit order." If you place it as a market order, they might jam it up your ass if you are not careful, just depends on the stock and the amount of volume. If you do it as a market order, they will fill it whenever they want. If you do it as a limit order, you are specifying the most you will pay for that security. May not always get filled, depending on how fast the price is moving, but you are playing it alot safer this way.

Hope this helps. I don't profess to know everything about penny stocks, but do know a little. Good Luck.