Ford stock has 4 billion shares outstanding, so it would take massive demand and volume to move this stock at all after the CEO talks about the fact that their bonds are depression-proof. Penny stock GOFF has 286 million shares traded, so if thousands of fans purchase the cheap, and easily affordable, 15-cent equity, hoping this is the next hottest item to earn them some quick cash, the stock can move 400% in days. However, as easily as the stock can go up, it can crash 90% within days -- typical for all hype-driven stocks that lack real demand. Tiger woods is hot right now after playing well at The Masters, but not as hot as golfer Adam Scott. At the end of 2011, Tiger "partnered" with a company, Fuse Science (DROP:OTCQB), a stock with 230 millions shares outstanding. The stock soared from 30 cents to the $1.20's; then it crashed, leaving many bag holders and poorer traders. It seems that they may be getting ready to promote it again soon. You can see this 2011 video of Tiger Woods mentioning his partnership with Fuse and compare it to a chart to get a better impression of how it soared and then crashed!
The market cap is at 35 million. If the stock runs to $1.20 again, that puts the market cap at $140,000,000; It would take a 1,000% increase in sales to even come close to matching the ridiculous valuation being put on the stock, if it runs that high again.If you are an avid trader, then DROP could, potentially, be a great trade. But if you're not, never invest in these types of companies. If you are still thirsty for Fuse, do not buy into the hype or the stock spiking day after day, only to find yourself holding the proverbial bag as the stock crashes. Remember, most OTC and pinksheets stocks are garbage (said with a French accent)! -- Written by Ben Brinneman in Charlotte, NC, owner of C Squared Trading, which teaches how to trade legitimate "penny stocks," priced between $2 and $10. Follow us at csquaredtrading At the time of publication, the author held no positions in stocks mentioned, although positions may change at any time. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.