2 Penny Stock Buyouts - Will They Educate Us How to Discover The Next Buyout?

We can scrutinize 2 recent micro cap stocks that shot up over 50 percent and try to find the next one. This is a cool trick that can make you a lot of money.
On Dec 18 2009 IHR or Interstate Hotels was bought out by a joint venture between Thayer Lodging Group and Jin Jiang Hotels. The stock jumped from $1.30 toward $2.22, about a 73 percent gain. Sure is good that we see buyouts starting to pick up as the economy get on it's collective feet again so to speak.

Interesting story, but how can you benefit from it now that it has already happened? You can't go back in time and buy IHR stock on December 17th can you? (If you have or know of a time machine that has this capability holler at me and I will buy you lunch at my favorite pizzeria)
Don't just look at this story and the stock chart of IHR and kick yourself because you missed out. Know it for the opportunity that it is. This takeover is an example to find the next stock buyout or takeover.

All you need to do is use the following strategy:
1. Plug the stock ticker (IHR) into finance.google.com
2. Scroll down the page a little and look at the section entitled "related companies".
3. Now look at the column at the far right, which is "Market Cap". This details the market capitalization for each similar company. Pick 2 or 3 equities that comprise the market caps that are closest to the stock that has been bought out, in this case it would be IHR. I just did this scan and I came up with the stock tickers of LGN and RLH.

That's it! You can choose to buy these stocks and simply wait a little while for takeover offers to send them up. Even if they do not get takeover offers, often times they will rise substantially over the course of a few weeks to the sympathy from the recent buyout.
This strategy has worked for me fairly recently. Once I saw news about PER being bought out, and the subsequent significant one day jump in their share prices, I used this tactic. I came up with ACS as a hope buyout target. A pair weeks later Xerox offered up a nice deal to buy out ACS. Pretty cool right?

I alert my clients of my penny stock newsletter to any hope buyout target stocks, and you can get 3 penny stock recommendations for on the house just by signing up.
Here is another fat penny stock that made buyers rich:
BKRS Footwear, stock exploding up over 100% on January 7 2010
Sending off a lot of alerts. That's what BKRS is doing today for a lot of day buyers and swing buyers. The confident interest in this hot penny stock today seems to befall a result of the company's income report which was released before the market opened.
Take a look at the chart for that day, what a substantial move!
As you can know on the chart above, this stock very rarely sees days with huge amounts of volume and/or good liquidity for traders toward enter or exit this stock. With this type of above average volume, I would own toward say some wall street folks are making this BKRS one of their penny stock recommendations for 2009.
If you would choose to toward find other stocks prefer BKRS, even before they breakout, I vouch for that you keep an eye on out Microcapmillionaires.com and sign up for three at no cost penny stock recommendations. It's not the typical penny stock newsletter where they are paid to promote a certain stock, and then pass on the promotion as some sort of bogus "independent research".
You will take charts of stocks to observe, not just for technical reasons but also due to the fact that there may ensue some underlying fundamental factors that could lift the stock as high as 50% to 500% in just a a small number of days or weeks. Sometimes stop losses are used in order to minimize risk, so it's not wild penny stock gambling like urge as they frown upon those who accept bustle in playing penny stocks for great returns.
Lastly, BKRS looks like it could reach new 52 week highs throughout 2010. It was not one of MM's picks but they do pick stocks in similar volatile situations that could spear drastically and fatten your trading account with a ton of money. Sounds good right? Get 3 free micro cap stock picks and then decide if you like the newsletter, many subscribers have been on board for a long time, so you need to see why they love the
penny stock picking service so much.

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