Gediminas Jasionis

How Far Can A Guard Dog Inc. (PinkSheets: GRDO) Run?

by Gediminas Jasionis September 28, 2009
Usguarddog-logo-med.jpgually, unless a company has some blockbuster product, a wise investor wants to stay away from uncertain penny stocks. Yet the gains on Guard Dog Inc.(PinkSheets: GRDO or GRDO.PK) stock shows that some people still believe that price follows some rules, at least.

Why is the Guard Dog advancing? No obvious reason can be seen. Probably just consensus buying on rumors initiated on some investor forum. The real deal is not upon us and even with some signs of a forming uptrend (if such things even exist in penny stock world) the quick in and out would hardly be possible on this one.

The company itself is hardly describable. Since they aren't reporting as a public entity, it is hard to say what developments can be expected in the future. Trading this stock on unsupported price fluctuations is the same as gambling. I'd say if you can move the price with your 1000 bucks, then it's not a stock to trade. Even if the price is advancing for the moment, when the big sell-off begins, many investors will be left hanging with overpriced stock they can't sell due to lack of buyers.

For those still trading it, a simple analysis shows there is a huge possibility the stock will drop on Monday. The current price is near the previous resistance level of $0.0047. Back in July, this area couldn't be passed and a large sell-off followed. So this is probably as far as we'll see the price rise this time as well.

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