FPG SEES POTENTIAL FOR MAY 2011 ERRATIC RALLIES IN MICROCAPS(part 1)

Astoria Heights, New York
A massive rally for micro caps is what speculative investors hope to have during their investment lifespan. That comes once a blue moon some experts may argue. Now, FPG indicates that something may be brewing in the microcap market. " There are different kinds of micro caps out there. Some are healthy ones trading at a discount, some are widely followed and are trading at a premium, some others may be doomed financially but have an exciting story. It becomes very difficult to understand these special situations especially when the stock is trading at a yearly or multi year bottom." FPG suggests that Spring 2011 may be similar to Spring 1996 and he is zooming on the month of May in particular
. As they say, May is known for Sell in May and go away. This was particularly true for May 1996. A monster rally for many micro caps took place between April and very early June of that year. Diagnostic Sciences, symbol DSIC, severely destroyed by Hurricane Andrew, began its recovery with insurance proceeds and aquisition of Norton Drilling in Lubbock Texas. By the spring of 1996, the company was earning nearly a penny a share on a quarterly basis but shares were deadlock between 3/32 and 5/32. " The stock was in a pitiful situation as the numbers coming in were looking good. I could see the bottom on the price but no incentives for a rally. Then, out of the blue, I believe it was on May 17th or around that date, the shares catapulted to one dollar on heavy volume. I remember that even a trader named Mike P., was shocked with the situation at the trading desk of a now defunct brokerage firm. It turned to be a reccomendation of a midwest analyst that sparked rally." Shares of DSIC peaked at the dollar level in May but returned to below 3/8 during the summer and bottomed somewhere between 5/32 and 9/32 commented FPG. May already had seen other microcap stocks making moves. Imatron, mother of later on spinned off Invision Technologies, moved from near 2.00 and was aiming for a homerun quadruple for the memorial day weekend. Those 2 companies were eventually taken over by General Electric. Shares of Imatron retrieved during the summer. " In May 2011 we see a potential for rallies across the sector. They may be sporadic and erratic but could occur in concert." Depending on peoples levels of risk, these rallies could be shocking to many. You are caught in a stock that goes from a low valuation and practically very low volume to a supersonic situation that sends out shockwaves to your brain. What is one person to do if this occurs? " It is very challenging even for the professionals. The reaction for many is to sell and take a profit. Of course,greed kicks in and you find yourself chasing the stock. Others will watch and maybe they will be learning for the future rallies." Other suggestions that are leading FPG to call for May 2011 microcap bonanza are various.(to be continued)