Thursday, November 17, 2016

Giving Your Time The D! Time Management Techniques For Busy People

Regardless of whether or not you are an entrepreneur, CEO, student or employee everyone struggles with time.  They either don't have enough of it or are not managing it correctly.  Not having enough time is a lie most people feed themselves when they cannot accomplish goals they set for themselves.  My solution?  Give your time the D!

Last month I wrote an article called "Giving Your Business The D! What Entrepreneurs and Startups Need to Succeed".  This is an extension of that train of thought and if you follow these four rules for time management I can promise you that you will have more time and get more things done; regardless of your standing currently. 

So here it is: Do it, Delegate it, Defer it or Drop it.  These are the 4 master rules to time management and they can be put in place to crush your to-do list. 

Life is a constant barrage of activities and agendas and if you cross off everything on your to-do list you would simply add more things to do.  That is life.  As humans we want to stay busy.  If you had nothing to do, if you had absolutely no responsibilities - - you would create some.  So imagine your hefty list of things to do and then apply one of these rules to each single item on your list:

Do it:  This is for things on your list that can be done instantly or right away.  Everyone has something on their list that can be accomplished in minutes or today.  Look through your list of tasks and pick the ones that can be finished today within minutes or hours and do them.  If you can not accomplish the thing on your list instantly or almost instantly than apply one of the following three rules;

Delegate it:  Somethings on your list can not be accomplished right away or may not even be feasible to be done by yourself.  Delegate these things to other people or entities that can accomplish them for you.  Delegation is an undervalued tool that people often overlook.  Not everything has to be done be you and many things will be better done by someone else.  Understand your strengths and weaknesses and delegate things where you are weak.  Consider delegating things where you may be strong but occupy to much time.  Remember, time is you most valuable asset and the goal is to check things off the list, not to necessarily do them yourself.  If you can not delegate it or do it right away, see the final two rules for time management;

Defer it:  If you can not accomplish the task today or can not delegate it to someone else that defer it in time.  To often you finish your day with a to-do list that is not complete and this leads to lack of satisfaction and a sense of in-accomplishment.  Reschedule items on your task list to another time and this will free up mental space for you to accomplish the more important things.  Your to-do list may be full of things that do not necessary need to be done right away, today or even this week.  Defer them to a later time and watch how your time opens up.  Much time is spent throughout the day or week thinking about things that need to get done when in reality they do not need to get done today or even this week.  By deferring things on your list it will open up your mental bandwidth to focus on things that actually have to get done currently.  If you can not do it, delegate it or defer it than see the final rule.

Drop it:  Like most people you have a long to-do list of items that vary in importance.  If they are super important they will get done.  Look at an old task list and you will find that the most urgent things where done without you even applying these principles.  If you find that you do not need to do them immediately or they are not important enough to defer or delegate; than they are probably not important at all.  Cross this task completely off your list and acknowledge to yourself that it does not need to be done at all.  Drop it from your list, drop it from your mind and drop it from your priorities. 

The point of these four rules it to free up your mind.  When you are trying to get things done the number 1 inhibitor is your attention.  If you can not focus than it will be extremely difficult to accomplish anything.  By applying these rules to your entire task list if gives you the ability to cross things off your list and focus today on what is important.  I suggest to have 3 lists.  One for today which is your to-do list, a delegation list and a deferred list (or a list for tomorrow or another time).  Only keep the list for today in your hand or pocket.  By writing all of these things down it will free your mind which is usually worried about what you might forget.  Again, go through your list and mark each item with Do it, Defer it, Delegate it or just cross it out (Drop it).  These 4 rules have helped me accomplish more and they will help you too!

Success and nothing less,

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

Have tips, advice, questions, comments or suggestions about this article??  Comment below or start a conversation by mentioning us on twitter!

Tuesday, November 15, 2016

What is a Penny Stock?

The term "penny stock" generally refers to a security issued by a very small company that trades at less than $5 per share. Penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board (which is a facility of FINRA) or OTC Link LLC (which is owned by OTC Markets Group, Inc., formerly known as Pink OTC Markets Inc.); penny stocks may, however, also trade on securities exchanges, including foreign securities exchanges. In addition, the definition of penny stock can include the securities of certain private companies with no active trading market.

Penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. Moreover, because it may be difficult to find quotations for certain penny stocks, they may be difficult, or even impossible, to accurately price. For these, and other reasons, penny stocks are generally considered speculative investments. Consequently, investors in penny stocks should be prepared for the possibility that they may lose their whole investment (or an amount in excess of their investment if they purchased penny stocks on margin).

Because of the speculative nature of penny stocks, Congress prohibited broker-dealers from effecting transactions in penny stocks unless they comply with the requirements of Section 15(h) of the Securities Exchange Act of 1934 ("Exchange Act") and the rules thereunder. These SEC rules provide, among other things, that a broker-dealer must (1) approve the customer for the specific penny stock transaction and receive from the customer a written agreement to the transaction; (2) furnish the customer a disclosure document describing the risks of investing in penny stocks; (3) disclose to the customer the current market quotation, if any, for the penny stock; and (4) disclose to the customer the amount of compensation the firm and its broker will receive for the trade. In addition, after executing the sale, a broker-dealer must send to its customer monthly account statements showing the market value of each penny stock held in the customer's account.

For more information, read the penny stock rules section of our Broker-Dealer Registration Guide. You may also want to review the penny stock rules (Exchange Act Section 15(h) and Exchange Act Rules 3a51-1 and 15g-1 through 15g-100).

Before you consider investing in the stock of any small company, be sure to read the S.E.C. brochure, Microcap Stock: A Guide for Investors.

Other links which may be helpful in obtaining a better understanding of what penny stocks are include:
  • https://www.sec.gov/answers/penny.htm
  • https://www.law.cornell.edu/cfr/text/17/240.3a51-1
  • https://en.wikipedia.org/wiki/Penny_stock
  • http://www.investopedia.com/terms/p/pennystock.asp

Investors should be aware of penny stocks and be extremely cautious when buying penny stocks for several reasons.  Among them include the thinly traded volume of penny stocks and the wide spread fraud that happens in the penny stock markets.  The wide spread fraud includes pump and umps schemes and fraudulent and misleading press releases or online promotions including but not limited to chat room talk, message board postings, social media conversations and email blasts.  These tactics have been used before to talk up the stock (pump up the stock) with discussions of who great the company is doing or how the stock is on the rise.  Promoters and investors on the other side use these tactics to increase the awareness of these companies and sell out of the stock (dump the stock) when the prices rise. 

It should be understood that penny stock investing is of the utmost most risky and speculative investing within the stock markets.  Investors whom are novice or amateur should not invest in penny stocks without consulting with a trusted professional. 

Hope this helps you become a better investor.

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

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Thursday, November 10, 2016

Tech Guru Bill Gates On New Sources Of Energy

Last week we posted a video from Facebook founder Mark Zuckerburg.  This week we hear from Bill Gates on innovating new sources of energy.  Our goal within our video series is to showcase successful billionaires to mentor our readers.  Why not learn from the best right?


Hope this helps you become a better innovator, business person, entrepreneur, investor or future mogul.

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

Tuesday, November 8, 2016

Why Understanding Reverse Mergers is Important to Penny Stock Investors

If you invest in or are interested in investing in penny stocks then you must learn about reverse mergers. Reverse mergers are when a private company take over control of a public company and input it's management and business into the public company. Basically the private company purchases a majority of all outstanding shares in the public company and merge into the public company to become a public company. A reverse merger is considered an alternative to an IPO or an initial public offering.

A reverse takeover or reverse merger takeover (reverse IPO) is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company. -Wiki


If you look within the OTC markets you will see many penny stocks that have no operations and only one manager or executive. Many of these companies are shell companies even though the OTC markets does not classify them as such. These companies are formed solely for the purposes of a reverse merger. Basically a founder or team of founders forms a company and pays all the fees and files all the necessary documents to take the company public. Once the company is public it has no operations or business plan except for it is looking for a private company to merge with.

Normally when this private company purchases all of the outstanding shares of the public company, the team or executive that formed the public company or public vehicle as it is sometimes called, is compensated by an increase in the purchase price. Basically if the founder of the public company paid $100,000 to file the paperwork with the Securities and Exchange Commission and the OTC markets to list the company, a potential purchaser would buy the public company for an amount greater than that.

Sometimes the public company simply promises to ensure its business plan and create liquidity by bringing more shareholders into the public company. This raises the price of the public company and if the original founders are left with stock they are hoping that the stock is worth more than the cost of creating the public company or what is sometimes called a public company vehicle.

You will hear the term shell company or SPAC which is an abbreviation for "special purpose acquisition company" used a lot in the penny stock arena. The only purpose of these companies is to acquire another company thus acting as a shell until a company with operations is inputted into the shell.  This is important to know because many companies that have no operations or no value or trading activity are waiting for a reverse merger candidate.

Once a private company acquires a public company and inserts its operation and business plan into the company the stocks' volume generally begins to move. This is due to many factors including an increase in shareholders or an investor relations campaign or an increase in investments into the company now that there is actually an operating company in the public vehicle or shell company.

Many penny stocks and micro cap companies that are public became a public company via a reverse merger. These reverse mergers happen often and they are sometimes called pipe transactions (PIPE stands for private investment in a public entity). There are great opportunities to buy a stock extremely cheap before a reverse merger and have a large gain in the stock price once the company merges with a legitimate business.

Buying into a penny stock which can be classified as a shell company or as a SPAC also known as a special purpose acquisition company is very similar to buying into a pre IPO company. At least the mechanics work very similar. In essence you are buying stock before a new valuation is inserted into the public company.

Many times after a reverse merger a new market capitalization is inserted into the public company and or new shares are issued thus changing the market capitalization of the company. If you buy prior to a reverse merger there is a good chance that the stock price will either go up or that the volume which is generally very little before a reverse merger will go up. This is considered the expert level of investing in penny stocks.

Most sophisticated penny stock investors are part of teams that put together reverse merger deals. Many sophisticated investors create the shell companies or public companies that will eventually merge with a private company. This is also the reason why many penny stocks and micro-cap companies change their name or change their stock ticker at some point in their life. If you do not understand reverse mergers you should take extreme caution when investing in penny stocks.

The Securities and Exchange Commission which regulates the sale and transactions of public markets requires that companies that are listed without operations be classified as a shell company or as a special purpose acquisition company. But because of special rules that limits certain activities within these type of entities, many companies simply classify themselves as operating companies but in fact have no operations and do not plan to have any operations. They simply plan on looking for an adequate reverse merger candidate; which for all intensive purposes makes them a shell company. 

A reverse merger can look something like this; the founder/originator of the company incorporates a corporation and files with the Securities and Exchange Commission to take the company public. The company has been taken public on a stock exchange generally a stock exchange with lower criteria such as the OTC markets or a lower-tier NASDAQ Stock Exchange. Once a reverse merger candidate is found, the founder transfers a majority of the stock to the private company and keeps a small percentage of the stock for themselves. It is also the case that sometimes the entire outstanding shares are sold for a dollar amount. Once the private company has been reversed merged into the public company (the shell or SPAC) and there is volume and active trading, the original founders (sometimes called incorporators) sell out their shares of the company in the public markets. 


Hope this helps you become a better penny stock investor.

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

Thursday, November 3, 2016

Mark Zuckerberg Discusses Building His Multi-Billion Dollar Empire "Facebook"

Last week we published a video in our series on billionaire mentors named "Oracle Boss Larry Ellison Gives Speech on Technology, Product Development And Creating The Multi-Billion Dollar Tech Firm Oracle".  The purposes of these videos, as stated last week, is to have our audience learn about business from the best and brightest minds.  In today's technology era finding a billionaire mentor is easier than ever, they are usually online telling you exactly what they did and how they did it.  This week we feature Mark Zuckerberg in a video discussing how he built the multi-billion dollar company Facebook:

Hope this helps you become a better business person, entrepreneur, investor or future mogul.

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here. 

Tuesday, November 1, 2016

Why The Volume of a Penny Stock or Micro Cap Company is Important

When investing in penny stocks one would be prudent to find out what the average volume of the stock is. The average volume of the stock is how many shares of that company is trading on average over 30 or 90 day period.  Most finance sections, whether on Google or Yahoo, will tell you not only the average volume of any stock but also the daily trading volume of that stock. It is important to know the volume of any stock because it indicates whether or not you will be able to trade in and out of a particular penny stock or micro-cap company.  The picture below has the daily volume and the average volume circled for reference.


When a penny stock, micro cap company, or small cap company has no volume this essentially means that the stock is illiquid. This is another way of saying that there is no demand for that particular penny stock company's shares or in other words it means that you will not be able to sell shares of that stock when you are ready to sell. If you look at the average volume of a penny stock or any stock for that matter it will tell you how many shares traded in that stock which means it will also tell you how much money was traded in that stock. For example if a stock has an average volume of 2000 shares traded and the stock is worth $1 then on average $2,000 is traded in that stock per day. This means if you purchase $10,000 worth of that stock generally it will be hard to sell the stock since only $2,000 per day is traded in that stock. This becomes extremely important with penny stocks that have low averages of volume and some have no average volume. This is because there is little-to-no trading activity in many penny stocks.  In the above picture, the average volume us 3,717 shares traded daily.  At 70 cents per share this means that on average the stock trades about $2601.90 per day (70 cents x 3,717 shares).  This means if you were trying to sell 10,000 shares of this stock it may be difficult and the market may not have the demand necessary for you to sell out.

No volume in a stock is a bad thing. Most people enter the public markets to make liquid investments, in other words investments that they can get out of or get into easily, and with no volume this means you may be stuck with a stock and unable to sell it.

The amount of volume in any particular stock or penny stock is contingent on the demand for that stock. The more people that place orders to purchase the stock and the more people that are willing to sell the stock equates to more trades which is what creates volume in any given penny stock or micro cap company trading publicly.  The volume of any given company is generally not an issue when you are talking about blue chip companies such as companies that are part of the Dow Jones or the S&P 500. These companies generally have enough demand and trading activity to make an investment in those stocks liquid. But when you are talking about penny stocks you must keep an eye on whether or not you will be able to sell your shares in the future.

Keep in mind that when you are looking at the average volume of any stock it is exactly what it says; an average. This means just because a stock has an average of 100,000 shares in volume does not mean that it is trading 100,000 shares a day. This could mean that it has traded 10,000 shares over 10 days or that it traded 100,000 shares in one day and then had no value at all for the other remaining three months of the average time period.  Also keep in mind that the average is for the shares in a company and not the price. This means if you had an average volume of 100 shares and the stock was only worth one penny ($0.01) then the average volume in dollar amount is only $1. This means if you bought $1,000 of the stock then you would have trouble selling it since the demand over the average time was only $1 and there are not enough sufficient buyers in the marketplace to buy the stock when you want to sell it.

In penny stocks in particular sometimes the volume spikes when a venture capital group or private investor purchases a large amount of shares in one trading day session. This means if an investor comes in and buys $100,000 worth of shares on Monday, on Tuesday you will see the average volume equate to $100,000 or more. But this does not mean that the stock is totally liquid because all of the activity, also known as the trading volume, took place on that one particular day when the investor purchased $100,000 worth of stock. In short if you are investing in penny stocks or micro-cap companies you want to be conscious of the average volume and the daily volume to be certain that when you are ready to sell the stock you will in-fact be able to sell the stock.

Hope this helps you become a better penny stock investor.

-Nick Coriano

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About the Author: Nicholas Coriano is a Business Consultant.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and is currently a partner at Cervitude Intelligent Relations, which specializes in Investor Relations for companies valued under $1 Billion USD.

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations - a micro cap investor relations firm for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email us. If you would like to advertise on The Blog, click here.