These stocks are about to be blacklisted

[Penny Hawk] Thursday, June 09, 2022 NOTE: These stocks are about to be blacklisted [From Chris Johnson, founder Penny Nation]( Dear Traders, If you were in the C-suite of a publicly-traded company, you'd have to be very vigilant that your stock never crossed the line. I'm not talking about anything political or social, I'm talking about a number-more specifically, a price. Because if your stock's price crosses that line, your company could get blacklisted. Let me explain what I mean by that. If a company's stock trades below $10 for an extended period, then institutional investor may remove it from investment consideration. As of this week, my [Penny Nation]( scans have identified 54 companies that are in the process of moving into what I call the Institutional Warning Track as their stock prices are trending below $10, either for the first time or dipping back below this key price. Why is the price key? Simple, many institutional investors begin to get nervous when a stock falls into the ranks of trading below $10. Some portfolio managers even have self-imposed limits to keep them from holding a stock that is trading at that price. The stigma that can come from trading below $10 can be serious and costly. So costly, that a company might take exorbitant measures to avoid it. For proof you need look no further than one of the bluest of the Blue Chip stocks, General Electric (GE). Almost one year ago (July 31, 2021 to be exact), shares of GE went through a 1 for 8 stock split. That's right, 1 for 8! This reverse split took the price from 12.69 to more than $100 per share. Now the company issued a "FAQ" addressing the reasons behind the reverse split, but any experienced investor didn't need to read through it to know that the $10 price tag was a heavy motivator. At one point, GE was the most widely held stock in the world. GE shares have fallen roughly 30% from its post reverse split highs. The easy math tells you that shares would be back below $10 now, a situation GE's leaders knew could sink any chance of recovery for the former behemoth of the Dow Jones Industrial Average. Perception is often the reality in the investment world and a stock like GE breaking the seal on the sub-$10 trading world comes with a stigma that can drive investors away-and keep them away! This is one of the reasons that stocks accelerate their trajectory lower when that $10 seal has been broken as both institutional and retail investors begin to foresee these stocks falling further into the abyss. Let's face it, out of the 11,000+ stocks trading on the major exchanges there are thousands that are trading below $10. That said, the group of stocks that trade large sums of options and have analysts following them with recommendations are more sensitive to trading below this threshold. These 25 names are among the most heavily optioned as well as tracked by analyst meaning that the move below $10 carries more of an impact on their future prices as the "crowd" begins to reduce their exposure. More than a few of these are currently on my watchlist as stocks that have broken below $10 have been a great catalyst for Penny Nation trades this year in names like Sofi (SOFI), Opendoor (Open) and others. But over the next week, I'm going to sift this list down to just 5. That list of 5 will include the best opportunities for trading the opportunity behind these stocks. Getting access to my picks is easy. All next week I'm giving [one week of free access to Penny Nation](. You'll see for yourself the value of the Penny Nation community. Talk soon, Chris Johnson Quantitative Specialist, Penny Hawk --------------------------------------------------------------- [Money Morning Red Alert] The best way to receive the most timely, actionable opportunities from Money Morning is by joining our text messaging service, Red Alert - free of charge. [Text INCOME to 21852]( By texting INCOME to 21852, you are expressly consenting to be texted about investing news, trade alerts and marketing communications from Money Map Press, LLC about Money Morning's Red Alert text messaging service at the phone number you use, even if the phone number is on a corporate, state or national do not call list. You also consent and unconditionally agree to our [Privacy Policy]( and [Terms of Use]( including the arbitration provision and class action waiver contained therein. Your consent is not required to make a purchase. Msgs may be sent using automated technology. Message frequency varies. Msg&data rates may apply. 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