Mike I did consider buying FAU when it was heavily promoted but stayed out because the techs did not look goodIf you have followed my bar analysis described on this board over the last year you would get the drift of what I use to protect myself. Rule number one is never trust what some promoter says unless you confirm their recommendation with your own analysis. Basic rules of protection for pennies are;
a) Use long term charts for tends (ie: monthly or quarterly...fine tune with weekly and daily)(BIGCHARTS)
b) Avoid buying when RSI above 50
c) Avoid buying when MACD divergence is above 0)
d) Avoid buying when volume has become relatively extreme unless doing short term trades and don`t be afraid to take a small loss if you get caught in the topping volatility
e) when a stock has begun a long term gradual slide stay out until the stock changes the trend
As for MTO , I did not start investing in it until about 12 months ago, and I started buying it at 40 cents. Admittedly, I was influenced by the widespread promotion,and the investment by SPROTT. ..but it became clear when the stock tumbled to 21 cents shortly thereafter, there was reason to be cautious. By then I had accumulated over 250,000 shares but after the promotion by ALLIANCE the stock did rally to 43 cents and I sold my whole position out at prices ranging from 30 to 42 even though allinace had suggested the stock could go to 95 simply because hte technical indicators screamed overbot,. thereby making about 16,000.
I chose to ignore the technical info in MTO and tried to trade it on the way down..making another $5000...but its difficult to beat the trend. I did get caughtin the down trend from 36 cents last Feb buying stock from the 33 cent level right down to 20 cents in part because I was influenced by the compelling glowing reports of ALLIANCE, RP, and Jay Taylor among others so I`m down 30,000. Yet had I stuck to my technical guns I`d probably be at break even or a bit ahead.
What makes MTO different is that if you lookat the monthly chart for the period including the past 2 years, compared to the others you have mentioned, with the exception of the recent tax loss selling period over the past month or so, it has really held its price relative to others. Also, the quarterly chart shows a distinct UP H pattern during 2011 implying a move back to the 40 to 50 cent area. That would give me a return of at least 50% or 50,000+. None of the stock you have mentioned have this pattern. None of this analysis guarntees anything of course, only minimizes risk. Even with the recent dilutions there is a reasonable prospect that the stock will turn around and achieve these technical targets in the year(s) to come...and that`s better than bank interest.