Stocks trading under $5 that aren't OTC

[$m0kin3053]

Hello everyone,

So I was reading up on penny stocks and I have a general idea of what they are. Usually a stock under $5 and on pink sheets, OTC BB, right.

Ok so what is so different from Gateway and other stocks that trade below $5? and obviously these stocks that are not on the OTC, BB and pinksheets are better regulated than those that are.

Would it be wise to invest in these companies as to the ones that are on the OTC, BB?

Thanks in advance.

[aquaswim47]

Gateway is a destroyed company; it's only hope is that BBY is promoting it. It's a one-shot play and its products are very unreliable (in my opinion). I had a Gateway machine that had problems every six months. I think you should buy AAPL (best of breed), PALM, or MSFT. However, if you want a pink sheet stock, go in on a small company that has great prospects, rather than hoping for a turnaround in a company that declined in size or value. It's also had problems with fiddling with the financial statements. So be careful, before you buy a stock like Gateway. I like OTC as a minimum standard of quality unless you personally know the management. Than trading pink sheets may be advisable (or not).

[gijoe9]

I got interested in this strat about a year ago and tried it out on investopedia. I had some success and still have some interest in it. What I did was run a screen limiting the price to < $5 as well as a number of other fundamental indicators like low P/E and low debt good cashflow etc. One I came up with at the time was SPIL it had a market cap over $1 billion and showed a profit it was not a new company but had survived for a while now. It hardly qualified as a penny stock other than the price around $5. It now trades around $9 and may be able to get up to $15 in the next year or so based on earnings. The other three I tried back then flopped and I have forgotten what they were. One of those just stayed the same price and the other two decided to tank a bit on me.
That is the basics of my experience I would suggest you try it in the sim and see how you do before you try with real $$.

[cdnxtracker]

The $10million tax carried forward on the debt is what makes this
shell very atractive to potential suitors. That is money they can
make and not pay tax on it now in the future. That is actually a
plus. Most don't see it as such, because they do not understand shell
companies or stocks. But that is why you see good deals spun into
small penny stock listings.
Hearing that the ex-ceo at Canaccord Capital is looking at this
one now. Watch for a lot of buying in the next little
while. These guys are very very aggressive and can take control in a hurry
on any stock. The stock is GTT.h @.03cts (GLOBAL TREE TECHS INC.)