Penny Stocks? Good or Bad?

hucks1987 · #1 (**permalink**) 10-22-08, 03:05 PM

Are penny stocks good or bad? Some people tell me to buy and some tell me dont. Can anyone help me with this?

Fredledingue · #2 (**permalink**) 10-22-08, 06:07 PM

It depends hat you call "penny stock".

A penny stock is a stock trading under $2. They can be very well regulated and famous companies like Nortel (NT) or once-famous nearly-brankrupt like Fannie Mae (which doesn't make much sens buy by the way). If there are stock on the NYSE or Nasdaq it's to see on a case by case basis. A penny stock company just has to reverse split not to be a penny stock anymore.

But don't buy any pink sheet ever. (if that's what you mean)
Most are crooks paying themselves with stock they sell to you.
There is no regulation and no oversight on these companies. Often, the only material existance of these companies are the stocks themselves with nothing at all behind, not even an office. They can issue stocks and one day declare bankrupcy after spending all the proceed from the stock sales and go away with it. But usualy they leave the stock like that in the hand of those who bought last, and do nothing else with the company You can't even sue them. All fraud are allowed.

hucks1987 · #3 (**permalink**) 10-22-08, 07:22 PM

What do you mean about pink sheet? How can you tell if there pink sheets or not?

Fredledingue · #4 (**permalink**) 10-23-08, 06:53 AM

Their tickers ends with .PK or .OB
Stock website will always tells you what market a stock is trading on. (Nasdaq, NYSE or a foreign stock echange or OTCB ('over the counter board aka pink sheet))

leonel80 · #5 (**permalink**) 10-24-08, 09:03 PM

Penny Stocks are a very risky investment product. You should avoid and stay away from it at all cost. THey are penny stock for one reason, Investors do not buy them anymore!

aquaswim47 · #6 (**permalink**) 10-25-08, 10:57 AM

Quote:

Originally Posted by leonel80

Penny Stocks are a very risky investment product. You should avoid and stay away from it at all cost. THey are penny stock for one reason, Investors do not buy them anymore!

SELL SELL SELL

Keith Best · #7 (**permalink**) 11-17-08, 10:41 AM

Yes you are absolutely right, leonel80. We should avoid penny stock as this kind of company has most probability to filing for bankruptcy or takeover as investor are not investing but you are unable to judge immediately and that’s why you can’t take decision which way it will go according to the fundamental. So, I think sell or buy both are risky.

Airelon · #8 (**permalink**) 11-17-08, 10:19 PM

Heyya mate,

Here's my advice:

I personally never trade the penny stocks. But that's not to say it can't be done profitably.. The best penny stock operator / trader from what I've seen? Like him, love him, or hate him? Would have to be Timothy Sykes. The guy knows what he's talking about when it comes to penny stocks. That's his field, and his area of expertise. He's audited by Covestor, so his results are real.

Don't trade stocks that are too cheap however. I'm talking ... like .001 or so. They are that cheap for a reason. In addition, because the volume is soooooo thin? They can be manipulated like mad. Tim would tell you the same thing.

Tim usually trade penny's in the $2.00 to $11.00 region. Seriously, if you want to learn about penny's, he's the guy to go to.