I would think there are good and bad reviews for the penny stocks. The reviews I have seen were mostly bad. I think this is left to the professionals that know how to negotiate money. This is not for amateurs.
You never know. If you do your home work, it's possible that you can discover a unique opportunity. If you can pick up a few thousand share of a penny stock you can hit a home run.
I would say "it depends". If you are a seasoned investor that understands the risk-reward dynamics of investment, have a diversified portfolio and essentially are adding penny stocks as a bit of spice, then they can be fine and interesting. If you're new to investments, are simply looking at the idea of outsized returns and can't take losses, then I would say definitely "no". They tend to be higher-risk, higher-return type of investments with higher volatility and lower transparency. It's not worth looking at for most people.
MCWEF might be one that's worth investing into..recent pickup from .50 to .70 last wk of 2014... The follow through has been fairly solid so far....story here is producing oil at half of what the major oil companies are producing at MCW Energy Group Limited (MCWEF)-Other OTC 0.69 0.04(5.75%) Dec 29, 3:43PM EST MCW Energy Group Limited (MCWEF) MCWEF MCW Energy Group Details Further Progress of Its Initial Oil Sands Extraction Plant in Utah at Marketwired Mon 9:30am CBS Money Watch Article Lauds MCW Energy Group's Breakthrough Oil Sands Extraction Technology & MCW Announces Participation in LD Micro Conference, Los Angeles, December 2nd - 4th, 2014Marketwired(Tue, Nov 25) 'MCW Energy Group's Projected Oil Sands Extraction Production Costs Compare Favourably to Alberta Oil Sands' Average,' According to Bloomberg's Business Week ArticleMarketwired(Thu, Nov 20) Breakthrough Technology in Utah to Make Oil Sands CleanAccesswire(Thu, Nov 20) Sky Is The Limit For New Utah Oil Sands TechAccesswire(Wed, Oct 22) MCW Energy Group's Initial Oil Sands Extraction Plant Now Poised for Production; Chairman Announces Phase #2 Expansion Plan Including 5,000 Barrel/Day (Est.) Plant in Ashpalt Ridge, UtahMarketwired(Thu, Oct 9) MCW Energy Group Successfully Demonstrates Its Proprietary Oil Sands Extraction Technology in Vernal, Utah, Moves Forward With Required Procedures Prior to ProductionMarketwired(Tue, Oct 7) MCW Energy Group Announces Shares for Debt TransactionsMarketwired(Fri, Oct 3) NBT expanding on last month: MCWEF’s Utah Oil Sands Project Producing Oil at 50-100% LESS Than Oil Sand Majors By Tobin Smith | November 4, 2014, 2:10am GMT To understand the true value of MCW Energy Group’s technology with production of oil from Utah Oil Sands, take a look at this “total cost of oil production” analysis from Seeking Alpha.
Exactly this. Save yourself the headache.. go to Vegas instead. Investing in penny stocks is nothing more than playing slot machines without the free drinks. And if you are trying to learn about investing, penny stocks will teach you nothing about fundamentals or how to analyze the market or a company.
And the opinions are an overwhelming negative! Wow, I've had some people tell me that no one makes money in penny stocks but I hadn't actually thought that was what everyone thought of it. I wonder why it continues to exist then, if it's got such a bad reputation. Is it just filled with uninformed people? Scammers and their victims? I always see it as something similar to a get-rich-quick scheme since I feel like there's always that ~nebulous~ promise of a huge return for a small investment, even when it virtually never happens.
The lack of transparency with a lot of the companies listed as penny stocks allows for a lot of abuse. And of course fraud. If people are chasing crazy promises of big returns, then these stocks are an easy sell - people forget the risks and focus too much on the return element. That's why fraudsters will focus on the space.
Of course there are people who get rich on penny stocks, but it is the old adage of ´knowledge is power´.. if you are just some poor scmuk on the outside buying stocks, you are going to lose almost all the time. The people who make money are people on the inside or people who are manipulating the price. These companies have little oversight and because the price and float is usually so small, they are easy to manipulate... The best you can hope for is that you accidentally invest in a company just as someone else is manipulating it in your favor. But remember this, if they are actively recruiting you, then you are being used in the wrong direction.
I am new to penny stocks as well...and stocks in general. Although penny stocks seem to not pay much, would it be good for learning about stocks hands on?
Penny stocks continue to exist because people have the need to gamble in hope of becoming rich. Casinos, lottery, sports betting etc. All have a negative expected income yet people still use all of the above.
