So, most everyone I've talked to has told me to avoid penny stocks, and I have been. But this morning, I was browsing Yahoo Finance looking at the main page, and saw Penny Picks as an advertisement. So I thought I would just click and see how it looked. Apparently, they give out picks each week as to who to invest in. So I went ahead and subscribed. I'm gonna wait for their next pick, this will be this afternoon. I'm gonna follow it and see what happens. If you read their newsletter, after the main print, is very tiny print. It says stuff like: This is a paid advertisement, we don't recommend anyone do anything because you could lose your money, etc, etc. They're owned by Stellar Media Group. Its funny when you hear stuff on the internet that sounds "life changing", it usually turns out to be a disappointment. This should be interesting. Anyone else follow their newsletter?
I do not follow their newsletter, as yes the Penny Picks subscription is definitely a money grabber, but you shouldn't necessarily discount their advice. There is at least a little bit of thought and analysis that goes into their algorithm for choosing potentially successful penny stocks, but you should always do your own supplement research before investing. I think it would be wise to see what kind of recommendations they give and then compare them to your own.
I am always very skeptical of investment advice when it comes to picking out particular stocks. People can help you to get your portfolio into a nice shape, proper allocation between different types of assets, geographical diversification etc. But when it comes to picking out individual stocks, if they really are so good that they can pick the right ones the majority of the time then why are they writing articles about it instead of doing it themselves? Either their picks don't perform as well as they advertise or then, simply, they do not have the balls to throw a lot of money on their own picks. In both situations, I don't see why I should invest based on their advice.
I'm definitely gonna follow their picks and see where they lead. I always wonder that about newletters, etc, that offer advice. How come they aren't doing it, or running a broker firm, etc. Thanks guys for your responses. Their pick in the email yesterday is UBIQ. Right now its trading at $.68 a share. Yesterday it was $.53 a share. The 52 week high is $10.00 a share. So we'll see what happens. I want to do some more research and see where it goes.
I'd just stick to using a good stock screener, and if you get back a few stocks here and there trading below $1 that meet your criteria, perhaps you can consider throwing a just a few bucks at the occasional low priced stock that appears to have something special going for it. You can occasionally come across the odd energy company or biotech or whatever that has something special about it that ends up going from less than a dollar to tens of dollars or from a couple of bucks to $80 or so over a few years like LNG. But these are rare. You've got to be able to find legit info from reputable sources on the company, and it's still gonna be a risky proposition. Most, if not all of your long stock portfolio should consist of companies trading in at least double digits ($10 or higher).
