Penny Stock Surprise

Discussion in 'Penny Stocks' started by Gavin, Feb 18, 2015.

  1. Gavin

    Gavin Active Member

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    I'm not really sure that I completely subscribe to the idea of making any money off penny socks. I believe the opportunities are few and far between. There seems to be a lot of questionable companies or reputable ones that are hurting in the penny stock area so its harder to determine if someone had a rough time and they are coming back or if the start up is really going to bring the returns that you believe are coming.

    With that said, I did happen across EOX prior to November. Not a big company, I had a little bit left to put into something so I took a plunge at .95/share.

    I just sold at $1.18 as I tend to think that the most this company will ever hit is 1.20ish per share. I could be wrong and they could hit it home for 2.00 but it was a quick investment with quick returns. Not something that will ever get you rich but a place to put a small amount of capital for a small amount of time.

    Does anyone else have any tips for the short term?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Small amounts of capital, few and far between, limited amounts of time, etc - you hit the nail on the head with those words.

    I occasionally find a stock trading below $1 that looks like an interesting legit investment when I'm using the stock screener or reading a reputable website or watching CNBC or whatever.

    One that always comes to mind immediately is Ballard Power. I've owned varying amounts of it off and on for several years, and I've made a small fortune with very limited amounts of capital. But you've got to watch it carefully and know when to buy, when to perhaps buy a little more, and most importantly when it likely becomes time to sell most (or all) of the shares. Then you've likely got a tax situation when you realize the short term profits.
     
  3. User911

    User911 Well-Known Member

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    I've been looking at IFAN but I haven't bought any yet. It started out at one cent, then rose to about a buck in a few months and last time I check it was down to about 50 cents. I may still buy at some point; don't know yet for sure. I have never bought a penny stock before but I figure if I only put in a small amount that I figure I can afford to lose and if I even doubled my money (or lost it), either way I'd be Ok.
     
  4. Gavin

    Gavin Active Member

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    I just did a quick search, I'm at one of those moments where I have like 5 bucks worth of earning power and not else to do. I'll say that the company looked promising if you could have gotten it when the stock was at a cent. However, it appears that they did spend an incredible amount to market themselves and got almost no return from that.

    My gut is telling me to be careful of this one, it'll either raise up a bit or fall to doom but there's no long term growth in it if it repeats its current practices.
     
  5. Guardian

    Guardian Member

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    Every single time I have tried to play penny stocks, I have been burnt. Lost money every time, even when I've tried doing homework and research into the stock. Luckily, as I didn't have experience with them, I only invested small disposable amounts.

    Looking at the numbers, because of the sheer amount of shares you can get, even small increases in stock price can net you a hefty sum. The problem is, there's such little movement with penny stocks. The rest seem to never-move, or they just reduce in value before being de-listed. I am glad to finally see someone that actually got these to work out for them.

    I have a few worthless ones left that I am holding onto just in the off-chance they actually rise, but they've been de-listed and are now OTC so I doubt that ever happens.
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I think the important thing is to stop looking for investments with a very low price tag, and start looking for investments that are actually CHEAP, or at least are rapidly growing and have something special going for them if they're not particularly cheap.

    If it doesn't have good fundamentals, doesn't show up in your stock screener parameters, or if there's no info on the company to be found with reputable sources, it's probably not a good deal - especially if it's trading below $1, has no institutional interest, and is not trading on an exchange.
     
  7. Profit5500

    Profit5500 Senior Investor

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    Small investment for a little bit of capital yeah sounds like pennystocks. Penny stocks are going be quite low but the chance in hitting it big is really low. Even if you try to sell above $2 it is tough since we are talking about pennystocks.
     
  8. AtlantaSports

    AtlantaSports Senior Investor

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    That is the main issue with penny stocks. The chances of getting large amounts of money out of them are exceedingly low. That is the reason why not many people like to go for them.
     
  9. Gavin

    Gavin Active Member

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    Penny stocks make pennies but there are other times where they can return a large percentage. I never put any money into penny stocks that I'd be sad to lose. $5 can get several hundred shares of a company. A big risk that might make 500% on those pennies or lose it all.

    For the big returns I stick with the things that make the most sense to me. I also know that legit companies (think Sirius Satellite Radio at one point) was considered a penny stock at start up. They made a bunch, lost a lot and the world moved on. Sometimes its fun to be on those vehicles for a short time.
     
  10. rightct

    rightct Well-Known Member

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    Yeah, I agree, many friends have been asking me for tips on how to start in the Penny Stocks, and I usually just tell them this: "Yes, uhh, just don't get involved." They shouldn't go for it since you can risk your money somewhere else and still gain something that could potentially ensure your living, in my opinion. But if you really have to invest only $5, I guess you should play blackjack with it since the odds of gaining something are greater.
     

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