If you consider yourself to be a knowledgeable investor in penny stocks, I would like to ask you to please contribute to this thread a list of penny stocks that you consider are safe so that other investors who are just beginners to have a handy guide! Let's make this thread comprehensive, people!
I have been investing small amounts ($300) in FSPM.....one that is not as risky is SONS IT CLOSED@ $3.21 TODAY. MWIP is a stock I follow closely and have invested in but sold my position a few weeks ago.
I have followed SONS it for a long time. It is one of the safer ones out there. I wouldn't say too many more are safe however.
We definitely needed a topic like this, this will put a lot more companies on my radar, so I can either get in on them or check them out for a later time.
I'm skeptical that any penny stock could be listed as reliable, especially compared to the alternatives.
This is a good topic and I have gained a lot of ideas and information from it. Learning all of this would be a much slower process if I had not found this site.
I've been going long on Jbii. They are a company that turns waste plastic into diesel fuel and have gone through a complete restructuring of their company. From their focus, to their management. I like what they stand for, and the $1200 I put in at .12 has already netted me a decent return.
If penny stocks where reliable, they would not be penny stocks. They are extremely high risk and you are gambling that they will manage to achieve some sort of break through or discovery, depending on what type of stock they are. So wild cat drilling companies or mining companies are a good example. They have a small amount of capital which they can use to drill X amount of wells, or in the case of a mining company make a mining strike. If the capital runs out the company is bust, if they luck out then you make money. The same principle applies with tech companies etc.
You guys should do this systematically. Set down a list of criteria that needs to be filled in order for this particular stock to be considered "reliable". I guess it would start something like this: -profitable -average EPS change in past 5 years needs to be positive -debt levels below a certain threshold etc. Otherwise you guys are just listing your favourites with a quick personal opinion but nothing to really define what is reliable and what isn't.
