Penny Stocks

[greenEGnHAWGS]

Had any of y'all ever dabbled with penny stocks? I know it's high-risk/high-reward, but my bro in law has a friend who apparently has done well with penny stocks over the last 2 years, so I was wondering if y'all have any experience (good or bad) with them.

[HawgWild]

I once bought a $60 stock that did a 1 for 20 reverse split and got down to $.10 pps before it disappeared. Does that count?

[greenEGnHAWGS]

I once bought a $60 stock that did a 1 for 20 reverse split and got down to $.10 pps before it disappeared. Does that count?

Ha ha...considering you're the only poster so far...I'll allow it...

[HiggiePiggy]

Closest I was ever to a penny stock was when I bought SXE at a 1.25. It dropped to 38 cents.  So I bought 1500 shares and I eventually sold at 1.23.  It got to over 3 bucks, but I didn't sell at that time.  Went back down to 70 cents then eventually got back to 1.23 then I sold.  About 2 months after that it was back to 3.

It is currently at 1.64.

[ricepig]

My Windstream stock looks like it's headed for penny status, that's about as close as I can come.

[widespreadsooie]

A penny stock purchase should never be high risk

[greenEGnHAWGS]

A penny stock purchase should never be high risk

Do you say this because you should only buy it when it's practically worth nothing (couldn't go much lower) or is there another reason why it shouldn't be high risk?

[McKdaddy]

is there another reason why it shouldn't be high risk?

Lee Trevino said it well: "You don't know what pressure is until you play for five bucks with only $2 in your pocket."

That would be analogous to "high risk" penny stock investing.  Instead do so w/ money that is inconsequential (if one must do so at all).

[CampuspostmanHOG]

I do some penny stock trading from time to time. It is usually with stocks that I have watched for years. The last few I traded were TOPS it just went through a 1:10 reverse split last month. It's not a buy right now. CBIS (this one is near a buy).

Do not use money that you can not afford to loose. It ain't easy. You have to catch the momentum at the right time and then get out. I've done ok with them. I wouldn't recommend it to anyone unless you know the stock well.

[greenEGnHAWGS]

I do some penny stock trading from time to time. It is usually with stocks that I have watched for years. The last few I traded were TOPS it just went through a 1:10 reverse split last month. It's not a buy right now. CBIS (this one is near a buy).

Do not use money that you can not afford to loose. It ain't easy. You have to catch the momentum at the right time and then get out. I've done ok with them. I wouldn't recommend it to anyone unless you know the stock well.

I basically thought about just taking some of my petty cash and playing with these cheap stocks for a while to see how it goes. I'd never just jump in with any money that is needed elsewhere. I've been reading up on several stocks, but it's tough to know where to go for good info.

I'd love to have a thread of like minded investors to just hash out ideas and thoughts regarding certain investments.

[Boardon Hamsay]

I don't typically play with the penny stocks. I tend to be more of a best of breed stock investor and enjoy the fundamental and technical analysis that goes with picking stocks. In terms of speculative stocks, I tend to dabble mostly in the biotechs.

[widespreadsooie]

Do you say this because you should only buy it when it's practically worth nothing (couldn't go much lower) or is there another reason why it shouldn't be high risk?

Along the lines of what other posters said but that also applies to much more than penny stocks. The only reason I would get into a penny stock is because it's cheap so I would call it low risk on that fact alone. Now you can certainly make it high risk if you wish, by placing a large % of your investment funds in one. Now that would be high risk/high reward but highly unadvisable.

[CampuspostmanHOG]

CBIS up 7% today, if it gets support, might be good for nice pop. Do your own due diligence. Might retreat some too. Keep an eye on it.

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[greenEGnHAWGS]

I do some penny stock trading from time to time. It is usually with stocks that I have watched for years. The last few I traded were TOPS it just went through a 1:10 reverse split last month. It's not a buy right now. CBIS (this one is near a buy).

Do not use money that you can not afford to loose. It ain't easy. You have to catch the momentum at the right time and then get out. I've done ok with them. I wouldn't recommend it to anyone unless you know the stock well.

If you don't mind this noob asking, I understand what a reverse and forward split is and why a company would do it, but how does it effect the investor? Does it help or hurt your investment in that product?

[HawgWild]

I can think of 3 stocks I've owned over the years that did a reverse split (LU, SD, OGEN). It did not end well for me on any of them. On the other hand, the stocks I've owned that did a split, increasing the shares and reducing the pps, (WMT, Michaels) have done well.

Many mutual funds and institutions have minimum pps thresholds that must be met before they will invest in them. Reducing the number of shares and driving up the share price above those thresholds can open them up for investments from these bodies.

Reducing the pps and increasing the number of shares can make a growth stock more attractive to a wider population. At some point though, they no longer feel the need to do this; think WalMart.

This is my explanation, a simple investor. There are people with much more technical knowledge on investing visiting here.

[vandybuff]

Respectfully, they are penny stocks 'for a reason'. 

[longbore]

I like to play the super sub pennies...

[Vantage 8 dude]

I once bought a $60 stock that did a 1 for 20 reverse split and got down to $.10 pps before it disappeared. Does that count?

Kinda reminds me of the old guy I once heard about. He made a small fortune; problem was he started with a LARGE fortune. 

[HawgWild]

That stock was Lucent, once the most widely held stock or so I heard back in the late 1990s. It may have even gotten to a pps of $70 or more. I bought in when it fell to $12.75. Kinda reminds me of GE. There's no sign of it these days. It merged into ALU and then was bought by Nokia a few years back.

[longbore]

One thing I appreciate most about sub penny stocks is I can do a whole lot of losing and still be a winner.

[theFlyingHog]

I turned a grand into two grand over the last two years on a little oil company. Of course they've gone up another 20% since I sold it two months ago

[greenEGnHAWGS]

I turned a grand into two grand over the last two years on a little oil company. Of course they've gone up another 20% since I sold it two months ago

Oh nice. Let me ask you, how did you catch on to that stock? If you did your own research, were there certain things you looked for?

[JoeyCapital]

Oh nice. Let me ask you, how did you catch on to that stock? If you did your own research, were there certain things you looked for?

He has a fool-proof research system in place. He finds companies that he's interested in, then he moves to the town where they have their corporate headquarters for a couple of months. While he's there he finds the ugliest skank that's relatively high up in their company, and he dicks her down. It's amazing the amount of info ugly skanks will give you while you're dicking em down.

He calls it "getting inside her trading". It's really quite brilliant.

[theFlyingHog]

Oh nice. Let me ask you, how did you catch on to that stock? If you did your own research, were there certain things you looked for?

Honestly it's a company that my company has a close relationship with and I thought they were undervalued. I have the TD Ameritrade app and watched the news they post related to that stock and it looked favorable. Really started as just a WAG, wanted to throw some money at something and I knew a bit about what they do since we work together

[JoeyCapital]

Honestly it's a company that my company has a close relationship with and I thought they were undervalued. I have the TD Ameritrade app and watched the news they post related to that stock and it looked favorable. Really started as just a WAG, wanted to throw some money at something and I knew a bit about what they do since we work together

Why are you holding out on these fine people? They need to know the truth! Making money in penny stocks is not about research, it's about boning skanks.

[theFlyingHog]

Why are you holding out on these fine people? They need to know the truth! Making money in penny stocks is not about research, it's about boning skanks.

I bought it back this morning and it's up another 4 n a quarter. May turn this one stock into my retirement fund, F the 401k