Comments on: Penny Stocks Are Not Cheap Stocks

By: Mike

Mike — Mon, 02 Nov 2009 11:41:45 +0000

I am actualy giving away £10 worth of free penny shares as part of our venture to help people through the credit crunch. All genuine wealth seekers invited.

By: The Happy Rock

The Happy Rock — Thu, 04 Jun 2009 14:21:21 +0000

Penny stocks are pretty wretched for the most part. Full of shattered dreams and wasted capital.

@Danny – I must say that you are the one that sounds like an amateur. There is a lot more to a successful company that advertising and sales and there are about a million ways to go wrong. From my experience the most likely scenario for your stock is to have to sell more shares to ‘expand and grow or to cover debts’ which will further dilute the share price not increase it despite growing sales.

By: Pinyo

Pinyo — Thu, 04 Jun 2009 13:35:56 +0000

@Danny – Feel free to call me amateur for having a different view than yours about Penny Stocks. By the way, did you even read my post? I said nothing about it being good or bad. I am just using it as an example on how to evaluate stock value.

By: Danny

Danny — Thu, 04 Jun 2009 08:14:32 +0000

Only amateurs would post the above statements. Look at Sponge tech for a great penny stock that is exploding. With commercials on tv, advertising in Baseball stadiums, and a spot on the Home Shopping network, all bases are covered in advertising. Oh, they had more sales last month than the whole previous year. No wonder my money doubled.

If you pick a product that has great advertising and great sales, how can you go wrong?

By: Pinyo

Pinyo — Wed, 13 May 2009 14:33:46 +0000

@Writer’s Coin – Nice article. I guess the misconception about cheap stock doesn’t bother me as much.

@MLR – Thank you for your help on Tip’d. Good point about doubling.

@Doctor S – Hmm…Worldcom…what’s that?

@SJ – I tried single ply toilet paper. Not very nice.

By: SJ

SJ — Tue, 12 May 2009 23:56:51 +0000

Nah penny stocks are cheap. You just aren’t getting much for your value (sometimes)…

It’s like buying really cheap singly ply toilet paper.

One thing to note is that usually the pricing can be manipulated more easily due to less peeps buying/selling resulting in higher volatility in price… which can be good or bad =)

By: Doctor S

Doctor S — Tue, 12 May 2009 20:35:24 +0000

Thanks for identifying the basics on something I had no idea about. Its funny, back when I was in hs, my friends and I were thinking the same thing that @MLR was saying…. we wanted to be tons of stock in Worldcom b/c it was only $0.01. We told ourselves “All we need is for it to go up a few cents and we are set!” Hahahah naive youth days for me!

By: Sherin

Sherin — Tue, 12 May 2009 13:27:18 +0000

You are right. In my opinion, identifying the initial rate of return when buying the stock will tell whether the penny stock price is to expensive or cheap.

By: MLR

MLR — Tue, 12 May 2009 04:44:11 +0000

Great post, seems to have done well on tip’d

I also had a friend investing in 10 cent stocks because “all it had to do was go up 10 cents” for him to make some money.

I asked him how he expected the stock to double in value. He didn’t seem to realize that doubling is still doubling no matter the base price.

Meh. His lost money.

By: Writer's Coin

Writer's Coin — Tue, 12 May 2009 00:12:11 +0000

Great article! I was trying to say the same thing with my post called "Is a $5 Stock Cheaper than a $30 Stock?". You seem much more relaxes about it. It drives me nuts when people make that assumption!