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Thread: Penny Stocks...anybody mess with them?

  1. #1
    Just wondering if anybody else on here messes around with penny stocks? I just got involved in em a few weeks ago

  2. #2
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    Unless you have some true inside info about the company it's an investment kind of on the same level as a crap shoot.

  3. #3
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    My recommendation is to avoid -most are junk-shell type of companies- if you are going to invest look for companies you know something about-learn about their products , markets, management and history AirforceJetfan

  4. #4
    definitely a crapshoot and I understand that. I did drop a couple of thousand bucks on a couple of things that I found and liked the potential. So far I'm down a few bucks but that tends to change from day to day. Up a little, down a little. I'm just going to hang on to the ones I purchased already and hope that in a few years they come up big. Whats appealing about the penny stocks to me is that you can buy hundreds of thousands of shares for farily cheap and if the stock ever does fairly well and bumps up to a dollar or two, you've got millions in stock and you can sell a good portion of it.

    The reason I've stayed away from "established" companies is the simple fact that with the kind of money I'm willing to invest, I'd never make a ton of money in the stock market, maybe a few grand but thats about it.

    Take Delta for example. I bought some of their stock when I started out because I felt it was relatively cheap for under 6 bucks a share. Just a few years ago Delta was trading at 70 bucks. So even if Delta were to return to it's old "glory days" which would obviously be best case scenario, I'd make about 30 grand if I invested a couple thousand. Now thats decent money but for that kind of return I'm doing some IRA and real estate stuff. But I figured a gamble on penny stocks with a shot to hit big would be worth the gamble. And it's just that, a gamble.

    Thanks for the input though guys. Have you guys traded any? Had any luck?

  5. #5
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    I work in the financial sector and my area collects data on the information companies report -interim earnings and their year end results. This is why I can speak of OTC issues by and large are very risky so I have never invested in- A number of these companies and their financial results I would be leery of relying on- Just my IMO

  6. #6
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    [quote][b]definitely a crapshoot and I understand that. I did drop a couple of thousand bucks on a couple of things that I found and liked the potential. So far I'm down a few bucks but that tends to change from day to day. Up a little, down a little. I'm just going to hang on to the ones I purchased already and hope that in a few years they come up big. Whats appealing about the penny stocks to me is that you can buy hundreds of thousands of shares for farily cheap and if the stock ever does fairly well and bumps up to a dollar or two, you've got millions in stock and you can sell a good portion of it[/b][/quote]

    This is typically not the type of investment you want to hold on to....

    Generally these entities move on lot buys/sells...So if you have inside or institutional info you can make a killing on day trades.

    As someone said before, penny's are usually shell companies that are dead weight. You may find some gems in the Biotech field who are waiting regulatory approval, or Oil companies who are prospecting in promising regions but have yet to make finds.

    Point is, be careful......If you have money to blow (Which just about NOBODY has), take a chance with a small percentage of your portfolio. But make sure you're getting good insider or institutional info on the company, not spam email newsletters pushing day moves.

  7. #7
    DOLPHINWORSHIPPER2
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    Are you looking for short term or long term gains???? Very risky either way. For long term I prefer Mutual funds. Just be sure that the funds you use are EXPENDABLE!! Don't use bill money or food money to purchase pennt stocks. Don't count on the money. Personally, I bought a $1,000 worth of Omni Alliance (OMNA). It's a shiot stock but I've made some money, then lost it, then gained it, etc.... W/ pennies, it's all about timing. They'll literally double in a morning but by the end of the day, it's back to where it started after everyone sells. I bought some at .08 cents a share and it went to .15 cents a share. I sold it at .14. Next day or two it was back down to .08 cents a share. I bought it up again hoping it would double again, only this time it dropped to .04 cents a share. I held it and now it's @ .07 cents. Basically, w/ a little bit of luck and the right timing, you can make out pretty well. But easier than you can gain, you can lose it. Be careful and HAVE FUN!

  8. #8
    [quote][i]Originally posted by DOLPHINWORSHIPPER2[/i]@Mar 1 2005, 01:02 PM
    [b] Are you looking for short term or long term gains???? Very risky either way. For long term I prefer Mutual funds. Just be sure that the funds you use are EXPENDABLE!! Don't use bill money or food money to purchase pennt stocks. Don't count on the money. Personally, I bought a $1,000 worth of Omni Alliance (OMNA). It's a shiot stock but I've made some money, then lost it, then gained it, etc.... W/ pennies, it's all about timing. They'll literally double in a morning but by the end of the day, it's back to where it started after everyone sells. I bought some at .08 cents a share and it went to .15 cents a share. I sold it at .14. Next day or two it was back down to .08 cents a share. I bought it up again hoping it would double again, only this time it dropped to .04 cents a share. I held it and now it's @ .07 cents. Basically, w/ a little bit of luck and the right timing, you can make out pretty well. But easier than you can gain, you can lose it. Be careful and HAVE FUN! [/b][/quote]
    I caught on to that and there are one or two that I'm playing the same way, but I have one that I really like long term so I have almost a million shares and I plan on hanging on to it.

  9. #9
    DOLPHINWORSHIPPER2
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    [quote][i]Originally posted by AirForceJetFan+Mar 2 2005, 07:51 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>[b]QUOTE[/b] (AirForceJetFan &#064; Mar 2 2005, 07:51 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-DOLPHINWORSHIPPER2[/i]@Mar 1 2005, 01:02 PM
    [b] Are you looking for short term or long term gains???? Very risky either way. For long term I prefer Mutual funds. Just be sure that the funds you use are EXPENDABLE&#33;&#33; Don&#39;t use bill money or food money to purchase pennt stocks. Don&#39;t count on the money. Personally, I bought a &#036;1,000 worth of Omni Alliance (OMNA). It&#39;s a shiot stock but I&#39;ve made some money, then lost it, then gained it, etc.... W/ pennies, it&#39;s all about timing. They&#39;ll literally double in a morning but by the end of the day, it&#39;s back to where it started after everyone sells. I bought some at .08 cents a share and it went to .15 cents a share. I sold it at .14. Next day or two it was back down to .08 cents a share. I bought it up again hoping it would double again, only this time it dropped to .04 cents a share. I held it and now it&#39;s @ .07 cents. Basically, w/ a little bit of luck and the right timing, you can make out pretty well. But easier than you can gain, you can lose it. Be careful and HAVE FUN&#33; [/b][/quote]
    I caught on to that and there are one or two that I&#39;m playing the same way, but I have one that I really like long term so I have almost a million shares and I plan on hanging on to it. [/b][/quote]
    One thing I forgot to mention is that when it went down to .04 a share, I bought more. Unfortunately, not a bunch of it because I don&#39;t exactly have expendable money flowing. Now it&#39;s back up to .08 (so those latest monies doubled&#33;&#33;). It&#39;s alot of fun.



    I&#39;ve been buying Sirrius for the past 8 mos. &#036;200/mo auto W/D from my checking (so I&#39;m forced to buy&#33;&#33;) and when I have extra &#036;&#036;&#036; I buy more. I&#39;m holding that long term and hoping it&#39;ll explode someday within a couple/few years. I hope it stays low so I accumulate more shares THEN it can go nuts.

  10. #10
    If you have money you want to play with - open an account at sharebuilder.com.

    Takes it right out of your bank account, invests in blue chip stocks that pay dividends, reinvests those dividends - it adds up - trust me.

    There&#39;s no reason to mess around with penny stocks. If the company was so good - why are it&#39;s shares down in the dump?

    I buy shares of Altria, Home Depot, Coke, etc at Sharebuilder.com. It has added up a lot

    dc

  11. #11
    mr faba ,mr bradway & Sooth you guys, like myself have been around the stock market for a long time now.

    I&#39;ve read enough of your posts over the years to respect your opinions when it comes to "the market"

    so lets share some stories of how we & some of our friends got rich quick thru the market.................I&#39;ll start ummmmmm........errrrrr..........actually why don&#39;t one of you guys go first

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