Here is what the other-druther world thinks of us and penny

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PoemStone SaltyMutt #8104

Here is what the other-druther world thinks of us and penny stocks.

I think penny stocks are fantastic for the following:

  1. Capital Loss generation
  2. Promoters and "investor relations firms" who represent the companies
  3. People who live far away from a store that sells lotto tickets
  4. Anyone who finds themself in some type of Brewster's Millions type scenario where they have to lose a certain amount of money in order to win an even larger amount of money
  5. Pump and Dump scammer

Robert

Most penny stocks are not meant to be long-term investments but they are indubitably a swing trader’s paradise.

Anthony

Fuse science is a classic example of this. Ticker is DROP. And thats what it did. It is on the side of tiger woods' bag. It got "pumped and dumped" from .45 cents to 1.13 then dumped down to ~.30. Now its at 12 cents.

Anthony

I thought/think its $5 or less...

hi: Most penny stocks are selling for pennies for a reason. They are likely to go bankrupt.

Jason Hull Level 20

This isn't financial advice, but I get the same feeling in my gut as the quotation below. I haven't tried it, nor will I.

"When I see a stock tip in my spam folder from a spammer, I feel like shorting it." - Derek Halpern

In most cases, penny stocks should be avoided as they are often the domain of hucksters and "pump and dump" scam artists.

Historical research shows that 85% of stocks trading below $2 eventually go away. That said, you have a 15% chance of even coming away with ANYTHING. Would you go to a casino that gave you 15% odds? That's probably a bad example with the luck I had the last cruise I was on (ha).
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