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Anyone play around with penny stocks?

Discussion in 'Economics and Financials' started by padre31, Jul 11, 2009.

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  1. padre31

    padre31 Premium Member Luxury Box

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    I've recently become interested in dropping some hard earned dollars into penny stocks, the concept sounds good to me and the risk levels are fairly low.

    Anyone mess around with these things? And if so, any pointers?

    Penny Stocks are generally thought of as shares under 5 or 3 dollars so called microcaps, which actually have been performing fairly well with the Russel 2k up for the year.

    My biggest unknown about these things is holding the actual, physical shares and how they are transfered, with prices at 2 per share, brokers fees are murder on these things while one waits for them to grow or collapse.
     
  2. Boik14

    Boik14 Season Ticket Holder Club Member

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    Ive dabbled in them but I havent done real well with those. The good side is your loses are minimized and there is little incentive for people to short the stock. The bad side is that these companies fail seemingly at a higher rate.

    My best success has come with stocks that have growth potential and havent yet matured; ones generally in the 8-12 dollar range that have started to grow but probably haven't peaked yet.
     
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  3. padre31

    padre31 Premium Member Luxury Box

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    Did you hold the stock certificates or did you allow the Broker to handle them Boik?
     
  4. Boik14

    Boik14 Season Ticket Holder Club Member

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    Well my broker is my dad so I cant really answer that because its not like they were ever more then a short drive away from me. :lol:
     
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  5. #1 fan

    #1 fan Well-Known Member

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    i got jamba juice (JMBA) on etrade last week. trades for 1.09 a share.
     
  6. #1 fan

    #1 fan Well-Known Member

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  7. padre31

    padre31 Premium Member Luxury Box

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  8. my 2 cents

    my 2 cents Well-Known Member

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    Yeah...I have some CitiBank...lol.....
     
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  9. JMHPhin

    JMHPhin Season Ticket Holder Club Member

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    you arent gonna get rich off them, unless you get into an emerging industry, them they get out of teh penny stock status. Not an expert by any means but my cousin is a manager of a brokerage firm in Atlanta and he says that they are relatively low risk, but generally reward is moderate.
     
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  10. MonstBlitz

    MonstBlitz Nobody's Fart Catcher

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    I own some Sirius. Bought it when it was at about 15 cents.
     
  11. #1 fan

    #1 fan Well-Known Member

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    bump because JMBA is trading for $2.59 a share. #1 fan is banking
     
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