What do you guys think of penny or micro cap stocks?

[Megafauna]

You know stocks that are either under $5 or $3 per share. I used to trade those and did very well on a few but lost on most of them. One of the ones that went up literally 10 times or more in value in just 2 to 3 weeks was that company with the vitrual wireless keyboard but I forget the name. It was XTBC or something like that. Some of you guys who have been dealing with market must have a wave of weeding out the bad ones and finding the few gems out there, you know?

Kind of the same way MR.MARKET evaluates many stocks and just picks one. Another reason is because if you currently don't have a lot of money to work with you can easily double or triple your money or do even better IF you've got one of those gems.

I'm sure you noticed those ads on the right of this page for penny stocks so I had to ask. I know you can say many are pump and dump but not all are since many legit companies have been down that low and have rebounded very well.

I guess the greatest potential for gain would be a stock that is only .005 and it goes to .02 if something breaks or it gets from the pinksheets to the OTC, etc. Or even from .02 to .08 or along those lines but you get the idea.

[billyjoe]

Mega,
I think penny stocks are a huge gamble at all times and especially risky now. If 1 in 25 hits you're doing good . In good times the quality stocks will pay off at least 50% of the time if you do enough research. Many business writers will quote an 80-20 chance against you in this market.

---------------billyjoe

[mrmarket]

You know stocks that are either under $5 or $3 per share. I used to trade those and did very well on a few but lost on most of them. One of the ones that went up literally 10 times or more in value in just 2 to 3 weeks was that company with the vitrual wireless keyboard but I forget the name. It was XTBC or something like that. Some of you guys who have been dealing with market must have a wave of weeding out the bad ones and finding the few gems out there, you know?

Kind of the same way MR.MARKET evaluates many stocks and just picks one. Another reason is because if you currently don't have a lot of money to work with you can easily double or triple your money or do even better IF you've got one of those gems.

I'm sure you noticed those ads on the right of this page for penny stocks so I had to ask. I know you can say many are pump and dump but not all are since many legit companies have been down that low and have rebounded very well.

I guess the greatest potential for gain would be a stock that is only .005 and it goes to .02 if something breaks or it gets from the pinksheets to the OTC, etc. Or even from .02 to .08 or along those lines but you get the idea.

I think in a bear market, the pennies are a great place to find companies that don't get caught in the vortex. Kind of like those small pieces of toilet paper that don't quite get pulled down.

[Websman]

Pennies are a lot of fun, as long as you only use play money. My PDGT is going to make me a fortune...or not.

[Megafauna]

I think in a bear market, the pennies are a great place to find companies that don't get caught in the vortex. Kind of like those small pieces of toilet paper that don't quite get pulled down.

Glad to hear from you Ernie. I was wondering where you were since I hadn't seen any recent posts from you! I started a thread about where's your latest pick? Are you still holding onto BOOM? If so then you won't make another pick until you sell BOOM, right?

[mrmarket]

Glad to hear from you Ernie. I was wondering where you were since I hadn't seen any recent posts from you! I started a thread about where's your latest pick? Are you still holding onto BOOM? If so then you won't make another pick until you sell BOOM, right?

No...I make new picks when I sell one in my portfolio.

[simonparth]

i think it depends on your trading style. i've always had trouble with penny stocks; i fare much better with assets that have a much better trading volume, as it's more conducive to my style of technical analysis. but my risk tolerance is a lot lower than many traders, so that might explain my aversion to penny stocks as well.

so in sum, i give penny stocks a thumbs down. but i have friends who have made a killing trading them, so i guess if you're comfortable with the risk or astute enough to find "the toilet paper that didn't go down," as mrmarket put it, then it might be your cup of tea.