So who buy penny stocks in here? And why?

Question

Please don't comment on something like,,,oh penny stocks don't do it....or you'll lose money....I want to know who buy them in here and why??

Answer 1

This is gambling stock.

Answer 2

Hi there,
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Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
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Answer 3

If you have enough money to earn a profit from penny stocks then why not?

If you find a good stock that you think won't lose in 1 day then invest all your money in it. But that's unlikely because if everyone knew that than everyone would be rich.

You have to take into consideration that you may risk all of the money if that particular stock busts.

You also have to make sure you make more profit than you invest and TAXES & FEES will reduce earnings.

Taxes can deduct 15-33% depending on your tax bracket. Fees depends on which brokerage you deal with.

Answer 4

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/fb19f

Answer 5

I think penny stocks are a great way to invest, but ONLY if you are willing to do the research and hard work to separate the good from the bad. Most of these companies are bad, but there are some really great ones out there. Here is my http://www.top10traders.com portfolio - it lists my favorite ones (mostly in wind energy):

http://www.top10traders.com/ViewPortfolio.aspx?userID=5

Answer 6

I try to find small companies that have something special, which could make them more valuable.

But there is tremendous risk, which is sometimes why they sell for so cheap.

I bought in on a mariculture company when I saw news that there are problems in the industry (diseased fish, pollution from the concentration of fish, um, wastes, etc.)--but my company had a method that was unaffected by those issues. The rest of the investing world was unimpressed that they had a solution, so it went no where. I got out without a loss on that one.

I bought in on a company that had a new rapid-fire technology for guns. I hoped that they would be bought out by the bigger military technology companies. They didn't. The company was too small to make a difference on their own, and by then the military had steered them to non-lethal weapons development, and also by then our war had moved to police force work. I got out essentially with the same I went in with.

I bought in on a company with a then-novel approach to making vaccines. The technology is now called RNAi and is everywhere today. The company stock went from near a penny a share to over two-dollars a share. I sold out in stages, because just any day some bad news could come and I would lose all those gains. Last I heard, they still haven't a product (good test reports, but nothing finalized and approved yet) and now the 'big boys' have their own close to ready. Like the weapons company, sometimes small fish are too small to be significant. The stock is still selling a little shy of a dollar but its prospects are not great.

Then, when the world was agog at voice over internet protocol services (VOIP) I bought in on a small VOIP company that sold to small and medium-sized businesses. Here I got stung by stock classes. All the value was in another class of stock. While I was on vacation, they sold the company business, without selling the stock, and I was left with a shell that had undergone a horrendous reverse split. Instead of tens of thousands of shares I had a few hundred. This shell was then bought by a tin mine in Nevada which changed the name and reverse-split again. On my brokerage ledger, my broker says it is worth six and a half cents today.

Another company had a better way to enhance MRI image slices than GE and the others, plus they were in the process of developing still a better program. Here again, the value was in a superclass and my common shares were literally common as dirt. So when GE announced their enhanced slices imaging, the good doctor essentially closed up shop.

Another company was touting extraordinary imaging and analysis for mineral prospecting. They did all this image analysis on Nevada and discovered, tada! That the area that had been the most productive in the past had so many elemental signatures strewn about from the mining waste that this worked-over land was the brightest blip on their radar, duh! My 111,000 is worth about $11 bucks

Then there was a company that I bought into, that similarly, figured that they knew where an even richer body of ore could be found than that which an existing mine was so successfully working. They staked claims for hundreds of miles of land. Meanwhile, a pump and dump promotional crew came in. I sold most out at a loss after the feeding frenzy and when it became clear that they weren't going to actually dig anything, just hold a good place to dig. It reminds me of what Twain said, who was notorious for finding bad investments, "A gold mine is just a hole in the ground, surrounded by liars." In my case, they didn't even have a hole in the ground.

Still, for all these, and more, there were enough gains in what little I risked on them, that I haven't lost much on my penny stock ventures. In another case, a big fish did indeed gobble up the little company, so I got stock in the bigger fish.

So it is like fishing. Sometimes you just lose worms. Sometimes you snag sunken trash. Sometimes, just sometimes, you hook a really good one. And that is why I try.

Answer 7

I figure its better than a casino. I do not consider these purchases investments rather gambling, I consider it fun. Investments are kept separately