The S&A Penny Letter - Penny Stocks????

Question

Anyone ever heard of this? Does it work?

Answer 1

I believe you are referring to letters that are frequently received recommending penny stocks. If you are then let me explain what is going on. It is a scam, groups or individuals purchase these worthless securities and rather than waiting for a real catalyst to propel the stock higher they resort to much more dubious means. They try to convince as many people as possible to purchase the stock that they own on the open market, and since these companies are considerably smaller than say GE or WMT any increase in buyers sends the stock price skyrocketing at which time the people who sent the letter dump the stock for a huge profit, thus leaving you with a worthless security that will surely decline precipitously soon after.

Answer 2

So..
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org

I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.

As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org

Answer 3

It is possible to make money in so-called "penny stocks," which usually means stocks selling for less than $5 per share. But they are extremely risky, so you need to diversify. Buy shares in at least 15-20 different companies in various industries to spread your risk out. Also, make sure the companies you do invest in are OK financially -- that they don't have huge debts, are making a profit, etc. And invest for the long term -- it may take years before you make a profit on some of these. Also, expect to lose on about 60% of your investments. You can still do OK if you make big profits (100% or more) on the winning investments. Basically, you are more likely to be successful investing in better-known companies with long histories.

Answer 4

Never heard of that newsletter but one shouldn't take stock picking advice from anyone. Penny stocks are great for trading not investing. I trade in penny stocks because I find so many good buys.

Answer 5

Penny stocks are high risk. You might luck out and hit one that makes you money, but you are more likely to lose your whole investment. And that's with or without the investment letters that claim to pick winners for you.

Answer 6

no. and no. never do penny stocks. they're all scams. go to sharebuilder.com if you want to invest for $4 a trade.

Answer 7

I started it about 3 months ago - no great gains yet, but I thrust that it does bring gains in time.

Answer 8

I invest using Sharebuilder.com

Good news: $4.00 to buy

Bad news: $15.95 or $19.95 to sell