Penny Stock

STAY AWAY!!!

I was a broker for a number of years; one of the biggest, if not the biggest company. They're out of the picture now. I don't remember what it was and all, something to do with Federal regulations. Penny stocks are a complete and total crap-shoot, leaning heavily to the crap. For the most part you've got a better chance winning fixed carnival games. 

I'll answer any questions I can.

Smaller companies are a nice play. Look for those on the bigger boards, with real, free open trading. Penny stocks are controlled by those houses that either brought them public or who control the greatest share of their float. It's such a clusterflop that offices on one side of town don't know what offices on the other side are doing (believe it or not, but the big companies actually like that). They are only concerned with volume of transactions. They work like used-car sales people. Most PS brokers wouldn't know a PE ratio if it hit them in the head with a brick. Playing penny stocks should be left to day-trading cowboys who have chunks of cash that they can lose in a few seconds. I was in the game and it made me sick. Vegas is much more fun, and much more honest.

I have been playing the market for over 25 years and as Iceman says forget it. What they do is issue the stock cheap , sell loads of it and then they get out. Its like a pyramid scheme. Want goof\d stocks now  Valero Oil. Marathon Oil, Jabil, Goldman Sachs, Philip Morris. Look for High Dividend paying stocks .

Reminds me of the story of the guy who had some money to play with so he invested $10,000 in a company which made biodegradable, disposable paring knives and was selling for $0.25 a share.  The next day he called his broker and found the stock had doubled, so he bought another 40,000 shares for $20K.  Another day, same story, so he put in 50 grand.  The next day the stock was up to a $1 a share so he told his broker, "Sell it all." 

Came the reply, "To whom?"

Moral of the story:  A cooking bbs is mos' def' the place for investment advice.  Mos' def.

I love you guys but you're nuts.

BDL

    Been a while since anyone has mentioned bbs.  Nothing like taking your telephone handset and placing it in your modem to dail direct

     I haven't tried penny stock before, though I do trade in all hours of the day and night...in perhaps the fastest way to lose your money, fx.

   take care!

   Dan

    As you have said, you just have to know what type of position your going to take.  It sounds like you know exactly what your getting into...and trading sure can be fun.  I've never gotten into penny stocks so I really can't give advice.  Have fun...do your homework and keep your positions reasonable.  

    Have fun!!!!

  Dan

Now I'm not sayin', I'm just sayin'. It's a common standard of the investment world that "You don't lose anything, until you sell out at a loss". What that means is that just because something goes down a little bit, you haven't lost anything unless you get out of that position. It drove me nuts every day when there was volatility and some of my really pansy customers would bug the bageebies out of me on the phone. I gave some of them hysteria when something would be going down and I'd tell them to put more money in. LOL. People just don't understand "dollar/cost averaging". Now before anyone half-reads what I'm saying, It's not bad to jump off a sinking ship. Just don't think that every ship in rough water is going to sink. 

Hey BDL, that was a good story (somewhat inaccurate, particularly w/ PS, but funny still). 

Quote:

Originally Posted by boar_d_laze 

Reminds me of the story of the guy who had some money to play with so he invested $10,000 in a company which made biodegradable, disposable paring knives and was selling for $0.25 a share.  The next day he called his broker and found the stock had doubled, so he bought another 40,000 shares for $20K.  Another day, same story, so he put in 50 grand.  The next day the stock was up to a $1 a share so he told his broker, "Sell it all." 

 

Came the reply, "To whom?"

 

Moral of the story:  A cooking bbs is mos' def' the place for investment advice.  Mos' def.

 

I love you guys but you're nuts.

 

BDL

BDL, you expected Saneness is a Chef's forum, this isn't your first Rodeo, is it ?????????   I know you have been around the block a few times, you gave me directions once........
 

 My Tips to stock buyers.

  Read and learn from different sources, Use a discount broker, Sometime it's good to buy stock when it is going up not down.. Spread your holdings over a large group of companies making or doing different things(Diversify) and in different sectors. You have access to same info as a broker .Years ago you did not. Do not day trade. Track trends. Never put in money that you will need within 6 monthes. There are others but it's to early to think.

LMAO@
 

You gotta be kidding if you say this. 

"Insider trading" is still a crime. You know why? Because someone will always have more access to, and know more than you.