Yeah, Penny Stocks are considerably more dangerous than more expensive securities. But there is a great added benefit, that you can buy far more shares. Most of the time I wouldn't recommend buying penny stocks (any stock under 2 or 3 dollars) unless the buyer is someone with lots of money (and in this case wouldn't put all of it in the same stock) or is young (at my age, for example, I can screw up on a thousand bucks and it won't kill me over the long run. On those stocks that you mentioned, I'm not sure how safe they are. ET looks pretty good, it's going up fast. The only thing that I would be at all concerned about would be the high volume for such a small stock. It gives the stock the ability to shoot up, but it also might cause it to come down just as fast. hmmmm MED is an interesting case. I'd like to know what caused it to drop nearly a dollar per share under a week ago. P/E ratio is up around 80 which is higher than I like. I personally think that this one is gonna go down to around 10 and then head back up. AVE I'm really not sure about. It's on the upper end of its swing....which I really know nothing about. Maybe someone else can offer some thought.
What do you think about VVUS (VIVUS)? It's a pharmacutical company that I think looks pretty promising. I've got very little interest in the companies focus, but then again people my age rarely have interest in the area of the market that goes up. What do you think?
Technically, Penny Stocks refers to any stock under $10. However, more commonly people think of penny stocks as being those over the counter pink sheet stocks like USXP http://finance.yahoo.com/q?s=USXP.OB&d=t This stock has traded at very low amounts for most of its career. They don't make money at all and they never did. These stocks get "pumped and dumped" on the Internet all the time. You have a better chance of getting hit by a Mack Truck and not getting a scratch then you do of getting rich off one of these. The first thing the Superior Investor needs to do is to forget all about Penny Stocks.
i tend to agree with u and also disagree with u on that. agree on the sense that its true it get pumped and dumped a lot but i also disagree because some companies like SIRIUS for the matter of fact couple of months ago was still a penny stock and i think is still one. i think its not the fact of penny stock that is the problem its the line of investment that u take. if u don't do the research about the company product and understant the business itself that u are investing in u have higher chances to fall on companies that did not perform, are not performing and will not perform... well that is IMHO chahine
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