Penny Stocks?

Almost always they're a bad idea. They don't have to do very strict accounting so usually they are companies with shady accounting and the like. Its human nature to want to buy stocks for pennies and sell them for dollars but it almost never happens.

Hi OPM. :D A stock that is trading for under 10.00 a share is considered to be a "penny stock" Before buying any penny stock, it's usually recommended to look into the background of the company, earnings etc.

I generally only buy blue chips but I am interested in doing something like this if I can make some money. I keep getting email spam about a company with the ticker UDVE, it is at 5 cents a share now, any ideas if this is even worth it? The MSN news on the company SOUNDS good but I don't know if it really is. Bob [url]http://moneycentral.msn.com/scripts/webquote.dll?iPage=lqd&Symbol=UDVE[/url]

Definitely skip it. The chance of a stock recovering from 5 cents a share and rising to meteoric levels is one in a million.

Quality stocks come with a price. Anything selling under 10 probably has something bad going on underneath the surface. You would be better off to buy less shares of a quality stock that you will see a return on. 8)