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lastlib

(23,233 posts)
6. They're "penny" stocks for a reason......
Fri Feb 7, 2014, 11:03 AM
Feb 2014

They're more like throwing money at a toilet and seeing what floats and goes down last, and what sinks, and goes out first......If you're Warren Buffet and have money to burn, okay, go for 'em; otherwise, you're much better off putting money into something else.

These stocks have almost no coverage by analysts, and other trained experts, so unless you are extremely good at analyzing the value of a company, and have the time to do it, you'll be wading into a swamp full of things that bite and sting. I would not recommend anybody going there unless they have their eyes fully open and have the resources to investigate these stocks independently--even then, I would recommend extreme caution. Moreover, most of them do not have the cash flow or future value to make them very viable investments to the average person. "Cash flow" and "future value" are your friends in investment--stick to them, and you'll be golden (literally!)

Question to all.... [View all] clarice Feb 2014 OP
Good question. I don't follow sectors that much... Common Sense Party Feb 2014 #1
Thanks, I will check it out. nt clarice Feb 2014 #2
Common... clarice Feb 2014 #3
I stay far, far away from those. Common Sense Party Feb 2014 #4
Me too. nt clarice Feb 2014 #5
They're "penny" stocks for a reason...... lastlib Feb 2014 #6
Warren Buffet didn't get to the position he is in because he has or had money to burn! A HERETIC I AM Feb 2014 #7
Latest Discussions»Culture Forums»Personal Finance and Investing»Question to all....»Reply #6