I hear people say, “Stay away from penny stocks. You’re better off playing the lottery. I beg to differ; the lottery is actually more expensive and rarely does anyone make back what they put it in. I remember getting talked out of Converse sneakers when it was a penny stock, trading at 37 cents a share. They had made some blunders; signing Latrell Sprewell only to have him try to choke his coach the next week. I said to my broker, “What if Adidas buys them?” He chuckled and said, “Don’t worry, they won’t. They’ll go under and you’ll have thrown your money away.”
What are Penny Stocks?
And he was right, Adidas did not buy Converse…Nike did in 2003…for $305 million on annual sales of $200 million!!! Now, Converse sales for Nike are $2 BILLION, annually. So that guy is no longer my broker…
That being said, if you have an itch for the “next big thing to come back from the dead,” might I recommend pennypicks.net? Instead of trolling the internet for a company on hard times and guessing like I did on Converse (and I was right!), these guys do all the leg work for you. Now, don’t go crazy; sure you can buy 2,700 shares of Converse stock in 2001 for $1,000. The big question is how many multiples of $1,000 do you have to throw around? $1,000 is not a lot to invest but it’s a lot to lose.
However, if you have a sense about a stock, you can jump on line and do some research! If you have a good feeling that they may get purchased before they go belly up, why not? Here’s a few of the pennypicks latest ideas…
Medical Marijuana, Inc. (MJNA) Yeah, yeah…don’t get precious. This is business! They were at 09 cents per share, with a “high” of 48 cents per share and today they’re at 11 cents. You’re still ahead and if you sold at the peak, that’s a 500% profit. Now, those are some Hillary Clinton returns! Yeah, I said it…
They’re capped at $372 million dollars. Now, let’s suppose that since California, Oregon and Colorado have legal weed, these guys get bought out by say, Johnson & Johnson or Pfizer just so they can “hold?” I can do this all day!!! But seriously, you see how that works?
Valmie Resources, Inc. (VMRI) Not as self-explanatory as the last one; they develop aerial data collection software, hardware and cloud services for commercial applications. Their primary focus is on pursuing opportunities for the commercialization of products and services in the technology industry.
Here’s a video from Joyful Investor explaining what penny stocks are:
Okay…not as sexy…a few months back, they were trading at $2 a share, climbed to $6 a share and now, they’re at 11 cents a share. What a ride! Say you bought 100 shares for $200 and sold at the peak? That’s a 300% return! If you missed the peak, you can afford to wait at 11 cents! See, this can be fun because your kid’s college is not on the line…
Sears decided to sell some of their products through Amazon. Find out more about this deal right here.
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