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Money: Penny Stocks - Friend or Foe?
Posted January 17, 2007 6:22 AM
First of all let me give you the standard disclaimer: Invest at your own risk, based on your own due diligence. My comments are purely my opinion and may change at any time based on market and other conditions. You are 100% responsible for your own decisions. Now, let's talk a bit about penny stocks. As reported at fool.com, penny stocks have enormous potential. As part of a test they typed "penny stocks" into Google, and the search engine spit out "about 1,210,000" hits. They did the same thing with the more time tested "dividend-paying stocks" and only got 173,000 hits. It tells us that the interest is strong, yet if you check with your financial investors, they will likely steer you far away from them. They can be volatile and if you invest in a penny stock that is in the dollar or dollars range, they can always go back down to pennies.
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With that stated, I have made a sizable sum of money investing in these stocks. If you don't have an intimate knowledge in what a certain company does, but someone gave you a tip, then (and always) due diligence is a must. Find out as much as you can and you'll likely find that the company has an appointed person to answer questions from investors. Ask about their growth strategies, if they have a product, what are their plans to get it to the mass market? There are a couple of companies on the OTC.BB that I think are winners both short term and long term. IMGG.OB is a company called Imaging3. They have invented a product called The Dominion that has 3D medical imaging for diagnostic use and a plethora of other uses. They have created a huge interest in the medical sector and most importantly, as they are a new public company, their volume is starting to grow, while the price, hovering around .20 cents per share is still low enough to make a sizable investment. Also, Cereplast, CERP.OB, is an amazing company that makes plastic out of corn, potato and other renewable resources. They've signed some really important and big deals with Alcoa and Solo Cup. The world is embracing having a completely biodegradable alternative to normal plastic. Let's stop global warming, people! I got in on the ground floor of this company, but I believe they're potential is so huge, that even trading at .50 cents, investors are still on the ground floor. If you have interest in turning pennies into dollars, the best gift for a man is the gift of dinero. Ladies, if you want the best gift for him this Valentine's day, then the gift of financial independence should be big on your list. Guyville recommends Making Dollars With Pennies: How the Small Investor Can Beat the Wizards On Wall Street. With a little strategy and a little bit of research, we sincerely hope you have a prosperous '07!