Can fortunes be made in penny stocks with diligent study of product (or resource) and market capitalization?
October 23, 2008 by admin
Filed under Todays Watchlist
Can fortunes be made in penny stocks with diligent study of product (or resource) and market capitalization?
2008-10-23 09:40:46
I have recently read about a mining company in Australia that is mining a rare type of natural earth commodity. The natural resource product is being bought in large quantities by China.
The stock was up over 10% on Friday on a volume of approximately 360,000 to over $1.00 a share. Is looking further into these announcements worth the time and due diligence?
Or is it in all liklihood the same old pump and dump? Do some individuals become wealthy by seeking out exceptional opportunities in penny stocks?
Recently I read about the mining company in Australia that is extracting a rare type of natural product of the earth. The product of natural resources are buying in large quantities from China. The action was over more than 10% on Friday on a volume of about 360,000 to over $ 1.00 a part. Is considering further these ads worth the time and due diligence? Or are they in all likelihood the same old pump and storage? Are some individuals become rich seeking exceptional opportunities in penny stocks?
Yes, fortunes can be made and they can also be lost. I have seen them go up and down far more than 10% in minutes.
Speculation has a place in every portfolio, but be careful with penny stocks as they rarely pan out. You should always do your homework before making any investment, and you can assume that if you have received an unsolicited e-mail about a particular stock that it is most definitely a pump and dump.
The only way to tell if it is a pump and dump or not is to personally visit the company to see if they have a real mine, how many employees, and are really shipping out a product.