HEY ALL! I've an idea... let's get some discussion going here on stocks under a nickel! You know Ty, Hubert, when you can pick up 20,000 shares of a company for less than $1000, you've got to consider the po$$ibilities:
Possibility 1, downside: Okay, so what's the possible downside? Well, you could lose it all, but hey, this is not the BIG "losing it all" like when you own 2000 shares of a $50 stock and it drops to $35 (OUCH!, that's a $30,000 loss 'cordin to my cack-u-lator). Assuming you buy 20,000 shares at $.05 or under, the biggest possible loss you're facing in this arena is $1,000.
- on the other hand -
Possibility 2, upside: Well, I can't predict *if* there would be any upside, *when* there would be any upside, or *how big* any upside might be, but consider this: for a $1000 investment in a $.05 stock, you would hold 20,000 shares. For every PENNY of growth, you make $200 profit. For every Nickel of growth, you make $1000 profit (a nice 200% ROI). For every 1/4 of growth, you make $5000! and so on, you get the picture...
I call this "the upside to downside imbalance," and it applies particularly well to stocks trading at or under $.05
Now for those of you who are wondering what my angle is, I'll make this point: I have not mentioned any stocks in this post, and for a specific reason-- I am not pushing any stocks here. I am simply tabling an idea and looking for feedback from folks who hold or have held these "imbalanced" stocks. Tell me what stocks are out there in this range, how long they've traded there, what are their prospects for recovery, and set up links to threads or other info on the web. Finally, tell me i'm still sane (such as it is), I want to hear the stories of stocks that have been purchased under a nickel, and have turned around and become successfull. Is there a common thread that runs through those stocks that might help predict winners out of the pool today?
Best regards. -ROO- |
