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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: bmart who wrote (4269)3/19/1998 3:11:00 PM
From: Joe Basile  Read Replies (1) of 42834
 
I believe Bob Martin has done some nice work answering your question. I suppose this distinction can be somewhat confusing. The penny stocks that Bob refers ( I've never specifically heard him say this)to are those which have no earnings, trade strictly on speculation, have a tiny market cap (if you can even find that info) and giant spreads between bid and ask prices typically. They're nearly impossible to get information on, nobody on Wall Street cares about them and as Bob says: "They are a great way to invest if the goal is to lose 100% of your investment". Take care.

Regards,

Joe
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