Dec
12
The Next Million-Dollar Penny Stock
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I found this on The Motley Fool Website which I thought it was pretty interesting. I decided to share it with you all readers. The title of the article is The Next Million-Dollar Penny Stock.
Need proof? Every one of these multibaggers was, at one time, a penny stock:
|
Company |
Recent Price |
CAPS Stars (5 Max) |
Five-Year Return |
|---|---|---|---|
| GMX Resources (Nasdaq: GMXR) | $23.84 | *** | 1,590.8% |
| Questcor Pharmaceuticals (Nasdaq: QCOR) | $9.30 | *** | 1,424.6% |
| Covanta Holding (NYSE: CVA) | $21.58 | **** | 598.4% |
| AK Steel (NYSE: AKS) | $9.76 | *** | 152.2% |
| Vimpel-Communications (NYSE: VIP) | $9.50 | **** | 114.9% |
Sources: Motley Fool CAPS, Yahoo! Finance.
The promise of outrageous returns is why some of the world’s best stock pickers are, at times, penny-stock investors. Peter Lynch has and still does enjoy the stock market’s supercheap seats. The Royce Low-Priced Stock fund has beaten the market for a decade by betting on stocks trading near or below $10 a share, such as Silver Standard Resources (Nasdaq: SSRI).
Even the All-Stars in our 120,000-plus Motley Fool CAPS community take to penny stocks. More than a few have been richly rewarded. So why don’t you invest in penny stocks? I suppose because the SEC has warned us about them. But what if we take the agency’s definition literally and limit our choices to stocks trading between $1.50 and $5 a share, and limit our choices to four- and five-star stocks whose market cap doesn’t exceed $2 billion but is at least $250 million? Surely our new CAPS screener would return some winners, right?
Click here to read more.
Quote of the Day:
Happiness equals consumption divided by desire. – Paul Samuelson, in his famous economics textbook
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would any one have some tips for a very novicetrader to find that great stock purchase and a recommended site to make purchases from.