Penny-Pickers

Penny Stock Signals

Rex Anderson — Thu, 04 Sep 2008 09:51:57 +0000

Rumor and speculation…

Penny stocks are that much more susceptible to rumor because of their small market valuation. Prices can often shift significantly when only a small handful of stocks have been traded.
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Penny Stock Liquidity

Rex Anderson — Thu, 04 Sep 2008 09:47:02 +0000

When a company share doesn’t have (much) liquidity, two problems occur:-

Firstly, there is always the possibility that having bought the stock, there simply isn’t anyone who wants to buy it off you. If liquidity is low, and you can’t find a buyer, then clearly the classic market rule of supply and demand will apply - and you’ll have t drip the price until finally someone does find it attractive enough to take a punt.
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Can’t go down - must go up

Rex Anderson — Mon, 04 Aug 2008 11:00:13 +0000

A firm misconception in this field is that just because the price is already so low it simply can’t fall much further - the only potential is up type of argument.

Not true - absolutely not true. Any share price can fall to a big fat zero, and that will lose you 100% of your money.
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Defensive stocks

Rex Anderson — Wed, 04 Jun 2008 11:01:15 +0000

Quite simply - stocks that are likely to do (relatively) well in poor economic conditions. As the overall market value falls, these stocks can be expected to remain stable or even increase in value, they’ve done it in the past, it’s a safe haven
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