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There are some penny stocks which are absolutely worth the investment. Many penny stocks are simply family companies who list on the Pink Sheets or OTC because they don't want to pay the costs associated with SOX requirements each year. Read each company's 10k statements and watch their balance sheets and cash flow and income statements.
Invest with solid companies like AMNF. PK or ERSO. PK who have a long history of returns and dividends.
Keep away from concept-level companies as these are usually pump-and-dump stocks and you will lose your shirt.
Penny stocks have made people alot of money. But be careful. Basically a penny stock is the stock of a company that for whatever reason, has gone down to the sub $1 URL1 may be a very new company or an established one that is having some trouble.3 things can happen with a stock in that range.
1) it can be de-listed from the exchange, meaning no one can buy or sell shares, which means your shares are worthless. 2) the company can fold up, which means your stocks are worthless.3) It can go higher in which case you will make alot of URL1 make money in penny stocks, you need to understand the stock market, understand the industry in which the particular company is in and be lucky.
I would check out Tim Sykes. He has really good information and it is the only stock strategy I use.
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