There is no better topic for an April Fool's Day article than "penny stocks."
April 1, 2006 Summary: Allan taught me much about penny stock investing over the many years I knew him before his early death in 2003. I've felt his advice was so helpful that I wanted to immortalize his words in an article. This post in our "GeoGlobal Resources (GGR)" discussion forum is where Allan last published his "Penny Stock Mentality" advice. Allan had the pleasure of reviewing and approving this article during the final days of his life. I am reposting it here on our new site to keep my friend's words close.
Kirk Lindstrom
Kirk, in hind sight, every price that excited me where I held out for more was a wasted selling opportunity. If you are excited, it's toppy!
Penny stock Mentality
So what type of investor trawls penny stocks?
He's willing to buy a 9¢ stock that's 9¢ because nobody else wants it.
He's willing to wake up in the morning and find his 9¢ stock now 4¢, or his 50¢ stock now 28¢ and still enjoy his breakfast profusely, because he knows he's picked a winner.
He's willing to average down from 50¢ to 9¢ and will buy heavily at 9¢ so the great majority of his stock is purchased at the cheaper level. Hey, he believes in the stock. Of course, the stock slips from 9¢ to 6¢ but that is of little consequence--he knows he's gotten in near the bottom and nobody hits the exact bottom anyway.
He loves his penny stock, but when he has a double, he sells half no matter what. And he's invariably happy in the end by his tactic.
He finds while doing his DD (due diligence) that one of his tech stocks he just bought a load of is spending more money on plane fares seeking capital from Europe, than it is developing its product, so he dumps it all immediately even though it just dropped 25%. And he figures he's ahead of the ballgame. The stock has a 5 for one reverse split and he celebrates the fact that he sold his remaining little stake at a 75% loss instead of the 95% loss that would happen just a week later.
He gets bored with his penny stocks and ignores them for a few weeks and looks at his statement one day and finds a 70¢ stock of his that had lost half its value over a period of 3 years now is over $4 a share and his hand is shaking as he calls his broker to sell. The same stock is $12 a share a few months later. Then $1 a share a couple of years later.
He buys a 2¢ stock because he knows that the shell alone of any penny stock is worth 2¢ a share for companies trying to avoid the hassle of starting a corporation from scratch. His 2¢ stock goes into a 100 to 1 reverse split.
Surprisingly, his portfolio rises slowly over time and penny stocks are still better that no stocks at all.
Hey people--I am not a sexist here. I use the pronoun "he" only, because I'm speaking for myself here and anyway, I just know that the girls are too smart to invest like me.
A stock which sells for less than one dollar per share (or in some cases, less than five dollars per share). Most penny stocks have only a few million dollars in net tangible assets and have a short operating history. Penny stocks are almost always small cap stocks, but the reverse isn't necessarily true
Penny Stocks are cheap for a good reason. Most financial advisors advise against buying penny stocks because most people lose money, the commissions are huge and they are subject to price manipulation due to the small float. Thus, I tell people to consider buying penny stocks as gambling. NEVER buy more than you can afford to lose and consider the purchase as a trip to Las Vegas where you have a budget on what you can afford to lose at the gaming tables, including air fair and lodging.
Discussion Forums
These discussion forums are great for sharing ideas with others:
Through 3/31/06 the Total Return for "Kirk's Newsletter Explore Portfolio" since 12/31/98 is Up 218% while the S&P500 only up 17%!!! & NASDAQ only up 7%!!!
My newsletter offers quite a bit of useful information including two recommended core portfolios composed of index funds or ETFs, tables, discussion of interest rates, The Fed Model, etc. that many say are worth the price of the subscription before accounting for the fantastic returns in my explore portfolio. .
DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.
The copyright of the article Penny Stocks in Investment is owned by Kirk Lindstrom. Permission to republish Penny Stocks in print or online must be granted by the author in writing.
<A
href=http://home.netcom.com/~kirklindstrom/Newsletter/WhatLetter2Buy.html&g
t;<img width=550 height=3
src=http://home.netcom.com/~kirklindstrom/Images/rainbow800x10.gif
></A> . GPHYF -- Geophysical Prospecting, Inc. Com
(No Par)
GEOPHYSICAL PROSPECTING INC. CORPORATE UPDATE
Toronto, Ontario. March 30, 2006 - Geophysical Prospecting Inc.
("the Company") is pleased to announce that the Company has
completed the acquisition, announced January 3,2006, of the four claim
mining license in Corbierre Township, Wawa, Ontario. The claims cover
approximately 1,000 acres or four square kilometers. The license was
purchased from Mr. John Archibald the Company's President for stock and a
production royalty.
The license is a sub-license from Cedar
Falls Inc., the Canadian entity, holding the mineral and surface rights
assets to the former Algoma Railway lands. These claims cover the entire
infrastructure of the former past producing Josephine Iron Mine developed
by Cominco and operated by the Algoma Ore Division of Sault Ste. Marie.
These claims are structurally located 4 kilometers northeast of Dianor's
major diamond discovery in Chabanel Twp. in the Wawa area and occupy
similar geological structure and volcanic sequences observed covering the
Dianor ground. This is the first acquisition by GPI in its quest for
significant land packages in Canada under its working mandate of utilizing
geophysical prospecting methods for acquiring new ground.
The
Company is in negotiation to acquire additional property leases in the
Wawa vicinity and formulating an exploration work program for the
Corbierre leases. Additional information on these and other Company
initiatives will be released in the near future.
In addition
the Company has appointed Mr. Cliff A. Jones as Director and Vice
President of Corporate Development. Mr. Jones has been an advisor to both
small and large business operators, who require assistance in
recapitalization and business restructuring, for over 15 years. He has
been involved in the public markets and has a proven track record of
raising equity capital, sourcing and executing mergers and acquisitions as
well as public and investor relations.
This news release
contains certain "forward-looking statements," such as
statements that describe the plans, objectives, and goals of the
management of Geophysical Prospecting Inc. Forward-looking statements are
necessarily subject to a variety of risks, uncertainties, and other
factors that cou
Apr 15, 2006 5:26 AM
Steve Thompson :
By NAUREEN S. MALIK
THE THOUGHT OF Pink Sheets stocks may raise
a few red flags for many investors.
But these riskier securities
traded over the counter have been attracting more attention by retail
investors searching for offbeat opportunities.
Joseph Mecane,
managing director of UBS Investment Bank's equities division, is a Pink
Sheets maven.
UBS is one of the top three market makers in
over-the-counter securities sold on the OTC Bulletin Board and Pink Sheets.
Individual investors can access Pink Sheets through brokerage firms or
online accounts such as E*Trade.
"The whole rise of
self-directed individual investors" has created added interest in
smaller-cap stocks such as those that trade in the Pink Sheets marketplace,
says Mecane. To meet this demand, Mecane and his team have helped make Pink
Sheets transactions more transparent and liquid from a wholesaler's
perspective.
Last month, investors traded a total of 172.7
billion shares of Pink Sheets stocks, three times the volume traded in
March 2005, according to Pink Sheets.
A number of reputed
foreign-listed companies such as Nestle, Heineken and Arcelor have opted to
trade on the Pink Sheets rather than take on the regulatory burdens and
costs of listing with a U.S. exchange.
Companies plagued by
financial scandals also tend to trade in heavy volumes over the counter
even after delisting from a major exchange. HealthSouth shares dropped to
mere pennies in 2003 but are now trading in the $5 range amid a turnaround.
The company announced two weeks ago that it plans to reapply to list on a
major U.S. exchange in coming months.
Pink Sheets LLC, which
itself is a privately held company, will soon be launching a new tiered
service where companies can receive a premium designation in exchange for
filing timely financial information. This will help investors weed out
venture-capital type opportunities from the more questionable penny
stocks.
Mecane recently took some time to give us a primer on
navigating the market to limit risk and reap reward.
Barron's
Online: What has Pink Sheets market activity been like lately? Mecane:
It's a very cyclical market, and there are a lot of very low-priced stocks
that trade in this market. Most of the stocks that trade are actually
priced less than a dollar, so you'll actually get a lot of share volume in
the marketplace sometimes, and dollar volume is a little bit of a more
accurate way to look at what the actual activity is.
I think w
Jan 29, 2007 11:59 PM
Maggie Smith :
Recently,I find two value stock,despite these two stock is in very low
price.I think lots of cleareyed people will take more care on them. The one is WOIZ.OB,Woize International Ltd. provides digital
communication services, including VoIP, based on proprietary software as
well as support for the de facto SIP standard. The WoizeTM services,
including incoming and outgoing calls and many more communication features,
are available for free and can be downloaded at www.woize.com. The
company's main competition is Skype and Vonage.
The other is
CECU.PK This enterprise engage clean energy Clean Energy is a
development-stage US public company based in Vancouver, BC, Canada, that is
moving forward aggressively to acquire long-term contracted and indexed
revenues with customers such as government, non-government and utility
agencies that will provide stable revenues and incur minimal costs with
respect to sales and collections. The company also seeks to achieve
revenues from the commercialization of its proprietary technologies and
development of renewable energy projects. for more information to browse
this web: www.clean-energy.com
I think these are brim over with
ability.
Feb 12, 2007 6:14 PM
Maggie Smith :
Welwind Energy International Corporation (OTC BB:WWEI.OB - News) (the
``Company'), a pioneer in alternative energy in the Asian market, announced
at a Jan. 30th press conference that the first wind turbine produced by
Guangzhou Engga Wind Energy Co. Ltd. (ENGGA) for WWEI rolled off of the
production line for Phase I of the Zhanjiang wind farm project. The press
conference was attended by Zhanjiang and Yangjiang government officials,
WWEI management and directors and ENGGA. ADVERTISEMENT
The company is currently constructing the base for the turbine and
will be installing the 750 KW ENGGA turbine after the Chinese spring
festival next month. Windcor Power Systems, a Canadian wind developer, will
oversee the installation of the first turbine.
Shannon de
Delley, a delegate at the press conference and Director of WWEI, gave a
speech to over 200 attendees on behalf of the company, which further
established WWEI's role as a leading developer in China focused on
advancing green environmentally friendly wind power.
The company
also announces a cooperative agreement between Welwind and ENGGA to work
together on the technology and future supply of all Welwind turbines. The
agreement gives Welwind priority for all turbines to be manufactured by
ENGGA. London Asia Investment Partners is the financing arm for ENGGA.
London Asia is a leading Asian focused merchant banking group listed on the
AIM market of the London Stock Exchange. London Asia is focused on
providing capital and investment banking services to Asian SMEs, using
Western investment criteria and standards of corporate governance.
http://www.londonasia.com
The company also has agreed to
establish a research center with the Nanjiang Institute of Technology.
About WWEI
The Company views wind power as becoming one
of the most efficient power sources globally. WWEI was founded in 2005 to
build, own and operate wind farms on an international scale. Their current
project is to bridge the North America-China link by building wind farms in
China beginning along the South China Sea.
This news release
contains forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements concerning plans, objectives, goals, strategies, future events
or performance and underlying assumptions and other statements, which are
other than statements of historical facts. These statements are subject to
uncertainties and risks including, b
Feb 12, 2007 6:18 PM
Maggie Smith :
The Board of Clean Energy Combustion Systems Inc. ("Clean
Energy") ("CECU") is pleased to announce terms of the final
agreement with Lucky Power International Limited (a BVI company registered
in Hong Kong) for an exclusive license of technology patented in the
People's Republic of China for the recovery, purification and compression
of raw landfill gas into high quality Compressed Natural Gas (CNG). The raw
gas is collected from the decomposition of municipal waste in the landfills
associated with large Chinese cities. The quality of the output fuel is
outstanding for powering all sizes of diesel engines. The Company
anticipates achieving net cash flow next year growing substantially over
the next five years. The technology is operating at a pilot facility
in Shenzhen, China. The CNG produced in Shenzhen is sold via a long-term
contract to the local municipality which uses it to fuel its municipal
vehicles. Commitments are being made for the development of a minimum of
two new landfill sites over the next two years and a total of 10 new
installations during the next five years. Each facility will enjoy a
production lifespan approaching 30 years. Clean Energy is responsible
for providing the equity financing for each new project. Lucky Power will
retain a 30% interest in the Chinese operations and provide management
expertise on a contractual basis in China. With the same agreement Clean
Energy has also acquired first rights of refusal for the commercial
development of this technology in all other global markets outside the
People's Republic of China. The Company anticipates capacity
11,250,000 cubic metres (M(3)) of CNG per annum in the first year of
operations, growing to 2,925,000 M(3) of CNG per annum by year five. In
addition to the marketable CNG, a substantial source of additional revenues
for Clean Energy and Lucky Power is anticipated through international
trading of Carbon Emission Reduction (CER) credits This technology
should provide significant benefits for all stakeholders: significant
savings in the cost of fuel for the local municipality; reliable cash flow
for the joint venture local operators; healthy and secure ROI for owners
and investors; major enhancement to local air quality; creation of a
significant non-fossil clean burning alternative fuel; long-term benefit to
the global environment. The Board of Clean Energy is pleased to
announce that this agreement with Lucky Power and its recently announced
agreement with North Is
May 15, 2007 2:06 AM
Maggie Smith :
Company Name: WELWIND ENERGY INTL ( OTC BB:WWEI.OB ) Symbol: WWEI.OB
Current Market: Very Bullish Recommendation: Strong Buy Welwind Energy International Corp. Announces New Board Member
SAN DIEGO, May 2, 2007- Welwind Energy International Corp. (WWEI.OB) (the
"Company"'), a pioneer in alternative energy in the Asian market,
is pleased to announce Mrs. Pan Huifang to the board of directors effective
immediately. Mrs. Pan has been recognized within her industry as one of
China's greatest Women Entrepreneurs. Her relationships on a social,
business and political level will assist Welwind in furthering its
developments within the Chinese market.
Currently Mrs. Pan is
the Executive Vice General Manager of Dongxing Plastic Corporation (DPC).
DPC is a large-scale, privately operated, blow molding and injection
molding factory spanning over 50,000 square meters. The company's business
is in the area of injection molding, blow molding, printing, and has four
production lines serving customers within the petroleum, chemical, food,
medical, building and tobacco industries. There are currently 380
employees, including a specialized technical team, structure designers and
25 mechanical engineers composed of 18 mold engineers.
The
company currently has clients in over 20 Provinces in mainland China,
Europe, America, Southeast Asia, Japan, Hong Kong, Macao and Taiwan.
Welwind Energy International was founded to build, own and operate
wind farms on an international scale. The company's goal is to become a
leading provider of clean energy products for the residential, business and
governmental consumer.
