Buying Penny Stocks » invest stock http://buyingpennystocksonline.com Thu, 12 Aug 2010 02:12:53 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Are You Buying Penny Stocks Of Big Companies? http://buyingpennystocksonline.com/are-you-buying-penny-stocks-of-big-companies/ http://buyingpennystocksonline.com/are-you-buying-penny-stocks-of-big-companies/#comments Wed, 12 Nov 2008 00:39:09 +0000 Billy http://buyingpennystocksonline.com/?p=72 With today’s economic turmoil, some of the big companies are starting to look like penny stocks. In the last few months we are seeing some of the big boys losing so much value that their price per share has dropped below $5. What does that mean for you in regards to buying penny stocks, trading and making some big gains?

In the auto industry we now see General Motors (NYSE:GM) and Ford (NYSE:F) trading in the $3 range. GM hasn’t seen these levels since 1943. In January 1999 they were trading at $87 per share and in the beginning of this year (2008) they were at $19. Now eleven months later they are on the verge of bankruptcy and trading at just $3 per share.

Ford is in the simular situation, they were at their all time high of $37 per share in March 1998 and are now trading at less than $2 per share.

Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) the two government sponsored mortgage brokers have also lost 98% of their valus since the beginning of this year.

American International Group (NYSE:AIG) were just saved by the government after losing 97% of their value.

For all intent and purpose, these stocks can now be classified as penny stocks. Many traders, especially the newbies and amateurs trade penny stocks for a couple of reasons. One, the price per share is cheap and two, penny stocks typically have the tendency to jump big when refer to as percentage gainers.

Do you really want to start trading these companies that I’ve listed? The answer should be no, but I’m sure quite a few of you guys and gals out there are already do so. I will tell you that these companies as well as their stocks are broken. They are all leading companies that help build this country, but because of bad business practices are now in big trouble of going away for good.

So if you want to trade these penny stocks, go right ahead, but don’t say I didn’t warn you.

]]> http://buyingpennystocksonline.com/are-you-buying-penny-stocks-of-big-companies/feed/ 2 Thinking Of Buying Penny Stocks http://buyingpennystocksonline.com/thinking-of-buying-penny-stocks/ http://buyingpennystocksonline.com/thinking-of-buying-penny-stocks/#comments Sun, 10 Aug 2008 01:33:00 +0000 Billy http://buyingpennystocksonline.com/?p=12 Thinking of buying penny stocks? Be careful of which ones you’ll want to invest in. A penny stock is a stock that is sold by a company that is either new or the company is trying to raise capitol for basic operation or expansion. They are referred to as penny stocks because the value is less than $5.00. Many different brokers offer penny stocks that are traded on the OTCBB (over-the-counter bulletin board). You can also subscribe to an on-line service. You know the ones, that tell you that they’ve invested in a company that the value grew 5000% in a short time.

The issue with buying penny stocks is that it is very risky. The statistics for investors who trade penny stocks and lost money is some where near 70%, so the odds are against you. You also need to be aware that there are some brokers who will inflate the stock by dishonest practices. You need to research the broker who offers these stocks just as much as you do in the stock itself. If they claim to having insider information, that is a sign that you need to walk away from that firm. The only way to find a good penny stock to invest in is to consult with a broker, but be careful they make money by make sales and may only have their own interest in mind. There is big money in trading penny stocks for these guys and to do that they need to sell you the stock.

Many investors have made a fortune in buying penny stocks, but for every great windfall stock that made millions, there are about nine that lost billions collectively. Look at Yahoo, they were trading at $0.78 a one time and now trade in the $20 range. Like I said though, that’s only one of thousands of companies that are traded every day.

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