I see this site listed in almost every website directory I go to:
penny stocks
Of course, that doesn't mean I recommend penny stocks. If I want to gamble, I'd go to a local riverboat. Even if you don't live in an area close to legalized gambling, you'd probably be better off going to Vegas of Atlantic City for the weekend.
I have bought penny stocks, I confess. Years ago I bought some software designed to help people buy Vancouver mining stocks at their lows, when they're basically shells, and then wait until the promoters push them and raise the stock price. One of the companies I bought did have a price surge a few months later, but it wasn't enough for me to sell, and then it dropped back down. You can't tell if a stock is at its low even if it's only a few cents. They can go to tiny fractions of a cent!
A few years I decided to buy some of the small gold mining companies I saw used to advertise newsletter subscription. This time, my thinking was that these were like put options on the market as a whole. If the economy fell apart and gold shot up to $2000 an ounce, then these stocks would shoot up in price.
I still think that's a fairly reasonable strategy if you're worried about the price of the stock market or just the economy as a whole. Buy some small gold/oil other such stock that would benefit from commodity/energy price increases and general economic disaster. Then just hold it. If the economy keeps on going well, you paid for some cheap insurance that, unlike put options on the market, will never expire (unless the company goes out of business). If the economy does collapse, the price will go up and you can sell it to buy $10 a gallon gasoline.
However, the one natural resource company I've seen mentioned is BHB Billiton of (I believe) Australia. And it does pay dividends, since it's on the Mergent International Dividend Achievers list. Therefore, if you want to profit from price rises in gold, that would be a good option.
penny stocks
penny stocks
Friday, March 16, 2007
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