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Online Share Trading

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Penny stocks

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Rockwilder
Occasional Contributor
Good day All Can someone enlighten a rookie in the trading game with regards to prospects of buying penny stock in this period of uncertainty(double dip predictions)...is there a stock worth buying that will be worth it in a few years to come (say 2-5 years?) Thank you
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9 REPLIES 9
Blik
Super Contributor
Read any of Keith McLaghlin's posts, either here or on Tickertalk. He is a small caps fan. I am a fan of both ISA and CCL, but CCL is very illiquid - but am in for the dividends, and have almost made my money bacck through dividends alone. I would make sure that any small cap that I look at is very flush with cash,hass a good dividend record and policy and their management makes sense. But be wary in times like this I think.
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Rockwilder
Occasional Contributor
Thank you...i will do that!
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Not applicable
The main issue with Penny Stocks is liquidity. You can get stuck with a few million shares that join the queue with the other Billion that are on offer!
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suki
Super Contributor
reminded me of Queensgate. what happened to it?
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Rockwilder
Occasional Contributor
Thanks for the feedback..i will definitely tread carefully in this regard...plus I haven't forgotten the golden rule ie not to put all one's eggs in one basket
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Not applicable
Eish, I would say there are at least 8 or 9 golden rules higher in priority than that one. One of the worlds greatest investors, Warren Buffet, would also argue as to the relevance of that particular comment.
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Not applicable
I quite like that one from Warren Buffet, especially when you compare his performance against an ETF. WB: "I prefer to keep all my eggs in one basket and watch that basket closely."
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Blik
Super Contributor
I dislike the term Penny Stocks, since people have different ideas about the price that sets a Penny Stock. I prefer the JSE terms, Alt X, Small and Mid Caps. And some small caps are liquid enough for me. More important is what the company does, is it going to make me money next year and the year after (etc) and is the company able to compete effectively.
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BoburUncle
Regular Contributor
What is concidered small and mid cap?
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