Penny Stocks

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Gbean
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Penny Stocks

Post by Gbean »

Has anyone had any experience with Peter Leed's penny stock newsletter? I read his book Penny Stocks for Dummies and found it informative for individual stock selection.
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Bogle_Feet
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Re: Penny Stocks

Post by Bogle_Feet »

Great way to lose all of your money. The only people that have happy things to say about penny stocks are people who are profiting from it all by selling newsletters, books, etc. Here's a better Peter to listen to: Peter Lynch. He said that he was 0 - 25 investing in companies with no revenue but a great "story". That says it all. Avoid penny stocks.
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InvestorNewb
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Re: Penny Stocks

Post by InvestorNewb »

Do you seriously trust penny stocks with your retirement money? I sure don't. Spend some time here and you will uncover the reasons.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
barnaclebob
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Re: Penny Stocks

Post by barnaclebob »

Lol, my idiot friend bought a penny stock at .0001 thinking it couldn't go lower. It then went no bid, did a 500:1 reverse split and he lost all his money. Luckily it was only a few hundred.

Same idiot friend bought another penny stock at .20, this time for about a grand. It went all the way to .85 and he ended up selling at .30. It now trades at .05.
LordB
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Re: Penny Stocks

Post by LordB »

If your goal is to lose money I highly recommend it.
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unclescrooge
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Re: Penny Stocks

Post by unclescrooge »

The only sure way to make money in Penny Stocks is true insider trading. Don't let a little thing like legality get in your way. ;-)
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Miriam2
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Re: Penny Stocks

Post by Miriam2 »

We just had a very interesting discussion at our South Florida Boglehead chapter meeting last Sunday by Boglehead Charlie H., a former SEC bulldog, who told true tales of years closing down the most unbelievably creative con-man penny stock frauds and scams. His words of wisdom to us were - DON'T - and don't stray into investments private or unregulated that promise "incredible" big rewards - stick with safe, regulated mutual funds.
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JDaniels
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Re: Penny Stocks

Post by JDaniels »

Here's a question to ask yourself, if he knows so much about penny stocks, why does he need to publish a newsletter? He could sit at home all day, make a few trades and by the end of the year, have more money than Gates and Buffet combined. Run, don't walk, run away.
"The poor long for riches. The rich long for heaven. But the wise desire tranquility."
sharpjm
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Re: Penny Stocks

Post by sharpjm »

I have some recommendations on Penny stocks. These companies are actually so small that they are pre-IPO. You'll need to wire transfer to my bank of Nigeria account so I can invest for you. PM me for more details.

/sarcasm
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LadyGeek
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Re: Penny Stocks

Post by LadyGeek »

Gbean, I took a look at your other posts. So far, you've asked about loaning money to a friend and you have an interest in Lending Club. Now, you're looking at penny stocks (no need to mention any details here).

The reason everyone here is telling you to stay away from penny stocks is because it's simply just not investing. It's gambling.

Let's take step back. I think you're idea of investing doesn't align with a solid, long-term approach. Take a look at the tag line at the top of this forum: "Investing advice inspired by Jack Bogle"

This is how you should invest - build a buy-and-hold diversified portfolio using low-cost index funds.

How? Start here: Getting started

Take your time and do some reading. It's the best investment you'll ever spend - and you can do it for free.

If you don't understand something, just ask.
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gkaplan
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Re: Penny Stocks

Post by gkaplan »

Munchkin Man, is that you?
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Topic Author
Gbean
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Re: Penny Stocks

Post by Gbean »

So I take it that no one had read Peter Leed's book. I was hoping for some intelligent discussion.
2comma
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Re: Penny Stocks

Post by 2comma »

No, actually you got that intelligent discussion.
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hmw
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Re: Penny Stocks

Post by hmw »

I would avoid penny stocks. My dad dabbled in penny stocks some years ago. He lost a lot of money doing it.
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LiveSimple
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Re: Penny Stocks

Post by LiveSimple »

Sure go ahead and follow Peter Leeds, come back and report in two years, on your gains / loss intelligently. :oops:
Invest when you have the money, sell when you need the money, for real life expenses...
sharpjm
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Re: Penny Stocks

Post by sharpjm »

Gbean wrote:So I take it that no one had read Peter Leed's book. I was hoping for some intelligent discussion.
lol... this is kind of like the Donald Trump controversies. When in doubt, go double or nothing on your dumb comments.
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celia
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Re: Penny Stocks

Post by celia »

I got some free penny stocks one time when I subscribed to a magazine or newsletter. After a year or two, I received a notice from the company that issued the penny stocks that they wanted to buy my shares back. (They were worth about $1.) They said some magazine had bought $1 worth for each of their customers. In order to follow SEC rules, they had to send every shareholder annual reports and proxy statements which was costing them more than $1 per year and they would go bankrupt if they had to service all those small accounts. Since it was better to get $1 than $0, I sold.

OP, What do you think would happen if a magazine did that to the penny stock company you are considering?
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minimalistmarc
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Re: Penny Stocks

Post by minimalistmarc »

In the UK there are huge tax breaks for investing in start up companies. 50% up front and then if the company goes bust (which many will) the rest of the amount is offset against your incometax bill.

This means that if you invest £1000 the most you can lose is £300 if the company goes bust. I have a little bit invested in these companies as I had a massive tax bill last year due to poor planning on my part.

To be honest, even with the tax relief, I am regreting buying them on impulse now but definitely wouldn't buy penny stocks without a massive tax incentive.
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abuss368
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Re: Penny Stocks

Post by abuss368 »

Gbean wrote:Has anyone had any experience with Peter Leed's penny stock newsletter? I read his book Penny Stocks for Dummies and found it informative for individual stock selection.
Hi Gbean,

Many years ago we gave up trying to beat the markets and our subscription to stock picking newsletters. More times than not, the newsletters were wrong and filled with bad financial "advice".

We simplified everything with total market index funds from Vanguard and this has worked well. We are thankful for the simplicity and results.

Keep investing simple.
John C. Bogle: “Simplicity is the master key to financial success."
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Toons
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Re: Penny Stocks

Post by Toons »

Penny stocks?
The name alone is unappealing :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
wander
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Re: Penny Stocks

Post by wander »

I am done with penny stocks many years ago.
NHRATA01
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Re: Penny Stocks

Post by NHRATA01 »

I dabbled in pot penny stocks a year and a half ago when they were hot.

A lesson was learned, unfortunately just slightly less quickly, then a few thousand were lost.
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David Jay
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Re: Penny Stocks

Post by David Jay »

Gbean wrote:So I take it that no one had read Peter Leed's book. I was hoping for some intelligent discussion.
You're just on the wrong forum. You will probably find limited discussion of other topics here, such as day-trading.
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LadyGeek
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Re: Penny Stocks

Post by LadyGeek »

Gbean wrote:So I take it that no one had read Peter Leed's book. I was hoping for some intelligent discussion.
As I noted in my previous post, this forum does not follow penny stocks for the reasons given.

I hope you'll consider the Bogleheads® investment philosophy. If not, there's nothing more that can be said, as the opinions here are not changing. No added value can be added to this discussion, as it's trending towards an unproductive path.

That being said, this thread has run its course and is locked (topic exhausted). See: Board rules
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