Pennystocking

“How have you been doing in the market?” the man asked on the telephone. It was a business associate that wanted me to do training in Indonesia on trading stocks for the U.S. market and how it may apply to foreign markets. Of course, even when I thought I saw a good deal on companies with well-known brands, like Dell, the share prices get lower and lower. So, although tempted I haven’t bought brand name companies at penny stock prices because it becomes a game of trying to get the stock for the cheapest price, rather than at the most opportune time. Buying something cheap doesn’t make you money, you need sustained buying pressure underneath that stock to push it up and maintain the momentum. Some folks think it’s a novelty to see such companies trading for so low… but there’s a reason for that – they were good companies with promising earnings, but that’s all in the past. What’s going to drive the share prices upward from this point? The question is, are they great companies now that will get even better?

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