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PR Newswire
11-08-2023, 08:33 AM
Stocks become penny stocks because investors dumped them due to perceived poor prospects
So for these penny stocks to become stronger it must be because
Gamblers like to bet on penny stocks because it is so cheap that if they strike “lottery” they will make some money.
If you are a gambler, by all means, buy penny stocks blindly.
But if you are a bit more serious type of investor, you better have a defensible reason why you think the stock price will go up.
Haha, if you think that I am just going to give you names of stocks, too bad. But in my blog, I have covered several Bursa and SGA stocks that are today trading at penny stock prices. Go and have a look.
So for these penny stocks to become stronger it must be because
- the business fundamentals have improved or show signs of improvement so that they will eventually get re-rated
- the business fundamentals were never bad in the first place. It was just that investors over-reacted and dumped the stocks due to herding
- some scammer is pushing the price up hoping for some unsuspecting victim to rush in to buy. The scammer will then sell and leave you bearing the losses
Gamblers like to bet on penny stocks because it is so cheap that if they strike “lottery” they will make some money.
If you are a gambler, by all means, buy penny stocks blindly.
But if you are a bit more serious type of investor, you better have a defensible reason why you think the stock price will go up.
Haha, if you think that I am just going to give you names of stocks, too bad. But in my blog, I have covered several Bursa and SGA stocks that are today trading at penny stock prices. Go and have a look.