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Investing in stocks


MrMeanGreen

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One of our company's biggest customers just filed for bankruptcy yesterday, and their stocks currently sit at $.10/share where a year ago they were at $32. They were the product of two medium-sized companies a few years ago that did a merger to become pretty huge.

 

Now, rumor has it that they'll either be backed financially by two very large banks, or bought out by yet another, much bigger corporation that in the last year has bought up some other businesses in the same situation and are now just retarded big and doing excellent. There's always the chance neither of these will happen and they'll just fold, but with a long history and sites all over the US, I don't really see this happening.

 

What would you do?

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Well at 10 cents a share you should probably throw $100 down on it and see. Worst thing that could happen is you lose $100. If you think their business will work and there is a market for it then someone will buy them. If the idea is dumb then you can just place your bets and see what happens.

 

Most brokers you try to place the stock order with may require you to have a "Margin" account with them. This is basically a credit line from them to you. They see "penny" stocks as high risk. Its also possible they would require a larger sum of money on account with them. I know you wouldn't be a risk to them in this stock, but rules are rules.

 

Evan

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I was thinking about doing E-Trade.com or something, isn't it a flat rate of like $9.95 for your first purchase?

 

I mean, some of you hit my thoughts exactly. Throw $100 in. If they tank, I'm out $100 and there's dinner and a movie for the wife and I. If it goes to $1, that's still $1000.

 

I'll see what they sell at tomorrow. They were at $.13 yesterday when they declared, $.10 today, so maybe I can double my investment if they hit $.05 tomorrow.

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Yeah etrade is a good one. I use scottrade and there are a few free ones like zecco. I think you might be paying more like $20 per trade for a penny stock though. The $7 dollar trades that scottrade and others do are for stocks on the normal indexes that they can easily buy from someone else down on the floor.

 

Also a few cents won't matter because you won't be locked in at that price anyway. Especially in a penny stock. Unless the broker currently holds enough shares the transaction will take a few minutes up to a few days depending on how soon they can find a seller. I agree though if the company looks good you could be sitting on $20 or $50 share price in a few years. Its not unheard of just high risk unless its a company your comfortable with.

 

From an investment broker like scottrade you can read all the companies SEC filings. Everything from tax reports to human resources events get filed with the SEC.

 

Evan

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Hold up a sec kids. If you don't have a $5000 minimum account balance with etrade they charge $20/month for your account. I would think about something that doesn't require a minimum balance.

 

If the company is bankrupt they will go pink sheet soon and be a penny stock.

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Please educate me. First off, I was under the impression if a company(such as the one you are talking about) is doing horrible and is rumored to be going down hill, one can't buy any stock until it reachs a larger dollar amount. I was told this when Dana was going down hill (19 dollars a share, 4 months later .42 a share), I was going to buy a piss ton, good thing I didn't oh well. Nevertheless, I was told we couldn't purchase any. Two, I thought you had to buy at least 2000 dollars worth of shares?

 

My ignorance is showing.

 

Jackson

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Please educate me. First off, I was under the impression if a company(such as the one you are talking about) is doing horrible and is rumored to be going down hill, one can't buy any stock until it reachs a larger dollar amount. I was told this when Dana was going down hill (19 dollars a share, 4 months later .42 a share), I was going to buy a piss ton, good thing I didn't oh well. Nevertheless, I was told we couldn't purchase any. Two, I thought you had to buy at least 2000 dollars worth of shares?

 

My ignorance is showing.

Jackson

 

 

no.

 

 

I use ameritrade too. I like it.

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The stock went from $.01 to $.60 in two days, and is no hovering in the $.30-45 range. I'm pissed because had I picked it up (if my account was ready) on the first day for $100, I coulda sold for $6000 two days later.

 

QBRWF

 

They produce magazines, namely Primedia and a shitload of others (Better Homes & Gardens, Popular Mechanics, etc.) and have about thirty sites around the country. They've been around about eighty years and are huge, plus the $750 million refinance they just got helps. The stock will be up past a few dollars by summer.

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