One of the problems with penny stocks, especially sub-pennies, is volume. Case in point, my shares in GOGB jumped a whopping 300% in the past few days. Under normal circumstances, I'd sell at least half of it off, but there aren't any buyers.
I strongly suspect that someone is gaming the market, buying small quantities at greatly inflated prices to prop up the value of the stock, in hopes that others will notice and start a feeding frenzy that will enable the to dump their remaining shares. It might even be someone in the company itself, or just some rogue individual who hopes, for a few hundred bucks a day, to cash in and make several thousand.
In the end, a lot of people could get burned, and the reputation of the company will suffer - so my strategy has changed: instead of holding this one in hopes the company will pay out in several months, I'll liquidating my shares as soon as possible, at cost if necessary.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment