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Subject:  Development Stage Company Valuation Date:  3/13/2006  3:01 PM
Author:  BArtagnan Number:  43 of 66

I have been a member of Rule Breakers since last summer and I love this service (although I admit to being very skeptical about your IMAX recommendation as I purchased at $10.12 and dollar-averaged additional purchases as the stock declined to under $8.00). I enjoy reading their articles and message boards despite never having posted a message during my relatively brief history as a member.

The purpose of this note is to ask for opinions about a subject that I'm sure many of you feel is a distasteful waste of time - penny stocks. I only have $17,000 invested in the market (thanks in large part to following my ex-broker's advice about buying tech stocks during the 1999-2000 tech bubble), but I have almost fifteen years to go before I retire and a very good paying job that allows me to put aside over $1,000 a month to invest in an individual account in addition to my 10% 401K contribution.

Although the vast majority of my investment vehicles are in recommended stocks from the Rule Breakers (and the Motley Fool Hidden Gems) list of recommendations, I found out about a penny stock last summer that intrigued me and I subsequently purchased 10,000 shares at 7 cents a share. After reaching a historic high of 48 cents earlier this year, it is now trading for 30 cents. I just sold 3,000 shares at 30 cents in order to get back my original investment – so my 7,000