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Basically, stocks in this range tend to be very risky because the companies are in trouble, or at least perceived to be in trouble -- which is why "nobody" wants their stocks. In most cases, these stocks have fallen from ten, twenty, or even fifty times their current price. In many cases, the companies are in or headed for bankruptcy.


Norm,

While that may be true on the US markets, many stocks on the venture, or even on the TSX started out at very low price per share and often remain "penny stocks" for years until they no longer are.

I give you as examples (both of which I have owned for awhile):

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CA%3Apdn&sid=0&o_symb=CA%3Apdn&freq=2&time=20&x=52&y=15

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CA%3Auex&sid=0&o_symb=CA%3Auex&freq=2&time=20&x=52&y=20

This one I don't own:

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CA%3Amar&sid=0&o_symb=CA%3Amar&freq=2&time=20&x=49&y=21

I've always felt that taking knowledge from one situation and transposing it to a completely different situation without thought is not always ... uh can't come up with a polite word. ;-)

Tim
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