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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 182  
Subject: Re: Advanta (ADVNB) with 4 CAP Stars? Date: 8/2/2009 10:28 PM
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I would suggest you stay away from penny stocks for many different reasons, but at least a few of which are conveyed on our Fool Wiki entry on penny stocks.

In the case of Advanta, it became unratable long ago on CAPS because it dropped well below our $100 million market cap/$1.50 price per share minimums. Part of the reason we have these minimums is to discourage focus on really low-quality investments.

Hope the above is clear, and yes I do find CAPS incredibly helpful. But stay focused on companies with market caps in excess of $100 million, and in many cases especially if you're new, in excess of $1 billion.

Fool on! --David
- TMFBreakerDave | Date: 7/20/2009 4:10:36 PM | Number: 153

One of my most successful EVER public company investments was the 550,000 shares of Zycad my Investment Research Firm bought in 1990 at 3/8 <$0.375> per share. My firm sold most of the shares to other Institutional Investors, the rest of the shares went into my IRA. The IRA sold the shares at, I believe $15.50 in the Fall of 1995.

When Zycad(ZCAD) was bought at 3/8 the company had no debt, and Net-Net per share of $1.25. The CEO was Philips W. Smith, the former Chairman of the Board of Taser Corporation(TASR).

There are Penny stocks and then there are REAL Companies like Zycad that become Penny stocks because of poor market conditions. It just takes an Investment Professional <1974-1995> like myself to know the difference.

Kahuna, CFA
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