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No. of Recommendations: 1
"I know most Fools are trading penny stocks. "


The ideas behind drip investing are really to allow dollar cost averaging to help an
investor to gradually build a position in one or more companies. While there is nothing
which would prevent a person from investing into "penny stocks", the information flow
available to regular small investors would not encourage a reasonable "due diligence" in
my view. Dividend reinvestment kind of presupposes payment of dividends and a positive earnings
I know this tends to be a tad "behind the times" but most drip investors would not be looking
at highly speculative stocks IMHO.

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