Penny Shares

happymumto2

God I feel ill! In 1998 I (and my now ex hubby), bought 5000 shares in Emerald Energy at 2 1/4p each, cost us about £120 in total with commission, we split up in Jan 2000, and as we were both skint sold them for a loss.
Shares now worth 420p each (21k!, oh what fools we are when we are young!).
Does anyone know where you can get info on penny shares these days, we just used to pick a nice name of Ceefax back then!

tonygee_3

Sods Law isnt it.
Theres an increasing number of penny shares at the moment but most are like backing a 100/1 shot in the National..theyre pence for a reason
Try googling 'penny shares ' if u want to continue but avoid 'tips' and chatroom rampers

Stavros_3

Cattles are just under threepence now lol

Reaper

How about bank shares? Prices now in the pence range, very high risk, and highly volatile which fits the criteria for penny shares purchasers nicely. Who would have thought I'd be saying that a few years ago... :rotfl:

adambro

The markets are quite strange at the moment. You'll find some shares can be bought quite cheap merely because suddenly a company having debt is seen as big problem. In reality, a company having debt isn't necessarily a sign of a bad company, using credit means that, for example, big purchases can be absorbed more easily which makes sense from a cash flow point of view.

I've got holdings in two companies which are a product of this but it can be seen across the market. Both seem to be reasonably successfully renegotiating their credit terms with their lenders and still look like good businesses despite the sudden concerns in the market about availability of credit. I won't mention them though, obviously do your own research and don't buy based upon what you read on a forum.

gozomark

didn't your mother teach you that "cheap isn't the same as good value" ?

tonygee_3

Debt is undoubtably the big issue surrounding the 'penny' shares
A lot wont survive
Best to pick these in a few years time after the worst is over (1998 was well out of the previous recession)
Timing is always the key

gozomark

on the other hand, buying 10 of them now, making sure they are in a diverse range of sectors, could well be extremely profitable, even if 7 of them go bankrupt. Just remember it could be 10 out of 10 not 7 out of ten.

gozomark

yep, 1:100 in 2004, so your purchase at 2 1/4 is really 225 pence (assuming this is the only consolidation)

http://www.emeraldenergy.com/PR-2004-09-01.htm

sabretoothtigger

So they just depennyised themselves and got like 90% growth which is still good I
guess


Try the aim index for small companies or I think ig index will let you bet on tiny companies of 100m

gozomark

90% growth over the last 11 years for an energy stock - I'm guessing thats nothing special ??