THE PROBLEM WITH PENNY STOCK PLUNGING...IS THAT YOU NEED A REASON WHY THE SMART MONEY ALLOWED THESE COMPANIES TO BECOME PENNY STOCKS...IN THE FIRST PLACE...
THE MARKETS DO NOT LEAVE INVESTMENT "CANDY" ON THE STREETS FOR THE RETAIL PLUNGERS A/K/A "THE SUCKERS" VERY OFTEN... IN TRUTH ALMOST NEVER.
OF COURSE, THERE WAS FORCED SELLING FROM HEDGE FUNDS... BUT THIS FORCED SELLING MIGHT BE ONLY A SYMPTOM OF THE SHARES' OR THE ECONOMY'S UNDERLYING PROBLEMS...
BUT NOT THE REAL CAUSE... BLAMING THE HEDGE FUND SELLING IS LIKE BLAMING THE VICTIM OF A CRIME!
BUT EVEN THAT DOES NOT EXPLAIN IT ALL...
WHAT TO MAKE OF THESE ONCE BLUE CHIPS THAT HAVE HAD NEAR DEATH EXPERIENCES LATELY..? THE LIKES OF GE, GM, FORD, CITIBANK, ALL THE BANKS REALLY...
WHAT TO MAKE OF THIS...?
YES THE GOVERNMENT HAS BAILED THEM OUT...BUT DO WE REALLY KNOW WHAT'S BEHIND THESE BAILOUTS...AND THE ONEROUS TERMS OF THE DEAL...
IS THE BANK SOCIALIZED...? BANKRUPT? WHAT IS THE FATE OF THE COMMON SHAREHOLDERS...?
AS A RULE...PENNY STOCK PLUNGING INTO BANKRUPT STOCKS IS NOT A GOOD MOVE... AND I DON'T THINK PENNY STOCK PLUNGING INTO BAILED OUT STOCKS WILL BE ANY DIFFERENT...
OF COURSE MANY PEOPLE AT THE THANKSGIVING TABLE WILL MAKE THE DECISION TO PLUNGE FOR 1000 OR 2000 SHARES OF CITIBANK ON THE OPEN...AND GET THAT "FREE" 10% DAILY PROFIT OF LATE...
BUT IF A QUICKIE PROFIT ON GM, GE, FORD AND CITIBANK IS A NO-BRAINER...WHAT'S TO STOP ANYONE FROM TAKING THE PLUNGE...
WELL MY EXPERIENCE IS THAT TAKING A 1000 SHARE PLUNGE ON ANY OF THESE NEW "PENNY STOCK" BLUE CHIPS IS A GOOD WAY TO MAKE $5000 INTO $3000...BAILOUT OR NO BAILOUT...ASAP!
THE MARKET JUST DOES NOT OFFER THE PUBLIC THAT KIND OF NO BRAINER...WITHOUT A PRICE TO BE PAID...
THE OLD RULE ABOUT STAYING OUT OF STOCKS UNDER $10...OR IN OR NEAR BANKRUPTCY APPLIES TO OLD LINE BLUE CHIPS OR DOTCOMS...
THERE IS NEVER A FREE LUNCH ON WALL STREET...OR IF THERE IS YOU'LL NEVER FIND IT...
CITIBANK IS A SUCKER SET UP...AT THIS POINT. IT'S WAY TO EARLY TO SEE THE END OF THIS CRISIS...AND THE TURN IN STOCKS...
BUT DON'T MENTION THAT AT THE DINNER TABLE TOMORROW...
