Investing with pennies (A look back to 2014 during the Cannabis stock rush)

By Hippy KK

 

Who doesn’t have a handful of pennies they’d like to turn into hundreds, thousands or even millions of dollars from a single investment? Two words, penny stock. Just because they’re called “penny stocks” doesn’t mean that’s all they cost, nor does it mean that pennies are going to make you rich. But those little round copper pieces do indeed have the potential to line your pockets with gold.

 

As defined by INVESTOPEDIA , penny stocks are: “a stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the Over-The-Counter Bulletin Board (OTCBB) and Pink Sheets.” According to the Securities & Exchange Commission (SEC) any stock under $5.00 is a penny stock. The definition of penny stocks can vary; some set the cut-off point at $3.00, while others consider only those stocks trading at less than $1.00 to be a penny stock. Penny stocks have also been known to be referred to as “micro-cap stock.”

 

For those that might not follow the stock market, chances are this will sound very confusing, but it really isn’t. This is important information you need to know if you’re considering any type of stock investment, but especially penny stock. The OTCBB is a regulated electronic trading service offered by the National Association of Securities Dealers (NASD) that provides information such as: real-time quotes, last sale prices and volume information for Over-The-Counter (OTC) equity securities. Companies listed within are required to file current financial statements with the SEC, a banking or insurance regulator. There are no listing requirements, such as those found on the National Association of Securities Dealers Automation Quotation (NASDAQ) and New York Stock Exchange (NYSE), for a company to start trading on the OTCBB or Over-The-Counter Markets (OTCMKTS). Stocks that trade on the OTCBB will have the suffix “.OB.” While Pink Sheets are a daily publication compiled by the National Quotation Bureau with bid and asks prices of OTC stocks, including the market makers who trade them. However, unlike the OTCBB, Pink Sheets aren’t registered with the SEC, and are not enforced by any listing requirements which cause them to be a bit more risky of an investment then OTCBB or OTCMKTS.

 

Confused yet? Let me put it this way. Penny stocks are low-priced stocks, not normally traded on the NYSE or NASDAQ, but by Over-The-Counter Bulletin Board, or Pink Sheets. Penny stocks are considered risky investments because the stocks typically have wide bid-ask spreads. The companies might also lack liquidity, are thinly capitalized on, and have limited financial and market information available about them. But for many investors, the mere pennies invested are nothing compared to their potential gain.

As of market close yesterday, March 11, 2014, Marina Biotech (MRNA) closed at $1.40 per share, that’s up 218 percent since the beginning of the year, and has generated $825,000 trade value in 585,000 shares. For the last four weeks, Medical Marijuana, Inc. (MJNA) has held steady right around .30 per share and is one of the most heavily traded penny stocks by dollar value. GreenGro Technologies Inc. (GRNH) has been the most rewarding penny investment so far this year, gaining an incredible 877 percent year-to-date. The stock started the year out at .04 and quickly climbed to .80 per share and currently holds at .43 per share. Hemp Inc. (HEMP) prices soared in 2014. Since Jan. 1, it gained 513 percent and shares currently trade for .13 per share with no loss or gain at the close of the market.

To give you an idea of what some of the other cannabusiness’ stocks traded at, here are just a few of the many available:

GrowLife (PHOT) opened at .56 closed at.55 ↓.01

Cannabis Science (CBIS) opened at .20 closed at .18 ↓.02

Terra Tech Corp (TRTC) opened at .89 closed at 1.89 ↑1.00

Creative Edge Nutrition (FITX) opened at .08 closed at .08

Bio-Solutions Corp (GWPRF) opened at 6.94 closed at 6.86 ↓.08

Pharmos Corp (PARS) opened at .08 closed at .0875 ↑.0075

 

Wondering how to get in on these potential little money makers? The simple answer — just as you would any other stock — through a stockbroker. It’s just that easy. Penny stock can be purchased through a stockbroker regardless if it’s listed on a major exchange or not. If you’re in the market for a stockbroker, you might first try some of the big names such as Edward Jones or Raymond James.

 

No matter what the investment, beware of scams. Since companies that are delinquent in submitting their filings to the SEC are still accessible to individuals, penny stock has proven to be a host for dishonest people. Be sure you do research on investment firms or individual before trusting them with your money. Regardless if it’s only pennies.

 

For a more detailed list of available Cannabis-related stock and their cost-per-share at the time of this publication, be sure to read the stock briefs included in this edition. Many of them can be watched on AllPennyStocks.com.

 

URLs

 

AllPennyStocks.com: http://www.baystreet.ca/quotedata/partners/allpennystocks/quotes.asp

NASDAQ: http://www.nasdaq.com/quotes/

NYSE: https://nyse.nyx.com/

Edward Jones: https://www.edwardjones.com/en_US/index.html

Raymond James: http://www.raymondjames.com/

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