you'd better spend some to research which GICs are more secure to invest LOL
playing quite a bit of OTC and pinks im averaging 200% return since Jan, I expected it to go down to 150% or even 100% if I get really unlucky. i can't make that much money on nasdaq (not me). it's the price/reward ratio my friend...
investergold, it is a good article and has some truth to it. Many people who invest in penny stocks are simply gambling or looking for that one stock they can brag to their friends about. Let us all remember when our friends brag about their stock picking expertise, they seldom tell us about their losers, snicker.
I think there are quite a few penny stocks that really can't be considered penny stocks. Those are companies with intrinsic value (real book value) that are under valued, such as Metris. Metris traded at its low levels not because of its balance sheet, but because it was a heavily shorted stock that people were anticipating could possibly go bankrupt, thus making the stock worthless, eventhough the company itself would have still had value after the reorganization.
There are many stocks this cycle that have dipped below the invariable $10 line of death. Something like 90% of stocks that drop below the $10 theshold never make it back above if you look at the historical data. So investing in low dolar value stock is definitely a BIG risk. Though the rewards can also be high.
Let us also not forget that most people that invest in stocks lose money, so if you don't have the stomach for it, invest in Index stocks such as QQQ's, SPY's, DIA's, and there are many many more.