I've been wanting to ask this for a long time: what difference does it make whether a company makes a profit and "exceeds expectations", unless the company itself gives shareholders a piece of the profit? I see stocks go up & down like elevators, all based on a company's expectations (or perceived profit). Please someone tell me because I don't see the connection. What I do see is that the company's EMPLOYEES get a direct benefit. BUT unless we stockholders get a special dividend, I don't see it.
Yet, it seems that investors buy not on a dircet benefit, but from OTHER stockholders who have bought shares at a higher price. That sure seems like a ponzi scheme to me.
To answer your question in very basic stock lesson 101: there are catogories and some are dividend stocks and some growth stocks. That is how shareholders are rewarded by a companies "profit", you either receive divs or you have growth. The growth will spark demand and a shareholder can sell for their profit or eventually a stock split will take place and growth will again go forward.
all that technically sounds right. But one very unpredictable thing with stocks under 5 dollars is an easy manipulation. If this stock was 20 dollars a share it wouldn't make huge swings of 10 to 15 % every week. So, if you want steady a safe pick CCJ or anything above 20 dollars but to get your 10% it might take you 6 months.