Pennies to avoid

Not immediately, unfortunately this can happen without warning as the SEC does not first send out a warning before a halt (usually based on fraud). For a good case of this - check out CSHD (CSHD.pk).

As far as delisting - there can be a few reasons for this to happen -i.e. - not filing the financial statements in time (10k, 10K-SB, 10Q, 10Q-SB). The ticker symbol will then get an 'E' appended to the symbol. Again, this happened with CSHD. For about two weeks the symbol was CSHDE due to their inability to file a 10K. To get around this, they can file an NT-10k which is a request for an extension to file the financials... if you research CSHD again (Search SEC.gov for the company Furia) you will see all of this. Great example of a company that everything went wrong with. lol.

If the stock is delisted, I don't believe you can get your money back. Not from the stock market anyhow - other means may be possible with the help of legal aid - but that's neither here nor there and it's not a guarantee. I'm not recommending it, rather, just shedding light on the subject. Now, I'm not an expert at all this, but have been through it in a real experience (CSHD lol) and learned the hard way. Just be wary of Pump and Dump schemes... use Charting and technical analysis to help you in choosing a stock. Use this board as it's a great resource. And always - *ALWAYS* - take your initial investment out if you are up on a stock pick. Heck, maybe even take a lil more than the initial. CSHD increased 400% and you could have easily sold some shares to recoup your initial buy-in and ride free shares to the moon or to the dirt!!! lol, hopefully the moon. Hope that helped.

Are you new to trading and/or pennies?

1st off. Pennies trade differently from regular stocks. You might want to keep track of a few pennies for a while

The only time you want to be in a penny stock unless you have insider information is when they are on the move upward. PERIOD!

Yes. I think the #1 rule should be, once you have made money on a penny, sell. 2. Don't be a bagholder

Agreed with Graham and Will - You don't invest in pennies.. you trade them. Use stock scans and what not (i.e. HSM) to locate decent stocks and then watch them for movement. My personal favorite is Rerverse Mergers and/or Shell stocks. Hard to find, but they can pay off quite favorably. Usuall with small investments. To give you an idea of one recent shell merger that came up take a look at QKBY. I invested a whopping $60.00 (all I can afford to risk at the moment) into this stock lol.

Others may tell you to stay away from them (not that I know why haha). I like pennies because you can make a ton of money from a very small amount of money. And you usually don't have to wait for too long. Anyhow, good luck!! Read a lot of the tutorials on HSM - they're pretty good.

Here is my 2 cents on reverse mergers/shell stocks............and 2 cents invested would be worth hundreds..........buy a lot of shells......but since they are boring to watch, use less than half of your portfolio, then simmer (put them on the back burner), one day you will log on and see at least a ten bagger. The hard part of shells is getting in, many times the spread is at least 100%, and if you sit on the bid, you will get a partial fill, I usually sit between the bid/ask with an AON order, it seems to work.

Thats kinda the whole idea behind any trading, unless you short a stock

its basically like selling your stock symbol and all the jazz that goes with it to the highest bidder. A company that wants to go public will buy up these low share count companies because it is cheaper than going through all the paper work to start a new stock. Shell just means a stock that no longer has a business behind it and is looking for a buyer. When a buyer is found, they "reverse merge" into that company by buying up all the shares and they take over of everything.

Here's a link to a board on IHUB. I've bought into a couple shells on this board, but they haven't hit yet..............here is an example of the power of reverse mergers...........rare but it can happen. A 5 hundred dollar investment would be worth 20 million dollars within months(PPXP)........not sure if us welfare traders could have had the discipline to stay in, but it gives you an idea about the earning potential of reverse mergers.

http://www.investorshub.com/boards/b...?board_id=8066

Yes it is. And go tell that to all the guys sitting around in any one of a thousand penny stocks on this board waiting for them to make a move. You are dead meat if you do that.

LFZA is a great example of a RM. .0002 to .84