Are stocks trading under $1 ever worth investing in?

Question

Are stocks trading under $1 ever worth investing in?

Answer 1

It's a huge risk.

I've always found when monitoring my stocks that the best way to follow what I've earned/lost is with percentages.  If Google, which trade around $500-600 goes up a dollar, who cares?  If Active Power Inc (currently $0.99) goes up a dollar, its just doubled in price.

If I've invested $2000 in Google and $2000 in Active Power, for Google I've made about $3-4, for Active Power I've just made $2000.

The catch is that it can go the other way too.  If Google drops by $10, it's not important.  If Active Power drops by $0.10, it's  a major drop.

A relatively small percentage of companies traded on the Stock Market actually survive.  An even smaller percentage actually grow to be large.  Trying to BET on this or that stock, and you will lose, because the only real way to make money on the Stock Market is to purchase stock and KEEP IT FOR A LONG TIME.  Remember that when you trade stock there are fees and there are taxes on each trade.

Answer 2

Well let's see- MCI traded for 25 cents a share at one time, Tandy corp.(Radio Shack) traded at 63 cents a share at one time, but how do you know what's going to do what?

Answer 3

Ever is a long time.  So yes,  during for ever you might find some that can become good investments.  But the probabilities are against you finding one although every year several do rise significantly in price.  

Just in the last 52 weeks 2 come to mind.  OTWW and TGC.  Both have risen over 400% and a year ago were under $1.00 a share.  But for those 2 there are 100 x as many that have fallen in price during the last 52 weeks.

Answer 4

yes

Answer 5

Those are called 'Penny Stocks' and yes, they can be.  "Back in the day...."  Netscape came out at under a $ a share.  It skyrocketed.

Go for it!

Answer 6

maybe but is very risky. if it goes up you can make a lot of money. don't be greedy. if it goes up make sure that you get out before it goes down