Interview: “The Skinny on Penny Stocks”
I was quoted in an article about penny stock investing that our friend Jon Heller wrote for Bankrate.com back in August (I’m putting the link up now because we’ve resolved an editorial tussle with Bankrate’s staff over one of my quotes). You may remember that Jon interviewed us back in May regarding our investment philosophy and our active investment strategy, Symmetry Capital’s Opportunistic Portfolio.
Jon asked us to participate because we often purchase low priced shares of companies in the Opportunistic Portfolio. We do this because there are multiple structural and institutional inefficiencies that sometimes create attractive risk-reward situations among low priced securities. However, as all of the experts in Jon’s article point out, there’s a lot of risk and hard work involved in finding the handful of gems among the slag pile of penny stocks, as well as a number of con artists willing to prey upon people’s desire to get rich quick.
It’s a well written article with some good insights – highly recommended.
URLs:
http://www.bankrate.com/finance/investing/the-skinny-on-penny-stocks-1.aspx
http://stocksbelowncav.blogspot.com/2009/05/cheap-stocks-interview-art-patten_26.html