Posted on 15 January 2012.
Sub penny stocks are issues that trade for less than a penny a share. Most of these companies trade for a lot less than a penny a share. The traditional bottom feeders of the sub penny stocks go for $0.0001 a share, which is the lowest calculable share price and cannot go any lower. The next stop after $0.0001 is zero.
Due to the radically speculative nature of these stocks, care and caution are not really prime considerations. These are the lottery tickets of the stock market. The odds of picking the one winning number are almost impossible, and an investor needs to recognize that there is no real chance of ever seeing a return on these investments. Still, there is always the allure of dropping a penny in the wishing well.
There are always a small number of sub penny stocks to watch. The list changes constantly as new issues hit the market and are touted up by their backers. Optimism dies, and then it is time for the next new thing to be puffed up. Like people who play the long shot at the track and win, however, an occasional dark horse finds its way to the winner’s circle. Here are a couple of current candidates for escape from sub penny stock land.
• Micro Imaging Technology (MMTC) is one of those companies that has almost pulled its way out of the sucking swamp of sub penny stock territory. Micro has made its way clear up to $0.02 a share during the past year but appears to be flirting with a return below the dreaded $0.00 reporting barrier that signifies a return to the land of sub penny stocks. Cheap and having shown that it can cross the line into penny stock territory, MMTC might be worth a shot.
• Index Oil And Gas (IXOG) is another stock on the cusp of escape from sub penny stock territory. Index has exploratory operations going in Kansas, Texas, and Louisiana. Due to its holding of tangible assets, IXOG looks like a decent member of the sub penny stocks to watch club.
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