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What is your best 'penny' stock success story?

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[OP]
Deal Addict
Sep 5, 2010
2330 posts
363 upvotes
Toronto

What is your best 'penny' stock success story?

I have never been a fan of penny stock and have only owned them once. But I am sure a lot of you here have bought penny stocks in the past.


I would like to hear your best success stories with buying penny stocks: those where the stock shot up and the value increased exponentially. (think 1000% or more)


For example, you could have bought 2000 shares of a stock that was trading for $0.30 and years later, that same stock had skyrocketed to $7, so your shares were suddenly worth $14,000 (from an original investment of just $600 !)

If you can provide specifics, would be even better: how many shares did you buy, original price, the price you sold at, and how long did it take?


I think we all have those dreams of hitting the jackpot with penny stocks, but just like winning the lottery, it is a lot harder than seems as most penny stocks end up going out of business or delisting.
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52 replies
Deal Addict
Mar 22, 2010
3033 posts
902 upvotes
Very rare. Extremely hard. Me personally happy with just breaking even. I know ton of people lost money on penny stocks...
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Mar 16, 2010
3248 posts
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Burlington
My best penny stock success story is never buying any.
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May 18, 2015
1630 posts
634 upvotes
Ottawa,Ont
Woodbridge905 wrote: I have never been a fan of penny stock and have only owned them once. But I am sure a lot of you here have bought penny stocks in the past.


I would like to hear your best success stories with buying penny stocks: those where the stock shot up and the value increased exponentially. (think 1000% or more)


For example, you could have bought 2000 shares of a stock that was trading for $0.30 and years later, that same stock had skyrocketed to $7, so your shares were suddenly worth $14,000 (from an original investment of just $600 !)

If you can provide specifics, would be even better: how many shares did you buy, original price, the price you sold at, and how long did it take?


I think we all have those dreams of hitting the jackpot with penny stocks, but just like winning the lottery, it is a lot harder than seems as most penny stocks end up going out of business or delisting.
I purchased 1000 shares of NHC.t around 0.75 a few years ago and just sold my shares at 6.20 a few months ago....wish I had bought more
Deal Addict
Nov 9, 2013
4143 posts
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Edmonton, AB
Nortel was my favourite penny stock - until it was delisted.
Deal Fanatic
Dec 6, 2006
5227 posts
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Toronto
I suppose instead of buying lottery every now and then, I can buy $10 worth of penny stocks and hope it win. As bad as penny stocks are, they still have better odds of winning than lotto649, right?
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May 11, 2014
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Iqaluit, NU
Mine was Patient Home Monitoring and Air Canada(when it was $1~$2). I bought PHM at 28c and sold in the mid 30c. I bought again at 70~80c and sold again a bit over a dollar. At this point, the frenzy was getting too much. I did end up buying a little bit when it went back down, to the 70~80c range, but the amount I bought was very little so still at a tremendous gain. I think seeing the stock doubling and tripling in a matter of months was alarming so I sold off. Taking a step back to think how this can be rational helps. The same thing can be said for companies like Valeant which in a matter of a year multiplied profusely and became at one point worth more than Royal Bank. How does a company legitimately increase in size in such a matter? Unless it's selling some new crazy product that they own solely and monopolize(eg. Apple iPod, Gilead's Hep C treatment etc.), it doesn't make sense.


For Air Canada, betting on the long term recovery paid off tremendously for myself. Not really a penny stock per say, but it was in the doldrums and was a penny stock at one point, and the company was thought to become bankrupt. I bought as I really liked Rovinsceau's business plan and leadership. This turned out tremendously well for myself.

Although I'm not sure if it counts, some of the American bank shares I bought (Bank of America at $3, Synovus $2~3 (before the reverse split) ) have paid off tremendously as well.

I think the key for penny stocks is 1) some revolutionary new product/drug that could pay off tremendously 2)to get out once you have your gain 3) to treat it like a gamble because it is so therefore 4) not to bet the farm on it.

Drug companies are a key factor. Gilead Science had to go through many drug trials before it's Hepatitis C drug would be approved. At any time should a Phase of a drug trial fail, it could mean the shares to drop to a value of zero. To completely ignore a company due to this risk could mean losing out on a potential windfall. Depending on the product, betting a $1K or 2K that you can afford to lose could be a strategy to follow. Sure 5 or 6 of them can go bankrupt, but 1 bet growing 1000% more than offsets this.

My strategy has been to mostly focus on safer investments, but I always allow myself a few thousand for these kinds of investments. Many don't pay off, but as long as I come out ahead in the end, I am OK with this.
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Nov 13, 2008
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Yeah I have to admit, I got into a penny stock once. It didnt end well.
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Sr. Member
Jun 3, 2005
852 posts
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Bought 12000 shares of ELTP at 0.21 cents and sold at 0.86 cents. It happened in 2014 within 3 months

Bought PEII... 1 million shares at 0.006 in summer of 2014. After all the reverse splits I still have 4 shares worth 0.01 cent so a 99.9% loss

BHRT... Sold at 90% loss

MSTX... Sold at 80% loss

BIAD... Still own at 90% loss

Swore not to touch them ever again
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Newbie
Mar 14, 2016
58 posts
14 upvotes
Vancouver
"The investor

The book Reminiscences of a Stock Operator describes how the legendary Jesse Livermore made and lost fortunes in the stock market. Toronto resident Robert Hirschberg has a similar story. And the trading slips to go with it, as he told Me and My Money.

His market adventure first came to light in a 2015 interview by CEO.ca. There was also a mention in the investment book, Market Masters (ECW Press, 2016). Here is a timeline for Robert Hirschberg’s story.

Beginning in 1981, a commodities boom sweeps his $20,000 in junior-mining stocks to a value of $850,000 in five years. But this is zapped by a margin call during the market plunge in October, 1987. (The value of his stocks fell below the loan value so the brokerage that had lent him money asked him to put in more or it would do a forced sale – which it did, at a loss to him).

In 2001, he put $20,000 of his wife’s money into Noront Resources Ltd. and Waseco Resources Inc. They, and some other trades, surge to $1.1-million by 2007 – thanks to another commodities bull market.

The crash of 2008 slashes the portfolio to $350,000. He takes $200,000 out and leaves the rest in the market because there are no bid-ask quotations for the remaining stocks.

The market roars back and by 2011, the “worthless $150,000 portfolio” has skyrocketed to a “magical” $15-million. Then a correction drives the portfolio down 70 per cent by 2014.

Currently, he is biding his time, waiting for the next upswing."

http://www.theglobeandmail.com/globe-in ... e29038110/
Sr. Member
Nov 6, 2015
968 posts
574 upvotes
Guelph, ON
jerryhung wrote: Surprised OP only wants success stories, when there must be 10X more failed ones

No penny stock for me
The trouble is that if this thread gets filled with nothing but "success" stories it will convince some naive person who stumbles on it that this is a smart way to invest.
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Oct 18, 2014
1970 posts
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HK
xgbsSS wrote:
For Air Canada, betting on the long term recovery paid off tremendously for myself. Not really a penny stock per say, but it was in the doldrums and was a penny stock at one point, and the company was thought to become bankrupt. I bought as I really liked Rovinsceau's business plan and leadership. This turned out tremendously well for myself.
Same story as you. Bought around 20k shares when they were sub 1$.
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Sep 29, 2005
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Pickering
I'll never touch them, they are the lotto tickets of the stock market and like the lotto the odds are heavily against you.
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Member
Jan 19, 2013
275 posts
48 upvotes
Toronto
ChrisR556639 wrote: "The investor

The book Reminiscences of a Stock Operator describes how the legendary Jesse Livermore made and lost fortunes in the stock market. Toronto resident Robert Hirschberg has a similar story. And the trading slips to go with it, as he told Me and My Money.

His market adventure first came to light in a 2015 interview by CEO.ca. There was also a mention in the investment book, Market Masters (ECW Press, 2016). Here is a timeline for Robert Hirschberg’s story.

Beginning in 1981, a commodities boom sweeps his $20,000 in junior-mining stocks to a value of $850,000 in five years. But this is zapped by a margin call during the market plunge in October, 1987. (The value of his stocks fell below the loan value so the brokerage that had lent him money asked him to put in more or it would do a forced sale – which it did, at a loss to him).

In 2001, he put $20,000 of his wife’s money into Noront Resources Ltd. and Waseco Resources Inc. They, and some other trades, surge to $1.1-million by 2007 – thanks to another commodities bull market.

The crash of 2008 slashes the portfolio to $350,000. He takes $200,000 out and leaves the rest in the market because there are no bid-ask quotations for the remaining stocks.

The market roars back and by 2011, the “worthless $150,000 portfolio” has skyrocketed to a “magical” $15-million. Then a correction drives the portfolio down 70 per cent by 2014.

Currently, he is biding his time, waiting for the next upswing."

http://www.theglobeandmail.com/globe-in ... e29038110/

lol this sounds like what my portfolio is going through right now. The penny stocks I have invested right now are NXE (holding this for 3 years), CRJ, and LSG. My portfolio is a commodities only. Im currently up 120%.
Im hoping we dont have a market crash to end my streak :( but something tells me we will have one soon.
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May 28, 2006
2389 posts
181 upvotes
night blade wrote: I'll never touch them, they are the lotto tickets of the stock market and like the lotto the odds are heavily against you.
Slow and steady is my motto now.

I had a co-worker that was into penny stocks. He was always bragging about his wins. I recently met up with him after 3 years quitting my job. He got me into RMX which plummeted to 1 cent from $1.50 3 years ago. I asked him about RMX and how his other penny stocks were doing. He was quiet and this guy loves to talk.
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May 6, 2010
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Markham
treva84 wrote: Nortel was my favourite penny stock - until it was delisted.
It was my first penny stock that I ever owned. Like a bride on her first night, I cried and cried as it went from $30 to pennies and poof. :cry:
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Mar 8, 2002
12479 posts
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GTA
Bought 2000 @ $1.50 of a small US company called USA Video Interactive, must've been in 98/99, start of dotcom craze. Got a tip from a guy that worked in the securities industry. They had patents on video over phone lines or something like that.

Stock did nothing for 6 months then climbed and climbed to $15. I was involved in online forums talking about the company etc etc, People thinking it was gonna be a massive company and could go to $100 a share. It didn't. I got half out at $12 on the way back down and sold off the rest at $7. Pretty tidy profit.

Started day trading with the profits, concentrating on the big 5 banks and was doing great. Then got into those leveraged etfs, HOU, HNU etc and got f*cked bigtime. Was in over my head. Lost most of my profits and quit trading.
Member
Apr 8, 2006
329 posts
21 upvotes
I've bought several penny stocks and learned the hard way...you can make a lot of money on them if you know what to look for, but if you're throwing money into penny stocks based on rumour or "because they're in the right sector", that's more like gambling.

I own a few resource penny stocks right now which I'm well in the money on because I stick to a few simple rules:

1.) Only invest money you can afford to lose
2.) Bet on management. Those who have built and sold companies and are starting a new one for the 2nd, 3rd, 4th, etc. time have at least shown that they have done it before
3.) How much does mgmt own and how? A lot, or an insignificant amount? Through cheap way in the money options, or did they buy on a recent deal?
4.) Stick to the basics - probable projects in stable areas...no betting on "new governments/political changes/gold going to $5000/oz or oil to $150/bbl so that the economics work/etc.", also no "game changing technology" for me...takes too long to prove up.
5.) Decent balance sheets. Many of these companies won't have much cash, but I stick to the ones with management teams that have raised money before and that don't have an obscene amount of outstanding warrants that are close to being in the money....creates a big overhang.

Those are the basics for me. A bit more to it, but I always at least stick to rule 1.) in all cases. That being said my best was 10x...a $0.10 deal that I sold for $1.00....then subsequently kicked myself as it went to $1.40, but still. Took me a few mistakes to learn those rules and not make poor/gambling like decisions.
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Sep 10, 2003
1638 posts
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Hamilton
I think knowing when to hold them and knowing when to fold them is key.

Currently I am "playing" with EGLE - Eagle Bulk shipping. Regularly dips to .50 to .60 range - and than after a week or so jumps up $.90 to $1.20 range. Been doing this regularly for a couple months. Key is to LOCK IN profits and not get greedy and ride it to the bottom. I lost my shirt years ago on one called Golden Hope Mines (GNH) - rode it to $1.00 and did cash out along the way, and bought on the way back down - and after reverse splits and crap, is worth about the finest outhouse wallpaper money can buy.

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