Manish Misra

Manish Misra

1p

1 comments posted · 0 followers · following 0

13 years ago @ PersonalMoney.in - 5 points to consider b... · 0 replies · +1 points

Hi Sunny,

As described above Penny stocks are a high risk high return category of stocks. It makes more sense if you invest small amount of money in a large number of carefully selected penny stocks for better returns minimizing the risk. Investing in one/two stocks involves huge risk, your investment can become multibagger in few months or you may have to write-off your investment completely. Since trading in these stocks happens mainly for speculative purpose and you might not get out of the stock when you want to if it is in the downtrend as there might be no buyers at all for the counter.

Cals Refinery for instance had a 52 weeks high of 1.08 and is currently trading at its 52 weeks low of 0.42. If you feel this stock has sound business model and the management is committed you can start taking position in Cals in small chunks. Avoid investing a large amount in these stocks in one go.

Hope this helps you in your investment decision.