An unusual investment strategy: buy shares less than 1 cent

@scheng1 (24649)
Singapore
February 1, 2016 7:18am CST
I have heard of one unusual and very risky investment strategy. In fact, I will not call it a strategy. It is more like speculation. This particular method requires you find out the stocks that trade at lowest possible price. There are some stocks that have such drastic drop in share price and the share price hits rock bottom. You buy them at less than one cent per share. If the share price does not increase, you do not lose big. If the share price increases, you are looking at potentially 200% to 1000% return. The share price is low because the company is not doing well. Once the company turns profitable, the share price will increase.
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1 response
@youless (114117)
• Guangzhou, China
1 Feb 16
These stocks are available in Hong Kong. In fact I think it is not a bad idea to invest some money to it. Anyway, you will not invest many money to it. And you won't lose so much since the stock price is already so low.
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@scheng1 (24649)
• Singapore
3 Feb 16
If I have a portfolio of very stable dividend stocks, I may consider investing in these kind of companies. As it is, I have to build up my portfolio of great stocks first.
1 person likes this