#757 - Do Penny Stocks Ever Go Up?

The "Daily Call" From Option Alpha

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Do penny stocks ever go up?” And this is really a two-part thing. It’s more of a question that we’re going to try to answer on my side, just what I’ve seen before and then two, just the solicitation of feedback and resources. If anybody’s out there that has seen any conclusive research, real research on penny stocks, I’d be interested just to see it. I don’t think it’s anything we’ll ever do here at Option Alpha. I have no intentions of ever doing research in penny stocks, but I would always be interested to see what the research is. Every time I try to go search for a penny stock research and just dig around, I really come up with just a bunch of scam sites that are just trying to sell me next best pick every single day, but I haven’t really seen any research that says, “Yes, this is how penny stocks perform or not.” I think it’d just be interesting to see. If you’ve seen it, let me know. Shoot us an email. Add a comment, whatever the case is.

I think that penny stocks of course can go up. I’m sure that there’s a number of companies that have started as penny stocks and have gone $2, multiple dollars, maybe even hundreds of dollars. Do I think that they are the exception to the rule? Probably. I would assume that would be my expectation. Like I said, I have no research to back this up. I have no basis for this other than just what I’ve seen before in the past with hundreds of thousands of penny stocks listed. Again, people are doing a lot of pump and dump schemes to get the price up. I know that Tim Sikes is a big proponent of going the opposite direction on these which I think is a really cool strategy. I just don’t have the patience or the wherewithal to understand the world of penny stocks versus options trading. Options trading is more interesting to me than penny stocks, but I think it’s a cool strategy because you usually get these huge run-ups in penny stocks that are over-exaggerated and then they dump and that’s a really interesting way to trade penny stocks. But I think they do go up. I think obviously, the good companies will always last, will always be around and their share price will be reflective of that. Hopefully this helps out. As always, if you guys have any questions, let me know and until next time, happy trading.