How much risk is this penny stock?
Gary D asked:
http://finance.yahoo.com/q?s=UVSE.ob
http://finance.yahoo.com/q?s=UVSE.ob
I just saw this stock and researched the company and it seems that they are moving forward with full operations that they should be creating profit now, thus make this stock less risky than other penny stocks.
Can anyone tell me why not to buy this stock? Other than the massive previous day gain?
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Okay Einstein. Great that you at least ASKED the question before you jumped off the bridge.
Lets look at this from the OTHER SIDE of the coin, those whose job it is to SELL penny stocks. (I am CERTAIN you will have NO problem finding one of these clowns, he is probably on your speed dial RIGHT now)
I am a broker and I am pushing a penny stock called XYZ. (this is s VERY popular company) I call you today and say I got XYZ going for 45 cents a share. It is poised to go ballistic as soon as they get permission from the FDA to market their new product MIASSDRAGS, a herbal supplement that is guaranteed to lift your assoff the couch or triple your money back.
You think about it for a minute and turn me down. I call back in two days all excited and tell you that XYZ has received their go ahead and things are ready to pop.You need to get in on the ground floor before all the high rollers do. You put me off again.
The NEXT DAY I call all in a lather and tell you that the stock is DEFINITELY on the move now at .60 and you need to get on board TODAY. This is where you are RIGHT NOW, looking at phenomenal potential.
The only problem is, the broker ran the price up LAST night by buying his OWN stock. He made the market in XYZ. Penny stocks are NOT tracked on the NYSE, or NASDAQ, but rather are listed in the pink sheet, a rag found only on the brokers desk.
He made the market and he wants YOU to jump in and take it off his hands…with a small profit AND a small transaction fee…
Penny stocks have been around forever and the people who have lost money betting on them are legendary.
Play the lottery. The bets are smaller, the payoffs are bigger, and there is NO REAL expectation of actually becoming a winner.
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BTW, how would you like to be the joker that owns 1000 shares of USVE at it’s 52 week high of $2.55
HA HA HA You’er lookin’ as a 3 cent dogturd stock and giving ME a thumbs down. I LOVE this country-and ALL of it’s opportunities.
The company actually looks decently solid BUT I wouldn’t buy it just yet. I think this stock will make a decent run over the next few years but its current exposure leads it to be very prone over the next few months. Exploration and drilling companies will definitely take off nicely if the government authorizes offshore drilling in the next 3 – 4 years. The exposure though of the company now though makes me a little nervous about it. The main pipeline work being done by them is in Louisiana and Texas. As we now are entering into hurricane season this leaves me a little unsettled. While their current work seems to either be on schedule or ahead of schedule, a hurricane in this area will push this all back plus put any new projects they are looking at in these areas on hold. One hurricane in either area can push a project back weeks, if not months, or years. After seeing what has happened the last couple of years, there is always something brewing in the Gulf. I would jump in now only if I would see a big institutional investor join. I actually see though this fear priced in as the stock just took a dive right as hurricane season got underway. I see this as actually making this stock risky for the time. I would say though by mid september this stock would be a better buy as the hurricane season ends and with increased heating oil prices this winter just ahead, people will be complaining about higher prices and thus a push will be made for more offshore drilling.
No, please don’t buy this. It is not even worth 3 cents.
The company’s printed annual reports is worth more to a recycler than the stock itself.
Read my prev posts on penny stock risks and speculation.
Movie every penny stock “investor” needs to watch:
Boiler Room (2000)
This move is based on a true story on how penny stocks typically work. It also came out at the top of the market in 2000.
PS De Deuce is correct. Gave him thumbs up.
View It Now: www . robotstock .info
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This company is not profitable (from the statements on yahoo finance) so thats kindof a problem. Furthermore it looks like it may be a pump and dump scheme judging from the previous run it had to 2.50 and quick decline back. I saw your other post on Forex. As a trader who deals in both markets I can only advise you that high risk does not equal high rewards for novices it equals 100% losses. Learn on something easier or go to the casino.