Hello, I read Sean\u0027s June 2021 post on penny stocks. If a penny stock is on the TYKR dashboard with an \u0022on sale\u0022 status plus 20/20 Total Score, is it considered to be a good investment option? Thanks for sharing your expertise.

Hi Beth,\u000a\u000aGreat question!\u000a\u000aPlease be very careful when considering penny stocks (even if they have a high score). I would highly recommend to keep looking for other stocks. Here are some numbers on penny stock:\u000a\u000a\u002D If a stock is $5 or less, historically, there is a 99.9% chance the stock will never go higher than $5\u003B\u000a\u002D If a stock is between $5 and $10, historically, there is a 90% chance the stock will never go higher than $10.\u000a\u000aWe wrote a short blog post about this topic. You can read more about it here: https://tykr.com/knowledge\u002Dbase/small\u002Dcap\u002Dstocks/small\u002Dcap\u002Dstocks\u002Dpenny\u002Dstocks/\u000a\u000aI hope that helps to clarify!\u000a\u000aBest,\u000a\u000aSean

Hello, I read Sean's June 2021 post on penny stocks. | Tykr

Q: Hello, I read Sean's June 2021 post on penny stocks.

If a penny stock is on the TYKR dashboard with an "on sale" status plus 20/20 Total Score, is it considered to be a good investment option? Thanks for sharing your expertise.

BethNov 30, 2021

Founder Team

Sean_from_Tykr.com

May 14, 2024

A: Hi Beth,

Great question!

Please be very careful when considering penny stocks (even if they have a high score). I would highly recommend to keep looking for other stocks. Here are some numbers on penny stock:

- If a stock is $5 or less, historically, there is a 99.9% chance the stock will never go higher than $5;
- If a stock is between $5 and $10, historically, there is a 90% chance the stock will never go higher than $10.

We wrote a short blog post about this topic. You can read more about it here: https://tykr.com/knowledge-base/small-cap-stocks/small-cap-stocks-penny-stocks/

I hope that helps to clarify!

Best,

Sean

Helpful?

Beth

Posted: Nov 30, 2021

Thanks Sean for your prompt response. Yes, I read your Penny Stock post. I agree with you that we need to be very careful when considering penny stocks. I'm thinking of a 50% stoploss cushion if I decide to go ahead. Will see :-)

Founder

Sean_from_Tykr.com

Posted: Dec 1, 2021

Hi Beth,

Thanks for your swift reply!

I just noticed the post I sent you is the same one you already referenced. Sorry for that!

I would strongly advise against going with any penny stocks at all. However, should you choose to do so, please be very careful. Tykr is based on the principles of value investing; picking penny stock is more in the growth investing realm.

Best of luck!

If there's anything else I can help with, please do not hesitate to ask.

Best,

Sean

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