Thursday, July 10, 2008
Rich Duprey :: Townhall.com Columnist
Making Cents in Penny Stocks
by Rich Duprey
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The occasional shower of pennies from heaven might do our bank accounts some good, but we Fools can't say the same for penny stocks. The world of penny stocks is often full of manipulation and deceit, making it harder for investors to separate its few good offerings from the multitude best ignored. Though some investors think cheaper stocks have a greater chance to appreciate, those stocks may be cheap for a reason. Indeed, a $20 stock may have better chances of gaining value than a $0.20 one.

Still, many investors dabble at the low end of the stock-price spectrum. At Motley Fool CAPS, we award the "Pennies" title to investors who rate stocks trading in the single digits more than half the time. Believe it or not, you'll find some of the best CAPS All-Stars among those players.

Pinching pennies
This week, we'll look at some of the low-priced investments these All-Stars have praised. If the best investors regularly scanning this end of the market have singled out these companies, we might want to turn our umbrellas upside-down -- or run for cover!

Here's the latest list of low-priced stocks with All-Star support:

Company

Price*

CAPS Rating (5 max)

Player

Player Rating

Xinhua Finance Media (Nasdaq: XFML)

$2.70

**

goldminingXpert

99.90

Ford (NYSE: F)

$4.49

*

Tankota

99.48

Security Bank (Nasdaq: SBKC)

$5.86

*

chicachick

96.44

Washington Mutual (NYSE: WM) Continued...

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About The Author

Rich Duprey is a writer specializing in the stock market.

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