Yes, I do. But we are not allowed to discuss sub-$1 stocks on nexusfi.com (formerly
BMT).
I sort of jumped the gun on [LSG:TSX] as I made a fantasy purchase here when it was $0.98/share but I think BM will forgive me as the stock was in this portfolio a few months ago. now it has jumped to $1.06/share and rising. In my real portfolios I have purchased this stock as I like the way it responds to rising gold prices...but as you may have seen in the past...gold is fickle and can turn around in a heart beat so this will be more of a swing trade than long term.
You have to be very careful in choosing a penny stock.
I have rarely made a successful purchase of an American sub-$5 / share stock... I discovered the reason why and talked about it in my American journal here. American investors treat stocks under $5 like they are garbage relatively speaking compared to Canadian stocks there are very few stocks in the under $5/share
range.
If you look at my American portfolio on nexusfi.com (formerly BMT) I don't seem to consider a stock under $10.
Canadian stocks are a lot different... a stock between $1 and $5 is considered to be a maturing stock....sort of like a young adult in maturity.... when they range over $10 they are a maturing stock.
Low Pennies ($0.15 to $0.50 )are babies in Canada... many many in the TSXV and a lot in the TSX. You don't know which ones will survive as often they are start-ups, or new unproven technologies. There are stocks in this range that are worth buying... but you cannot choose them at random (we are not talking day-trading here... anything can happen in a day) for long term hold. In real life, in my 3 Canadian portfolios I have 2 stocks that are in this range. I won't mention names but they are both mining stocks... both are established and now producing mines..... they make money...
One I bought 8 years ago before it became a mine and I bought it based on its drilling records and the amazing %grade of metal in the cores.... on that info the stock soared from $0.20 to $1.20 but it was a roman candle and flared out after reality set in and the investors realized it would be years before the company made money.... it was a heck of a swing play. I am back into it when it fell and leveled off at $0.18/share and increased my holdings at $0.18, $0.20 and $0.23....it is currently about $0.29 after a little more than a one year period.... I have high hopes for this stock and watch for a break out.
The other was a stock worth as much as $9.00 but fell because of infrastructure issues and lack of demand for their metal. It is a metal not common in NA but without demand as it struggles to regain former glory. It has a pretty good stable operating revenue but the cost of solving the infrastructure and mining issues are still high and the relatively low price for the metal makes it difficult to get into the black.... but I am patient and made a small speculative purchase.
The teenagers are the $0.50 - $1.00/share range..... there is more opportunity there if you are skilled fundamentally and able to separate the good from the bad and butt ugly. This is how I found Lakeshore Gold. Many many start-up O&G companies or mines are here.
Using simply TA ... even the charts I have developed and show here ... have limited success when evaluating sub $1 stocks.... they are often not reliable companies and, if the butt ugly type, they can be manipulated heavily.
If I am hunting in the $0.15 - $1.00 I want to see (but not limited to)
1. Some operating revenue.... this eliminates a lot of exploration companies... I don't like these stocks as they are dream sellers and hope their finds get bought out (but the investor often does not benefit from the buyout).
2. Some manageable debt... these are start-up companies so they don't have a lot of revenue... debt is necessary to develop their property/service/commodity.
No debt means no activity they can talk a good fight but are not doing anything ....
Ideally you find a company with a reduced debt load with each quarter and an increasing Operating revenue. They don't have to be in the black yet but they are progressing towards it.
These companies are worth investigating further fundamentally then technically.... but those criteria above will filter out the really bad/butt ugly
NEVER look at a stock under $0.15.... and sub-pennies are the worst and a waste of money.... they are for bottom feeders and those are Suckers in the fish world. Don't be one of those "Born every minute...."
Of course what I have discussed here apply to Canadian stocks in the $0.15 - $1 range.... As I said at the beginning.... I have rarely been successful at American stocks under $5.00...never mind under $1.
I won't promote any sub-$1 stock here or in any PM to me but this is my general approach.