Penny stocks?
Tuesday, September 7th, 2010 at
3:36 am
are there any penny stock companies that are predicted to grow in which i can own (at least 51%) of the company for under ? how about 0? also, if i was to own 51% of a company, do i have power to apoint who i want as CEO? President?
Filed under: Retirement Planning
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you will never be able to aquire a majority of any decent company for under $100million much less $20. any company that you could purchase a controlling stake in for even $20million would probably be about to go under. generally the reason companies are penny stocks are:
-they are miniature
-they are run horribly and are going under soon
-the company has diluted its shares so much that it sells for a very small amount (this is VERY rare)
-the company’s industry is collapsing around them and they are being dragged down with it
in any of these cases you don’t want to buy. there are very few that you should touch, much less invest enough in to get a controlling stake. the only good ones these days seem to be gold mining penny stocks.
The best advice is to steer clear of all penny stocks. Only the promoters make money.
Most penny stock companies dont have the financials you are seeking. Penny stocks are high risk of losing their value, but in theory if you bought hundreds of thousands of shares which these penny stocks usually issue, then you will have a big voting block to determine the CEO.
It is very unlikely (basically impossible) you’re going to find a company that meets that criteria. You’re looking for a company with a total market capitalization (share price x number of shares outstanding) of less than $40 or less than $200. A company in this situation would have been delisted from any major exchange long before that point and anything trading OTC (over the counter) simply wouldn’t be trading that low. To answer your other question; generally speaking, yes, if you owned 51% of the shares of the company you would have a controlling interest and be able to appoint yourself president, CEO, whatever.