Here's an interesting situation for all those people who really think they are going to make millions from playing with penny stocks.
I took a gamble on Nutrition Holdings (NUT) and over time bought 1.5 million shares all at 1 cent. Today they have traded at 4 cents a share and given my costs to purchase my profit would be R 44,850 if I could sell my entire holdings today. A sizeable profit in any terms, but here's the problem - if I try and unload 1.5 mil. shares in one hit I am either going to end up selling off part sales and incurring brokerage on each closed deal and I may well not get to the point where all sales fall in one day. So to unload such a holding will eat into my profit significantly, there is another danger because those people who watch the density of shares would see a holder of the stock selling a substantial holding and there is every chance this will depress the market to some extent
Anyway I believe this share will still go higher and I have already placed orders to sell at a figure considerably above the current 4 cents, so will just wait and see and if I get my prices I will let the forum know of my eureka moment, but then again it may in the short term swing the other way
So if you play with penny stock write the costs off immediately you purchase them, as you are more likely to lose money on them rather than get great returns
