It's not just penny stocks that are a gamble, it's ANY stock. Any piece of bad news can knock even the best stock down, hell, the current market doesn't need any news to kick a stock, take my example of my other holding VSCI, they got kicked hard yesterday with ZERO news, the market was just down and people started panicking. I've done great in the last year since I started playing, started with around $3000 and finished with a high around $10,400, down right now again to around $8,600. It's money that never hit my bank account, left over from an ESPP when Nextel was bought out. The options went in my bank account, but the few ESPP shares stayed in my E-trade account. I look at this as my vacation Vegas account, one day I'm up, next I'm down.

In the mean time I trade a few stocks here and there and see where it takes me, but I'm in for the long run, I've played a few short trades in the last year and hit some good gains. The key is don't panic and don't play what you can't afford to lose. We'd all like to hit the big ones, but this is reality, it's always a gamble, just legalized. I only have 1 post left for the day since I'm a newbie, so I may or may not respond back if there are any questions.

Newbie hre, I agree that no one should have gone broke on a Penny stock bet, unless of course it was a day trade and you got greedy. I only took a small position in hopes that the new well produced, but am still holding as the guidance hasn't changed for the 2nd or 3rd quarter. If I had a little extra cash free I'd double down at these levels and average lower, but VSCI took a huge dive yesterday for no reason again and I'm down $0.70 on my entry on that.

Long term this should recover. As for the dilution with the release of more stock to cover debts, looks like thats already played out, the share drop from $0.40 to $0.02 happened on the announcement. This stock was above $2 when they were cash flow negative, they are now cash flow postive with 2nd quarter revenues of between $.3-.5 million for the 2nd quarter and $.8-.9 million for the 3rd quarter. These figures never included the Lone Oak wells, and there are more wells to be drilled. I'm going long on this stock as there is a huge upside potential going forward. The stock may be down now, but you only lose money if you SELL the stock when it's down.