What's the difference between a $200 stock going to $300 and a $.02 stock going to $.03. On a percentage basis there is no difference, nor is their a difference in the gain you'd make if you invested the same amount of money in each. Thing is, most of us wouldn't invest the same amount of money in a $200 stock as we would a $.02 cent stock.
Frankly in general I don't buy less than 100 shares of anything, if I cannot afford that I probably won't buy, so I'd pass on most $200 stocks. However if it's $.02, the least I'd buy would be 10K and probably much more than that.
The point I making is most of us don't put a lot of money into a penny stock, but if we're successful that penny stock could make us millions. Substantially more money invested in a $20 is unlikely to make millions, but it's also less likely to go belly up. Just one penny stock that reaches $20 would probably make any of us rather wealthy, whereas a $20 stock going to $200 would make us feel quite profitable, but not the same sort of wealth. A $20 stock would have to go to $20,000 to equal the gain of a $.02 going to $20. I like the odds of the $.02 stock doing that better than the $20 stock. Certainly buy a bunch of penny stocks and many will go down, or go belly up, but just one that goes even to $1 makes you a lot of money, and if it goes to $10 it could change your life. That's why I for one will invest in a penny, or even sub penny stock, which PCTL was when I invested. In the case of PCTL, if the trial in Britain results in a massive order, I believe a $1 or more could happen practically overnight, but lacking that, as long as sales to hospitals and elsewhere continue to increase, $1 or more will happen, just give it time.
Gary
