Introducing The Junk Portfolio for today's market:
This market is about as irrational as I have ever seen it. There seems to be a ton of capital sloshing around. The liquidity in the low-priced stocks is really something. Stocks are rocketing up for anything and nothing.
This afternoon I decided to conduct an experiment. I ran a stock screen for listed stocks with less than a $50M market cap and a price of less than $2.00. The screener spit out a list of mostly junk including scammy companies based in China, serial diluters, reverse splitters, bio dreams, overpromisers, big money bleeders, etc. I did throw a few companies out for various reasons. There are some on the list that are actually decent companies. Most are crap, though.
I purchased approximately $1,000 worth of each of these 52 different stocks for a total investment of $52,021. I haven't decided on the sales process yet, but I think it will be pretty mechanical. I will work on that this weekend. This should be a pretty interesting experiment with all the liquidity and rampant speculation in the market. I will update the results periodically. The list is below:
AIKI $1.51
ARTL $1.22
BDR $1.75
BGI $1.88
BHAT $1.37
CETX $1.90
CJJD $1.23
CPHI $0.82
DXF $1.68
DYNT $1.24
EAST $1.62
ENTX $1.65
FAMI $1.33
GVP $1.80
HNRG $1.82
HSTO $1.35
IFMK $1.18
IMAC $1.98
ITP $0.84
JOB $1.44
KIQ $0.87
LMFA $1.84
MSN $1.64
MYSZ $1.56
NAOV $1.35
NEOS $0.90
NSPR $0.84
NVCN $1.36
NVIV $1.43
NXTD $1.21
PLIN $1.06
POAI $1.36
PXS $1.16
RAVE $1.24
RETO $1.08
RIBT $1.05
SDPI $0.92
SEAC $1.27
SFET $1.77
SGRP $1.54
SLRX $1.62
SNCA $1.47
SNGX $1.65
SPCB $1.82
SSY $1.76
STAF $1.11
SXTC $0.78
SYN $0.91
TLGT $1.04
TMBR $1.38
XELB $1.85
XPL $0.75
I have seen lots of $1 stocks with strong earnings and solid balance sheets triple, quadruple and more, but I have yet to see one go below zero.
