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Re: johnnyfiber post# 72374

Saturday, 11/03/2007 5:24:46 PM

Saturday, November 03, 2007 5:24:46 PM

Post# of 82595
With bankruptcy, there could be a buyout, or a liquidation of assets. In the worst of the worst scenarios, creditors might get everything, and stockholders not be left with anything to be dispersed. In that case, contingency planning is, not putting all your eggs in one basket. (Smart investing, including diversification.) With higher risk investments, obviously including "penny stocks," this is even more important, than with lower risk investments. But the gain can be much higher, as well. Picking the right penny stocks to back, and shrewdly investing in them, can yield a lot. I know some investment banking veterans that have made millions that way. No reason we can't, either. Just don't bet all your $ on one horse.