Implication, I didn't dodge your question.
(A) I have been clear all along that I do not invest (trade long-term) in penny stocks. My suggestion was that I invest in trending stocks with sound fundamentals, and more practically tie my portfolio to the S&P while it is itself trending. I provided a top 50 example of such stocks. You can compare/contrast such technicals and fundamentals for yourself. But, I myself solely trade/invest off technicals (your question was an either/or).
The fact is I am unclear what gradient of insolvency or fraudulence is your trigger to invest long-term in such stocks. I do understand day and swing-trading them. I have and am lotto-flipping NEWL both long and short (honestly, simply for fun). But otherwise, my own answer is none, upon reading:
"Over the past three years, we have experienced net losses, negative operating cash flows, working capital deficiencies, negative operating cash flow and shareholders’ deficiency, which has affected, and which is expected to continue to affect, our ability to satisfy our obligations. In addition, we are in default under various debt obligations which are currently due on demand. Charter rates for bulkers have experienced a high degree of volatility and continue to be distressed. To date, we have also been unable to generate sustainable positive cash flows from operating activities. For the year ended December 31, 2013, our loss from continuing operations was $146.8 million. As of December 31, 2013, our cash and cash equivalents were $2.3 million and current liabilities of $291.7 million were payable within the next twelve months."
(B) You can state, even condescendingly (I don't mind though), that flipping or investing stocks that retrace some 85% in two weeks and 100% all-time is "child's play". But that begs the question of whether you mean long or short. It also depends heavily on your trading timeframe and techniques. My assumption was that the people on these boards are not professional traders. I have audited these boards and others, historically, certainly have not deemed it child's play when they entered a stock that retraced 50% immediately upon their entry and it never recovered. This is precisely why I would only day-trade such a manipulated lotto play.
My simple comment, and it is an accurate one, is that trading requires a deft hand. Even for someone like me who trades mechanically, solely off of clear technical levels upon confirmation of trending and trigger. So don't be pointlessly argumentative. If anything I have been stating the obvious.
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