Replies to post #2007 on Money 101 (Money)

[ricochet8]

I understand and agree with your valid points about keeping the books up anyway so they know how much tax to pay. I also understand (the hard way) about penny stock scams, that being said, my questions are about a penny stock I believe in. So what are we talking about with regards to fees for keeping the books and doing the quarterly filings, $40,000.00 - $50,000.00? I have heard these estimates tossed around from others; do those seem like realistic numbers; they seem a little high to me. I am guessing gross annual sales for this year might be $2.5 million but with substantial increases in future years. The company makes and installs a gizmo.

[Jon25]

I wouldn't say penny stocks are all scams. There is a considerable amount of risk associated with OTC stocks, however, most of the time conducting good due diligence will take care of that. I have been able to do very well with penny stocks. I just don't typically buy them as real long term investments unless I am thoroughly convinced and impressed with the company. Remember, companies like Delta, UAL, and Green Mountain Coffee were once penny stocks.