The Penny Stocks

the penny stocks
What are some of the cheapest penny stocks right now?

I’m doing research on some things on the stock market and i need some names of fairly cheap penny stocks. Thanks!

I’m afraid I can’t tell you much about penny stocks, except that CardioGenics (CGNH) is a terrible company in which to buy stock.

From a technical standpoint, the company’s stock has NEVER closed above $1. Even when the stock market was at its peak in October 2007 when the Dow reached an all-time high of 14,000, CGNH did not even break $1.

From a fundamental standpoint, I don’t even know where to start. The company’s financials are simply atrocious. An analysis of the company’s balance sheet shows that it is highly leveraged, with debt exceeding equity by FOUR times. Also, the company has a low current assets/current liabilities ratio of 0.24, meaning that if the company had to pay off all of its liabilities today, the company would be able to clear only 24% of those liabilities. Basically, the company is illiquid and highly leveraged, which is a dangerous combination.

It seems that the company is still young but at this point, there is nothing that makes me expect that the investment will be profitable. Investing in this company’s stock is highly speculative.

On another note, some good cheap stocks which are not exactly penny stocks include Citigroup, which is at about $5. Also, Fannie and Freddie MAY be good buys. Again, from a fundamental perspective, Fannie and Freddie are bad buys but it is essentially a guarantee that neither of those companies are going to fail since the US government will never let that happen. Also, the US government essentially guaranteed an unlimited line of credit for both companies if they ever needed them, so there is a decent chance that Fannie and Freddie could be profitable investments.

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