Information on low volume pink sheet stocks.... | TigerDroppings.com

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TJG210
LSU Fan
New Orleans
Member since Aug 2006
22398 posts

Information on low volume pink sheet stocks....



I'm trying to buy 500 shares of stock that is listed on the pinks, however when I check the stock on Scottrade it shows the daily volume at 0....I looked on yahoo and they had 59 by the 3 month avg. Is it possible things are this low? I have a hunch regarding this stock and have been wanting to get in for awhile with a little play money.

Have yall ever invested in something with such low volume? Is this common? Is there something wrong?







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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts

re: Information on low volume pink sheet stocks....


quote:

Have yall ever invested in something with such low volume?


My house. That's about it.

quote:

Is there something wrong?


Yes. You need more than a hunch. Otherwise you are just gambling. If the volume is this low then you will likely pay a hellacious bid/ask premium.






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TJG210
LSU Fan
New Orleans
Member since Aug 2006
22398 posts

re: Information on low volume pink sheet stocks....


In theory if the stock takes off.....I assume the volume traded will as well? If the company strikes it big, I assume the stock will become more liquid? I'm not investing(gambling) a big amount of money and it will be less than 1% of my portfolio.......just a gamble I think will pay off.

The bid/ask is pretty large......bid is .285 and ask is .34.......last sold is .30.






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30530 posts

re: Information on low volume pink sheet stocks....


With a stock this illiquid there's no telling what will happen.





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tokenBoiler
Purdue Fan
Lafayette, Indiana
Member since Aug 2012
502 posts

re: Information on low volume pink sheet stocks....


quote:

I'm trying to buy 500 shares of stock that is listed on the pinks








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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3716 posts

re: Information on low volume pink sheet stocks....


Between the bid/ask premium and commissions you are going to need the stock to go up at least 30% just to break even. You realize that right? Just go to the casino, you'll get better odds.





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Vols&Shaft83
Georgia Tech Fan
Member since Dec 2012
18524 posts

re: Information on low volume pink sheet stocks....


quote:

..just a gamble I think will pay off.


Could just buy lottery tickets instead, lol. It's your money, so do what you want, but it seems like a loser to me.






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