They (whoever the proverbial 'they' might be) tell you not to own penny stocks. 'Too risky' they say.
Yeah... well, tell that to the masses who owned 'safe' blue chips in 2008 and watched their investments get cut in half or worse.
During the same year NEOP was up 98%. So much for 'safe blue chips' vs 'risky penny stocks'.
'They' also tell you not to have more than 10% of your portfolio in a speculative stock. NEOP is speculative, but I have over 16% of my portfolio in NEOP and it was the only stock that buffered me from the disaster of 2008.
Penny stocks are defined as stocks worth less than $5. After the 2008 meltdown, that describes a lot of companies. They're all down from their highs, but just because they're <$5 doesn't mean they're Penny Stocks.
To me, Penny stocks are the companies that sell nothing but hype, hope and fluff. They tout the next weight loss pill, invisible ray gun, or cancer cure... or they can make energy from bathtub mold, or some other stupid B.S. They've never sold anything and they never will.
NEOP once reached $22.00. When I started this blog it was less than 50 cents. (Latest update - now about $1.20).
Why is NEOP climbing?
It's simple - they have two diagnostic drugs in late stage FDA clinical trials. Good drugs. Needed drugs... and I'll delve into them with follow-up posts. In the meantime feel free to join us at our online at our Investor Village NEOP message board., where the longs gather to chat about the company and its outlook.
DDbuyer
