buying cheap (penny) stocks!!

Anyone looking for a low-priced stock in the Indian stockmarkets will face no difficulty in finding one. Over 60% of the shares traded at the end of March 1999 were priced below Rs. 15 on the Bombay Stock Exchange. And this was four months after a bull market had been in existence, with the sensex up about a thousand points from its November 1998 low of 2,741.


Any investor would love to own a “penny stock” (to borrow the term from Wall Street) which is set to shoot up. The profits to be made on such stocks, after all, are tremendous. Penny stock enthusiasts will easily point out several instances of stocks which have risen five-fold during this calendar year. But is there really a fortune to be made on such stocks?


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