Stock Markets Exposed

I have a question about investing in a penny stock ?

There is a company called Nutracea that is currently trading at 1.75. There website is www. nutracea.com . From my understanding they patent-protected processing and stabilizing rice brand technology is suppose to preserve rice. They are building plants all over the world and have signed with major rice companies to save the wasted rice that we throw away. I got a tip from a client that this stock will explode . This was 3 months ago and the stock is at 1.75 and has actually dropped. Can someone out there tell me what I should do. I want to buy 10,000 shares and Ive looked at the companies finanicial reports and there are positives and negatives.

Public Comments

1. penny stocks are a waste of money, don't bother they are not worth it.
2. Man, don't learn an important lesson the hard way. Penny stocks are dangerous. I lost a good amount of money investing in them, being careless. I know they look tempting and sure you MIGHT get lucky, but hell, it rarely happens. Id advise you to stick with companies like Google (GOOG), Coca-Cola (KO), Hewlett-Packard (HPQ), Dick's Sporting Goods (DKS), McDonalds (MCD), Chipotle (CMG) <= up 4 fold since it's IPO in 2006. If you spent more time investigating these safer stocks, you could make much more money than you ever could investing in penny stocks. I know after they settle they are a bit boring, but pigs get slaughtered (remember that). You could always invest most of your money in solid companies, and take 1-5% of your money and invest in penny stocks if you want to take the risk, but I don't recommend that either. Also, stick with what you know! I mean what is there to know about the burrito business (chipotle), except they are delicious and there's a line that stretches out the door during lunch time? Be observant! When you go to the mall, scope out where people are shopping, but only take this as an annonymous tip and investigate the fundamentals of the company. If you'd like to learn how to research fundamentals or just investing in general, visit my blog (It's dedicated to the beginner investor/ college investor). (Click on my profile, located next to 'About Me'). Good Luck.
3. Don't invest too much money into any one company especially if it's a penny stock. Ten thousand dollars seems a little bit too much to me. I wouldn't buy more than 100 shares of this stock at $1.50. If you have time to read, check out this book: Reminiscences of a Stock Operator by Edwin Lefèvre. One of the chapters in this book tells how funds who own penny stocks use to get rid of their stock. First, they advertise the stock to everybody. They call investors. They make buy recommendations. They send out investment newsletters which talk about how great this company is, etc. And while the little investors are buying, the large holders are selling millions of their shares. I am thinking that this is why NTRZ went down recently (but I could be wrong). Look at the chart, there was a huge volume spike a few days ago. More than 10 million shares were dumped in one day. Are you sure this is such a good stock?
4. check this link its good http://buyingandsellingshares.blogspot.com/ .