Madam X counts her Pennies

Madam X insists on calling them penny stocks. I do wish she would attempt to sound a little more current. Has she not noticed there are no more pennies?

Penny stocks are properly called Small Capital aka Small Cap stocks which are currently out of favour as the market is flighty with Trump tweets. Established, dependable dividend stocks, Bluechips, or (yawn) the safety of GIC’s are the flavour of the moment.

Madam X will never invest much more than 5 percent of her portfolio in these capricious, high risk stocks. “Pennies” can swiftly become 10% of a portfolio or leave you with nothing but trading costs. But they are fun!

Playing Momentum Let’s check fun stocks!

If a stock has no dividends, it must be rising in price almost daily thereby giving this stock excellent potential for continuing momentum. Otherwise it’s more profitable to play Angry Birds.

If you are investing in a penny stock, buy a meaningful amount so there may be a bragable change in the value of your portfolio. Bragging being a time honoured tradition.

Practice safe trading. Go to Markets & Research in TD’s WebBroker and really research.

Madam X invested in two very different stocks in early January. Neither stock has any dividends. One is a big name, Large Cap, US stock, Google.

Madam considered carefully and purchased 10 shares at $804 each for a total of $8040

The other is a penny, Small Cap, stock, MOGO. Madam X fell in love with the cheeky marketing aimed at first time mortgage buyers and millennial on line banking.

The shares were $2.43 each, so she purchased 2000 for a total of $4860.Yes, this is roughly one half of the Google cost.

Now Google is up almost $140.00 each share! Madam X performed dances around the studio, dangerous in her very high heels. Too bad she only bought 10 shares!

But $1,370? Wow, nice profit!

Today MOGO is up $1.84 per share to $4.27 and with 2000 shares that means up $3,680!

Madam had to check her calculator to see if it was working right. Yes, five times Google’s profit with half the risk. Now that’s FUN!

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