Turning pennies into pounds #investments
A featured Post by Mike Maynard
There are lots of stories on the internet about buying penny shares in innovative companies that end up worth pounds and give early investors a fortune. I don’t think many people get the opportunity to invest early on in the life of a company, but there are some penny shares in the AIM market that might soar to great heights one day.
Turning pennies into pounds
Is it really possible to buy penny shares and watch them soar to over a pound? There are innovative companies on the AIM market trying to do something that will be a major innovation. Some are looking for oil, some are developing new drugs, some are developing new technology. The dot com bubble had investors queuing to invest in the brave new world of computer technology, then the bubble burst. There is not so much confidence and many people lost money on penny shares. As part of a broader investment strategy they are still worth looking at.
The smart phone seems to go from strength to strength with new apps coming out every day. So what will the next big innovation be? Maybe mobile banking and one small AIM company in at the start, is Monetise, so I bought a few shares this week. I also looked at bigger companies that were going through a tough time, but were likely to recover. My selection from those was Cable and Wireless, which realistically is a better bet with a market capital of nearly 3 billion.
The share price of Verona has been very volatile. I’m still in profit, but it dropped dramatically from 6.5p to around 4p. It recovered yesterday, but there seems to be a lot of selling today. Their new drug seems like a good innovation and so in the long term that is one that can go from pennies to pounds. I also like Immunopharma, so bought into that company this week. They have developed a new drug for lupus, which could send them into the pounds instead of pennies bracket.
I’m still very optimistic about Solo Oil, their share price is volatile too with good news from Horse Hill sending it up and subsequent selling bringing it back down. The big news will be when they go from explorer to producer and that is likely to be with the wells in Tanzania. That could happen any time. The ask price for Solo is around 0.51p at the time of writing and that is the lowest it’s been for some time.
Yes, at the moment all the prices are down because of speculation that Greece will default on it debts and exit the Euro. I don’t think that will happen, because that might be the beginning of the end for the European Union. That would hurt even the strong nations like Germany.
While I’ve been writing this all the indexes on the London market have gone positive. I’m benefiting from a close to 3% rise on Tesco’s price. Tesco is always a favourite with the traders! Verona Pharma is my loser this morning, but people are starting to buy, so it can all change this afternoon.
Are you turning pennies into pounds? Please comment and share you ideas and views. You can also subscribe to this blog using the widget in the sidebar or follow me on twitter for updates. Please do you own research before investing and remember these are my ideas only; not advice…