written by reader CONCIERGE TECHNOLOGIES INC ( CNCG )

By jailbreak74, October 22, 2013

HI GUYS AND GIRLS, I AM A NEWBEE TO THE WHOLE INVESTING EXPERIENCE. I AM A 39 ( ALMOST 40 ) YEAR OLD MAN. I HAVE BEEN READING AND FOLLOWING ALL YOUR ADVICE NOW FOR A MONTH OR SO KINDA UNDER THE RADAR. AND I WOULD LIKE TO SINCERELY SAY THANK YOU TO EACH AND EVERYONE ONE OF YOU. I DO NOT THINK I COULD HAVE STUMBLED UPON A BETTER FRIENDLY , TIGHT KNIT SITE THAN THIS ONE HERE…..I AM AS GREEN AS GREEN CAN BE TO THIS WHOLE STOCK WORLD, BUT I HAVE TAKEN ALL I HAVE SAVED IN THE PAST YEAR OR SO AND DELVED RIGHT IN. I AM NOT WEALTHY BY ANY STRETCH OF THE WORD. BUT I HAVE SAVED UP 2000.00 AND WANT TO TRY MY HAND AT THIS, WITH ALL OF YOUR HELP OF COURSE. IT IS VERY LATE FOR ME RIGHT NOW AND I NEED TO HIT THE HAY FOR WORK IN THE MORNING. FOR STARTERS I HAVE BOUGHT 10,000 SHARES OF THE TITLE OF THIS MESSAGES STOCK, AND ANY HELP OR INPUT WILL BE GREATLY APPRECIATED…..THANK YOU SO MUCH FOR READING AND POSSIBLY COMMENTING ON MY VAGUE INQUIRY HERE, SINCERELY JEREMY BELLAR.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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Travis Johnson, Stock Gumshoe
October 23, 2013 11:48 am

Hi Jeremy,

Welcome aboard! I have never heard of Concierge Technologies but just quickly looked it up — this is a company with a market cap of $4 million, which means there’s no reason for it to be a publicly traded company on the stock market. Most stocks of this size that have any trading at all are just passed back and forth among speculators or, in the worst case, completely manipulated by pump-and-dump stock promoters. I suppose there are examples of penny stocks that rose from $5 million market caps to become “real” companies with growing businesses, but I’ve never seen one — by way of comparison, $4 million or so is probably roughly the value of one of the local auto dealerships in my relatively prosperous town of 30,000 people.

I can’t give personal advice and, as I said, I know nothing about this particular company other than the fact that it’s a ridiculously small penny stock, but I would be extremely cautious with these kinds of trades (or, better yet, avoid them entirely).

The temptation when you feel like you’re starting small and have to “catch up” on saving and investing is to try for “moonshot” picks that you can envision going up by thousands of percent, but that’s an extremely risky proposition. Stocks that trade for two cents might be appealing because it seems like “they can’t go much lower”, but that’s not true — like any other stock they can lose 100% of their value and 100% of your investment, but compared to companies of substantial size and profitability with visible, real and growing businesses and viable assets they have a much, much higher probability of going to zero. It is boilerplate language to say that you should only invest in stocks with “money you can afford to lose,” but with little penny stocks that’s even more true. I would not buy stock in a $5 million company unless I was intimately involved in their operations or thoroughly convinced that there is an identifiable and viable hidden asset on their balance sheet.

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sassykind
Member
sassykind
October 23, 2013 1:00 pm

I’m still attempting to get my toes in the water BUT I certainly wouldn’t want to spend a lot on a Small Cap….I suppose a lot depends on what the minimum legal share bundle is and the price of the stock. If I EVER manage to find a US broker who doesn’t require a relative fortune to open an account with them (I’m not US citizen or denizen) I, too would like a little dabble in some particular Small Caps. However, I wouldn’t be spending a lot until I see how they go. And then, of course, brokerage fees have to be considered also. It’s a lot to take in and I’m just not a good loser as well as being a natural “chicken”!! Congratulations on your brave foray. I hope the shares were LITERALLY “Penny Stocks” and that all turns out well for you.

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