Posted: May 7th, 2015

Penny Stock Case Study

Paper, Order, or Assignment Requirements

Penny Stock Case Study Requirements:

1. Please read “Penny Stock Background Info” attached in NYU Class
Please read the following two stories, see links below:

http://www.cnbc.com/id/101825780

– Please identify the common elements between the two stories. Please write a report on the analysis about your thought on penny stock based on the background info and the two story. 

– Is there any merit into penny stock? What are the danger of penny stock?

– Also, what is the difference between penny stock and junk bond? 

2. I picked one penny stock, please see the link before. 

Dejour Energy Inc. (DEJ), trade on AMEX

http://finance.yahoo.com/echarts?s=DEJ+Interactive#%7B%22range%22%3A%225y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22%5EDJI%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%2C%22%5EIXIC%22%3A%7B%22color%22%3A%22%23009999%22%2C%22weight%22%3A1%7D%2C%22%5EGSPC%22%3A%7B%22color%22%3A%22%23ff00ff%22%2C%22weight%22%3A1%7D%7D%7D

– Can we use option on penny stock? Is there a market for it? Is this stock perform better or worse than S&P 500 or Dow Jones? What do you think the reason is?
– How many trading positions can penny stock have? What is it or (are they)?

http://finance.yahoo.com/echarts?s=MMM.TO+Interactive#%7B%22range%22%3A%222y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22%5EDJI%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%2C%22%5EIXIC%22%3A%7B%22color%22%3A%22%23ff00ff%22%2C%22weight%22%3A1%7D%2C%22%5EGSPC%22%3A%7B%22color%22%3A%22%23009999%22%2C%22weight%22%3A1%7D%7D%7D

– What do you think the spike is about?
– Do you think the spike is called “pump and dump” or positive news associated with it? How does the strategy “pump and dump” work?

Basically, 
for problem #1, use 3 sources (penny background, and use the two links that i showed previously to answer the questions.
for problem #2, use another two websites (yahoo ) and the background word document that i showed previously to answer the questions