The Proficient Investor

Last year I got stuck “holding the bag” on a penny stock I had after making quite a bit of money in several days.  Then in mid-february it was announced this company had sold the remaining interest in another company it held in exchange for $2 million in convertible notes. That is to say, in lieu of cash they took restricted shares of stock that can be converted into common stock at some point in the future.

What stock? I’m talking about GBVS and RUNU.

GBVS is a joke of a company, though it is a real company. They are a beverage distribution company based in Maryland. RUNU is the holding company for Rudy Beverage Co. Owned by none other than Rudy Reuttiger.

RUNU is also a joke. The float on this stock is 29k shares because of a 9000-1 split recently. The great thing is with such a small float, and the stock being under $5 it can’t be shorted. Though it isn’t moving terribly quickly, it is on the up and I’ve made a small bet on this MOMO (momentum) play. This is pure speculation and not for the faint of heart.

Stocks like this can make you a ton of money but they can also break your bank, so be warned. Should you decide to play a stock like this, realize that it can go to zero…but hey, at least that’s as low as it can go!