Should You Buy Penny Stocks? | CA Rachana Ranade

"identify companies whose stocks are trading somewhere around five rupees, identify thousands such companies and invest in that"

"Now the rate of newspaper scrap in Pune at least is 15 rupees per kg how much is the amount that you will receive? correct 500 into 15 that is 7500 amount invested was correct five thousand so how much is your return 50 percent."

"There it is based on two different conditions. Number one Price wise condition and the Second one is Value-wise condition. Now what is price wise condition? It says that the market price of that stock should be less than rupees 10 okay and value-wise condition it is value-wise means market cap wise okay it mentions that it should have a very low market cap simple till here"

"Have a look at this now if I were to measure the returns from somewhere around 1st of January 2021 till 11th January 22 where the stock hit the highest point of almost 290 the Returns come up to more than 3,500 percent that is a mind-boggling rally"

"Tata Group was looking to revive Tata Tele Services by taking technical expertise for a new app which they were going to build Super App, now what was the thought process of this Super App they were going to bring all Tata Group related products and services under one platform and enable sales directly to the consumers"

"and the stock rallied from the levels of whatever I told you right now around what seven rupees till continuously two hundred ninety rupees"

"In the same article of mint you can see of course this is a little backdated article but it is interesting to read these two lines only for the financial year 2021 of course as I mentioned thoda purana data previous year 2000 crore rupees is the amount of loss that this company is in and number two out of last 40 quarters only for last 39 quarters the company is in continuous losses."

"please do not invest in any stock not even in penny stocks based only on news, it has to be a fundamentally strong stock because a stock if it has fallen by even 40 percent from the peak it does have a capacity to fall by another 40 percent from that level if it is fundamentally weak."

"So for that final thing is that we are human beings and when a stock starts going higher and higher and higher we feel that I should invest I should invest in that stock but then if you are getting that fomo my personal suggestion would be that invest only party fund amount"

"see ideally not to be invested but if you are getting that pattern maximum is what only your party fund amount then you will be like balance major chunk of money where should we it where should it be invested obviously it has to be invested only and only in fundamentally strong stocks"