EZEN -- Penny Stock?

colden said: "When is a penny stock no longer a penny stock? Some newsletters say they can be priced up to $5.00. One thing I've learned is that a GOOD penny stock takes time to mature. Take EZEN, which supplies equipment and software for networked conferencing. I found some great info on it, including a pending DOD contract, about 18 months ago. So...I bought 2000 at 46 cents each. After a few months of going nowhere but down, I put in a market order to sell. Of course, I was not real happy to sell at a loss, and even worse, only 1300 could be filled so I was "stuck" with 700 shares. Today, EZEN in going for $2.74 for a net gain of 485%. Wish I kept them all...20/20 hindsight working here. I'm not selling. The company is profitable and has a P/E of 12, quite reasonable for a homeland security related software company. More at [url]http://finance.yahoo.com/q?s=EZEN.OB&d=t[/url]"

alhamid said: "the best thing to do is to hold your winners so its good you keep hanging on"

LanceJ said: "I would consider EZEN.OB a penny stock, a microcap, and certainly a small cap, and even a nanocap. For one, you've got the fact that it is listed on the OTCBB exchange. Two, it was trading for under $1 about 6 months ago. Third, its market cap is only (14.56M * $2.71 = $39,457,600 an approximate price tag on the company.). Mega Cap: Market cap of $200 billion and greater Big/Large Cap: $10-$200 billion Mid Cap: $2 billion to $10 billion Small Cap: $300 million to $2 billion Micro Cap: $50 million to $300 million Nano Cap: Under $50 million Keep in mind that there is no one authorative set of guidelines for distinguishing small caps from large caps. Basically, for EZEN.OB to no longer be considered a penny stock in my book, she would have to climb above $5. EZEN would also have to have a market cap greater than $300 million if I'm squeezing it, but really greater than $750 million is my preference. And finally, I'd like to see her jump to a major exchange. It's a subjective question that you ask, and so this is just my opinion."

colden said: "[QUOTE=alhamid]the best thing to do is to hold your winners so its good you keep hanging on[/QUOTE]All depends, and that's the million dollar question. Stocks do fall out of bed. That being understood, I should start using trailing stops, but that can't be done for the pinks or bb stocks, at least not on Scottrade. However, those stops aren't a good idea for pennies as they can be very volatile, and market makers have been known to pick up bargains at the end of the trading day, i.e., you enter a 15% stop loss and "miraculously" the stock sells at day's end (and goes higher the next)."