Good call. However, those illiquid stocks can remain low indefinitely. I once owned one such stock, which could have easily increased tenfold. I spoke to the CEO in Shanghai, who told me that major international companies had offered to buy the entire company for an 8x premium. She refused, stating it wasn't sufficient. Yet, the stock price remains stagnant. Be especially cautious of stocks listed on the GEM exchange; this exchange is completely dysfunctional and inactive.
Good call. However, those illiquid stocks can remain low indefinitely. I once owned one such stock, which could have easily increased tenfold. I spoke to the CEO in Shanghai, who told me that major international companies had offered to buy the entire company for an 8x premium. She refused, stating it wasn't sufficient. Yet, the stock price remains stagnant. Be especially cautious of stocks listed on the GEM exchange; this exchange is completely dysfunctional and inactive.