AboutDr. Joseph de Beauchamp Expertise Blue Chips stocks, investment, return, risk, and all information on investing in blue chip stocks is a complex area. I can help answer these questions.
Experience
Past/Present clients Over 2000 of the largest public companies.
I appreciate you taking the time to answer my question. It is in regards to Delphi Corporation. I have noticed that the stock has gone from .65 a share to over $1.30 in the past few weeks... Here is the question(s)...
I know they are in bankruptcy,& the stock a person had when they filed is worthless, correct?
But if one "buys" the "cuurent" stock at say .65 & it goes to $3/$4 or so when (if) there is a labor agreement with GM/union... what is the risk of the investment?
Where does a small time investor buy penny stocks like this... I told myself at .65 I should buy $10,000 worth & in less than a month could have doubled my money...But I am not really knowledgebale about the whole process or sure of the risks with a company like Delphi... Help.. Thanks, Jay
Answer Jay,
I do not recommend anyone to buy stocks, unless they can afford to own over 10 different stock positions. This is a hard a fast rule. Therefore, I would not recommend to have you pursue this line of inquiry. You should select a mutual fund by going to the library and reading through Moringstar.
On this company: they do not have financials posted in any degree. No analysts cover this company. You should not consider this stock, if you qualified above with the ten positions, only until you have received all the financial filings sent by the company. You should then read all the documents and understand the items of bankruptcy, and reasons for the recent increase in the stock price.
Second quessing the moves after they happen: this can only doom you to make the mistakes of many. Qwest and United Airlines are in bankruptcy and are not worthless stocks, or their employees would not work there anymore.
