Matt Krantz, in an article recently published in the Investor’s Business Daily, pointed out that six companies that commanded market values of more than $1 billion at the start of the decade (12/31/2009), were now penny stocks.
Without attempting to analyze the underlying fundamentals of each of the companies in question, (J.C. Penney, Frontier Communications, Superior Energy Services, Ascena Retail, CBL & Associates Properties, and TransAtlantic Petroleum), the clear take away for investors is: Diversify!
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA