Penny Shares advice

I know TD waterhouse will let you buy them. You have to phone them up to do it. Also you need to fill out a W-8Ben form and post it to them to allow you to buy US stocks (I'm assuming your penny stock is listed on the OTCBB or something)

Thanks for that Whippet - there are so mant sites advertised on-line i didn't know where to begin !
re the stocks, I think so (called Herencia - seemed to be doing alright)
Thanks JJ

Herencia is on the london (AIM) stock exchange, so easy to buy. TD waterhouse will let you do extended settlement (25 days) as well on those, which I have found useful, so you can buy the shares then pay up after 25 days.

Of course if you are feeling really adventurous (or just looking for a bit of a punt[;)]), you could also buy a CFD instead, although I wouldn't want to put up anything less than 25% margin on something like this, as it's pretty volatile. I know IG Markets offer CFDs on this, plus a few other firms.

Like other mining stocks the price is likely to fluctuate depending on what the spot price of the raw materials is doing, at least until they make new discoveries. But as we have just had a bit of a dip in the prices of silver and copper it could be a good time to buy.

Thanks again for the info although I'll be very honest - I don't know what a CFD is or IG markets ! ( Have only just decided to have a punt after this friend suggested Herencia ) I'm pleased to hear you think it might be a good time to buy.
Cheers and I'll try TD Waterhouse.

CFD's are like a more addictive form of gambling than normal betting, at least in my experience anyway. They will let you put down as a deposit anything up to around 1% of the total amount of shares you are buying (altho obviously if the share price goes 1% the wrong way you lose your deposit).

So you could in theory probably buy 2500 shares (at 3.75p) in herencia for £100 if you did this. If the share price went up to 5p, you would make £3125 doing this. [;)]

Based on my limited knowledge of price action, I think any of the profit taking by the early buyers of this stock that was going to happen has already been done. So you should be more than safe in a 25% CFD as that will cover you for a drop to 2.8p. Incidentally that was around the same price that it peaked at on november 13th, when the potential company prospects were not as good as they are now. So to me, I would be happy putting down a 25% margin on this.

Although, as I know you are likely to be a gambler, I will give you another option. There seems to be resistance at around 3.50p, so, you would be more than safe putting down a 9% margin on a CFD, which will cover you to 3.40p. For £100 deposit you could buy 300 shares, and would profit by £370 if it hit 5p, which does seem likely. Infact, the more I look at this stock the more I am tempted to do exactly that myself. Thanks for the heads up. [;)]

Thanks again Whippet - very useful info and advice. I do like the sound of your last suggestion.
Cheers.
JJ

Thanks again for your sound advice Whippet - as mentioned on other thread have been advised to look for long term gain. (as also advised on LSE discussion)
Cheers
JJ

yeh, hope you didn't do a cfd though. mining stocks have all got hit badly over the last couple of months, most are down 25-50%. Most of the ones I'm watching seemed to have hit their bottoms though, so I reckon now is a good time to top up on any of them. should do well holding for long term.

No, didn't do the cfd but just bought a bucket of shares at 3.7 ! (invested again at better prices since) I'm still confident the original advice to buy was good and was advised that 12-18 months would show good return. (might even top up as you suggest with eye on the pension !)
Best wishes.
JJ

TD Waterhouse used to have an inactivity charge. Try Halifax share dealing, which do not.

iii is another one to consider

Cheers for that Stow judge.

jean ive used iii and its been great, good customer service too.

Thanks MT - all advice greatfully accepted. (I'm a bit new to all this and respect experience - thanks)

im new too and so much to learn its good so far done well her dropped and put very small amount in rem which was following rowan but looks a disaster.

Used to follow a tip sheet.

A share would be (say) 8p bid , 10p offer.

You couldn't buy it for 10p so you pay ,say 12p.

It rises to 14p bid, 16p offer.

Advice is to sell. You can't get 14p -you get 12p.

Tipster says profit of 14-10/10 x 100 =40%

You've made nil and had two dealing costs.

Spreads are huge.

Regard as gambling imo

Manoleeds - tip sheet seems well over my head and if you reckon gambling and spreads huge I'll leave well alone.
MT - Her seems on the up and if the chap that suggested original investment is correct then the share value is "north" (a term I've seen perhaps overused on lse chat forum)
I'm sticking with Her - especially after the good results from recent mining reports.
JJ

Jean -a tip sheet is simply something you subscribe to and you get emails/newsletters with recommendations. Idea is that soemone else does the research for you. Problem is that if X plc is recommended as a buy at 10p , everyone wants to buy at 10p on Monday morning. The market makers know this so they put the price up to 12p.

Of course if, as sometimes happens, the share rises to 50p , then it doesn't matter too much -but for every one that does that, there is another one that bombs.

Last newsletter I had showed a portfolio up 40% -which for the reasons above meant that in reality you wouldn't have made any money.