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Dear Reader, When my brother, David, and I were young Fools, our parents drove us to Lincoln Boyhood National Memorial in Lincoln City, Indiana. This was where Honest Abe grew up. It's where his mother, Nancy Harks Lincoln, is buried and memorialized. My brother and I decided to race to Lincoln's cabin. (It wasn't his real cabin -- just a replica.) Well, my brother was a bit older and a few steps faster, so I did what any little brother would do facing the same kind of odds. I tripped him. He was fine, not a scratch on him. But some change fell out of his pocket when he hit the ground. It was mostly pennies... which gave him an idea. 
He wanted to leave the pennies so the next family would stumble across them and maybe contribute to the pile. Dave even suggested we fashion a homemade sign, encouraging visitors to contribute. In a week, the park would have a stack of pennies right by Lincoln's re-created cabin -- a copper monument to the 16th president. We would have started a tradition. Unfortunately, his visions of money mounds never became a reality. We didn't have time to make a sign, and -- more significantly -- when David wasn't looking, I pocketed the pennies. Why am I resurrecting this tidbit of Gardner lore? Because only now, decades later, do I finally realize that pennies matter. Dave had the right idea: With only a few pennies, you can start something great. Given time, those pennies will pile up, eventually creating a fortune. 
So, today, we are proud to bring you the inaugural issue of The Motley Fool's Penny Pal, a newsletter wherein Dave and I offer our best investing ideas from among the thousands of penny stocks pinned to the Over the Counter Bulletin Board and sleeping between the Pink Sheets. We know -- for years, our editorial team has avoided covering penny stocks, i.e., stocks that trade below $5 per share and with a market cap below $100 million. And our Community moderators have been quick in the past to shut down discussion boards when a microcap stock trades below $3 a share. In short, we were failing you. Sure, penny stocks are often the victims of fraud and manipulation, but that doesn't mean you can't make money off 'em. So we're changing our tune to "Profit from the 'pump,' drop before the 'dump.'" What makes us think we can provide readers with outstanding investing ideas in the murky world of penny stocks? We have developed several strategies for improving one's performance in this dangerous, speculative arena. It starts with this. Next: Copper King Margin |
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