The $2 Window on Wall Street

No matter how much we wish, none of us can go back in time and buy IBM, Polaroid, or Xerox when they were selling for under five dollars per share. Nevertheless, there are thousands of stocks that currently sell in this range, and not only in the over-the-counter market; they are also represented on the American, New York, and regional stock exchanges.

Authors Cobleigh and DeAngelis believe that with homework, the investor can not only match the thrills found at the two-dollar window at the race track but profit on a more consistent basis.

The text begins with some recent, spectacular case histories of low-priced stocks that paid off. The most useful portion of the book is a discussion of investment strategies with which to determine the fundamentals of the target company and of the industry it represents. There are then chapters on warrants and options, mining stocks, and bargains in basement stocks.

Each discussion is illustrated with appropriate examples and presented with commonsense guidelines. The body of the text concludes with a useful chapter on the “art of selling and successful profit-taking.” The reader is cautioned against greed and sentimentality.

The $2 WINDOW ON WALL STREET acts as a “book of lists” for the penny-stock investor. There are, for example, the “Twelve Things to Look For,” the “Fourteen Guidelines,” the “Thirteen Factors,” “Seven Pitfalls,” “Five Reasons,” and so on. A good glossary allows the reader to find the essential advice in this book easily without having to read all the case histories.