There is alot of scope for many of these stocks under 10 cents to go broke. After all they are high risk. I am a little concerned about the next few months with AIG and the stress tests of the big US banks. I mean the big banks have not been very forthcoming about their toxic assets and what if they are currently understated. I am not even sure if the government has calculated the full amounts of toxic debt at Fannie and Freddy yet. And the recession in the US will obviously make good debts become sour.
As for Sdl, we all know they have a huge amount of iron ore, are located in Africa, have to build a rail and port and will have over 2 billion shares on offer ( I think after the new share raising @ 8 cents). I will take up the offer at 8 cents so they can drill in the Congo and increase their resource.
In summary, cash is king, ensuring speculative stocks survive, but more importantly fund exploration.
