Sally said if something "is cheap there's a reason for it" -...

Sally said if something "is cheap there's a reason for it" - well "sage" words indeed, der! However in todays market, some of those "cheap" stocks are cheap for no reason other market conditions - identifying them, determining their true worth and holding onto them will (probably) make more than one fortune in the long run.

The penny dreadfulls aren't called that for no reason - ppl who get into them must understand the risk/reward and proceed with caution. To say that pd's should be avoided is like saying the SM should be avoided because its too volatile. Do your research and keep on top of a stocks basics and you will be fine.

On the other hand, sticking to good businesses with no (or little debt) and plenty of cash and good prospects is always a good idea - if somewhat boring...