Owning Penny Stocks in a Bear Market (Transmeta)

The following was posted to the Transmeta Yahoo! Finance message board. TMTA closed on 2007.02.27 at $0.873 per share.

   "One advantage of owning TMTA is that it is a great stock 
    to hold onto in a bear market!  While the rest of the market 
    will drop dramatically, TMTA will only drift down a few 
    pennies. Much, much better than most other stocks."

GDT considered the quoted posting bullfoo and was going to make a comment about it, but he waited a day to see how the stock market reacted to Transmeta's announcement of disappointing quarterly results.

On the day after the posting, TMTA shares fell 17.53% closing at $0.72. On 1 March 2007, TMTA closed at $0.67.

Exercises
  1. If Truman owns 1000 TMTA shares, then his Transmeta investment lost $___________ of its value on 2007.02.28.

  2. The lowest price that a share of stock can hit is $__________.

  3. If a $0.03 stock falls by a penny, then that is a _________% decline.


Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 27 February 2007

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