What to look for in low price momentum list
If you see a catalyst, you buy them and forget about it for few years, they are like call options you should be willing to lose the entire amount. I have few like that in my long term accounts bought below 5 e.g. MT, ABB, RHA ,SGU, AHO etc. I buy small position and forget about them. The other without revenue or concept in low price momentum are highly speculative and more for trade. I buy only non technology companies from the list as they are less speculative.
Chances of finding mis priced securities in this list is high, the market are highly inefficient. Sentiments and price reach extremes on good companies when they or the sector gets in to trouble. You have to research the list to find the gems in that dustbin.
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