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3 Penny Stocks To Have Fallen From Grace

These once-beloved penny stocks made millionaires of the wise and sent naive investors to the poor house. Here are 3 penny stocks to have fallen from grace after flying too close to the sun with wings made of wax.
 
 

In Greek mythology Icarus fell to his death after ignoring his father's instructions to avoid flying too close to the sun.

Cascadia Investments, Inc. (PINKSHEETS: CDIV) once boasted a $150,000,000 market cap at the same time as an impressive $361 in sales. While some investors are still struggling to comprehend what it is exactly that the company does, shares have only tumbled 76%.

 

Honest John Bordynuik's JBI, Inc. (PINKSHEETS: JBII) jumped to $7.50/share, meeting every NASDAQ listing requirement but a justified business front. At the time the market valued the company at $380,000,000 or a tad optimistic relative to $23M in total assets, $7.5M of which was 'goodwill'. Since, the market only shed 89% of its 'worth'.
 
 

Imaging3, Inc. (OTCBB: IMGG) holds a special place in every investor's heart. In late 2009, the company somehow managed the best of both the hype-driven Over-the-Counter (OTC) market coupled with the no-meaning-to-fair-value biotech industry. With cash under $200,000 and a negative book value, the market leaped to a cap of $750,000,000. Naturally, investors have since adjusted that figure to just over $100M, a 'loss' of $650,000,000 or 86%.

 

An unfortunate trait many inexperienced market dwellers carry is naiveté. It is a poor habit to become emotionally attached to your investments and a good habit to question their validity. Is your investment hype-driven or justified in value? Take a moment to analyze your current holdings. Bearing this in mind you'll avoid the poor house and be well on your way to building timeless wealth.