Tag: earnings

Looking at the Reality of Penny Stocks Trading

Penny stocks have an almost magical appeal for new investors. But here’s the harsh truth—while some make money, most also lose. The promise of massive returns blinds investors to the risks. If you’ve ever been tempted by a low-priced stock, this article is a must-read for you.

In this article, we will understand the reality of penny stock trading and see how they can put your money at risk. 

What Are Penny Stocks?

Penny stocks are low-priced shares of small companies, typically trading below ₹10. These stocks are often volatile, have low liquidity, and belong to companies with uncertain futures.

For example, GTL Infra share price was once much higher, backed by hopes in the telecom infrastructure space. However, rising debt, weak earnings, and industry struggles led to its downfall. It still attracts speculators hoping for a turnaround, but long-term investors have mostly suffered.

Many penny stocks follow this pattern—initial hype, price spikes, and then a slow fade into obscurity.

Why are People Attracted to Penny Stocks?

Many new investors get lured into penny stocks for the following reasons:

  • Low Entry Cost – You don’t need a lot of money to buy penny stocks. ₹1,000 can get you hundreds of shares.
  • Potential for High Returns – A stock going from ₹1 to ₹5 gives a 400% return, while blue-chip stocks rarely see such gains in a short time.
  • Success Stories – Some companies start as penny stocks and grow into mid-caps or large-caps, making early investors rich.

These factors make penny stocks seem like the golden ticket to wealth creation. However, the reality is far more complex.

The Harsh Reality of Penny Stock Trading

While the potential is exciting, the truth about penny stock trading is harsh. Here are the key risks:

1. Liquidity Issues

With blue-chip stocks like HDFC Bank or TCS, you can buy or sell shares instantly. But, penny stocks often have very few buyers. You might want to sell, but if no one is buying, your money gets stuck.

2. Price Manipulation

Penny stocks are highly susceptible to market manipulation. Certain groups buy large amounts of stock, creating artificial demand and driving up prices. Once unsuspecting retail investors jump in, these groups sell their shares at a profit, causing the stock price to crash. This practice, known as pump and dump, has caused many investors to lose their hard-earned money.

3. Unstable Businesses

Many penny stock companies aren’t profitable. They have weak financials, high debt, or are in declining industries. Unlike established companies with steady revenues, these businesses rely on hope, hype, and speculation.

4. Risk of Delisting

If a stock is consistently below the exchange’s requirements, it can get delisted. Once delisted, you can’t trade it on regular stock exchanges anymore, making shares worthless.

If you’re new to investing or want steady, long-term gains, penny stocks may not suit you. However, if you understand technical analysis, market psychology, and risk management, penny stocks can be profitable—if approached cautiously.

Conclusion

Penny stock trading is not a get-rich-quick scheme. While there are success stories, there are far more cases of investors losing money. If you’re considering investing in penny stocks, approach with caution. Do your own research, never invest more than you can afford to lose, and remember—if a stock looks too good to be true, it probably is.

Investing in the stock market should be about wealth creation, not gambling. Instead of chasing risky penny stocks, focus on long-term, fundamentally strong investments that can help you build real financial security.

 

High earnings and job security top two career preferences for Gen Z students in Ireland today

New research published this week by global employer branding experts Universum, part of leading hiring platform IrishJobs.ie, has revealed that high future earnings and job security are the top two motivators for today’s third-level graduates across Ireland when considering their future career.

Indicating a growing concern amongst students around the impact of inflation and the associated rise in the cost of living, high earnings, and job security rank in first and second place. This is followed by a friendly work environment (3rd), good work-life balance (4th) and a clear path for advancement (5th).

The research, conducted as part of The Most Attractive Employers Index Ireland 2022, was conducted amongst 8,199 third-level students across Business/Economics, Engineering, IT, Natural Science, Humanities, Law, and Health/Medicine in Ireland, and provides a snapshot of the key attributes that today’s students are looking for in their future employer.

The lasting impact of the pandemic on ways of working is also evident in the ranking for flexible working conditions, which has risen by two places since 2021, now positioned at number eight.

Difference between the genders

The research also reveals key differences in workplace priorities between male and female students, with women more motivated by the social responsibility of an organisation and men more focused on advancement and innovation. For example, female students attach greater importance to employer ethics (5th) and a sense of purpose (10th) than their male counterparts, who list these at number 21 and 16 respectively.

Male students, meanwhile, attach greater importance to innovation (7th), as well as base salary (2nd). For female students, innovation comes in at number 15, while competitive base salary ranks much further down the scale at number 17.

Base salary expectations

Meanwhile, men and women have different expectations when it comes to what this base salary will be. While male students expect to earn €40,827 in their first full-time job after graduation, female students say they expect to earn €37,097, a pay gap of 9%.

Although a gap between men and women is evident within all the study fields included in the survey, it is highest amongst Natural Science students, with females in this field of study expecting to earn on average €4,344 less on an annual basis than their male counterparts.

Year-on-year growth in graduate jobs

According to IrishJobs.ie, the number of roles advertised for graduates grew by 94% in the second quarter of this year.

Quarter-on-quarter, the number of graduate roles grew by 13%, with jobs up 30% on pre-Covid (2019) levels. Companies posting the most jobs for graduates include food, engineering, financial services, and professional services firms.

Insights

Commenting on the results of the research, Steve Ward, UK and Ireland Business Director, Universum said:

“There is a whole new cohort of Gen Z and Millennial students who will be looking to enter the workplace from this month. Employers that want to attract and retain this latest generation of talent need to ensure their recruitment and attraction strategies reflect what graduates are looking for in their employer.

“With high earnings and job security the top two overall preferences, it’s clear that young people today are being impacted by the uncertainty that’s abounding in today’s economy, whether that’s inflation, the cost of living or house prices, and are looking for a job to provide them with the stability to ensure they can provide for themselves and their family into the future.

“Young people today are graduating into a very different working environment than many would have expected to when starting their degrees. After witnessing its evolution over the past two years, this year’s group of students are even more keen than last year’s graduation cohort to explore the benefits of flexible working. As the number of graduate roles increases, making this more of an employees’ market, employers will need to illustrate to potential recruits how they are competing with others in this regard.

“Finally, with the results showing different expectations amongst both men and women when it comes to competitive base salary, even within the same field of study, it’s clear that employers have a key role to play to ensure commitment and communication of parity of remuneration amongst the sexes for similar roles, notwithstanding employee negotiation skills at interview stage.

“Although men and women have different priorities when it comes to their preferred employer attributes, something which will help employers who are striving to improve the gender balance in their workforce, remuneration is a key indicator of how much a person is valued within an organisation in comparison to their peers. Unless and until women are actively reminded of their financial worth within the workplace, the gender pay gap is set to continue.”

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