Hello Friends! I always enjoy getting email and today was no exception. I received a note from Chris who wrote:
To start, I want to say that I love your web site.
I'm just starting to learn about investing, and I was wondering if you had any input about a stock I just heard about...
The ticker is AHFI
I learned about it on this site.
I wanted to open an on-line account, I was thinking about going with Scottrade.com
Do to a low amount of funds, I think that's the best option. Do you have any thoughts?
Thanks for your time.
Chris (I deleted the link to the penny stock site as I do not wish to endorse or judge another website like that here.)
Chris, first of all, I am not in a position to advise you whether AHFI is a good investment for you or not. For that, you should consult with your professional investment advisor as I am just an AMATEUR investor! However, I will tell you what I can find about this company.
First of all, checking Yahoo, we can see that AHFI is not longer listed as that, it is on the "pink sheets" which means generally that it does not qualify for the fairly loose requirements of the NASDAQ, meaning it is more of a penny stock and is highly speculative. I do not review speculative penny stocks on this website.
I did find out that AHFI.PK stands for "Absolute Health and Fitness Inc. The stock currently is trading at $3.53/share. This company is so small that Yahoo does not even carry headlines on it. In fact, even Stockcharts does not carry a chart. The best chart I could find was from Yahoo:
Thus, we can see that we have a chart. And that is about all I can easily find. This is not a stock that I am interested in. If you have some additional information that I can review, please send it to me. However, penny stocks and I just don't get along. Maybe I am just getting too old. I just want to make a "base hit" with a stock. And do it consistently! That is how you can win the investing game in my humble opinion.
I found this description on a message board post: Absolute Health & Fitness currently owns and operates 3 fitness centers in the Southeast, and expects to add another 8 centers via acquisition, resulting in a company generating revenues in excess of $10 million / year. A business combination with one other major fitness center operator is expected to more than double the Company's revenues to over $23 million this year, and increase the number of its operating Business Units to 24. Thus, you would be basically investing in a three store fitness chain. Yikes. Now THAT is speculative imho!
I want to own a stock that has earnings I can review, a Morningstar report that I can analyze, a point and figure chart and estimates of valuation. I would even like to visit their website. This company has none of that. In addition, in general, I like to invest in stocks trading over $10.
Good luck with whatever decision you happen to make. Insofar as Scottrade or Schwab or Fidelity or Waterhouse or Ameritrade, that is all up to you. I have found that Fidelity works well with me, especially their nice presentation of gains/losses/history questions that I use in determining my investing decisions!
It is far more important HOW and WHAT decisions that you make than where you make your trades imho. Good luck and email me at firstname.lastname@example.org if you have any other questions or comments regarding this or anything else on your mind!