Mick Weinstein, the editor in chief of Seeking Alpha, writes Wednesday that the site is reconsidering its policy of not covering penny stocks given that Fannie Mae, Freddie Mac and Sirius XM, among others, now trade below $1 a share.
Weinstein writes, “Given this novel situation, our editorial team has been reassessing our rule and at times bending it. The risk of manipulation seems much lower on a stock like SIRI that has daily turnover of 50 million+ shares. So when we know and trust the author, we have been publishing on Sirius XM and the financials that dropped under a buck.
“This applies to microcaps as well. We recently ran an article by longtime SA contributor Asif Suria on a portfolio holding of his that he finds to be trading below book value – at 73 cents. It’s a solid writeup, and since we trust Asif fully, we wanted to make it available to our readers.
“So while we’re as diligent as ever in rejecting submissions that smell even faintly of stock manipulation, we’ve opened the doors to trusted SA contributors who address penny stocks as investment opportunities in these extraordinary times.”
Read more here.