AEterna Zentaris, Inc. (NasdaqGM: AEZS)

AEterna Zentaris, Inc. (NasdaqGM: AEZS)

Just shorted $AEZS their market cap is 91 million, income for 2009 is -19,000 and assets are -20,000

There might be a public awareness campaign (I think that's what they are calling it these days) going on, I am not sure.

But my new stock market strategy is to look for companies with no assets and negative income the last couple years, with a market cap of $100 million. That is the goal, but I am also started just shorting small amounts of companies that have anything over $25 million market cap.

The idea is to build up a portfolio of a bunch of stocks that are basically worthless that have been pumped up, then just hold them and wait for them to go down.

This way sooner or later one is going to take off and run, but I won't have so many shares that it will kill me, and all the other stocks slowly dropping will cover it.

I got the idea from Warren Buffet, he researches income statements and balance sheets on companies and then buys good companies that are going up.

Well I have no ability to do that, plus if I put all my money in a good company and then waited 15 years for the market value to catch up, more than likely something would go wrong before then.

These penny stocks seem to move a lot faster, so instead of waiting years it's just weeks or months.

The only thing I am not sure about is how bad I will get hit when one of them takes off and runs. It looks like they top out around $2 or $3 at the most, that's for stocks that are completely worthless but just promoted heavily.

So I need to keep my size small enough that when I get stuck in one of those I can still sell more later.