Blue chip shares for penny share prices

This is really aimed at people in the UK - you might learn something if you are not UK based but the companies mentioned might not be as known to you as a UK resident.

A few years ago banks were regarded as blue chip companies, blue chip meaning sold and safe. A bank share was a good share to buy if you planned on holding it for a long time and wanted modest returns, the dividends would also add up and you could really do no wrong.

The recent financial crisis saw the price of banking shares in the UK plummet, they dropped in a way that no one had expected. An example of this, today Lloyds shares are around 65p but 3 years ago they were over 4 times this value - the safe house fell down and we (the public) had to bail out the banks...... but did they return the favour? Refusing to pass on interest rate cuts in a timely manner and continued bonuses/ruthless business practises helped the banks survive through hard time, its important to remember a bank is a business out to make profit like any other and they are quite possibly some of the most ruthless business in existance.

Penny shares are stocks that can be bought at very little cost and they are usually valued at a low cost for good reason, they are an underdog and a dangerous investment, however, when you look over the current selection of penny shares you see some previously "blue chip" names in the list. Given what has been written above and the ruthless business tactics employed by the banks you would have to bet the the majority of them to bounce back - when you look at stocks that are valued at less than £1 the value and long term prospect seems to be in shares such as LLoyds and RBS.

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