Penny stocks? (HLR.UN for example)

[CJOttawa]

Howdy all.

I was doing some research on REITs and a list of "related companies" popped up, including "TSE:HLR.UN" or "Holloway Lodging Real Estate Invst Trust."

HLR.UN seems to have a lot of problems. The CEO resigned in December and there's been a huge drop in share price. Originally $5.00 per share it's in the toilet at $0.07.

The thing that got me thinking though: at $0.07 (7-cents) per share, even a tiny change is a huge percentage change. (up $0.005 from $0.065 is +7.69%) I'll take that 7.69% return. (minus trading commissions)

Setting aside HLR.UN, would you invest in penny stocks?
If so, what criteria would affect your decision?

[Soils4Peace]

I once paid 3.5 cents for a stock that had 22 cents worth of cash and no debt. I sold it when price and cash were about the same for a five bagger. All the other times I lost nearly everything. My main criterion these days is a profitable track record.