![]() | |
![]() | |
![]() |
Investing Information |
|
![]() |
Penny Stock Investing
The Nature of Penny Stocks For anyone new to investing in penny stocks, you should first be made aware of the differences between these micro-cap stocks and the more conventional blue-chip and mid-cap investments. Unlike buying shares in a large, stable company like Ford or IBM, you are dealing with speculative investments. Penny stocks literally trade for pennies per share, or for as much as a couple of dollars. The beauty of penny stocks, of course, is that sometimes they 'grow up' and become mid-cap stocks, multiplying in value hundreds of times over and making many people very wealthy. With penny stocks, also called micro-caps or juniors, you will see much greater price volatility, and thus greater and quicker gains and losses in asset values. It is precisely this volatility which draws investors to the junior markets, as one good pick could make you hundreds of times what you could ever make on the larger markets. Of course, there is more risk than buying bonds, blue chips or defensive stocks - but this added risk is tempered with the possibility of making the big gains. Most penny stocks, but not all, are resource or technology companies who initially sold shares in an effort to raise money for exploration or product development programs. Many of the companies have large debt loads and are not necessarily making more money than they are losing. However, it is the potential of a major, or even minor success in their quest that often incites dramatic price climbs, and this is where their value lies. Profit Potential Modern Strategies Inc. owner of http://www.pennystockinsider.com, has been in the business of researching penny stocks for many years, and has become effective at uncovering the best small cap investment opportunities and the most rewarding profit situations in the penny stock markets. There are several ways to profit from penny stock investments. Modern Strategies Inc. has uncovered the most highly rewarding investment situations. Promotional Stocks - These issues may or may not have much actual value. Promoters generate interest in these types of stocks in an attempt to drive share prices higher. The promoters own great amounts of shares and so they make more money the higher the share price travels. Eventually, they sell their holdings into the promotion and generate great personal profit. Then they move on to the next project, leaving the original stock and all its investors behind. Without the work of the promoter, the promotional issue soon comes crashing down. These are the type of stock investor hear horror stories about, because many people often lose a good deal of money when they are naive about promotional ploys. However, getting in on a promotional stock early in its life cycle, and keeping an eye on the actions of the promoter can be very, very rewarding. It's like having a full time stock promoter doing everything in his power to get the share prices of the stocks you own to go through the roof, and investors who get in early can go along for the ride! Technical Precursors - Often technical analysis can reveal patterns in the trading cycles of penny stocks. Sometimes these patterns illustrate excellent buying opportunities, where the underlying stock has a high probability of moving up strongly, and only a low probability of declining in value. In addition, there are sometimes situations where several positive technical indicators combine at once to reveal that an issue is very likely to increase strongly in price over a short time frame, indicating that the particular issue is has excellent investment potential. Fundamental Strength - Fundamentals involve such criteria as earnings, debt load, assets, and many others. It was long thought that earnings were the major driving force behind share prices, but Modern Strategies Inc. has since disproved this theory as it applies to penny stock companies. Instead, uncovering the best medium to long term investment opportunities must be done through exhaustive analysis of company financial statements. Investors should get involved with the companies that are making the most money, have the most effective management, and have improving trends in all factors of their operations. As well, industry comparisons and the examination of key financial ratios present clues as to which companies are destined for higher share prices. Proper fundamental analysis of penny stock companies will generally reveal that there are about 2 or 3 superior investment opportunities out of every 100 companies examined. These 2 or 3 excellent corporations often represent better investments than 90% of stocks on the large-cap markets like the NYSE. Undervalued Situations - Sometimes companies see their share price slide dramatically. There are occasions where this decrease in price has very little to do with the underlying fundamentals, and more to do with factors such as overall market weakness, interest rate increases, or others. Opportunity exists in such situations because the shares are often 'unfairly valued' and a return to more realistic prices is inevitable. There are often cases where companies have more cash on hand per share than their share price, or have price to earnings ratios as low as 5.0. Although there is much more to uncovering the best undervalued situations, this is the basis behind the concept. Minimized Downside - Often the combination of technical analysis and undervalued situations can reveal penny stock companies that have tremendous upside potential, and have a very low probability of declining in value to any significant degree. These type of investments are excellent choices for penny stock investors that are less risk adverse. Special Notes About Penny Stock Companies Penny stock companies change their names more commonly than other publicly traded companies, and are also subject to more stock-swaps and consolidations. In any of these events, your shares in your account will be automatically replaced with the appropriate stock by your broker and notice will be delivered to you. For example, if you owned 5000 shares of EXO and for every 5 shares you were to receive 2 shares of LOR, you would find your account holdings re-adjusted to reflect 2000 LOR which can be traded as normal. You will no longer have the 5000 EXO. On rare occasions, a penny stock company can become delisted. This means that the shares will no longer trade on the exchange, and if the company does not get listed on another exchange or re-instated at a future date, you may be subject to a loss of capital equal to 100% of the total investment. However, this is a very rare occurrence, and there are simple ways to protect yourself against it which are periodically discussed in Modern Strategies Inc. publications. Delisting generally becomes a greater concern for investors who intend to use a long-term (several years) buy and hold strategy with penny stocks. Peter Leeds, one of North America's leading Investment Coaches, is a self-made millionaire who has created his fortunes on the stock markets. He has also empowered thousands of individuals to do the same. His personal success and incredible ability to consistently pick money-making stocks has earned him a loyal following of successful investors and has generated significant attention from the financial world.
MORE RESOURCES: Thailand Expects Tesla, Google, Microsoft to Invest $5 Billion -Prime Minister U.S. News & World Report Chinese investors in scramble to offload overseas property portfolios South China Morning Post As CD Rates Top 7%, Financial Planners Explain: Save Cash or Invest? Business Insider America's Billionaires Love Japanese Stocks. Why Don't the Japanese? The Wall Street Journal Investing in India's Stock Market and More | White Coat Investor The White Coat Investor Fed Rate Hikes Have Taken a Toll on Bond Market ETFs Investopedia 3 Mistakes High Net Worth Clients Make When Investing The Motley Fool PhonePe's New Stock Broking App Makes Investing Accessible to ... Walmart Corporate President's Investing in America Agenda Provides Resources for ... US Department of the Interior SEC Brings Much-Needed Transparency to Sustainable Investing Environmental Defense Fund Identifying Untapped Opportunities & Properties Abroad East End Taste Magazine Palliative Care Remains 'Wild West,' But Home Health Providers Are ... Home Health Care News 10 Best Blue-Chip Stocks to Buy for 2023 | Investing | U.S. News U.S News & World Report Money A More Impactful Strategy for Sustainable Investing HBR.org Daily SAFE Banking Act Hits a 'Sweet Spot': This Week in Cannabis ... Kiplinger's Personal Finance Massive News for Nio Stock Investors The Motley Fool Legislature deserves thanks for investing in NH's youngest learners ... New Hampshire Bulletin 10 Best Investments for 2023 | Investing | U.S. News U.S News & World Report Money How to Invest in Carnival Cruise Lines The Motley Fool Neal Logan: Should you invest … or speculate? | Business ... Cleburne Times-Review The Week in Impact Investing: Legacy ImpactAlpha How Panama Canal Supply Chain Issues Impact Shipping Stocks U.S News & World Report Money Finding emerging opportunities in sustainable investing PitchBook News & Analysis Stripe, Instacart show perils of secondary investing PitchBook News & Analysis The Gulf Sovereign Wealth Funds: Accumulating Wealth and ... DBRS Morningstar How to Coach Investors Through Choice Overload Morningstar Investing in nature - gov.scot The Scottish Government Farming Investing Outlook EisnerAmper Just Started Investing? Here's 1 Solid Company to Buy With $200 The Motley Fool Harry Domash, Online Investing | Exchange-traded funds offer positive returns in down market Santa Cruz Sentinel 'Magnificent Seven' investing playbook: Amazon's opportunities 'the same as its challenges,' analyst says Yahoo Finance 5 Stocks You Can Confidently Invest $500 In Right Now The Motley Fool Investing in the radical reorientation of health systems towards ... World Health Organization Investors devour risky corporate debt in boost to LBO business Financial Times Got $3,000? 3 Tech Stocks to Buy and Hold for the Long Term The Motley Fool A local company is investing $10 million in an East Tennessee ... Knoxville News Sentinel The Impact of Investing in Faculty · Babson Thought & Action Babson Thought & Action Is Now a Good Time to Buy Stocks? Warren Buffett's Sensible ... The Motley Fool Investing in Emerging Tech GovernmentCIO Media & Research 8 Top-Rated Income Funds | Investing | U.S. News U.S News & World Report Money Where to Invest $10,000 in a Bear Market The Motley Fool These 2 Dividend Stocks Are Investing in This Niche Industry ... The Motley Fool Data Driven Investing in America: New Tools Help Advance ... Economic Development Administration |
![]() |
![]() |
![]() |
RELATED ARTICLES
Use this Simple Trick its to Buy $100 Bills Direct from your Bank for only $97 Most People just don't understand the power of using their home as a Wealth Creation Tool. How many people do you know who have lived in the same house for 10, 15 or more years and have virtually no mortgage, You know the Type 'House Rich Cash Poor'. What is an Investor Ready Business Plan A Business Plan, as all good entrepreneurs starting out in life should know is the foundation, or rather a springboard, towards the establishment and growth of a new business. A business plan is an essential tool for companies raising capital - and your business plan needs to be Investor Ready. An Introduction to Offshore Investing Once upon a time, offshore investment strategies were spoken of in hushed tones. They were conversations restricted to the plush offices of private Swiss bankers, or a dinner table topic in the expensive playgrounds of the multi-millionaires. Getting Started In Investing Are you ready to open your pathway to financial independence?Well you should be. The sooner the better. Art Investing for a Financial Future When we think of investing we probably conjure images in our minds of the New York Stock Exchange, suited stock brokers making deals, bonds and treasury bills, and all manner of financial matters. The last thing we probably think about is art. POOF goes your RRIF ! Some time ago I attended a seminar where participants were told to burn some money; a reasonably-sized amount of money. You should have heard the gnawing and gnashing of teeth in that room! Step right up, folks, and light it on fire. Your Worst Enemy To Successful Investing - The Media How do you make your investment decisions and where do you get your information? If you're like most of the people I know, you look to the experts.That's fine, however it's important to be aware that for every expert, there's an opinion and for every opinion there's an expert. Exchange Traded Funds They call 'em ETFs.There are hundreds of them. Can Using Sales Leaseback Method of Investment Property Acquisition Reduce Risk? Sales Leaseback compared to traditional property investmentCan a Sales Leaseback arrangement make investing in Orlando investmentproperties more safe and reliable?Yes. Providing a guaranteed rental amount each month is the safest andmost reliable way to realize a return on your investment. Beta Factors: How They Can Be Used In The Current Situation Ever since the turn of the century, world stock markets have been very volatile. In other words there have been significant movements (up or down) in share prices. How to Calculate the Value of Your U.S. Savings Bonds If you're like many Americans over the age of 55, you've probably had money taken out of your paychecks for years and years in order to purchase U. S. Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking corporate executive from one of Australia's largest banks, who we'll call 'Phil' here for the purpose of this article. Options Education: Financing the Calendar! As a trader, one of the key things that I try to consciously do is to cultivate my instincts by talking with other traders and investors as often as possible. It still amazes me how large the divergence of opinion that exists regarding what people believe will unfold as we enter the new millennium. The Perfect Economy? The U.S. Caveat Emptor: You May Owe Taxes Despite 401(K) Losses! One among many ways you lose money in non-indexed mutual funds is the tax trap. You may have to pay taxes even when your mutual fund loses money! To many people this is painfully unexpected. Wit and Wisdom on Money, Wall Street and Success - Part #4 Can you concisely summarize your investment philosophy in a few sentences? My experience is that most people can't. The quotes that follow are diamonds that offer a real powerful education in the world of Risk Management. Angel Investors: Who They Are & When Are They Appropriate Angel investors are individuals who invest in emerging business ventures. Angels typically provide both capital and know-how to companies who are in either their start-up or expansion phases. Online Trading Options Strategies - Rolling Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.Other times, you may have to buy your short call back so that you will not lose your stock. An Old Dividend Stock Investment Idea, for a New Generation Death and taxes! The certainties of life! And then, of course, there are the mortgage payments, the utility bills, phone bills, the car payments and thirsty automobiles. Add that to the grocery and clothing bills, and there appears to be more then just death and taxes as certainties of life. Stock Market Leaders and Laggards Leaders are stocks that breakout immediately when the market confirms a new rally. In the first several weeks, strong stocks with leadership ability will breakout on volume above their 50-day average. ![]() |
home | site map |
© 2006 |