Secrets to Finding Hot Penny Stocks
The secret key to any successful penny stocks trading is the preparation. Know what you are buying and why you are buying it. There are a number of factors that can help you to make a more informed and, hopefully, more profitable decision.
Financial Information: The earnings to price equation is always a good indicator of the health, or otherwise, of a penny stocks company. If this ratio is lower than many of the other companies in a similar industry then this is a good indication that the company may be in a great position.
The Board of Directors: Find out about the CEO and directors, do they have a nice history of running this type of company. A penny stocks company with bad trading figures that has just acquired a strong CEO may be about to change direction.
Do the Books Balance? If the company has a good cash flow then it could be a good a good addition to your penny stocks portfolio. But look a little more closely to see if they have debts. A light debt load in comparison to turnover shouldn’t be a problem, but if the debt is large then interest payments could begin to stack up and affect the company’s profitability.
November 8, 2009 No Comments
Ways To Buying Penny Stocks
A penny stock is a stock that trades at a small cost mainly between one and five dollars. It does not deal within the main market exchanges similar to the New York Stock Exchange, National Association of Securities Dealers Automated Quotation System (NASDAQ) or the American Stock Exchange.
Even if they sell primarily at one dollar, the shares might put up for sale for up to ten dollars depending on endorsement and announcement. They are typically traded in small exchanges and over-the-counter markets through over the counter Bulletin Board (OTCBB) and pink sheets
October 30, 2009 No Comments
Beware of Fraud When Buying Penny Stocks
If you spend any time researching stock trading on the Internet, you are bound to come across the hype and exhilaration of buying penny stocks. Buying penny stocks involves stock trading with shares that are valued under $5. Some technically define a penny stock as a microcap stock which trades for less than five dollars. A microcap stock is a corporate share which has a market capitalization of under 250 million dollars.
Before you become too excited about the hype involved with buying penny stocks, you need to understand why this hype persists: fraud. Long before the Internet, penny stocks were ripe with fraud and the Internet has only made the propagation of such fraud more widespread and persuasive.
October 28, 2009 No Comments
