Fidelity SPDR Advertisement
Home > Boards > Free Zone > User's Groups >

PENNYBUSTER'S PENNY BUSTIN PLAYS!! (penny)

penny RSS Feed
      Hide Sticky   Hide Intro
Moderator: PENNYBUSTER Assistants: I Like Bottom Fishing, ChrisTianSurfer, jedijazz, RHJ~BT, Penny Roger$, SeccoTech
Search This Board:
Last Post: 12/22/2014 7:56:23 AM - Followers: 211 - Board type: Free - Posts Today: 1

DISCLAIMER-Please read
http://www.pennybuster.com/disclaimer.htm















For Charts Go To http://www.stockcharts.com




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. 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 type 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.





JOIN THE PENNYBUSTER.COM Newsletter Free Winning Picks and Alerts!!


http://www.pennybuster.com/cgi-bin/dada/mail.cgi?list=pennybuster&f=su



http://pennybuster.com/


 

PostSubject
#12372  Sticky Note I would like to invite you to our PENNYBUSTER 11/26/14 08:52:44 AM
#11686  Sticky Note Unusual Volume and Important News And Filings. Sign PENNYBUSTER 02/18/14 04:35:07 AM
#11398  Sticky Note 2 Newsletters.. 2 Ways To Hit It Big.. PENNYBUSTER 08/08/13 04:35:03 PM
#9925  Sticky Note Twitter Account http://twitter.com/#!/PENNYBUSTER1 PENNYBUSTER 12/30/11 07:06:04 AM
#12472   $BMIN ~ Profile: http://www.pennystocksonsteroids.com/general/entry/bmin- Penny Roger$ 12/22/14 07:56:23 AM
#12471   SHAREHOLDER ALERT: Brodsky & Smith, LLC Announces Investigation Penny Roger$ 12/21/14 04:24:45 PM
#12470   Drilling Down on Oil's Surprisingly Big Drop Penny Roger$ 12/21/14 04:19:15 PM
#12469   FuelCell Energy Reports Fourth Quarter and Fiscal Year Penny Roger$ 12/21/14 04:13:44 PM
#12468   Abraxas Announces Conference Call; Provides Operations and Guidance Update Penny Roger$ 12/21/14 04:08:14 PM
#12467   $BMIN CEO examines a sample from the ready jedijazz 12/19/14 01:56:49 PM
#12466   $AGMC AGC management team have totally more than Cabroncita 12/19/14 10:25:08 AM
#12465   Scorpio Mining Corporation and U.S. Silver & Gold Penny Roger$ 12/18/14 05:20:56 PM
#12464   LIGHTING SCIENCE GROUP CORP Files SEC form 8-K, Penny Roger$ 12/18/14 04:31:05 PM
#12463   RadioShack Kept Alive by $25 Billion of Swaps PENNYBUSTER 12/18/14 02:07:56 PM
#12462   $BMIN ~ Our Strategy: jedijazz 12/18/14 01:00:48 PM
#12461   $BMIN is an exploration and acquisitions company focused jedijazz 12/18/14 11:36:28 AM
#12460   $BMIN ~ Moving easily! Penny Roger$ 12/18/14 09:52:26 AM
#12458   $XXII Nothing Feels Like Christmas Like Joe Selling PENNYBUSTER 12/17/14 05:57:24 PM
#12456   $GDGI way oversold at these levels, bounce alert! jedijazz 12/17/14 12:03:33 PM
#12455   $EOX Starting 2 Fly.. Bottom Reversal.. Heavily Shorted.. PENNYBUSTER 12/17/14 10:15:42 AM
#12454   $ITVI off the Charts Here jedijazz 12/17/14 10:00:32 AM
#12453   $GTPH 8K News out - Most recent SEC jedijazz 12/17/14 09:47:32 AM
#12452   ECPN Press Release December 16, 2014 Penny Roger$ 12/16/14 09:26:05 PM
#12451   Provision Interactive Announces Initial Roll-Out of In-Store 3D Penny Roger$ 12/16/14 09:19:46 PM
#12450   FOREX-Yen firm as oil slump curbs risk appetite, Penny Roger$ 12/16/14 09:08:24 PM
#12449   IGRW These cheap shares wont last long HPAR32 12/16/14 05:26:13 PM
#12448   Baristas Opens New Mobile Unit Bringing Coffee to Penny Roger$ 12/16/14 05:10:07 PM
#12447   $TLM On Radar Here. PENNYBUSTER 12/16/14 05:08:57 PM
#12446   PROPANC HEALTH GROUP CORP Files SEC form 8-K, Penny Roger$ 12/16/14 05:03:48 PM
#12445   $AVOP Headlines http://www.barchart.com/news/stocks/AVOP Cabroncita 12/16/14 06:53:20 AM
#12444   Zumiez (ZUMZ) in Focus: Stock Adds 6.2% in Session Penny Roger$ 12/15/14 09:51:19 PM
#12443   Good 2 See U RHJ.... I Have Seen PENNYBUSTER 12/15/14 02:46:45 PM
#12442   TUNG 300M A/S another yawner lol but this RHJ~BT 12/15/14 02:22:13 PM
#12441   R20 Regions of Climate Action, Lighting Science Group, Penny Roger$ 12/15/14 12:17:59 PM
#12440   CORTEX PHARMACEUTICALS INC/DE/ Files SEC form 10-Q, Quarterly Report Penny Roger$ 12/15/14 12:11:41 PM
#12439   ~ Today's Steroid Alert is $WTCG ~ Penny Roger$ 12/15/14 10:28:45 AM
#12438   W Technologies, Inc. to Register Its Common Stock Penny Roger$ 12/15/14 10:19:56 AM
#12437   W Technologies, Inc. Establishes New Subsidiary, WT Real Penny Roger$ 12/15/14 10:13:19 AM
#12436   AWGI SilentSniper 12/12/14 03:26:38 PM
#12435   $MMTS .001 x .0013 This One Will Yawn PENNYBUSTER 12/12/14 02:13:10 PM
#12434   $SD Starting 2 Move Off Its 52 Week Low. PENNYBUSTER 12/12/14 01:03:30 PM
#12433   Great start here. Technical Analysis on $ENRT can jedijazz 12/12/14 12:23:37 PM
#12432   $ENRT ready for the next leg up! http://stockcharts.com/h-sc/ui?s=enrt jedijazz 12/12/14 11:20:05 AM
#12431   $NXTD should be trading higher ~~ Great $NXTD NYC Trader 12/12/14 10:09:04 AM
#12430   AWGI getting hits right out of the gate jedijazz 12/12/14 09:33:46 AM
#12429   New Friday Sizzler Profile $AWGI SilentSniper 12/12/14 08:47:47 AM
#12428   $BPZ The Candle Has Begun. Time 4 Some PENNYBUSTER 12/12/14 08:42:42 AM
#12427   $AWGI ~ The atmosphere contains an untapped, almost Penny Roger$ 12/11/14 11:33:44 PM
#12426   MSPC Updated Cheatsheet NYC Trader 12/11/14 02:14:46 PM
#12425   $MSPC Metrospaces was originally founded by company President Cabroncita 12/11/14 12:01:18 PM
#12424   MSPC New HOD NYC Trader 12/11/14 11:03:51 AM
#12423   $BPZ Bounce In Play Here! PENNYBUSTER 12/11/14 10:53:30 AM
#12422   $PZOO You and your family: PAZOO’s team of jedijazz 12/11/14 09:55:55 AM
#12421   $MSPC Looking forward to a huge day News NYC Trader 12/11/14 08:40:10 AM
PostSubject