SureTrader
Interactive Brokers Advertisement
Home > Boards > Free Zone > User's Groups >

PENNYBUSTER'S PENNY BUSTIN PLAYS!! (penny)

penny RSS Feed
      Hide Sticky   Hide Intro
Moderator: PENNYBUSTER Assistants: ChrisTianSurfer, pistolpete, PennyStockYoda
Search This Board: 
Last Post: 10/20/2017 5:57:02 PM - Followers: 240 - Board type: Free - Posts Today: 0
















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.






 

SureTrader
Interactive Brokers Advertisement
PostSubject
#15468  Sticky Note $TAPM Check Out This Video. Really Sweet Mobile PENNYBUSTER 09/08/17 09:40:16 PM
#15466  Sticky Note Tapinator Publishes New Corporate Video and Updated Investor Presentation PENNYBUSTER 09/08/17 06:25:29 PM
#14967  Sticky Note Come and Join Us!!! PENNYBUSTER 03/18/17 11:06:49 AM
#14458  Sticky Note $APHD Board Mail Alert .009 To .465 Today!! PENNYBUSTER 05/16/16 03:18:58 PM
#12372  Sticky Note I would like to invite you to our PENNYBUSTER 11/26/14 08:52:44 AM
#15534   It got a little volume today. PENNYBUSTER 10/20/17 05:57:02 PM
#15533   $MIHI The news from the company has been Robertscott 10/20/17 02:22:09 PM
#15532   $TWOH 047 up now, +18.42% nice close coming! budfoxhub 10/19/17 03:34:43 PM
#15531   $TWOH Updated Trader's Cheat Sheet https://www.barchart.com/stocks/quotes/TWOH Robertscott 10/19/17 03:10:16 PM
#15530   $MIHI Announces Manufacturing Supply Agreement for NextGen Telemedicine Robertscott 10/19/17 03:04:06 PM
#15529   Follow $TWOH on PST - http://www.pennystocktweets.com/stocks/profile/TWOH Cabroncita 10/19/17 11:43:48 AM
#15528   Pennybuster newsletters out... Check your inboxes!! PENNYBUSTER 10/17/17 08:44:12 PM
#15527   PLSB busted in the 000 :)) mightymoe 10/16/17 07:41:25 PM
#15526   PLSB @ 0013, should get news next week... mightymoe 10/13/17 02:48:16 PM
#15525   @Veztinc, Leveraging $DATI ‘s Angels+ program, was interviewed Cabroncita 10/12/17 03:30:49 PM
#15524   $EPAZ Check out on PST - http://www.pennystocktweets.com/stocks/profile/EPAZ Robertscott 10/11/17 02:45:47 PM
#15523   $PSID huge news out here: PositiveID’s E-N-G Mobile budfoxhub 10/11/17 12:24:36 PM
#15522   $ASTI -Ascent Solar Fully Redeems Convertible Secured Notes Cabroncita 10/09/17 02:06:18 PM
#15521   Take back your racial comment about "South of gumbie05 10/06/17 01:51:38 PM
#15520   stop spamming .. bring a good stock to mightymoe 10/06/17 01:43:40 PM
#15517   BTW- when I mentioned one of my picks gumbie05 10/06/17 06:58:28 AM
#15516   PLSB looks about ready.. psar flipped on daily, mightymoe 10/05/17 05:25:11 PM
#15515   $DATI is offering #startups the ability to offer Cabroncita 10/05/17 02:27:49 PM
#15514   $DATI news - Aligned with Vezt, Inc. – budfoxhub 10/05/17 01:18:10 PM
#15513   $PSID huge news out for the company's subidary Robertscott 10/05/17 10:23:47 AM
#15512   $DATI - Vezt app lets artists choose portions Cabroncita 10/05/17 09:55:46 AM
#15511   $PFWI 52 wk lows.. due to notes that Thehustle 10/05/17 09:04:19 AM
#15510   $TWOH Technical Analysis https://www.barchart.com/stocks/quotes/TWOH/technical- Robertscott 10/05/17 09:01:20 AM
#15509   $DATI Digital Arts Media Network offers all investors Cabroncita 10/04/17 12:29:19 PM
#15508   That's funny. A reverse split is in the driller4oil 10/03/17 02:46:50 PM
#15507   $SANP .0005 Upticking On Bitcoin Letter Of Intent. PENNYBUSTER 10/03/17 11:20:09 AM
#15506   PLSB on bottm chart, super thin low R: https://stockcharts.com/c-sc/sc?s=PL mightymoe 10/03/17 10:01:38 AM
#15505   $DIRV has put out some great News recently! http://www.marketwatch.com/invest Robertscott 10/02/17 11:02:24 AM
#15504   $SSOF is due for news & reversal - Robertscott 09/26/17 02:48:45 PM
#15503   PLSB on bottom 0013 will make a move shortly mightymoe 09/26/17 11:03:58 AM
#15502   $IMTL Very Interesting FORM 4 - STATEMENT OF Robertscott 09/22/17 03:17:37 PM
#15501   $TBEV Updates on PST profile: http://www.pennystocktweets.com/stocks/profile/TB Robertscott 09/22/17 11:41:34 AM
#15500   $TBEV ~ Only 332 million left on the Robertscott 09/22/17 10:34:37 AM
#15499   Great post.. Thanks for the DD. PENNYBUSTER 09/21/17 09:09:20 PM
#15498   52 wks low, LOW OS, here's some DD mightymoe 09/21/17 08:57:10 PM
#15497   $SSOF ready to clear 002's soon! the new budfoxhub 09/21/17 03:09:36 PM
#15496   $PLSB .0013 Getting Into Bounce Territory. PENNYBUSTER 09/21/17 12:24:30 PM
#15495   $HMPQ Updates on PST profile: http://www.pennystocktweets.com/stocks/profile/HMP Robertscott 09/21/17 11:33:11 AM
#15494   $HMPQ NEW YORK, NY--(Marketwired - Sep 14, 2017) budfoxhub 09/21/17 10:17:49 AM
#15493   $IMTL Trader's Cheat Sheet https://www.barchart.com/stocks/quotes/IMTL/cheat-s Robertscott 09/21/17 08:57:12 AM
#15492   $PSID Chart https://www.barchart.com/stocks/quotes/PSID/interactive-chart Robertscott 09/21/17 07:42:16 AM
#15491   $IMTL Chart https://www.barchart.com/stocks/quotes/IMTL/interactive-chart Robertscott 09/20/17 02:55:41 PM
#15490   $PSID Probst delivered a brief presentation and answered budfoxhub 09/20/17 02:53:01 PM
#15489   $IMTL Selected by Snapwire to Monitor its Growing Robertscott 09/20/17 02:42:27 PM
#15488   https://www.youtube.com/watch?v=ynwqqVo8q58&feature=youtu.be $GOPH PENNYBUSTER 09/19/17 08:48:44 PM
#15487   $DATI aligns with leading accelerators and incubators to Cabroncita 09/18/17 10:56:13 AM
#15486   $PSID DELRAY BEACH, Fla., Sept. 12, 2017 (GLOBE Robertscott 09/18/17 10:43:24 AM
#15485   $TXTM Updated Chart https://www.barchart.com/stocks/quotes/TXTM/interactive-cha Robertscott 09/15/17 02:16:36 PM
#15484   $HMPQ Chart https://www.barchart.com/stocks/quotes/HMPQ/interactive-chart Robertscott 09/15/17 08:59:06 AM
#15483   $SSOF $1.071M purchase order news - https://finance.yahoo.com/news/sixty-six-oi Robertscott 09/14/17 10:15:01 AM
PostSubject