SureTrader SureTrader
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, RHJ~BT, Penny Roger$, pistolpete, PennyStockYoda
Search This Board:
Last Post: 12/2/2016 7:58:45 PM - Followers: 238 - 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.






 

PostSubject
#14670  Sticky Note $BDCI Great Article Here http://mystock.pics/BDCI/ PENNYBUSTER 12/02/16 11:11:26 AM
#14620  Sticky Note $MJNA http://pennybuster.com/mjna.html PENNYBUSTER 10/31/16 02:08:24 PM
#14485  Sticky Note https://twitter.com/PENNYBUSTER1/status/740293462881226753 PENNYBUSTER 06/07/16 05:42:27 PM
#14458  Sticky Note $APHD Board Mail Alert .009 To .465 Today!! PENNYBUSTER 05/16/16 03:18:58 PM
#13457  Sticky Note Our Board Email Members Reaped The Rewards Of PENNYBUSTER 06/21/15 03:01:35 PM
#12372  Sticky Note I would like to invite you to our PENNYBUSTER 11/26/14 08:52:44 AM
#14677   $GEVO .315 myopinion 12/02/16 07:58:45 PM
#14676   $AMRS .85 myopinion 12/02/16 07:58:24 PM
#14675   Follow $BDCI on Twiiter for key information announcements PENNYBUSTER 12/02/16 02:21:17 PM
#14674   $BDCI https://twitter.com/BahamasDevCorp/status/804759133555687425 PENNYBUSTER 12/02/16 01:58:03 PM
#14673   $ICLD today announced that it was recently awarded Robertscott 12/02/16 01:25:02 PM
#14672   $BDCI Key target opportunities include development of light Robertscott 12/02/16 11:39:43 AM
#14671   Breaking NEWS from $ICLD +4% at .052 https://finance.yahoo.com/news/intercloud Robertscott 12/02/16 11:25:21 AM
#14670   $BDCI Great Article Here http://mystock.pics/BDCI/ PENNYBUSTER 12/02/16 11:11:26 AM
#14669   $TWOH Nice buy rating from Barchart https://www.barchart.com/stocks/quotes/TWOH Cabroncita 12/02/16 09:28:39 AM
#14668   $BDCI Nice News Out Here After The Bell!!! PENNYBUSTER 12/01/16 04:14:00 PM
#14667   $IFAN PENNYBUSTER 11/30/16 07:29:39 PM
#14666   $GRLF Green Leaf Innovations, Inc. (GRLF) #mmjstocks #Potstocks > myopinion 11/25/16 08:50:59 AM
#14665   MACD Bullish Crossover $NBGGY - Happy Thanksgiving yourself :) myopinion 11/23/16 04:41:42 PM
#14664   $TXHD For salons it is easy Cabroncita 11/23/16 03:31:40 PM
#14663   Keep an Eye on $PRGNF. Have a Happy PENNYBUSTER 11/23/16 02:52:22 PM
#14662   $NBGGY Bull Flag forming myopinion 11/23/16 02:49:56 PM
#14661   $HIPH Nature produces the best natural alkaline Cabroncita 11/23/16 12:52:12 PM
#14660   they are playing a momo over at uhln. PENNYBUSTER 11/23/16 10:33:48 AM
#14659   NBGGY / Greek Banks Resume T-bill Interbank Transactions myopinion 11/23/16 09:49:33 AM
#14658   Hmmmmmmmmm... :/ PENNYBUSTER 11/23/16 09:06:45 AM
#14657   $PHOT myopinion 11/23/16 09:06:00 AM
#14656   or just buy like heck $FDBL myopinion 11/23/16 09:05:17 AM
#14655   $APHB .62 http://www.buff.ly/2fuNm8Y PENNYBUSTER 11/22/16 06:34:36 PM
#14654   $PRGNF .18 PENNYBUSTER 11/22/16 01:36:55 PM
#14653   Growlife Inc $PHOT Top 5 Holders of Institutional Holdings myopinion 11/22/16 01:27:16 PM
#14652   $NECA PENNYBUSTER 11/22/16 12:15:42 PM
#14651   $VPOR Vapor Group, Inc. myopinion 11/22/16 09:51:24 AM
#14650   $PRGN .18 Shipping Stock on Bounce Watch. PENNYBUSTER 11/20/16 10:02:39 PM
#14649   $CGIX In at 1.60 Zacks Investment Research upgraded PENNYBUSTER 11/16/16 02:33:28 PM
#14648   $TPLM .259 On Watch 4 Bounce In Oil PENNYBUSTER 11/15/16 10:04:24 AM
#14647   $ALKM.0008 Marijuana News. http://ih.advfn.com/p.php?pid=nmona&article=72918573 PENNYBUSTER 11/15/16 09:45:57 AM
#14646   $FDBL Check out their #Facebook Page > https://www.facebook.com/friendable myopinion 11/15/16 09:43:08 AM
#14645   Re: samsamsamiam Post# 97153 Looks like AVOP is another PENNYBUSTER 11/14/16 09:24:41 PM
#14644   $NECA here she goes myopinion 11/14/16 02:26:10 PM
#14643   $SFOR $DNRG On Watch Here. PENNYBUSTER 11/14/16 02:13:21 PM
#14642   $PMCB Colon Cancer http://www.prnewswire.com/news-releases/colon-cancer-pipeline myopinion 11/14/16 02:12:00 PM
#14641   So does $GSDC .0006 I Think. PENNYBUSTER 11/14/16 01:48:06 PM
#14640   FDBL hits bottom myopinion 11/14/16 01:47:29 PM
#14639   $ZIOP 7.21 Popping. Huge Short Position. Presentation This Week! PENNYBUSTER 11/14/16 01:42:13 PM
#14638   $CGIX 1.475 https://www.marketbeat.com/stocks/NASDAQ/CGIX/ PENNYBUSTER 11/14/16 01:30:32 PM
#14637   $GRCU Given the rapidly expanding nature of the Cabroncita 11/14/16 01:07:30 PM
#14636   #MedicalMarijuana $PMCB PharmaCyte's CEO Discussed Development of its myopinion 11/14/16 12:27:28 PM
#14635   $ZIOP Currently 6.90 ZIOPHARM Oncology, Inc. (Nasdaq: $ZIOP PENNYBUSTER 11/14/16 12:17:04 PM
#14634   $MJNA Profile Inside. PENNYBUSTER 11/13/16 09:12:03 PM
#14633   $MJNA ABOUT US PENNYBUSTER 11/13/16 09:06:01 PM
#14632   $PHOT Growlife Inc. Ichimoku Daily & Weekly Chart myopinion 11/13/16 03:43:29 PM
#14631   $GRCU Purple Haze Properties, LLC was founded through Cabroncita 11/09/16 01:05:20 PM
#14630   Social Media Platform $FDBL Friendable Negotiating to Acquire myopinion 11/08/16 06:21:50 AM
#14629   CNRR$$$ELTZ$$$ ALERT!!! flippa 11/07/16 08:58:23 AM
#14628   $EXMT NEWS! Aims To Report. With MJ News!! PENNYBUSTER 11/07/16 08:43:17 AM
PostSubject