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, LoneWolf0321
Search This Board:
Last Post: 2/10/2016 2:54:39 PM - Followers: 235 - Board type: Free - Posts Today: 1
















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
#14268  Sticky Note 2016 Future Lotto Plays. PENNYBUSTER 12/14/15 01:59:48 PM
#13457  Sticky Note Our Board Email Members Reaped The Rewards Of PENNYBUSTER 06/21/15 03:01:35 PM
#13456  Sticky Note Our Newsletters Smokin $HJOE Pick Went From .001- .0093. PENNYBUSTER 06/21/15 02:52:17 PM
#12372  Sticky Note I would like to invite you to our PENNYBUSTER 11/26/14 08:52:44 AM
#14329   $VHMC Nice.. Nearing The Daily Double!! PENNYBUSTER 02/10/16 02:54:38 PM
#14328   $VHMC .0025 Read 8K And DD. PENNYBUSTER 02/09/16 11:24:37 PM
#14327   $FDBL ~ The recent V-Day article identifies five Penny Roger$ 02/09/16 10:33:29 AM
#14326   $BCRX Took a Bath Today On This One PENNYBUSTER 02/08/16 09:33:46 PM
#14325   $AUY recent news/filings PENNYBUSTER 02/08/16 09:32:41 PM
#14324   $PPHM .88 recent news/filings PENNYBUSTER 02/08/16 09:31:56 PM
#14323   $FZRO ~ MACD trending higher >>> Penny Roger$ 02/08/16 01:52:34 PM
#14322   $PVHO ~ The additional 250 3D Savings Center Penny Roger$ 02/02/16 11:47:03 AM
#14321   $BCRX Grabbed at 6.90 End Of Day, $BCRX PENNYBUSTER 02/01/16 06:18:56 PM
#14320   $SXE Chart. PENNYBUSTER 01/31/16 06:27:24 PM
#14319   Watch for NERG to move up fast in techno53 01/31/16 04:02:12 PM
#14318   $SXE .50 have been given a consensus rating PENNYBUSTER 01/30/16 08:36:04 PM
#14317   $SRGL Source Gold: Our customers have the peace Penny Roger$ 01/29/16 01:27:16 PM
#14316   Sandridge $SDOC Houston-based Quantum Energy Partners has partnered PENNYBUSTER 01/27/16 02:42:05 PM
#14315   Enjoying the KOOL run! Big $$$ cjstocksup 01/27/16 12:52:57 PM
#14314   $KOOL Crazy move this morning. not sure why. PENNYBUSTER 01/27/16 12:52:11 PM
#14313   $SRGL Once the value of your gold is Penny Roger$ 01/27/16 12:33:06 AM
#14312   Jan 25 (Reuters) - SandRidge Energy Inc is PENNYBUSTER 01/26/16 07:12:29 PM
#14311   $ZINC .243 Bottoming Or Heading 2 Bankrupty? PENNYBUSTER 01/26/16 08:27:49 AM
#14310   Some oil tickers i'm watching here for swing PENNYBUSTER 01/24/16 03:29:40 PM
#14309   Take a look at the great DD here: Cabroncita 01/22/16 12:12:44 PM
#14308   $FDBL nice news -- Friendable Gets Glowing App fast.money 01/22/16 09:39:06 AM
#14307   $FDBL ~ The rise in the U.S. market Penny Roger$ 01/20/16 03:57:21 PM
#14306   $CRWG nice open. Bottom bounce in the making, fast.money 01/20/16 10:31:46 AM
#14305   $GASL 2.04 Chart. PENNYBUSTER 01/19/16 05:04:10 PM
#14304   $SGBY ~ Our consulting practice flourished in late Penny Roger$ 01/14/16 09:49:32 AM
#14303   $IMNP ~ Receives Consensus Rating of “Strong Buy” Penny Roger$ 01/14/16 09:49:14 AM
#14302   $TOWLF .3607 On Watch. PENNYBUSTER 01/13/16 08:17:51 PM
#14301   $FDBL CEO: "It's an honor to be recognized Penny Roger$ 01/13/16 01:17:20 PM
#14300   $GST 8K Filing-News Gastar Exploration Provides Updated PENNYBUSTER 01/12/16 11:38:16 AM
#14299   $HMGLF .42 Has Quietly Been Moving Up The Charts. PENNYBUSTER 01/09/16 01:27:38 PM
#14298   $SBFM Up Over 125% Since Our Newsletter Last Week! PENNYBUSTER 01/08/16 12:49:53 PM
#14297   $UPL Starting 2 Make Move Back Up Here PENNYBUSTER 01/08/16 12:44:11 PM
#14296   Grab Oil Stocks As They Get Hammered. $UPL PENNYBUSTER 01/06/16 07:59:41 PM
#14295   $FDBL ~ An expanded catalog of Virtual Gifts Penny Roger$ 01/05/16 03:54:18 PM
#14294   Bought More $UPL Today-Long. PENNYBUSTER 01/04/16 09:30:08 PM
#14293   $MMTS .0009 Low Floater On Watch In 2016. PENNYBUSTER 01/04/16 09:29:12 PM
#14292   $SBFM On Radar. Moving Nicely This Morning. PENNYBUSTER 01/04/16 10:50:40 AM
#14291   Shakeup in oil well ownership means big demand PENNYBUSTER 12/29/15 09:22:51 AM
#14290   $AXAS Kicks Ass Today As The Sector Gets Hammered. PENNYBUSTER 12/28/15 03:19:29 PM
#14289   $WLL Huge Drop Added At 9.05 Also Added PENNYBUSTER 12/28/15 10:56:26 AM
#14288   $GNPT Screw shareholders after the bell. I hope PENNYBUSTER 12/23/15 06:04:00 PM
#14287   $URHY Urban Cultivator revenue up 194%!; BC Northern Penny Roger$ 12/23/15 03:25:50 PM
#14286   $GNPT .0013 x .0014 Nice Volume On a PENNYBUSTER 12/23/15 02:26:47 PM
#14285   $WLL Here Comes The Short Covering! KaaaaaaBoooooooommmm!! PENNYBUSTER 12/23/15 12:28:46 PM
#14284   $WLL $BBEP Big Moves At Bell. PENNYBUSTER 12/23/15 09:37:37 AM
#14283   $GNPT recent news/filings PENNYBUSTER 12/23/15 05:54:36 AM
#14282   AMDA is forming a triple bottom near 52 jay95 12/22/15 02:07:50 PM
#14281   $EPAZ's BoxesOS provides many of the web-based applications fast.money 12/22/15 02:04:47 PM
#14280   $ARAH .001 Lotto http://www.reuters.com/finance/stocks/overview?symbol=ARAH.PK PENNYBUSTER 12/18/15 09:40:13 PM
PostSubject