option chains Advertisement Fidelity
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, BossLyf, jedijazz, RHJ~BT, Fa$tlane, SeccoTech
Search This Board:
Last Post: 4/24/2014 9:26:31 AM - Followers: 201 - Board type: Free - Posts Today: 3

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



 

PostSubject
#11686  Sticky Note Unusual Volume and Important News And Filings. Sign PENNYBUSTER 02/18/14 04:35:07 AM
#11496  Sticky Note Join Us On Our Facebook Group Page. PENNYBUSTER 10/04/13 11:36:06 PM
#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
#11900   LEEP, Inc. Files $31 Million Lawsuit Business Wire PENNYBUSTER 04/24/14 09:26:31 AM
#11899   Bakken Energy Corp Begins Negotiation to Buy Oil PENNYBUSTER 04/24/14 08:11:40 AM
#11898   $MYFT Chart.. PENNYBUSTER 04/24/14 07:00:08 AM
#11897   $GEVO Weekly Chart.. PENNYBUSTER 04/23/14 09:48:47 PM
#11896   $JMON .0001 x .0002 PENNYBUSTER 04/23/14 03:06:27 PM
#11895   $CSKH .001 Getting Hit!! PENNYBUSTER 04/23/14 10:05:46 AM
#11894   $POIL Pacific Oil Company Announced Intentions to Reactivate Fa$tlane 04/23/14 08:51:46 AM
#11893   ORFG Updated DD 04/21/14 PENNYBUSTER 04/23/14 06:38:40 AM
#11892   Singlepoint, Inc. Video! $SING http://www.moneytv.net/ Fa$tlane 04/22/14 02:00:12 PM
#11891   $MYFT .0006 x .0007 PENNYBUSTER 04/22/14 09:17:10 AM
#11890   $BRND .002 347M Traded Indicate the number of PENNYBUSTER 04/21/14 07:51:11 PM
#11889   $BRND THE NEXT LOW FLOAT MJ SUBBER READY PENNYBUSTER 04/21/14 10:22:25 AM
#11888   $CWIR Chart. PENNYBUSTER 04/21/14 08:42:07 AM
#11887   22nd Century Group Files $45 Million PENNYBUSTER 04/21/14 06:35:32 AM
#11886   $PCHM Under .03 Tiny Float. Tiny Outstanding Shares PENNYBUSTER 04/20/14 08:33:41 PM
#11885   your welcome PENNYBUSTER 04/20/14 06:00:10 PM
#11884   $MCIC just starting $ Going for FDA sirant 04/20/14 05:42:23 PM
#11883   That bull is the bomb lol.. thanx bro... BossLyf 04/20/14 04:52:52 PM
#11882   there is a start 4 u. i know PENNYBUSTER 04/20/14 04:50:26 PM
#11881   You're added.. happy easter BossLyf 04/20/14 04:09:53 PM
#11880   ok. when you find the information you want PENNYBUSTER 04/20/14 04:03:57 PM
#11879   Ok.. offer stands.. not sure how to work BossLyf 04/20/14 04:02:52 PM
#11878   happy easter sir. PENNYBUSTER 04/20/14 03:55:20 PM
#11877   U wanna mod this board?===> BossLyf 04/20/14 02:47:52 PM
#11876   Happy Easter.. PENNYBUSTER 04/20/14 10:33:24 AM
#11875   IGPK: Integrated Parking Solutions Inc. changed to Integrated PENNYBUSTER 04/17/14 07:59:10 PM
#11874   thanks :) PENNYBUSTER 04/17/14 02:08:37 PM
#11873   you should check it out PENNYBUSTER... juba22 04/17/14 02:07:09 PM
#11872   nice move there juba :) PENNYBUSTER 04/17/14 01:55:33 PM
#11871   $IGPK Moving Today. PENNYBUSTER 04/17/14 01:54:47 PM
#11870   busted a penny here SITS juba22 04/17/14 11:24:07 AM
#11869   Quasar's President Heading Back to Colorado QASP .0021 PENNYBUSTER 04/17/14 09:53:00 AM
#11868   Cephas Enters Bitcoin Peer to Peer Lending Business PENNYBUSTER 04/17/14 08:06:34 AM
#11867   The HIGHEST GAINING Penny Stock PENNYBUSTER 04/16/14 06:56:30 PM
#11865   PM ME SOME HOT PICKS... WILL PRAY TO Bugsy Seigle 04/16/14 12:05:12 PM
#11864   $CEHC Subber Bouncing Back Some This Morning.. PENNYBUSTER 04/16/14 11:05:21 AM
#11863   IGPK .195 Brand New MJ Stock Hasnt even PENNYBUSTER 04/15/14 06:29:36 PM
#11862   $ECDP Weisenbach Recycled Products will provide manufacturing and Fa$tlane 04/14/14 10:02:45 AM
#11861   Supreme Enters Into Negotiations for an Additional Medical PENNYBUSTER 04/14/14 08:15:22 AM
#11860   Hemp, Inc. Sets Record Revenues for First Quarter 2014 PENNYBUSTER 04/14/14 06:18:11 AM
#11859   $GVHIB Chart. PENNYBUSTER 04/12/14 05:22:03 PM
#11858   $MDCN Current Report Filing (8-k) PENNYBUSTER 04/11/14 03:21:12 PM
#11857   $FLST .0125. Watching in The Future To See PENNYBUSTER 04/11/14 02:16:09 PM
#11856   $GVHIB is Largely Unknown By Traders. No Volume PENNYBUSTER 04/11/14 11:59:02 AM
#11855   $CWIR Buying has just started again. On Watch Here. PENNYBUSTER 04/11/14 11:19:56 AM
#11854   $STBV's WazilloMedia.com is involved in the production of fast.money 04/10/14 09:48:35 AM
#11852   Medican Enterprises Inc. Signs Definitive Purchase Agreement Acquiring PENNYBUSTER 04/10/14 08:08:51 AM
#11851   "$LKEN INKtelligence™ is the first “no mess” inkjet jedijazz 04/10/14 07:57:50 AM
#11850   You can check out the $LKEN website here: http://www.greeneconcepts.com/ jedijazz 04/10/14 07:57:05 AM
#11849   More MMJ News Today, LKEN's CEO, stated: "HEMP-X.com jedijazz 04/10/14 07:48:55 AM
PostSubject