Ball8, just some info about Pink Sheets
A lot of due diligence, a lot of patience and a pinch of luck!
While the lack of comprehensive information may make it difficult to find good stocks on the Pink Sheets, there are many advantages to picking your stocks investment from here:
• It’s cheap – Have you ever heard of a stock that’s trading for as low as $0.0001? Yes, that’s right, we didn’t over add zeros here. It’s ridiculously cheap but true. For you, this means that you can easily buy more shares, and if you happen to buy into a good company then you’re on your way to earning a lot from your investment.
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Many of the companies have huge growth potential – Most startup companies choose to trade on here because they are too small to comply with the reporting requirements of the SEC. Microsoft started here, and so did many of the companies that you see on the big boards right now. The startup companies, over time, will expand and grow, and then graduate to the major stock exchanges. If you own a stock that is in a staple or high demand industry and has a unique product and you hold on to that stock for the next decade, you’ll probably be a rich investor years from now.
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Stocks can appreciate very quickly – Some stocks rise by as much as 6000% gain. Depending on the company’s market demand and its ability to meet that and future demand, its stock prices may zoom at a speed that will be dictated by how the market – and the investors – respond. It takes a very keen eye to be able to discover jewels from the thousands of companies from the Pink Sheets, but it is possible to make huge money if you know which ones to pick.
While there are advantages, there are also disadvantages.
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Stocks can depreciate just as quickly as they can appreciate – Bad news has a way of affecting stock prices, and if an industry suffers a setback or crisis, it is inevitable the companies in that industry will be affected.
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Some stocks can go without any activity for long periods – This is called being thinly traded, where stock prices stay flat for a long time. If there is not much activity within the company and in the industry, or if the industry itself is in a slump, then there won’t be much activity on the company’s stocks.
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