Stock Markets Exposed
penny stocks?
Is it a good time to invest in penny stocks and if so where can I find information about available stocks and how do I know which stock to buy?
Public Comments
- In my opinion, penny stocks are never good investments. The only people who have any real success with them are those who make markets in them (check out the firm Hill Thompson Magid), otherwise any type of gain you make from them is negligible and the success ratio with them as opposed to small-large cap companies is a lot lower. I'd recommend staying away from them at all costs; they're only trouble for individual investors.
- never is
- Investing in penny stocks is a good idea. Don't let these naysayers try to dissuade you. The thing about it is you have to do three times the research to find a good company than you do if you are buying and holding (read: boring...) an established blue chip stock with proven fundamentals. I have found that companies that are trading around thirty-five cents to a dollar move pretty well. Once they come on the radar screens of the more major investors, like funds, they spike up and then trade sideways for a while. The best thing to do is find companies trading in that range that are making new 52-week highs, even though the big boards have been beaten down. Make a list of these stocks and research them as much as possible. Remember, no research information, no investment. The more you know about the pennies, the better. For information on pennies making a new 52-wek high, you can go here... http://stockcharts.com/def/servlet/SC.scan Then click on the first list, Making New 52-week Highs. Look in NASDAQ and AMEX. Here, for instance, is Proton Labs (PLBI)... Proton Laboratories, Inc. was incorporated in February 2000, in the State of California. They are importer and master distributor of functional water systems that are manufactured by Matsushita Electric Corporation of America. Proton Laboratories utilizes functional water intellectual property under licensing agreements. The Company consults on projects utilizing functional water. The Company is a provider of systems that produce functional water, also called electrolyzed water or functional electrolyzed water. Functional water is water that has been restructured through the process of electrolysis. They have 15 distributors. Proton Laboratories market functional water systems to the residential and commercial markets. For the residential market, they market functional water systems that are used to produce a health-beneficial, alkaline-concentrated drinking water. For the commercial market, they market commercial-grade functional water systems that are used in applications ranging from food preparation to hospital disinfection. They have 3 full-time employees, of whom 2 are in management. Here is where to find that information: http://www.marketwatch.com/tools/quotes/profile.asp?siteid=bigcharts&dist=bigcharts&symb=PLBI&sid=1714314&time=5 Now, I am not sure what "functional" water is and I don't think it is necessarily a good idea to have an alkaline body (in fact, I think the opposite is true...). All I do know is that the stock has moved up 10.24% just today and the chart says it will continue to move up for the near-term future. See, you can buy on momentum and bail out of the stock with ten percent gains in a day. Wow, you say. Not that much. Do that every day week after week and year after year and pretty soon you're talking about some serious money. Granted, it is difficult to do that in this trading environment. Get a practice account and paper trade to get the hang of it. When the markets turn around and money is flowing back into stocks, this method is like shooting fish in a barrel. Best of luck to you!
