Penny stocks anyone?

[steve 10]

I'm looking to invest in penny stocks. Anyone have any stock tips? Hot stocks on the market?

 

 

Thanks,

Steve

[Soultrader 12]

Steve, I have mentioned this to another member on the forum looking for tips and advice on a stock.

 

Please look here: http://www.traderslaboratory.com/forums/f25/adsx-nasdaq-1234.html#post6296

 

We are not a forum to provide stock tips like "Buy stock ABC now!". We focus on sharing and helping traders improve as traders. The forum philosophy is learn to trade or be the sucker! I hope it makes sense.

[Nick1984 10]

Dont buy into the penny dreadfulls if your wanting to trade actively. The volume on these stocks is very weak so getting out may be a problem. I've usually found that it's better to hold on to them for a long time and let the price advance on its own if the fundamentals are right.

 

For the penny's i look at the fundamentals of the company. Its P/E, Div ratio, Board of Directors etc. cause if these companies dont perform they are doomed.

 

As for searching I search out by sectors first then narrow it down to specific companies. My critera is usually to have the stock at a minimum of 30c and a maximum of $2 per share with a minimum turnover of $120,000 a day on average.

 

Have your own set of rules in picking these stocks and make sure you do your homework cause you can loose a lot of money very fast, especially in Biotech stocks and Mining stocks.

[dalby 10]

my best investment ever (on a %age basis) was a (former) penny.

 

JSDA

 

got in when it was an OTC. is now in the 20's.

 

so, i'll always have a soft spot. but the fills etc. are RIDICULOUS. imo, spread it around (don't put too much into any one issue), and accept the volatility and games associated with them.

 

i totally agree that trading them actively can be very difficult

 

as somebody who trades CBOT, which has complete transparency and no MM games, pennies are another game entirely

[torero 10]

CYPO CyPost

 

Pardon? What does this mean?

[Kiwi 16]

Looks like a hot tip to me ... suggest these guys get the message that a repeat will result in banning (or something similar).

[torero 10]

If it is, then there's no place for pollution here. One more of that, we'll nip it quickly.

 

Please be advised, heluvamoo, that we expect more constructive and informative content and not frivolous tips. This site is not a hot tip hotline.

[Josiah 10]

The moderators are well founded in preventing "tips", as they say facts are better than tips. The point is that going the penny stock route is like going into a life of crime, you'll always going to have to "watch your back" (i.e. monitor stocks constantly), and "trust no one" (i.e. these stocks are quite volatile). That being said, if you have money to lose I reiterate "money to lose" invest in stocks traded on the Nasd owned OTCBB (http://www.otcbb.com). Invest only in stocks that provide timely sec filings. Also watch out for the fifth letter, example dalrq (the q means they are in bankruptcy). Here is a link on fifth letter designations: Fifth Character Identifiers .

If you want to make money make sure you always, I repeat always, look at the financials (financial statements) before you buy a penny stock. If you are just blindly speculating on stocks it's like playing the lottery.

[Josiah 10]

Also, one more thing, volume. Make sure, since you are starting out, that the stock you invest in has an average volume of around 1 million shares. This way you are ensuring that if you take a "hit" you will be able to liquidate your position. Good luck!

[wsam29 10]

My experiance with penny stocks is their technical patterns of accumulation are very easy to identify, the problem is finding them because there are soo many.

[Nithy 10]

My Experience with Penny stock is to use some of the stock prediction websites and after acquiring complete knowledge on the stock position. I shall start with it.

Edited August 5, 2008 by stanlyd
promoting other sites

[Nick1984 10]

Good luck to you on that play Nithy. Don't you find that by the time you've paid someone else to do the thinking for you, and then read everything they have to say the best positions are already gone?

 

Save your money and learn to analyse stocks yourself!

[Nithy 10]

Good luck to you on that play Nithy. Don't you find that by the time you've paid someone else to do the thinking for you, and then read everything they have to say the best positions are already gone?

 

Save your money and learn to analyse stocks yourself!

 

Thanks Nick,

 

Sure I myself will follow your words to analyze stocks, But suggest me how to gain better knowledge about it.

 

Thanks in advance.

[john.potter 10]

Australians Are legendary for chasing penny stocks, and I do mean Pennies, one family buys old defunct ASX registered companies and rebirths them into whatever is fashionable at the time, This is cheaper than doing IPO's they have never had a company fall over on them yet.

 

The last one was 2 months ago it was an Asian telephone company registered on the ASX and they gave it an Indonesian Iron ore mine, it opened at 2 cents and it is now 3.5 cents 75% in two months

 

In November 2007 They re-birthed a dental prosthetics company into an Indian Iron ore mine and it has gone from 2 cents in November 07 to 10.5 cents Today.

 

They also re-birthed a central Australian uranium play for 2cents that is now worth 27 cents since November 06 a 13 and a half bagger.

 

You must have Re-birther's there also, Look for them and see if the same family names keep popping up

 

If the Administrators of this forum doubt my word send me an email to my Australian email address and I will name 5 companies that you can very quickly verify have all made large amounts of money for their share holders and were all set up by this family in the last few years

[China Doll 10]

Hi John, I would be very interested in the names of the 5 companies. I

[john.potter 10]

Hi China

 

With my post it was my intention to pass on a strategy to forum members who may not have thought of it.

 

It was not my intention to invite everyone back to my personal fishing hole, or to make any stock purchase recommendations.

 

Obviously the more people that are watching this particular group of business people, the lower is my chance of getting on board at the beginning of the cycle. That was why I did not publish the names of the companies concerned.

 

Since that post the Oz market has dropped another 20% and I have been stopped out of my portfolio completely (with a reasonable profit in the majority of cases) and I am basically shorting CFD's while I wait for the market to turn around so my favourite board members can "do it all again".

 

Once the market turns there will be good money to be made in the bluechip stocks , not as good as speccies but much safer. for the meantime, shorting is the only game in town.

[brownsfan019 17]

Interesting post John. If the company has a history of resurrecting pennies, seems like a great deal!

[Ivano 10]

Just take the money to the casino, you'll have better odds

[johnhunt3055 10]

Hello, My friend is thinking to invest in the penny stock market but he didn’t' have enough information like on which part he should invest on.. I have only little information about the penny stock which I read from the internet but looking for some good and to the point information.