Smaller and new companies and companies that have challenges in the areas of earnings, sales, debt and liquidity often offer penny stocks. Penny stock is the term used to describe stocks not generally traded on the major markets and which trade for less than $5.00 a share. Since penny stocks are not held to the same rigorous listing, filing, and regulatory standards, finding credible and unbiased information about them can be challenging. The information that is readily available from blue chip and established companies, including annual reports, quarterly earnings reports and information about debt and liquidity are often hard to find when dealing with companies offering penny stocks.
There are a number of online web sites that offer research and information about penny stocks. You can use this list of hot penny stocks to begin your research on the company. These sites analyze market trends, survey consumer purchasing data, and help fill in the gaps about these company’s financials. Penny stock investors should use this list of penny stocks to begin their own research. These lists also give investors an opportunity discuss investment opportunities and view successful investor portfolios. You should compare these investor’s earnings against the list of penny stock and see where the profits and losses collide.
Once you have identified some potential investment opportunities, you should begin your own research. Third party sites like Google Finance and Yahoo Finance can offer comprehensive advice. You should have a solid understanding of the company’s business model and financial statements. Make sure you understand how to read a balance sheet. When looking for information about a company, look closely at the profits and earnings, debt, liquidity, and assets. When you look at the company’s historical data (if available), you should see sales increase and debt decrease.
Penny stock lists can be highly speculative. In fact, investors should be wary of analysts and marketers artificially inflating the value of the stock. Many companies hire and pay investors to purchase and write about their stock, artificially raising the price of the stock in the short term. Stock advice and tips that come unsolicited via email or social media are highly suspect Use the list of penny stock as suggestion and jumping off point, and only use lists from companies and sites with proven records.
Since penny stocks are not traded on major market exchanges, they can be hard to find and research. Using a list of penny stocks and doing your own research to get a true picture of the company’s current finances and growth potential can help create an investment strategy. Diversification is important, so your penny stock list to identify companies in a number of areas, industries, and companies.
Penny stock investment is not for every investor. For those investors with a high tolerance for risk and the potential rewards they can bring, penny stocks can play a lucrative role in your investment strategy. Finding a list of penny stocks is a good first step in finding and researching viable penny stocks.
CL King & Associates is Uncovering Hidden Investment Opportunities Since 1972. We provide investment banking, equity research, sales and trading, and investor services to corporations and institutions.
C.L. King takes a rigorous approach to financial advisory and M&A assignments based on years of experience, the latest finance theory, and comprehensive valuation insights gained from being an active broker-dealer in securities markets. In addition to valuation, our team provides financial and strategic analysis to identify key transaction partners and the right deal structure.
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