The best penny stocks from a list
Jul 30th, 2008 by Chris Braff
Having a list of penny stocks to invest in is great. But it doesn’t do to much good if you don’t know how to find the best penny stocks.
Finding the best penny stocks really isn’t that much different than finding the best stocks in the Dow Jones. It requires the same kind of research if you were investing in a penny stock as if you were investing into Google.
You want to know that the company you want to invest in has sound fundamentals. Look at all the balance sheets and income statements you can get your hands on. Obviously it’s best to invest in stocks in which the companies are already showing strong profits. Also keep an eye on their assets, its always nice to see them growing every quarter.
Another important aspect are the charts. Almost every penny stock breaks a major resistance point before it bursts. You have to keep an eye on that.
Another thing to notice is the news. News reports on a company can turn a small company into a big one overnight. One day, they are unheard of the next day, they are the toast of the town, and more importantly the media.
Another important factor is the whole idea behind the company. Ideas, by themselves are sometimes are a bigger factor in stock movement than anything else. Many large cap stocks got to where they are just by having an idea that really clicked with the public.
I know it’s tough having to go through all these factors, especially considering that you have a big list of penny stocks that you have to research. Thankfully for all us, there is software that has made process a lot simpler.
The developers who created the software have started an excellent newsletter service where they make stock picks based on the criteria above. The software makes about 4 or 5 penny stock picks a month and has an excellent track record.