Cheap Stock Picks
Cheap Stock Picks
One particular relatively easy approach for identifying excellent penny stocks is what I call the Focus
Strategy. This process involves focusing on a single specific share and firm. The goal is to obtain as
familiar as possible with all elements of the a firm that could reflect positively or negatively on
You see, the far more intimate the details and data you've about a organization and its commodity, the
better your chances of finding potentially profitable situations.
Here are some questions you should ask and elements you want to consider when researching
- Could be the share on a beneficial penny commodity industry? Nasdaq SmallCap and AMEX require
regular reporting to shareholders, while Pink Sheet and OTCBB exchanges are less transparent and
- Does the firm have a solid business plan and excellent financial numbers? Are they lucrative or are they
losing dollars? What are their forward looking expectations.
- Is there any current bad press about the corporation or management? This is not a automatic deal killer
but it absolutely counts.
- Exactly how does the business make dollars? Are their solutions and/or companies in a growing market
- Are their solutions and/or providers positioned in expanding markets.
- Did the firm make any new developments or discoveries within the last five years or so?
- Review any current hype the firm may perhaps be spinning.
Subsequent, you will filter and analyze all this information. The decision to trade will result from positive
impressions you get from your analysis. Like most other processes, you might tend to have superior at
this as time goes on.
On the other hand, you will discover a couple of disadvantages that come with making use of this
technique. It requires lots of your time and attention. It also limits you to working with only 1 to three
penny stock companies during any given period of time. Any a lot more than 3 and you could easily