Penny Stocks
You can make a Ton of Money buying Penny Stocks!A Penny Stock is a stock that trades for under $1. Penny stocks are extremely volatile. It’s not unusual for a Penny Stock to go up over 50% in 1 day. Not unusual at all!
There are all sorts of reasons why a stock will trade for under $1. The most common is because a company experiences ongoing financial hardship and the stock price drops continuously until it’s under a Buck.
The best place to find Penny Stocks are the NASDAQ Over The Counter Bulletin Board (OTC BB) exchange, Pink Sheets and the Toronto Venture Stock Exchange. Most Online Stock Brokers e.g. Schwab, Fidelity, Scottrade will allow you to buy these stocks through them. Finding penny stocks can be an arduous task (there are so many) and I suggest using the Yahoo stock screener for NASDAQ OTC BB and Pink Sheet Penny Stocks and the Globeinvestor stock screener for Toronto Penny stocks. When using a stock screener, set the price to be less than $1.
HERE’S WHY YOU SHOULD BE INTERESTED IN PENNY STOCKS:
Penny stocks lack the liquidity for the institutional players (Banks, Mutual Funds, Hedge Funds). Big Institutions have lots of money and they need Liquidity to put their money to work. Liquidity means the capacity to buy a lot of stock in a company without moving the price. Someone who places an order for $1 million in a Penny stock will probably DOUBLE the price before the order is completely filled. As a result, institutions leave Penny Stocks far alone.
That’s good news for us individual investors because it means there are a lot of GOOD Penny Stocks with excellent prospects that are completely NEGLECTED by the institutions.
RIGHT NOW!
One excellent industry to look for Penny Stocks at the moment is the Natural Resource or Commodities area e.g. Gold, Silver and Oil. Resource stocks have gone through over 20 years of declining prices. Resources have been so out of favour amongst investors that, until recently, major mining stocks drifted from $50 or $100 in the early 1980’s to under a Dollar. That’s what a serious 20 year BEAR market can do. Now with the price of Gold, Silver, Oil and other commodities rising again it may be an excellent time to pick up these bargains.
For a SMART investor willing to do his or her homework, investing in Penny Stocks can be EXTREMLEY rewarding. Remember, companies like Microsoft and IBM were also once Penny Stocks!
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Industrial Biotechnology Corporation, (IBC), (Pink Sheets:IBOT) announced of using Ethanol Chemicals ALCHEMx Production Platforms(TM) to produce eco-efficient and cost effective chemicals utilizing renewable resources as an alternative to petroleum. And the stock has rose by over 20% in the last 1 week. Can any one advice me is this really a fundamental story.
Industrial Biotechnology Corporation, (IBC), (Pink Sheets:IBOT) has now announced to use Ethanol the Chemicals ALCHEMx Production Platforms, through which they can convert sugarcane based ethanol to ethylene at a very low cost and also doesn’t result into effect on the environment.. Will this have any positive effect on the company’s long term business??
Market has not yet discounted the positive news for the industry in which SRCO.OB is .The stock seems to me strong fundamental as they are expecting more and more borrowers for their financing motorcycles and scooters due to continuous rise in the oil prices.
What do you guys think about SRCO.OB, national provider of consumer finance solutions to the Powersports industry considering the rise in oil prices and increasing demand for financing scooters and motorcycles?
It looks like that SRCO.OB will sooner going to rich new highs as the stock has seen huge volume as well as their business is getting momentum due to positive impact on the serving industry (Powersports) due to scary rise in oil prices.