Thu, 19 May 2011

2:59 AM - Penny stocks - Hot Penny Stocks in a Free Penny Stock Newsletter

Investing in a penny stock company can be a great addition to your portfolio. To make wise decisions about which penny stocks company to invest in, there are many factors to research. Start by digging up every available detail regarding the company's financial history. Openly traded companies will have readily available details about their finances. Look for a company with solid investors, at least a couple of continuous months showing growth in profits, and, of course, minimal debt. A poor investment choice would be a company displaying excessive debt, lacking investors, or no financial records.
A free penny stock newsletter is a great way to find out about interesting stocks. Always make sure to research the following questions on your own, and don't base all of your decisions on information from a single source. In addition to knowing the financial history of the company you want to invest in, research the industry they are operating within. What is its growth potential? Who are the customers and investors? What makes the company better than its competitors? In order to strike gold with penny stocks, you are looking for a relatively unheard of company that has boundless potential.
Management is the best indicator of whether a company will succeed or not. Check out the manager's reputation within the industry, research employee satisfaction and turnover rate, and look at other companies managed by the same personnel. No matter how much potential a company may have, if the management is not up to the task, or the company is going through perpetual employee turnover, the company will not succeed.
To make the best decisions for your portfolio, it is important to take all advice with a grain of salt and to do your own research. The stock market is never a sure thing and even hot penny stocks come with potential risks. If you can find a company with all of these positive factors before anyone else has gotten wind of their impending success, strike while the iron is hot! You have most likely found yourself a solid investment that will pay you back in dividends.
Penny stocks can sometimes show 300% returns in just a few hours, leading to huge gains for investors. To win big from penny stock investments, formulate a plan for when you want to sell and how much you're willing to lose, then watch your investments closely and be prepared to act quickly.

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