Saturday, December 28, 2013

Why Investing In Penny Stocks Or Low Single Digit Stocks Of Companies That Do Over 100 Million Dollars In Annual Sales Is Usually A Good Idea'



I will try and make this as simple as possible. Investing in penny stocks or low single digit stocks that have sales around 100 million dollars a year or higher is a good idea for several reasons

First the larger a company is thehigher the likelihood that their going to have a more diverse line of products or services. A great example of this might be say a comapny that does 20 million dollars a year in sales and the only product that they make is mops and buckets. The success or failure of the  business will depend on how good or bad the market for mops and buckets does. If theirs a price war between all the companies engaged in the mop and bucket business thats going to be really bad for business. If theirs a fire at the companies one and only  manufacturing facility and they have to shut down for three months thats going to be really bad for business. Say because the company is so small they are very heavily dependent on one or two companies for a very large percentage of their sales. Say walmart is their largest customer. Walmart makes up 40% of their annual sales. Thats 8 million dollars out of 20 million dollars in annual sales. What if one day walmart tells the company that they buy all their mops and buckets from hasta la vista baby. That will be very bad for business indeed. So you can see why favoring larger companies over smaller ones can give investors such a big advantage. Now what if the company was much larger and more diverse say not only did they have a manufacturing facility where they made mops and buckets they had a manufacturing facility where they made cleaning chemicals for commercial cleaning. They owned a manufacturing facility  where they made hand soap. They also owned a  manufacturing facility that made filters for commercial use
Another example might be a food service company with a  very small chain of fast food locations say they have just five locations and do 15 million dollars in annual sales. Say one of their locations has a fire and is not reopened for nine months think of the impact that will have on the compamy. But lets say that the company had 30 locations and did 90 million dollars in annual sales and their was a fire at one of their locations and they were not able to reopen for nine months because they have 30 locations  the impact on the compamy is much less because that location makes up only  3% of their annual sales. Now we are not talking about a companies doing billions of dollars in anual sales these companies might be doing say 130 million dollars in annual sales. Its still a small company but not so small that a lack of diversification could do them in.

Some Excellent Resources On Penny Stocks


Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


Red Chip Companies


Small Cap Strategst

Why Investing In Penny Stocks Or Low Single Digit Stocks That Trade On The New York Stock Exchange Or Nasdaq Is Well Advised'


This one's a no brainer. While their are penny stocks and low single digit stocks  that trade on the over the counter bulletin board and the pink sheets that may be attractive investments in some cases. Its always better to favor penny stocks and low single digit stocks that trade on the nasdaq or the new york stock exchange first simply because the requirements to qualify to be listed on these exchanges is far more strict than the requirements to be listed on the over the counter bulletin board or pink sheets. A great example of this is all companies trading on nasdaq and the new york stock exchange must be registered with the securities commision thats the SEC. This means that they must file financial statement such as 10Q'S and 10K'S. 10Q'S are quarterly reports 10'KS annual reports. Because of the more stringent listing requirements on these exchanges the quality of the  penny stocks and low single digit stocks that trade on these exchanges tends to be of better quality than for stocks listed and trading on the over the counter bulletin board and pink sheets. As a result the level of  risk  for penny stocks and low single digit stocks trading on the nasdaq and new york stock exchange is generally lower than for the stocks that are listed and trade on the over the counter bulletin board and pink sheets. Another factor working in favor of stocks trading on the new york stock exchange and the nasdaq is they are getting better exposer being listed  on a major stock exchange unlike stocks that trade on the over the counter bulletin board and pink sheets.


Some Excellent Resources On Penny Stocks

Penny Stock Investing Newsletter 


Manhattan Calumet Value Stock Hotline


Smallcap Strategst

Red Chip Companies

Why Generally Avoiding Most Of The Penny Stocks Or Low Single Digit Stocks Trading On The Pink Sheets And the Over The Counter Bulletin Board Is Usually A Good Idea'


I always like to stress to penny stock investors and investors in low single digit stocks. First focus on stocks that trade on the nasdaq or the new york stock exchange before venturing into stocks that trade on the over the counter bulletin board or pink sheets. The reporting requirements and other criteria required to qualify to be listed on the nasdaq and new york stock exchange are a lot stricter than for stocks that trade on the pink sheets and the over the counter bulletin board. As a result the quality of the penny stocks and low single digit stocks that trade on these exchanges tends to be a lot better than most of the penny stocks and low single digit stocks trading on the over the counter bulletin board or pink sheets. Be especially careful when it comes to stocks that trade on the pink sheets. Companies trading on the pink sheets are not required to be registered with the sec this means their may not be any financial statements or other financial material that is easily and readily available to investors in these stocks. You can determine where a stock trades by simply asking your stock broker.


Some Excellent Resources On Penny Stocks

 Penny Stock investing Newsletter


Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Friday, December 27, 2013

Why It Is So Very Important To Avoid Penny Stocks Or Low Single Digit Stocks That Do Not Have Financial Statements That Are Up To Date.


Here is yet another  obvious piece of advice that those investing in penny stocks and low single digit stocks should heed. Never buy shares of stock in a company that has financial statements that are not up to date  All companies that trade on the new york stock exchange and the nasdaq must file financial disclosure statements with the sec. Theirs 10QSs 10'k'S. 10Q's are quarterly reports 10'KS annual reports. Theirs also a lot of other financial  statements that companies registered with sec are required to file. In some cases companies fall behind in the filings for a variety of reasons. Regardless of the reasons their financial statements are not up to date does not matter why would anyone want to buy shares in a stock that has financial statements that are a year old. If I have no idea how a company has performed over the last twelve months why in the world would I even consider buying the stock.
Some companies especially companies that trade on the pink sheets or the over the counter bulletin board are not even required to be registered with sec.


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Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Why Avoiding Penny Stocks Or Low Single Digit Stocks That Are In A Business Area That Is Becoming Outdated Is Very Important'



Now here is a simple thing that just about anyone investing in penny stocks or low single digit stocks or really any type of stock can realize fairly easily. Stay away from any stock in any company that has a product or service that is in the process of becoming obsolete. A great example are newspaper companies the chicago suntimes the chicago tribune the newyork times. Newspaper companies are becoming  dinosaurs with the event of the internet theirs no need to have a newspaper delivered to your doorstep when all of the news that you want and more is just one click away on a computer at home. Blockbuster is another great example Theirs no need to leave your home to rent a movie from blockbuster when its far easier to just order a movie on demand on your cable tv. You think anyone would be interested in buying stock in a company that makes envelopes with the event of the internet its much easier to just send someone a email than to mail them a letter.

Some Excellent Penny Stock Resources

Penny Stock investing Newsletter

Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Why A Total Lack Of Popularity Of A Penny Stock Or Low Single Digit Stock Can Be A Great Time To Buy The Stock'



I am a value investor that is I am always looking for stocks that are worth more than the price their trading for simply stated. One of the keys to being a successful value investor when it comes to investing in penny stocks or low single digit stocks is finding stocks that are very unpopular. The less that I hear about a stock that I want to invest in the better. When a stock is always in the news its going to be way to popular to be an attractive investment. Its most likely a overvalued stock not an undervalued stock and its certainly not a good time to buy the stock. Apple is a good example the stocks in the news every single day analysts talk about the company all the time morning noon and night. The key to making money in stocks is avoiding the stocks that are the most popular. Most investors do the exact opposite they buy the stocks that are large household names like apple that all the analysts are raving and ranting about the most and totally overlook some great value stocks that are great investment opportunities that are very unpopular smaller lesser known companies that maybe are not even followed by any analysts and are rarely mentioned  in the business news. A stock is rarely going to be a great value stock if it is highly popular.


Some Excellent Resources On Penny Stocks

Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Why Low Volume In A Penny Stock Or Low Single Digit Stock Can Be A Good Iindication That The Stocks Undervalued'



This is a characteristics that I love to see in a stock' low volume. volume is the number of shares that are traded on any given day.For example say a company has ten million shares outstanding thats all of the shares that are issued and owned by shareholders that exsit. Say that the daily volume is just five or ten thousand shares a day. That would indicate that there is little interest in the stock. That would either mean the stock is unpopular or unknown to very few investors. Or that the companies performance has been lackluster and their are very few investors that are interesed in buying or trading the stock. Low volume could mean that its an excellent time to buy the stock. You could be getting into the stock of a company ahead of everyone else.


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Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Why A lack Of Analyst Coverage Of A Low Single Digit Stocks Can Actually Be Bullish Sign For The Stock'



Now lets talk a little about a topic that few investor ever realize concerning the stocks they own.When a stock is very popular very well covered by analysts. Theirs very little about the company thats  not going to be in the news. Every single earnings release every little piece of news concerning the company every new product development is going to be reported upon on tv or elsewhere.  News about large multinational companies  is always in the news.

Its often  exactly the opposite when it comes to news concerning a penny stock or low single digit stock. Because most main stream analysts do not follow penny stocks or low single digit stocks. Any news that does come out concerning a penny stock or low single digit stock is not nearly as likely to be on the nightly business news. But once a stock breaches the five dollar mark than  the analysts  may start to take notice. If the company is performing well this could give the stock a big price boost. Thats why I always recommend that investors never bailout of a stock  when it rallies from say 2 dollars to 5. If the company of the stock is performing well their could be much larger gains to come.

Some Excellent Resources On Penny Stocks

 Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Why Do Large Investment Research Firms Rarely Recommend Penny Stocks Or Low Single Digit Stocks'


Most large research Investment firms will not even cover a stock that trades below 5 dollars. Generally speaking penny stocks or low single digit stocks are considered to be of to poor a quality to recommend as a  investment by most large research investment firms  In many cases stocks trading below 5 dollars are not even covered or followed by any analysts.



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Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Thursday, December 26, 2013

Why Carefully Selected Penny Stocks And Low Single Digit Stocks Can Have Such Great Potential Compared to Other Stocks'


Now lets compare the universe of penny stocks and low single digit stocks with more conventional stocks. If we are talking about a well known stock thats a household name theirs going to be a ton of analysts covering the stock so theirs going to be very little thats not known about the company. This is more of a negative situation than a positive situation. Unlike penny stocks or low single digit stocks many of which tend to be thinly covered by analysts. This can give investors in these stocks a great advantage. The simple reason if the stock is thinly covered by analysts theirs bound to be some things about that stock that few investors are aware of.

Most research Investment firms will not even cover a stock that trades below 5 dollars. Generally speaking penny stocks or low single digit stocks are considered to be of to poor a quality to invest in by most research investment firms so  in many cases stocks trading below 5 dollars are not even covered or followed by any analysts.

So why is it that penny stocks or low single digit stocks have so much greater potential than more conventional  stocks. Size matters many of the largest well known household names that most everyone is familiar with today were at one time small unknown companies. Walmart for example was once a very small unknown company so was Mcdonald's. The really big gains in these stocks were made many years ago when they were very small unknown companies. Once the stock of a company becomes a household name the really big gains have already been made. Its discovering and investing in the stock of  a company with excellent prospects when its a small unknow company that will lead to huge gains in the stock price.

Some Excellent resources on penny stocks

Penny Stock Investing Newsletter

Manhattan Calumet Value Stock Hotline

Red Chip Companies

Smallcap Strategist

The Get Rich Quick Notion Concerning Penny Stocks


Now here is a question that so many investors ask when it comes to buying penny stocks or low
single digit stocks Can someone really make it big investing in penny stocks. The answer is yes but not overnight or in just a few months. More likely than not it will take some time before you will realize large gains in a penny stock or a single digit stock that you have invested in. My time frame is anywhere from 1 year to 5 years. Now this may see like a long time but when you think about it its really not that long. Im not a trader that is Im not going to be trading in and out of a penny stock or low single digit stock. The method I use to identity a penny stock or a low single digit stock that I find attractive  to invest in will enable me to make potential gains of five times or more on my money in some cases ten or fifteen even twenty time my money on a penny stock or low single digit stock over a period of one to five years. I will not invest in a penny stock or lo single digit stock unless their is the potential for really huge gains in the stock.

One of the biggest mistakes investors make when investing in penny stocks or low single digit stocks' is bailing out of a stock to soon. Sure you may be thinking I purchased a penny stock or low single digit stock for 1 dollar now its trading at 3 dollars time to take some profits right wrong. Theirs no reason why a penny stock or  low single digit stock carefully selected cannot  appreciate much further. If the stock is really undervalued it could easily go to 10' 15 even 20 dollars a share or higher in some cases. So do not be so ancy to jump out of a stock because it has seen some nice gains. If you believe that the future prospects remain bright for the company than you should be in no hurry to bail out of the stock.


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 Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


Smallcap Strategst


Red Chip Companies

Monday, December 23, 2013

Biggest Misconception Concerning Penny Stocks And Low Single Digit Stocks




Biggest Misconception Concerning Penny Stocks And Low Single Digit Stocks

Now this  one always takes the cake with me I hear it again and again on TV its like a broken record. Theirs no large multinational companies that once traded around  5 dollars a share oh no' what about AMAZON thats a stock that traded at just 6 dollars a share today its trading at 375 dollars a share. Another great example is PETSMART. Oh yes im sure everyone has heard about PETSMART by now alright. But how many of them are aware that the shares of PETSMART traded a just 3 dollars a share in 2000. Today the shares of PETSMART trade at 83 dollars. And here is yet another example RITE AID stock traded at 28 cents a share today the shares are around 8 dollars.

Here are a couple more stocks  that traded below 5 dollars not to long ago  the shares of WESTERN REFING traded as low as 4 dollars just five years ago today WESTERN REFING shares are trading around 50 dollars.

LITHIA MOTORS  shares traded for just 3 Dollars a share today the shares are at 98 dollars.


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Overview Of Penny Stock Investing



This blog is designed to help those investors that are new to investing in penny stocks
I have been investing in penny stocks and low single digit stocks for many years.

I will outline some of the basic do's and don'ts when it comes to investing in penny stocks
and low single digit stocks in this blog. I will also try and address some of the biggest misconceptions that many investors have concerning {low Single
Digit Stocks}{That's Stocks That Trade  Between 1 Dollar And 5 Dollars} {Penny Stocks} {That's Stocks Trading Below 1 Dollar}

The real key to being successful or unsuccessful investing in penny stocks or low single digit stocks
is knowledge or  a lack of knowledge. Its not luck as you will see. Once you become aware of some of the greatest pitfalls that way to many investors make when investing in penny stocks and low single digit stocks. Than you will be well on your way to becoming a  successful investor in penny stocks' and low single digit stocks. Here is a list some some of the topics and the biggest misconception about penny stocks and low single digit stocks that I will cover in my posts

Greatest Misconception  Concerning Penny Stocks Or Low Single Digit Stocks' Their Are No large Multi Billion Dollar Companies That Once Traded Under 5 Dollars A Share'

 

The Get Rich Quick Notion Concerning Penny Stocks'


Why Carefully Selected Penny Stocks And Low Single Digit Stocks Can  Have Such Great Potential Compared to Other Stocks'


Why Do Large Investment Research Firms Rarely Recommend Penny Stocks Or Low Single Digit Stocks'


Why A lack Of  Analyst Coverage Of A Low Single Digit Stocks Can Actually Be Bullish Sign For The Stock'


Why Low Volume In A Penny  Stock Or Low Single Digit Stock Can Be A Good Indication That The Stocks Undervalued'


Why A Total Lack Of Popularity Of A Penny Stock Or Low Single Digit Stock Can Be A Great Time To Buy The Stock'


Why Avoiding Penny Stocks Or Low Single Digit Stocks That Are In A Business Area That Is Becoming Outdated Is Very Important'


Why It Is So Very Important To Avoid Penny Stocks Or Low Single Digit Stocks That Do Not Have Financial Statements That Are Up To Date.


Why Avoiding Penny Stocks Or Low Single Digit Stocks Trading On The Pink Sheets And the Over The Counter Bulletin Board Is Generally A Good Idea'


Why Investing In Penny Stocks Or Low Single Digit Stocks That Trade On The New York Stock Exchange Or Nasdaq Is Well Advised'


Why Investing In Penny Stocks Or Low Single Digit Stocks Of Companies That Do Over 100 Million Dollars In Annual  Sales Is Usually A Good Idea'


Why Investing in  Penny Stocks Or Low Single Digit Stocks Of A Larger More  Diversfied Company Is Usually A Safer Bet'


Why A Very Low Price To Sales Ratio Could Be The Most Important Factor When Investing In Penny Stocks Or Low Single Digit Stocks'


What Is A Pump And Dump And How to Avoid Being A Victim Of a Pump And Dump Scam'


Why Its So Important To Not Buy All The Shares In A Penny Stock Or Low Single Digit Stock all At Once'


Why I Recommend That Investors Investing In Penny Stocks Or Low single Digit Stocks Avoid  Gold Silver Or Other Types Of  Mining Companies'


Why I Always Recommend Investors Always Avoid Penny Stocks Or Low Single Stocks That Are  In The Financial Services Sector'


Why You should Never Invest In A Penny Stock Or Low Single Digit Stock Thats In Chapter 11 Bankruptcy'


What You Should Do If You Buy Shares In Penny Stock Or Low Single Digit Stock That Files For Bankruptcy After you Purchase The Shares'


Why Its Best To Avoid Penny Stocks Or Low Single Digit Stocks That Have Emerged From Bankruptcy'


Why Its Better To Favor  A Penny Stocks Or Low Single Digit Stock That's In The Food Or Healthcare Industry


Why Having A Diversfied  Portfolio Of Penny Stocks Or Low Single Digit Stocks Is So Important


Why Avoiding Penny Stocks Or Low Single Digit Stocks That Have A Long History Of Large Loses Is Such A Good Idea'


Why So Many Of The Best Performing Penny Stocks And Low Single Digit Stocks Tend To Be Companies That Have A Product Or Service That Consumers Really Need.


Why Its A Good Idea To Avoid Most Stocks That Trade Below 1 Dollar' 

 

Why Its important To Use Limit Orders When Buying Penny Stocks Or Low Single Digit Stocks That Have Very Low Volume'

 

What Its So Important To Have A Clear Understanding Of All  The Different Types Of A Penny Stocks'


Why Watching Out for Penny Stocks Or Low single Digit Stocks That Are Highly Leveraged Is So Important'


Why the Credit  Rating Of A Penny Stock Or Low Single Digit Stock Can Be So Important  As A Risk Factor '


Why A Penny Stock Or Low Single Digit Stock Thats A  Special  Situation Could Be A Great Buying Oopportunity.


Why Avoiding Penny Stocks Or Low Single Digit Stocks That Are Developmental Stage Companies Is A Good Idea'


Why Investing In A Penny Stock Or Low Single Digit Stock That Has Lots Of Cash On Its Balance Sheet Is A Great idea'



Why Careful  Stock Selection Is So Important A Factor In Success Or failure When Investing In Low Single Digit Stocks Or Penny Stocks'





Some Excellent Resources On Penny Stocks




 Penny Stock Investing Newsletter


Manhattan Calumet Value Stock Hotline


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