Friday, December 27, 2013
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
Red Chip Companies