Friday, December 27, 2013
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.
Some Excellent Resources On Penny Stocks
Penny Stock Investing Newsletter
Manhattan Calumet Value Stock Hotline
Red Chip Companies