Good penny stocks for 2011 2


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Stock trading tips on hot stocks to buy now, stock market strategy, picking hot stocks, picking penny stocks, and how to buy cheap stocks. From “How to Find a Home Run Stock” and “How to Pick Hot Reverse Merger Penny Stocks” and also “How the Shorts Raid Your Stock, Destroy Your Company and What to Do About It” all by John Lux.

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Good penny stocks for 2011 2

  1. 1. Good Penny Stocks for 2011
  2. 2. DisclaimerStock speculation is very risky. It may not besuitable for you.Do not trade with more than you can afford tolose.Seek professional investment advice.This is not investment advice.No warranties, you are on your own.
  3. 3. Good Penny Stocks for 2011When you have found a bunch of good cheap stocks, you want to separate out the ones that will go up So you need to know what excites investors
  4. 4. Different Types of InvestorsBuy and holdDay traderSpecialize in specificindustries
  5. 5. Judge the Beauty Contest JudgesStock picking is like judgingwhich girl will win a beautycontestYou need to know what theother judges like
  6. 6. The Ugly DucklingTo get big returns, find theugly duckling that can turninto a swan – fast
  7. 7. Ugly DucklingsShells are ugly, ducklingsThey may have beenabandoned by their officersA deal can turn them into aswan fast
  8. 8. Learning at Dog and Pony ShowsIPO Underwriters give due diligence meetings forbrokers to sell their stocksAs head of trading for a Wall Street underwritingfirm, I might go to two a weekThe company makes their pitch, then theinvestment bankers ask questionsWatching the judges judge stocks
  9. 9. Wall Street likes fads fashionsRemember - The Internet boom –Oil and gas boom – Gold stocks –Technology – Conglomerates –Uranium stocks – Railroads
  10. 10. Recent fadsSwine fluHIVAfter 9-11Oil cleanup stocks
  11. 11. My favorite gold stockScotts Liquid Gold went upwhen gold first sold over$800They make furniture polish
  12. 12. Fast GrowthThe prospect of fast growthproduces excitementBig untapped marketsProprietary products
  13. 13. No CompetitionMonopolyProprietary technologySustainable competitiveadvantageThe next big thing
  14. 14. Great Biotech Drug IdeaTake it once and you have totake it every day for the restof your life or you die
  15. 15. Beware Penny Stock PromotersPenny stocks promotersoften go into hot businessesBeware frequent changes ofbusiness
  16. 16. PromotionPromotion drives stocksEspecially penny stocks
  17. 17. Blue Sky Learn MoreThe “Blue Sky”is often valuemore than realityImagination can get carriedawayReality is hard
  18. 18. Learn MoreSubscribe to my videosGo to my blogs
  19. 19. Learn MoreOn – How to Find a Home Run Stock – How to Pick Hot Reverse Merger Penny Stocks
  20. 20. John Lux Trader, investment banker, former OTC Market maker & attorneyLux.Investor@ Copyright ©John Lux 2011