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DO PENNY STOCKS WORK?
By www.ProfitableInvestingTips.com
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Every so often stock analysts offer a
list of penny stocks.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Our question is do penny stocks work
in general and do penny stocks work
for your stock portfolio?
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Click the links below to get your
FREE training materials.
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Don’t miss these free training events!
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Read every word of this report!
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Before We Continue…
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Let’s start with an article from Money
Morning, How to Find Good Penny
Stocks to Buy Today.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
The key to how to find good penny
stocks to buy today is knowing what
you are buying and if it fits your
needs.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
The first thing you want to do as a
penny stock investor is figure out how
much money you have to work with.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Basically, don’t invest anything you
can’t afford to lose.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
We typically recommend no more
than about 2% of your portfolio in one
penny stock.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
There are some great buys in penny
stocks and there are penny stocks
where scammers pump and dump.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
The first step is to avoid the
scammers or over-hyped stocks of the
day.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Problems with Penny Stocks
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
In order to invest wisely you need
accurate and timely information on
which to make decisions.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
You should be trading stocks in a
liquid market that lets you enter and
exit positions when you want.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Investopedia offers their take
on penny stocks and lists four
factors that should give investors
concern.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Lack of
Information
Available to the
Public
No Minimum
Standards
Lack of History
Poor Liquidity
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
True penny stocks do not trade on
major stock exchanges.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
They trade via pink sheet on over-the-
counter markets.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
These stocks are not required to file
info with the Securities and Exchange
Commission so you access to
accurate and timely information is nil.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
And new penny stocks have no
history. The stock may have a great
story but the company and its
management have no performance
history for you to consider.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
And because these stocks trade thinly
you may have trouble getting in and
out of the stock at the prices you
want.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Past Performance as a
Predictor
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
We looked at an article in The
Street from 2011.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
They described the 10 Best-
Performing Stocks under $5 for that
year.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Check out the article for all picks. We
only list the ones that are still in
business and trading for more today
than in 2011; info is from Google
Finance.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
#10, Radio One, ROIAK
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
This stock’s top price in 2011 was $2
a share.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
It peaked above $5 at the start of
2014 and trades at $2.63 a share
today. It does not pay a dividend.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
#7 Authentidate Holding,
ADAT
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
The stock was trading at about $1 a
share in 2011 and the highest it was
until just recently was $1.82 a share in
late 2014.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Interestingly the stock jumped from
$0.50 a share to $5.38 a share in the
first days of January of 2016 and has
been falling ever since, now trading at
$2.60 a share.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
#6 USA Technologies, USAT
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
This one has a bit of growth. Having
traded around $2 in 2011 the stock
dipped to $1 a share in early 2012
and has grown to the $4.00 to $4.50 a
share range this year.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
So, do penny stocks work? One might
say that for the vast majority, once a
penny stock always a penny stock.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
Many penny stocks go out of
business. The only semi-impressive
stock in this list is #6.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
You can see how penny stocks get
hyped when they have a good year.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
People buy at that point only to see
the company go out or business,
steadily lose money, or at best grow a
little.
http://profitableinvestingtips.com/penny-stocks/do-penny-stocks-work
The only stock in this list that did as
well as the S&P 500 in the last five
years was USAT.

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Do Penny Stocks Work?