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What to Look for
When Picking Penny
Stocks
By www.ProfitableInvestingTips.com
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Penny stocks can be attractive
because they are in fact cheap.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
But what do you look for when
picking penny stocks and how do
you profit instead of losing your
investment?
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Before We Continue…
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Don’t miss these free training events!
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http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
History provides some insight.
First, Investopedia defines penny
stock.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
A penny stock is a stock that
trades at a relatively low price
and market capitalization,
usually outside of the major
market exchanges.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The term itself is a misnomer
because there is no generally
accepted definition of a penny
stock.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Some consider it to be any stock
that trades for pennies or those
that trade for under $5, while
others consider any stock trading
off of the major market
exchanges as a penny stock.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
However, confusion can occur as
there are some very large
companies, based on market
capitalization, that trade below
$5 per share.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
A penny stock with which you
could have made money was the
old Chrysler.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
At the start of the 1980’s
Chrysler, a 50-year-old
automaker was in trouble again.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Its stock was selling in the single
digits instead of at $40 where it
was usually positioned.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Then Lee Iacocca came from
Ford and took over Chrysler.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Here is what The New York
Times had to say about Chrysler
and other 10 super stocks of
1982.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
WHO would have thought 12
months ago that Chrysler, the
much maligned auto maker, or
Winnebago, the once hapless
manufacturer of recreational
vehicles
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
or Pulte Homes, a builder, would
not only weather one of the worst
recessions ever but then soar
past a stock market that was
registering its biggest advance in
history?
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Chrysler was most certainly the
surprise stock of the year,
beginning just above $3 a share
and breaking the $18 mark.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
And it was still spiraling upward
in the final weeks of December.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The No. 3 auto maker had cut
costs to the bone to avert
bankruptcy and had entered
1982 a shadow of its former self,
needing sales of only 1.1 million
cars and trucks to break even,
versus 2.4 million a few years
ago.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The stock subsequently went to
the $40 range and those who
knew what to look for when
picking penny stocks were amply
rewarded.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
What to look for when picking
penny stocks is evidence that the
stock has intrinsic value, a
forward looking income stream.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Penny Stocks Today
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Money Morning reports that
the week’s 5 best penny
stocks gained as much as 252%.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
In today’s slow growth
environment, the best penny
stocks continue to attract
investors because of their
outsized gains.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
And each of this week’s five best
penny stocks logged a double-
digit gain last week.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
In fact, one of the best penny
stocks in 2016 is up an incredible
252% year to date.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
While penny stocks can bring
huge profits, they can also bring
volatility.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
That’s why Money Morning
experts recommend that penny
stocks only represent a small
percentage of your portfolio.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
And one stock should never
account for more than 2% of your
investing money.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The 5 penny stocks in question
are Tyr Pharma (LIFE), Granay
Montero (GRAM), Chesapeake
Energy Corp. (CHK), Great
Basin Scientific Inc. (GBSN) and
Companhia Siderurgica Nacional
(SID).
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The last one is based in Brazil,
sells as an ADR on the NYSE
and is involved in exports of raw
materials to China.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The stock jumped on better than
expected March trade data out of
China.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Any of these penny stocks might
be a good buy going forward or in
each case the expected profit
bump might have already
happened.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
Remember Chrysler when
investing in penny stocks.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
The company was in and out of
trouble over the years and finally
was taken over by Fiat.
http://profitableinvestingtips.com/penny-stocks/what-to-look-for-when-picking-penny-stocks
You could have made nice profits
with timely investments but not
by holding to stock until the next
problem arose.

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What to Look for When Picking Penny Stocks