Penny Stock Brokers 4u

Walk through just about any parking lot in your area and you are sure to find a penny or two on the ground. Shame it is not that simple to find penny stocks! Okay, so you can find list after list on the Internet with no trouble at all – very true, but knowing where to find penny stocks that will provide a profit to the investor is a different story altogether.

To be considered a penny stock, the normal rule of thumb is that it must be trading at under $5 per share, although there are other definitions that use $1 or other factors such as capitalization. Since another trait of penny stocks is that they are not always traded on the major stock exchanges, they can be difficult to locate. And, even more difficult is to find information about the companies since they are not required to provide financial information when they are not on the major stock exchanges.

That said, however, you can find some penny stocks listed on the NYSE, AMEX and NASDAQ and these are often the best options.  If you have the time to devote to investing, you can review the stock exchanges regularly watching for low priced stocks that are showing some gains and review what is causing the gains to determine if there is room for even more.  Review the financials available to see how strong the company’s balance sheet is – do they have a reasonable amount of debt, for example. Consider also the industry the company is in – is it in a growth industry or a new technology on the cusp of expansion, or just a fad soon to fade away?

On the other hand, if you do not have the time to spend hours perusing the various stock exchanges to pull out a handful of potential winners, then you may want to turn to someone who does it regularly.  There are a number of companies that provide newsletters, websites and other tools to the penny stock investor.  However, for every experienced and professional company there is that will give you good advice, there are at least a few who are just out to get your membership fee or even worse just there to give an advisors face to fraudulent offerings.

So, when looking for a legitimate advisor, pay attention to how long they have been around and what kind of track record they have. See if they are recommended by established firms such as Barron’s or Forbes. Look for press releases on them that may have been done by such organizations as CNN or BusinessWeek. Basically, make sure you use due diligence in choosing an advisor. Even though you still use caution when you decide what to invest your money in, it will give you peace of mind to know you have a better chance of success because you are following the advice of a company that has shown an experienced ability to choose stocks well.

Below are some companies you can find online that may work for you. Again, remember to exercise caution and look them over to be sure they will perform the way you expect before you sign up with them.

* Global Penny Stocks. Their advisory newsletter is available online at www.pennystock.com. They have been advising investors for over ten years and you can review their track record for each year since 1997. They post that 70% of their closed positions have been for gains in excess of 50% and have had some huge hits with over 300% gains and one even at over a 3,000% gain! Their subscription fee is currently $58 for a five-month trial offer or $89 for a full year with the second year included free at the current time.

Penny Stock Prophet. More of a system than a regular newsletter, this website found at http://pennystockprophet.com/ is the program of James Connelly who as a mathematics major in college claims to have come up with a system by which you can turn $1,000 into over a million dollars in only 38 penny stock trades.

The website boasts a bit about hard-to-believe results, but the subscription is relatively inexpensive and offers a 100% money back 8-week guarantee, so it just may be worth a look.

OTC Advisors. Found at www.otc-advisors.com, this website provides a free newsletter of the companies they feel have huge potential for long-term growth. The website is fairly minimal but you may still catch a good idea or two from them.

PennyStockAdvice.  They are currently offering their penny stock newsletter for free but have a disclaimer on their site that they may charge in the future. The site itself does not offer much insight into the company, so you’ll only be able to tell from the value you get from your first newsletter.

As with any investment, it is more important that you perform all the necessary due diligence before making the purchase than it is where you found out about it in the first place. Since penny stocks are by their very nature a risky investment, they are a gamble whether you heard about it from the clerk at the convenience store or from your high-end Wall Street financial analyst. The more money you plan to put into penny stocks and the more that investment will affect the overall value of your total portfolio, the more effort you should make to determine the strength of the company offering the shares on the market.

Another thing to consider is that even though the shares may show a nice profit on paper, it doesn’t mean you will be able to sell the shares because there may not be a willing buyer at the exact moment the sale price makes you the profit you desire.

Penny stock investors also sometimes fall victim to biased recommendations and other fraudulent means used to capture buyers to a less than perfect offering. A good word of warning is to not believe everything you read about penny stocks – there is as much false information out there as good information, and it will take all your savvy to know the difference between them.