Penny stocks market analysis

penny stocks


Penny Stocks

Market analysts and stock market talking heads have been saying every year for the last 10 years that a huge amount of money is sitting on the sidelines and it is close to be invested. Their claim was that it was going to be put to use at anytime and it would fuel a major market rally. Obviously, they were not right, at least not completely. Well, in 2011, I believe the talking heads could finally be proven correct in the next few years.

Obviously, the real fuel for the next big bull market will come from the deployment of all of this cash. It will come from investors and from companies. Investors and corporate executives need to get over their fears and feelings of uncertainty on the economy’s future, and they will start to spend. The recent Eurozone debt problems have only added to the fear. But those problems will be backstopped soon and we can move on. The reinvestment won’t happen overnight and many investors and companies will take their time and will scale in slowly but it will happen. The investors and companies that wait too long or that doubt every market rally will miss the next big bull run.

The amount of money sitting on the sidelines with investors and on corporate books right now is truly massive. Once corporations start using that money again for future growth and expansion, mergers and acquisitions, and for rehiring employees, the markets will respond positively and quickly.

And, more importantly, once individual investors realize that the worst is over and that the economy is really recovering for a sustainable period of time, their cash infusion will cause the markets to really take off. The start for putting this cash back to work for corporations and investors may be sooner than you think. The best time to get in as a long term investor is before that happens in order to catch the ride.

I believe that 2011 and 2012 will be a very good time to start putting investment money back to work in the stock market. The best time to invest is during times of high anxiety and fear. This could be the start of another bull market run after basically 10 previous years of a flat performance. You will not make any money putting it into cash investments or treasuries because they will return close to 0%. Equities are the place to be and high-quality dividend stocks would be a great start. Don’t miss out on this huge market moving event that should include your own money.

You can get plenty more great stock ideas from our very popular subscription services. We help make trading and investing easy and extremely profitable. Let us do all of the work for you with our model portfolios and hot list swing trading and investing ideas. Our six year track record using proven fundamental and technical analysis techniques at




Penny Stocks and different concepts

Penny Stocks are the micro cap stocks with a low per stock value. The definition of these stocks varies for different people and is generally understood as the stocks with low value. Penny stocks fulfill the market criteria to a certain level and hence, they are not included on major stock exchanges. Instead, these are in pink sheets or OTCBB. PS is a risky investment and can potentially help in getting huge earnings, but only if they are chosen properly.

Understand Market Capitalization

Penny Stocks have the commonly used term ‘Market Capitalization’. Market cap is the total worth of a company. For example, the company floating 10 million shares with $4 value per share will have the market capitalization of $40 million. The greater number of outstanding shares will correspond to higher stakes. If the large amount of money is involved in a certain penny stock, the control is usually lost. The regulatory controls for penny stocks are quite mild and can be hampered soon.


Penny Stocks and different concepts

Pricing of Penny Stocks

Penny stocks can be bought at different pricing, but it is always below $5 per stock. You can purchase the PS below the cut-off price. Some investors consider that the stocks below $5 are included in penny stock listings and others make the mark below $1. In terms of market capitalization, the stocks with market cap below $300 million are penny stocks and there are many companies included in the listing. Read more on penny stocks listing at

Nano cap stocks are volatile in nature and their value is different in various phases. It is necessary for the investors to make the worthy investments and invest in penny stocks, which can generate more money for exploratory activities. There are many companies, which have actually gained higher positions with consistent growth and have better scope in sense of getting towards major stock exchanges.

There is no ethical millionaire made through penny stock trading and small cap companies can become bankrupt with no good criteria followed. Penny stocks have been around from past many decades and provided a lot of opportunity to the small investors to gain higher ROI.

Why do you need Penny Stock Listing?

Penny Stock listings are compiled on web, but many people don’t know about them. These lists are the results of your diligent efforts to focus on the stocks, which are most likely to appreciate on short term basis. Penny stock listings can allow you to watch and track the stocks with ease. It can help you to focus on short term goals and make easy monitoring for hundreds of penny stocks in the market. You can get high response with best stock listing and it will probably get towards higher levels of success.


Why do you need Penny Stock Listing?

Your penny stock listing will help you in tracking the stocks, which you are watching without hassles. It is impossible to find out most reputed stocks from a list of thousands available options from pink sheets or OTCBB. By the time you look at one percent real shares, it will be probable to find the wrong ones also in the list.

Keep the right track

Penny stock lists will help in getting the actual gains and losses for the quotes of brokers. You can sell the stocks as soon as there are profits involved in it. A part of penny stocks listing can be saved for later usage. It is feasible to consider the stocks for the right time to make the right choice. Click here to read more about the right stock.

You can purchase penny stock lists to make entry and exits to the different stocks. It is feasible to make the penny stock researches by looking at the financial status of the companies. Small companies are sometimes lastly benefited, which can risk your investments. However, some companies having small budget and big ideas can probably get towards a better scope. The economic trends can grow and catch up with best planning and appropriate track. Stock prices can soar up or get down according to the market play.

Penny Stocks: Choose the right Stocks

Do you know that Microsoft, Southwest Airlines, Dell, Wallmart and many other big companies began their stocks as Penny Stocks?

There are many real companies with ethical views, which focus in bringing their new stocks as micro stocks and gaining eventual growth and getting from OTCBB to major stock exchanges. The problem with penny stocks is that there are very less chances for the companies to grow into huge empires without strategies and perfect blueprint.

Penny stock traders require finding the right stocks for the perfect growth of the company. There are many people who don’t trust micro stocks for the reason of getting losses. You can buy or sell the stocks according to your own study.


Penny Stocks: Choose the right Stocks

The main reason for people to make millions from penny stocks is that there are great prospects in 3-5% of stocks. The secret of penny stock trading is to find out the right stocks and finding the appropriate companies to make the choice.

Many people make a lot of money through penny stocks and they do it only through financial research to buy and sell the stocks for maximum gains with mitigation of losses. The reason for losing a lot of money is because people make no or little research for their investment. The shortcuts are many, but there is absolutely no resultant for these techniques.

Penny stock investments require intensive research and knowing exactly what you’ve been looking for. Penny stock investment guides are available online to get whole detail about the appropriate choice of stocks. Investors need to know the right times to buy and sell. There will be tremendous help with best investment tips, but don’t get carried away by the ads floated online to gain money in least time. No company can make you millionaire in a few days and you must know it to make the appropriate choice for the stocks.

Penny Stock Trading

Penny stock investments are interesting investment decisions. The gain and loss can be spectacular and the overall ratio is higher for loss side. Many people become millionaires after becoming penny stock traders, but most of them actually know about the increase of prices on a particular time. You can begin your penny stock trading, but make sure that you learn about these stocks very well before making the investment. One wrong move can lead towards loss of your hard earned money and make you negative about stock investments.


Penny Stock Trading

Penny stocks are micro cap stocks having per stock value of $5 or less. These stocks have low market capitalization of companies, which means that the total assets and liquid money with the company is lesser. Mostly, the beginner companies in any niche are associated with penny stocks. These tiny stocks have high volatility and low potential. It is integral for the investors to make choice for the perfect stocks having real background. Penny stocks are risky and choosing them is quite difficult for the investors. You must learn the right ways to trade them. Read more about choosing the right stocks at

Make the portion of your investment dedicated for micro cap stocks and don’t go beyond it. You might be tempted to do more of investments to make simple money, but it won’t work till you buy the right stocks in your investment. If micro cap stocks can produce great gains, it can make you bear huge losses too. Understand the reality that penny stocks can’t make you millionaire as these involve high risks and returns on investment are not wonderful. You can take these stocks in different portions and not involve too much money into one stock as the probability of losing increases with this strategy. The potential gains can be more, but becoming greedy can ruin all your money and make you penny less.

Different perspectives of Penny Stocks

Penny stocks are the micro cap or tiny stocks having value less than $5 per stock. These stocks are responsible for trading for the companies with a beginner setup. Penny stocks have the accounting for three fifth of NASDAQ stocks. These stocks are quite popular, but the biggest issue is that they are not predictable and can change their value very soon. Hence, the investors need to be very particular in making the right choice. One wrong move can lead towards negative results.

Penny Stock: Entrepreneur View

Penny stocks have low share price and these are mostly traded in thousands or even ten thousands in number. The investors can accumulate a lot of stocks as per stock pricing is lesser. Let me explain penny stocks with an example. Suppose you have a company with good blueprint and want to sell some products. You can sell your widgets to the entire world, but don’t have sufficient money to produce them. So, you can make the decision to raise money by taking your company towards public. The initial price of your stock will be less, but gradually, the prices will increase with the better need of products in the market. There are chances to sell off millions of stocks at the price below $5. You can sell millions of shares and get profit from your venture. On the same basis, you’ll be sharing the gain with the share holders. Penny stock is the way to get the company on public platform and gaining trust of people by floating your company’s shares at the minimal price.


Different perspectives of Penny Stocks

Penny Stock: Traders View

In case of stock traders, penny stocks can be seen as a number of options. People say that the stocks traded below $1 are penny stocks and others might reveal that the stock with lesser total market value is penny stock. There are different categories in which the stocks should be analyzed to be marked as penny stocks.

But for stock traders, the question “What are penny stocks?” can produce multiple answers. Some will say that any stock which trades for less than $1 is a penny stock. Others say that a stock can be classified as a penny stock depending on the total market value of the company issuing it. Others have specific categories into which a stock must fit before being classified as a penny stock.

Penny stocks can easily go up or down depending on the escalation or degradation of prices. These stocks might be associated with wrong owners as there are many chances for the stocks to get linked with scams. Penny stocks can get profits for you but the chances are that you might lose your money with one wrong move. These stocks are volatile and can’t be held for long term. So, make your right move by choosing the right stocks to be invested at the best time. Penny stocks are opportunity to grow and learn about stock exchange and associated investments in detail. Know about these stocks well before making the investment.