What would you recommend as far as investing in "penny stocks" presently please?

Question

Or stocks at a low cost that seem like there's a pretty bright future ahead for a lot of financial growth?
(ex. a new medication/drug/pharmacuital)

Answer 1

Hi,

Penny stocks are great, but I would avoid the ones under a dollar a share. For example, Best Buy started at less than $5. So there are some good companies, but it takes a lot of digging to find the good ones. You are looking for companies with good earnings, little debt, low capitalization, and good P/Es. For stocks under $5, very few will meet these requirements.

Stay away from the pharms unless they have patented drugs - do not invest in generic pharms, no growth there.

Check out which business sectors are the most popular and invest in the companies in those sectors. The number one, two and three are: technology, health care, and cyclicals (retail).

Watch CNBC, but don't pay too much attention to the talking heads, except for Jim Cramer, the wild man - but he tries to teach you how to invest and has some great advice.

Get Jim Cramer's Real Money: Sane Investing in an Insane World by James J. Cramer

Listen to Jim Cramer on CNBC.com

Go to Clearstation for quotes and tutorials on investing at (http://clearstation.etrade.com/). Sign up is free.

Get this book: Value Investing: From Graham to Buffett and Beyond (Wiley Finance) by Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, and Michael van Biema.

Another good book: The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of (Motley Fool) by David Gardner, Tom Gardner, and Selena Maranjian

Jim Cramer's Mad Money: Watch TV, Get Rich by James J. Cramer and Cliff Mason

I Want to Make Money in the Stock Market: Learn to Begin Investing Without Losing Your Life Savings! by Chris M. Hart\

Sensible Stock Investing: How to Pick, Value, and Manage Stocks by David P. Van Knapp

Stock Investing For Dummies (For Dummies (Business & Personal Finance)) by Paul Mladjenovic

All About Stock Market Strategies : The Easy Way To Get Started by David Brown and Kassandra Bentley

The Motley Fool Investment Guide and their Web site (http://www.fool.com/).

The Little Black Book of Microcap Investing: Beat the Market with NASDAQ/AMEX Microcap Stocks, OTCBB Penny Stocks, and Pink Sheet Stocks by Dan Holtzclaw

How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition by William J. O'Neil

Trading for a Living: Psychology, Trading Tactics, Money Management by Alexander Elder

Big Trends in Trading: Strategies to Master Major Market Moves (A Marketplace Book) by Price Headley

Extraordinary Popular Delusions & the Madness of Crowds (Paperback)
by Charles Mackay (Author), Andrew Tobias (Foreword) This book talks about the Tulip craze in Holland where people would mortgage their homes to buy Tulip bulbs. Same thing happened in 2001 - 2002 with the Internet bubble that brought the stock market to its knees. The dot com companies were the Tulip bulbs.

Buy Investors Business Daily. It has lots of tutorials and I like it better than the stodgy Wall St Journal.

Money Game by Adam Smith

Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics) (Hardcover)
by Philip A. Fisher. Recommended by Warren Buffet who took $100,000 and grew it to $34 billion!

Value Investing with the Masters by Kirk Kazanjian

Valuegrowth Investing by Glen Arnold

The 5 Keys to Value Investing by J. Dennis Jean-Jacques

The Intelligent Investor Rev Ed. (Collins Business Essentials) by Benjamin Graham. Warren Buffet was his student at Columbia.

The Money Masters by John Train

The Bogleheads' Guide to Investing by Taylor Larimore

Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor by John C. Bogle

Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics by Gary Belsky

Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! by Phil Town . See his Web site at (http://www.ruleoneinvestor.com/). Free sign-up. I got the book at the library.

Listen. You don't have to spend a lot of money on these books - most can be found at your library and those that your library doesn't have they can usually get from other libraries in your state.

Most of these books talk about stock and mutual fund investing, but for a good introduction to other forms of investing Gerald Appel has a great book called Opportunity Investing - How to Profit When Stock Advance, Stocks decline, Inflation Run Rampant, Prices fall, Oil Prices Hit the Roof and Every Time In Between.

First, Break All the Rules: What the World's Greatest Managers Do Differently by Marcus Buckingham and Curt Coffman Not a book on investing, but it's a nice segue into the next book.

Now, Discover Your Strengths by Marcus Buckingham and Donald O. Clifton

Go Put Your Strengths to Work: 6 Powerful Steps to Achieve Outstanding Performance by Marcus Buckingham

Finding your strengths is important when investing. These books teach you to build on your strengths, what you a good at. Everyone is good or passionate about something. Why not get better at what you are good at?

Most mutual funds do not even keep up the the return on the S&P. That's like 99% of them.

Vanguard Index funds are a no brainer.

A CD is better than a savings account. They range from six months to several years. You cannot touch your money tho until the time limit is up.

Check out this Web site on Direct Investment Plans where you can buy shares directly from companies: (http://www.fool.com/School/DRIPs.htm). Usually no fees and you can buy one share at a time.

Kindest Personal Regards,

Walt Brown
Site Build It Certified Webmaster
[e-mail]

P.S. This is a life-long learning process. Reading these books and applying the rules to analyzing stocks that may be good It takes time. Be patient and keep reading and listening.

P.P.S. Internet has lots of good stuff, for example (http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve
Stockcharts.com is very good and their discussion of MACD is one of the best, barring its originator, Gerald Apple, but now we are getting into Technical Analysis and that is not for beginners.

Answer 2

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org

I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.

As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Bye Bye

Answer 3

Posted this answer to another person.
He wanted the stock of the day ....

Thats a bad way to evaluate an investment in anything/
Whats needed is research and due diligents of any investment that you make.
If you dont have the time put your money in T bills or something.
The stock market is a game of Fear and Greed.
Controlled by the "BIG" Equity Houses and the Hedge Funds.
This is not a "Rosey" playing environment.
I see people taken to the cleaners almost everyday in this
market.
Nothing will subsitute hard work and focus when making a stock investment.
Thats one of the problems with the market.
Everyone wants to pay someone (paid investment services)or look for a get rich quick stock.
I dedicate time to research in every investment I make.
So I dont have a "Stock of the day"
But I do have a stock that I think will out perform all.
It will take a few months but I expect this to be @ .25 by the end of summer.
PBLS is a company that I have put 2 years of research and DD into.
They have more going than 90% of AMEX stocks.
220+ Million in profitable Revs for 2006
They will have over 500 million profitable revs for 2007
They have no long term debt and have a minimum of 100 million in assets,
Friday it closed at .019 ------------ yes thats cents.
Why is it at this price ?
Because they have not filed for 10 years. (the yahoo financial page information on PBLS) is incorrect.
They have communicated their commitment to file in early 2007.
PBLS is my "AMEX stock in penny clothing"
I am telling everyone to do a minimum 3 or 4 days research on this company.
This is what they had last year in September of 2006
http://pbls.biz/pressrelease_content.asp?prid=82
With research you can see they have doubled this amount of business.
All of their businesses are verifyable.

I have coined my own phrase:
The Stock market is a cross between the walnut shell game and musical chairs. When the music stops dont be left without a seat or the marble. !

Answer 4

Make sure it is money you can afford to lose.
Risky Business!!
The reward can be great but the risk is even greater.
The market is not the place to look for making a quick buck.
With drugs and the latest -you better know your stuff!!! The FDA can make or break you in a second. Even FDA rumors.

As the saying goes - "BUY WHAT YOU KNOW" Do you know a lot about the pharmaceutical world? what is in the long pipeline of FDA approval?
Do your own homework. There are plenty of young excited brokers sitting in "broiler rooms" to tell you all about their latest new stock pick, how lucky you would be to get some!!!!!!.....blah blah blah....Eventually you will read about the SEC shutting them down.
Buyer Beware.
The market is not magic. Just buy what you know, Or stick with the Blue Chips. Or the old standby - a boring old Mutual Fund that can bring you lots of good sleep and steady growth.

Answer 5

Penny Stocks are any stock that trades below $5 per share. Most financial advisors and long-term investors tend to avoid them completely because of the extremely high risk that comes with owning them. They generally tend to fluctuate wildly in price, and although some report spectacular gains in a matter of a few days [or even hours], those who invest in them are generally surprised when they disappear altogether. Generally, if a stock is trading that low, it is danger of losing its listing with an exchange. When this happens, a company is normally either in very bad financial shape, or on the brink of bankruptcy. Smart investors opt to avoid these.

Answer 6

This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https://tr.im/N425p
You will have to wait between 3 and 10 days to get into the system in most cases. When I signed up it took 8 days. I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business.

Answer 7

Don't take advice from strangers. You never know who is answering your question.
Penny stocks are way too risky.
Consider investing in stock mutual funds. Most will let you open an account for an initial investment of $2,500.00.

Answer 8

My favorite over-the-counter stock is Tower Tech, TWRT.ob - they make wind tower support structures. I personally own this stock. Here is a link on it:

http://www.top10traders.com/ViewPost.aspx?postID=82

You might also want to see what the best traders are buying at http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can read posts on investing from the best traders, as well as share your own investing ideas. There is a charting feature, so you can see how your portfolio performs compared to the S&P 500. Also, you can create your own "group" so that you can see how you are doing compared to your friends.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

There are number of interesting penny stock picks on this page.

Good luck.

Answer 9

Don't. There is no way you have the resources to perform adequate due diligence on these companies. Remember that there is generally a reason why they are cheap, and it's not because they have a bright outlook.

Answer 10

1

Answer 11

MTTG, AGGX this company may have found cure for cancer and tumors check out the news it may sky rocket.