Saturday, March 26, 2011

The Right Way To Find The Best Penny Stocks Company

By Garry Wittgenstein

Penny stocks aren't always valued at a penny per share. There are a couple that could be as high as a buck. If the sum of money that you have available for stock trading is restricted making an investment in penny stocks may be a smart stock investment policy for you.

If you bought one thousand shares of a stock at ten per share, and that stock went to fifteen per share, your $100 becomes $150 or a cool fifty percent profit. If that ten stock instead went to a buck or maybe $10.00 per share, your takings would look dazzling definitely.

To find the true company, there are a couple of things you want to look for.

Do a little research and find out how many shares the company holds in its float. The float is the number of shares that are at present being traded. Corporations mentioned on the Pink Sheets typically don't officially report this number to the public, but with some research, you can discover it. It is mostly contained in articles written about the company, or in Television or radio interviews with corporate officers that are sometimes backed up on certain web sites.

You may also find the info on notice boards or forums where penny stocks traders discuss with one another. Look for firms that have roughly five to one hundred million stocks in their float.

Before purchasing penny stocks from a new company, you need to guarantee the things below. These are obstacles to entry, patents, and patron demand. Here are the questions you have to ask yourself when researching the chance a company will achieve success :

One ) entry barriers : make absolutely sure whether there are any barriers that may make it hard for the company to sell its products.

Two ) Patents : Is the product the company is going to sell original? A patent will stop other firms from producing the very same product.

Three ) Demand of the product : you need to also guarantee whether there'll be a requirement for what the company is selling? Every now and then a company has a great new invention or an enjoyable technology, but if it's not something practical that patrons are going to need or want, then it doesn't matter how great it is.

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