Keeping an Eye on the Sinner

Penny Hell exists.

Deny this if you wish, but the majority of the Penny Stocks trading on the Pink Sheets are condemned to fall short and land themselves in the lowly depths of Penny Hell where their share prices rot forever. When a company loiters and is unable to lift itself up through verifiable and exponential company progress, its share price steadily gravitates either from a loss of investor interest or by the inevitable need to dilute company stock to sustain the costs of operation. We’ll call these stocks the ‘Sinners’ because they’re destined for Penny Hell (and also because to ‘sin’ means to ‘miss the mark’ or to ‘fall short’).

Prior to their ascension, every ‘elect’ penny stock was a Sinner at one point. Often the product of reverse mergers, the share price of “new” penny stocks falls drastically as the company dilutes itself in the initial phases or as investors keep a safe distance away until the company has proven itself.

But every now and then, a penny stock is saved by grace as it’s renewed into a viable investment. Typically this will come in the form of a progressive press release that offers verifiable evidence of a strong company future. Take for example the idea that the company signed a huge contract with a Fortune 100 company. Most of the time, it won’t be as crystal-clear as that situation. Perhaps it can be as simple as debt elimination to suggest company profitability on the horizon. Whatever the case, it’s always a good idea to keep an eye on the Sinner, but not yet invest, in order to catch the moment of their Ascension.

As a last note, realize that Sinners can keep on falling for years…. but that the slightest tangible indication of a prosperous future can forever change that stock’s direction. Here’s one recent example of an Ascension, fresh on the minds of many (and I fully concur that ETIM's a good INVESTMENT):

In my honest opinion, here are two more Sinners to keep an eye on for the next few months (possibly years?):

A Tale of Two Sinners <-- this post is located on: Recommended Investments