In world of Penny Stocks, there is nothing more daunting than sifting through the sands of Sinners for the one gem worthy for the investor who follows that Path of the Investment. On the lower exchanges, every company raises their chins a little higher and arrogantly drops over-praised press releases that exceedingly exaggerate the actual state of the enterprise. As if reporting to Saddam himself, finding a real solution in a realm full of hot air becomes a frustrating task to the penny stock investor (PSI), who will often lean on the hear-say & rumors of his fellow peers.
*Baaah* Sheep... Empower yourself & take some logical initiative.
- A savvy PSI yearns to know the company and its competition before making the initial investment.
- A wise PSI will settle for nothing less than an industry-shaking/changing company.
- A successful PSI remains readily aware of every slightest modification to the outlook of the company’s future.
In the end, a diamond in the rough is made of the most basic element on Earth – carbon. Likewise, a diamond in the lower exchanges is made by the most fundamental element of a good business – comparative advantage. Comparative advantages guarantee the eventual acceleration of company progress to a level suitable to take-off from the Pink-Sheet share price gravity that pulls it down.
Three Ideal Questions to Ask:
1) What is it about this company that WILL tackle an unaddressed problem?
2) What is it about this company that WILL ensure continued product demand?
3) What is it about this company that WILL make it excel past its competition?
If you can answer only 1, you might have a company that resembles some shiny glass.
If you can answer only 2, you might have a company that resembles cubic zirconia.
If you can answer all 3, you might have a company that resembles a diamond in the rough.
1 comment:
I would like to take a moment to talk about low price stocks not the classic penny stocks or stocks under one dollar the term most people most often use when the word penny stock is used. The single most important thing that investors must realize about low price stocks or stocks under five dollars is this’ their are companies of really decent quality trading under five dollars’ but for every one company trading under five dollars that is of decent quality their are maybe ten of poor quality. So the really big difference between those investors that are tremendously successfull when it comes to investing in low price stocks and those investors that lose enormous amounts of money investing in stocks under five dollars’ is having a great deal of knowledge and experience when it comes to low price stocks’ or having a total lack of knowledge and experience when it comes to low price stocks. Finding quality stocks under five dollars requires a lot more research than finding a decent stock above ten dollars.
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