January 7, 2016 at 12:42 pm #391pnguekamParticipant
Many investors are starting to take a second look at penny or micro-cap stocks. With the economy coming out of recession, many analysts and investors are paying some attention to companies that suffered financial crisis over the last few years. Impressed by new management strategies, decreased debt, and increased profitability, these stocks are no longer the “rogue” investing scheme they once were.
These stocks, also known as micro-cap stocks, are stocks traded off the major exchange for significantly less than traditional stocks. They are traded “over the counter” using the phone or online trading platform, without a broker. These stocks generally trade at less than $5.00 a share and are not regulated by the same filing and listing policies as more traditional stocks. If a stock had been listed on a major exchange, like the New York Stock exchange, NADSQ or American Stock Exchange, the company is required to continue with its quarterly filings.
The major finance sites, like MSN Money, Yahoo Finance, and CNBC are not dedicated penny stock sites, but they do provide some information about these stocks. You may find some information on companies analysts believe are “on the bubble:” and poised for main stream expansion. In some cases, these sites re also providing daily alerts as some “hot” stocks. If you are trading via an online trading platform, you may also see delayed quotes and listing prices. Depending on the level of customer and client service offered by your platform, you may or may not have access to a broker or analysts’ research.
In order to make an informed decision about buying and selling your stock you will want to conduct some additional research about a company’s debt, profitability, liquidity, and sales numbers. There are a number of stock sites, whichare dedicated to helping investors pick the right stock.
Analysts and writers working for these sites take national trading trends and interpret them for the penny stock market. These dedicated stock sites provide daily “hot sheets” filled with projections and tips for successful trading session. These sites are updated regularly and have the most dedicated penny stock content. A determined investor will take these tips and use them as a jumping off point for their own independent and unbiased research.
The biggest assets of these stock sites are the chat rooms and discussion forums. Usually reserved for members and subscribers only, these online chats provide investors with the opportunity to learn with and from seasoned investors. Penny stock investors can discuss hot tips and trends among peers. Many sites encourage investors to post their portfolios, giving members an opportunity to see real time data, profits, and losses.
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