Penny Stock Research

Hey all,

Do any of you invest in penny stocks? I know it's risky, but figured it could be fun. I don't have an idea where to research and find info on these stocks though. Are there any good resources out there? Thanks!

26 Comments
 
Scandal

Also interested - always love get rich quick schemes.

Better than 'get rich slow' schemes. Amirite ma ninja?

"Mr. Perkins poses an extreme risk to the market when drunk."
 

Just go onto yahoo finance and look up the top % movers for the day, most of them will in fact be penny stocks. From there just look at the financals of the company from the SEC filings and you are in for all kinds of shady dealings

Mps721
 

Here is one suggestion. Check out stock ticker BBDA. Penny stock that made a huge run last summer and has settled back down. It may be ready to make another move up. Company is actually somewhat legit but also could end up being a scam, who knows. But there really is no solid research for these stocks, mainly follow pennystock newsletter to see where the next pump is occuring and get out before the dump occurs.

 

I remember 50 cent was trying to promote a penny stock via twitter. actually got a bunch of people to invest in it and then he made like 10 million or some shit like that. get rich or die tryin I guess

 

I remember watching an interview with Tim Sykes, in which he mentioned paying for criminal background checks of company execs. Apparently, he had success in shorting penny stocks which were run by formerly convicted execs.

Other than that, all you have is SEC filings.

 
GoIllini idrankmalk:

I remember 50 cent was trying to promote a penny stock via twitter. actually got a bunch of people to invest in it and then he made like 10 million or some shit like that. get rich or die tryin I guess

like a boss

Wouldn't it take a relatively small group of people to collectively pump & dump penny stocks?

Like an online community or something. It would help if this community had a basic understanding of markets and access to a brokerage. This community could divide itself into troughs that would rotate exiting first to maximize profits.

The same group of people could even sell information regarding which stocks to buy, when to buy, and when to sell. And if the sell price that's sold happened to be a bit higher than the sell price at which the dump occured, then the buyer of information could be told that the price encountered a strong resistance level. Or blame Bernanke. or some shit

"Mr. Perkins poses an extreme risk to the market when drunk."
 
Best Response
RustyFork GoIllini: idrankmalk:

I remember 50 cent was trying to promote a penny stock via twitter. actually got a bunch of people to invest in it and then he made like 10 million or some shit like that. get rich or die tryin I guess

like a boss

Wouldn't it take a relatively small group of people to collectively pump & dump penny stocks?

Like an online community or something. It would help if this community had a basic understanding of markets and access to a brokerage. This community could divide itself into troughs that would rotate exiting first to maximize profits.

The same group of people could even sell information regarding which stocks to buy, when to buy, and when to sell. And if the sell price that's sold happened to be a bit higher than the sell price at which the dump occured, then the buyer of information could be told that the price encountered a strong resistance level. Or blame Bernanke.
or some shit

WSO Penny stock pumpers and dumpers unite!

 
GoIllini RustyFork: GoIllini: idrankmalk:

I remember 50 cent was trying to promote a penny stock via twitter. actually got a bunch of people to invest in it and then he made like 10 million or some shit like that. get rich or die tryin I guess

like a boss

Wouldn't it take a relatively small group of people to collectively pump & dump penny stocks?

Like an online community or something. It would help if this community had a basic understanding of markets and access to a brokerage. This community could divide itself into troughs that would rotate exiting first to maximize profits.

The same group of people could even sell information regarding which stocks to buy, when to buy, and when to sell. And if the sell price that's sold happened to be a bit higher than the sell price at which the dump occured, then the buyer of information could be told that the price encountered a strong resistance level. Or blame Bernanke.
or some shit

WSO Penny stock pumpers and dumpers unite!

Wayta blow up the spot.

"Mr. Perkins poses an extreme risk to the market when drunk."
 

Small cap companies with illiquid stocks should be the most likely to be mis-priced right? Pull the annual and quarterly reports and do a fundamental analysis (start with building a DCF). If you're good at it I imagine you can do quite well. Just try to invest in a bunch of them because I'm sure the volatility will be through the roof

 

I personally use finviz.com for a quick/easy stock screener. I think there is a much better free stock screener, but I've since forgotten the link. Google finance is half-decent for technicals, I'm sure there are better ones but I forget which exactly.

I paid for a subscription service before; long story short- it will yield better than the average idiot trading, does great with high volatility and it's pretty slow with low vol. I'm not sure if I'm allowed to mention paid services here - there is a site that lists trading "gurus" and shows their verified returns. Almost any of them would do over 30% a year on a $50k account, if you're able to trade at work (from your smartphone maybe?).

But if you just want either something free, or done by yourself, 1. look around for the penny stock email spammers, try to find "big" ones and make a dedicated email address for them. This won't work great, since the pumpers already got in the day before they send the email (and/or they only send to X% of subscribers day 1, and everyone the 2nd/3rd days after it's up 20% 2 days straight.. to get that last bit from it.

Now, with a good screener you might be able to find penny stocks that have higher-than usual volume and relatively stable prices - these are potentially being bought by the promoters advance of their "pump".

If you're looking at legit investments, I'd focus on the Biotech industry. You have micro-caps that can turn into multi-billion dollar companies off of one blockbuster drug. SRPT last year went insane. The iShares Biotech ETF (IBB) is up 100% over the past 2 years - selling the stocks individually advance of their FDA decisions certainly would yield more (not to mention, only buying stocks after they start an up-trend).

Biotech, biotech, biotech!

No, I'm not Cramer. Do your research, find out what the FDA calendar is, sell before any FDA decisions or at least hedge with puts.

 

It is said that thorough investigation and analysis, many penny stocks are simply going to fail. This failure can include companies that have great ideas and worthwhile products. A business must successfully deal with debt, raising capital, managing resources and building sales.

According to the last quarterly report (September 30, 2016) the company has enough cash on hand to cover its liabilities if it needs to. It showed a negative cash flow in that same quarter, but the previous entries of http://www.profitconfidential.com/tag/penny-stocks-to-watch/</a">penny stocks to watch showed a positive cash flow. Its year-over-year revenues and gross margin were up in the same quarterly report.

We must be aware of stock price action for previous years too while investing in penny stocks. here you can get some penny stocks to watch now in 2017 list. 1. Sphere 3D Corp. 2. Rennova Health Inc. 3. Quantum Corp.

Penny stocks can break your heart, so protect yourself against losses in case larger competitors elbow any of these stocks out of their markets.

 

I would buy Citi (disclaimer I am invested in Citi). They are cheap right now and I think they're prime to go up since they're invested heavily in emerging markets and recently got out of government hock. They're are a few finance firms that are rated too low right now in general. You have a lot of firms hoarding cash due to uncertainty in the market which leads to huge demand for investment services firms to service that money.

Anyway, just my 2 cents.

 

I've always liked ACTC. Something i picked up freshmen year of college, rode it from .02 to .21 then back down to .05 and now it's trading close to 18 cents.

 

1st post.. long time reader though great site.

I own LOAN -not true penny stock at $1.35, but $4.5 MM market cap current assets - total liabilities is $7.6 MM Most current assets are short term (less than 1 year), fully collateralized loans (accounts receivable factoring), which they've never had a default in their entire history and have conservative loan losses +they're profitable and growing earnings, and filed an 8-k saying they're exploring selling the company if they have to I figured AT LEAST worth the $7.6 MM or $2.13 per share

Just an idea.

 

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