“Get rich with Penny Stocks. Buy Penny before they are hyped or heavily promoted and end up at high prices. Get in on Penny Stocks before they go up. Why wait when you can buy now and you can cash in when the price soar high”
But it always not so easy ‘ before you know it it can be either easy gains or then easy pains ‘
Before you invest in a microcap company, arm yourself with information
There are many good australian penny stocks investments available, which
could turn a small amount of capital into a small amount of fortune very quickly. However, to discover these you need to know what to
look for and what to avoid. When searching for that one big there are a few eg you should be wary about
Penny stocks do carry a certain appeal for many different kinds of investors. Chances are though, a new investor looking for a potentially lucrative investments with a fairly low entry price will run across the penny stock. The allure comes in the fact that at such low prices any changes are often measurable in hundreds of percent in a given day or two. An investor’s stock value can literally become worth double or even triple the original investment amount.
Very Low Volume Stocks – Without much trading activity it
becomes increasingly difficult to buy or sell for the prices
you want. As well, it becomes nearly impossible to get an
understanding of where the stock price is heading, or to
calculate fair valuations for the companyÂ’s stock price
The Hot Tip Stock – There are actually professional promoters
who make a very good living generating and nurturing rumors
about some penny stock that Â’s guaranteed to go through the
roof. The entire concept hinges on the rumor being spread from
person to person, at the office, over the phone, or at social
Sinking Ships – When a stock has dropped a lot you may think
that, “it canÂ’t go any lower,” or that it is “a good bargain.”
Especially with penny stocks, you need to avoid this type of
thinking because many sinking ships donÂ’t ever rebound, and
they can go lower, and they arenÂ’t good bargains just because
they cost less than before.
Excerpst from :
Some Books that might be of help :
The Guide for Penny Stock Investing
Making Dollars With Pennies: How The Small Investor Can Beat The Wizards On Wall Street, Second Edition
A good Example of A possible CurrentAustralian stock Penny Hopefuls below
Although many people like investing in penny stocks, believing that such stocks have a better chance of increasing many times in value, nothing says that a $20 stock can’t double, triple, or quadruple in value just as easily as a cheaper one. Considering that a cheap stock may be cheap for a very good reason, there’s ample evidence to suggest that higher-priced stocks may actually have a better chance of going up than cheap ones do.
It’s a fresh start for 2008 with $50,000 to play with – our first pick is a penny-special the big end of town is paying keen attention to.
Imperial corporation Ltd (ASX code: IMP) is a long-shot “roughie” with a much-chequered history stretching back nearly two decades. In that time it has showered the market with paper. At last count issued capital stood at 1.64bn shares. Yet, at 1.3c a share, the company carries a market capitalisation of just $21.33m. More than half of that is covered by IMP’s 4.9% holding in the successful listed heavy minerals miner Bemax Resources (BMX); a holding with a market value of about $11m. That doesn’t leave much value on IMP’s 75% holding in its American subsidiary, Empire Energy USA, or the subsidiary’s impressive $100m financing deal confirmed just before Christmas with Macquarie Bank.
As background … In 2006, IMP joined with US interests to acquire productive tenements on the Appalachian basin in Pennsylvania. IMP’s annual report for the year to June 30, 2007, confirmed that in the last half of 2006 it participated in 15 successful gas wells. In December of that year it subscribed $US9.35m ($10.46m) to its newly formed subsidiary Empire Energy USA and assigned its joint venture interests in Pennsylvania to that company, in which it now has 75%.
The annual report showed that:
• Empire Energy (75% IMP) had 134 producing gas wells, 3.4bn cubic feet of proven reserves plus 7bn cubic feet of undeveloped reserves, with a net present value (NPV) of $US20m, and
• IMP’s Carrolltown joint venture (75% owned but being transferred to Empire) had 20 producing wells, 3.7bn cubic feet net proved reserves and a NPV of $US7.6m.
The company’s September quarterly report revealed that 15m cubic feet of gas a month (about three-quarters of current production) had been hedged at $US8.45/1000 cubic feet from September, 2007, through to August, 2009.
In the week preceding Christmas, with the bonhomie of the season distracting many, who noticed IMP’s announcement of December 18? It confirmed that IMP and its subsidiary Empire Energy USA had entered “into a committed letter of offer” with Macquarie Bank for up to $US100m in credit facilities to fast-track their energy aggregation strategy in the Appalachian basin.
IMP has a medium-term plan to list Empire on a North American exchange and, as part of the deal, Macquarie will get free warrants equivalent to 10% of Empire Energy capital ahead of any float, merger or trade sale.
Heady stuff for a minnow, but perhaps this deal will give IMP a much needed re-rating. IMP retains its long-standing board: executive chairman Bruce McLeod (a sometime banker and stockbroker and also a director of Bemax), engineer Kevin Torpey and stockbroker David Sutton (a director of Martin Place Securities). They have been joined since last August by Mark Maloney, a previous head of equities for J.P. Morgan Australia.
Visit http://bulletin.ninemsn.com.au/article.aspx?id=345971 for full article
RSS FEED PENNY STOCKS
Some recommended Books on Amazon for penny stock picking :
Understanding Penny Stocks