Archive for the 'Penny Stock Picks and Lists' Category

Foreign Penny Stocks

Some of the best foreign stocks to invest in are foreign penny stocks. Foreign markets may offer more opportunities and bigger profit potential, but they can also include higher degrees of volatility as well. Penny stocks worth watching include many countries and market sectors, including energy, health care, and others. China offers a big market when it comes to foreign penny stocks, and one of these is China Non-Ferrous Metals Mining Co., Ltd., with the symbol 8306. Another of the best foreign stocks to invest in include Lynas Corporation Ltd., ticker symbol LYC. This company is from Australia, and it was recently acquired by 8306 when the Chinese fund purchased a controlling interest.
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Penny Stock Picks
  • Knowing which penny stocks to watch can be a big help when evaluating stocks
  • A hot penny stock is one that is ready to take off and go up
  • Biotch penny stocks can be the money makers of the future when it comes to investing

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Undervalued Penny Stocks
  • All penny stocks can be evaluated to determine if they are overvalued or undervalued
  • Hot penny stock picks can help you locate undervalued penny stocks to invest in
  • Undervalued penny stocks can help you with successful penny stocks investing

All penny stocks carry some risks, just like any other stocks, but there are ways that you can lower these risks. One of the bes methods of penny stock investing is to find undervalued penny stocks. These stocks have a better chance of increasing in price, because they are valued at more than the share price listed. There are some tools and tips that can help you find the best hot penny stock picks that are undervalued and can go up in value significantly in the near future. Finding undervalued penny stocks may take a little time and effort, but the results can be well worth it.

1. Evaluate The Price To Earnings Ratio

Wise penny stock investing means evaluating penny stocks to find those that are undervalued, and the price to earnings ratio can help with this. This ratio will allow you to determine how much investors in the market are willing to pay for each dollar of earnings from the company. The higher this percentage is, the more desired a stock is and the better the odds are that it is a terrific investment. The exception is if this ratio is extremely high, because this could be an indication of a market bubble that is almost ready to burst. A very low number can indicate an undervalued stock.

2. Look At The Financial History Of The Company

The financial history of all the penny stocks that you are considering should be researched and evaluated. Look back at least five years if possible, but this is no available in every case. Make sure to go back at least four quarters and preferably farther. Even if the stock is an IPO, previous company information should be available for this analysis from before the company went public. If the stock price is low compared to historical price data, and the substantial value of the company is still the same, the penny stock may be undervalued.

3. Compare The Current Stock Price With Analyst Values For The Stock

Hot penny stock picks which are undervalued will normally be priced lower than the value placed on the stock by analysts and experts. This is not always true, because even the experts can be wrong once in a while, but normally this is the case. If you are interested in a penny stock, and most analysts and advisors have the value listed higher than the current price, now is the time to buy. Analyst predictions can cause changes in the market, and the value could rise significantly simply because of these predictions. Only buy if the stock is a quality penny stock though, to ensure some value in your investment.

4. Look At The Year Over Year Growth Rate For The True Penny Stock Value

The year over year growth rate of the penny stock and company is another key to finding undervalued stocks for smart penny stock investing. This method has less volatility involved, so you get more accurate information and can make better investment choices. This is also called the Compound Annual Growth Rate, or CAGR. This formula allows you to determine what the investment growth rate would be if the company and stock grows at a steady rate. This represents the annualized gain if the returns annually are smoothed out.

5. A Low Debt To Equity Ratio Can Identify Undervalued Penny Stocks

Looking at the debt to equity ratio for all penny stocks you are considering can help you locate penny stocks which are undervalued and can be a smart investment. If a company and stock has a low debt to equity ratio it is very possibly undervalued, and worth more than the market price reflects at this time. This equation is extremely helpful in finding the top quality penny stocks that are a good investment, and weeding out unsuitable stocks in companies that carry high debt.

Undervalued Penny Stocks

Undervalued penny stocks offer a great deal for investors. These stocks are priced well under their market value, and they are a great investment. How can you determine which penny stocks are undervalued though? Penny stocks are stocks that are traded over the counter, and these stocks do not usually meet exchange requirements for some reason, whether it is because of the lack of history or the financial condition of the underlying company. Understanding how to determine whether a penny stock is undervalued or not does not have to be impossible or include complex equations. There are some steps that you can use to help determine which penny stocks are undervalued, and which of these stocks should be avoided.

Tip #1. The financial health of a penny stock is one aspect used to identify undervalued penny stocks. This is true of both American and Canadian penny stock choices. Do some research and know how much working capital and how much debt is carried by the company. The best penny stock pick is one where the company uses the money from investors to grow, and not just to meet business expenses. This is a sign that the company has growth potential, and that the investor will see decent returns from the penny stock usually. The way that the company uses proceeds from the stock offering can also help you determine whether the penny stock is undervalued or not. If the initial public offering funds are used for company growth and expansion, this is a sign that this stock may be a best penny pick stock. Be wary of any company that uses funds from the public offering to make loans to company insiders, or for other purposes that will not help the company expand and grow.

Tip #2. Research the management of each of the rocket stock picks. Look at the experience level and the background of all company directors and officers, to ensure that the company management team is qualified and has the right experience to lead the company, and the penny stock, to a higher value. Experience can be an important factor, and verify that the directors and officers of the company have experience in that specific field, and not an unrelated one.

Best Penny Pick Stock

Tip #3. Do a product analysis for the underlying company of the penny stock you are considering. This will help you determine whether the penny stocks are undervalued or not. Determine exactly where the product is in the develo

pment process. Look at the prospectus carefully, and make sure you know what the money being invested is for. Is it used to market a new product, or to finish developing a product that may be years away from the consumer. You need to look at the length of history for the company, as well as what the history shows. Penny stocks which represent brand new companies have much higher risks attached. Undervalued penny stocks will represent companies that have no lawsuits or liabilities, so do thorough research to ensure this is the case. Look at any trades which could be considered a conflict of interest, like large numbers of free shares being given to promoters and company insider.

Tip #4. Determining which penny stocks are undervalued will allow you to invest in quality penny stocks, and not lose money because of scams or other problems that can occur with these stocks. An undervalued penny stock is a terrific investment opportunity, but you must be able to determine which penny stocks are accurately undervalued and which are better left untouched.