Free Investment Advice

Source: web.wn.net
Penny stocks periodically run from say $.005 to $.20 cents or more. Frequently these runs occur in the February-May period, but not always.

In 1999, a tiny stock called PNET ran from $.10 cents to $8 in four weeks. A $1,000 investment could have
increased in value to $80,000. A $5,000 investment would have become worth $400,000. Another example
is STRU. In the summer of 1999, that stock was trading for less than a penny. In a matter of days
it ran to .60. A $1,000 investment in STRU would have enabled a savvy investor to pick up 100,000 shares. The $1,000 became worth $60,000.

In the fall of 1999, a tiny unknown penny stock with the ticker symbol YNOT traded around $.20 cents. In six weeks the stock price EXPLODED to $25. A $1,000 investment would have become worth $125,000. A $5,000 investment would have increased in value to $625,000. A $10,000 investment in YNOT would have become worth $1,250,000.

The penny stock world is filled with stories like this, yet the mainstream media never talks about it.

“HOW TO PICK A PENNY”

1. Before buying - make sure that they are not likely to go  bankrupt! 2:1 assets vs liabilities is very nice, but more important  is liquid assets, cash on hand, etc.

2. Check out Tinystock Caution list.  Learn what to
look for and reasons to avoid certain stocks there.

3. Guage the “hype” via message boards, etc. Hype has an awful lot to do with penny stocks. Analyze the news on the stock! A “good” penny stock company knows how to feed tidbits of good news all the time. A bad one never puts out news. Some only put out bad news…

4. Watch volume–make sure it is not a “selling off” before buying! Volume over 1 million is often a good flag! Buy into one with less and you may find it very hard to sell.

5. Buy a penny stock lower than today’s price if possible…Just have patience and leave an order good to cancel, or nothing, and WITH a LIMIT PRICE.. Never, ever place a MARKET order or you may pay 2-3 times more than you wanted to. Usually buy near the 52-week low!

6. Look at getting out after your penny stock doubles your money, or selling one half - which puts you in a very good position… We like to sell 1/4 off after it doubles.

7. If your penny stock happens to go down–hold long term–even a year or more….In the meantime “hype” it (telling truth only) periodically via stock message boards, etc.