Good Penny Stocks - How To Spot Them In 4 Easy Tips
A good penny stock can put your kids through college and let yourself and your partner retire.
But these huge windfalls come along once in a lifetime.
Instead of shooting for the moon each time, you are likely better off by choosing consistently good stocks all the time, and making a continual profit.
Read on to find out how to choose good penny stocks.
Tip 1 First of all, one of the main things to avoid is the scam artists.
Fictitious penny stocks are not good penny stocks! Have you seen the movie Boiler Room? Well if so, you'll know how easy it is and how often these scams happen, so if anyone contacts you with some "hot" tips, make sure they have absolutely nothing to gain from you taking their advice.
Penny stocks are common ground for many scammers to invent companies and resurrect bankrupt stocks with false reports.
Tip 2 A very solid sign of a good penny stock is a company that has manageable debt.
It's perfectly acceptable for the company to have debts, as long as they are debts they can afford them, and also as long as the borrowings are being used to further profits for the shareholders.
In the event that the borrowings are increasing and the earnings aren't, stay well away.
Tip 3 Look for an EPSGR of 10% plus.
Earnings per share growth rate, as it's known, is the backbone of a good penny stock, and also the higher priced stocks.
This figure will be updated periodically, and is basically a measure of how much the investors profit per share is growing over time.
It's such a precise measurement that it can be very very helpful when choosing a good penny stock.
Tip 4 Make a decision whether you are looking for short term profits or long term growth from your good penny stocks.
Long term growth can be great, as the dividend payments will continue to rise as the share prices do, but bear in mind that penny stocks can be very volatile.
Their very nature means that a fluctuation of only a few cents could very well wipe out most of your nice little dividend payments, so make sure you know exactly what you are getting yourself into with penny stocks.
Penny stocks are not as hard to profit from as people seem to think, but knowing how to choose the good penny stocks is essential.
Click the links below to see the best stock trading guides around.
But these huge windfalls come along once in a lifetime.
Instead of shooting for the moon each time, you are likely better off by choosing consistently good stocks all the time, and making a continual profit.
Read on to find out how to choose good penny stocks.
Tip 1 First of all, one of the main things to avoid is the scam artists.
Fictitious penny stocks are not good penny stocks! Have you seen the movie Boiler Room? Well if so, you'll know how easy it is and how often these scams happen, so if anyone contacts you with some "hot" tips, make sure they have absolutely nothing to gain from you taking their advice.
Penny stocks are common ground for many scammers to invent companies and resurrect bankrupt stocks with false reports.
Tip 2 A very solid sign of a good penny stock is a company that has manageable debt.
It's perfectly acceptable for the company to have debts, as long as they are debts they can afford them, and also as long as the borrowings are being used to further profits for the shareholders.
In the event that the borrowings are increasing and the earnings aren't, stay well away.
Tip 3 Look for an EPSGR of 10% plus.
Earnings per share growth rate, as it's known, is the backbone of a good penny stock, and also the higher priced stocks.
This figure will be updated periodically, and is basically a measure of how much the investors profit per share is growing over time.
It's such a precise measurement that it can be very very helpful when choosing a good penny stock.
Tip 4 Make a decision whether you are looking for short term profits or long term growth from your good penny stocks.
Long term growth can be great, as the dividend payments will continue to rise as the share prices do, but bear in mind that penny stocks can be very volatile.
Their very nature means that a fluctuation of only a few cents could very well wipe out most of your nice little dividend payments, so make sure you know exactly what you are getting yourself into with penny stocks.
Penny stocks are not as hard to profit from as people seem to think, but knowing how to choose the good penny stocks is essential.
Click the links below to see the best stock trading guides around.
