Avoiding Penny Stock Pitfalls

Best Damn Penny Stocks PRESENTS PITFALLS PENNY WHAT ARE PENNY STOCKS? Penny Stocks are stocks that trade at a relatively low price (usually under $1) and market capitalization, typically outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. However, the gains can be huge. WHY CAN PENNY STOCKS BE RISKY? LESS REGULATION Some companies are not required to file with the Securities and Excange Commission. LACK OF INFORMATION 2Q iki Listed companies may not have information or history made available to investors. MAY BE DIFFICULT TO SELL Sometimes it can be difficult to find a buyer if and when you decide to sell your shares. UNPREDICTABLE 40 Penny Stocks are often unpredictable which can either be a benefit or a detriment. HOW TO AVOID PITFALLS 1. Avoid stocks that often go up and down. 2. Don't fall prey to company hype that are always promising big returns with no info on how they will provide those returns. 3. Research the company before purchasing their stock. 4. Look for high trade volume. This usually means the stock has gained attention. 5. Pay attention to rumors about what the company is doing. 6. Ask yourself, "What are they selling? Is it promising?" If not, you may want to avoid that particular penny stock. 7. Watch for patterns in the swings of the stock for a few months. HOW TO SAFELY BUY PENNY STOCKS ONLINE Surf the internet to find a legitimate online stockbroker. Find an agent who can produce the desired results and one that has a brick-and-mortar office online. Know the agent's track record. Is it good or bad? 12374218,75 HOW TO TELL IF A PENNY STOCK IS A SCAM MC M- MR х To find out if a company is a scam bring up the company's balance sheet and calculate the debt-to-equity ratio (a measurement of that company's financial leverage, i.e. the company's ability to borrow and repay money). 3 To calculate the company's debt-to- equity ratio you divide its total liabilities by it's total shareholders equity... Total Total Shareholder Equity Liabilities Company's Debt-to-Equity Ratio If the result is greater than 3 than that company most likely won't be able to pay its debts off long-term. TOP 10 PENNY STOCKS 1. Laidlaw Energy Group Inc. (LLEG) is a company involved in emerging renewable energy technologies focusing its atten- tion on building power plants to convert biomass energy into clean energy of the future. LLEG's are definitely penny stocks to watch due to their renewable energy status. 2. Supatcha Resources Inc. (SAEIE) is working on ac- quiring, investigating and developing profitable ways of mining gold in Eastern Europe, namely, Ukraine. 3. Spencer Pharmaceutical Inc. (SPPH) is a US based corporation which is involved in innovative drug research and finding cures for a number of metabolic disorders. 4. Encounter Technologies (ENTI) is a provider of unique customizable platforms for online streaming and networking. 5. Smokefree Innotec lInc. (SFIO) is a creator of smoke- less cigarettes that are supposed to reduce nicotine side effects com- pared to traditional cigarettes. 6. Treaty Energy Inc. (TECO) is working on providing hy- drocarbon deposit detecting analysis necessary to find new areas to drill for oil, 7. Mantra Venture Group Ltd. (MVTG) is involved in developing technology that enables major power plants to reduce carbon dioxide emissions. 8. Left Behind Games Inc. (LFBG) offers Christian based video games as an alternative to violence dominant games on the market. This is definitely a penny stock to watch due to their recent contract signed with Wal-Mart. 9. Icoa Inc. (ICOA) works on installing and operating a large vari- ety of WI-FI hot spots at well known restaurants, airports and public areas across the country. 10. Cannabis Science Inc. (CBIS) works with Word Au- thorities on phytocannabinoid science targeting critical illne ss. Ad- hering to scientific methodologies to develop, produce, and commer- cialize phytocannabinoid based pharmaceutical products. Brought to you by Sources: Best Damn http://www.squidoo.com/history-of-penny-stocks http://www.investopedia.com/terms/p/pennystock.asp#izzix1KLaz http://voices.yahoo.com/risks-benefits-tips-buying-penny-stocks-581359.html http://www.investmentadvisortips.com/top-10-penny-stocks-to-watch/ http://pennystocker.com/how-to-find-penny-stock-that-are-scams-and-how-to-take-advantage-of-them/ Penny Stocks BestDamnPennyStocks.com ........ ..................... AVOIDING