Archive for May, 2009
Corporate Developments To Watch For In Penny Stocks Companies
Written by troy on Saturday, May 02, 2009 | No Comments
Categories: Uncategorized Tags: Ceo, Corporate Developments, Investors
When you are looking for penny stocks to invest in, researching about the company’s management and its activities will help you in determining whether the company’s penny stocks are worth buying. Financials alone are not enough; you want to know if this company will be able to weather the growing pains as well as the competition. Here are a few things that you should look out for.
The management team
Getting information on the company’s management team is important. Are the people running the company qualified? Would you hire them to run your own company? Find out what companies they have been affiliated with prior to joining this penny stocks company. Who is the CEO; is he capable of taking the company to new heights?
Sometimes you hear about a company hiring new management. Find out more about the new chief executive and his credentials. In many cases, a new top man joining the company, especially if his background and experience are impressive it will help to boost the company’s image and its potential for penny stocks value appreciation. Customers will want to purchase the company’s products because of the new chief, suppliers will be eager to provide their services, and investors will not hesitate to buy its penny stocks.
The people sitting on the company’s board are important too. Known politicians, important executives in the industry, and retired military officials because of their contacts and their reputation will bring in more customers and investors, thus raising the value of the penny stocks.
Overseas production
Penny stocks companies that venture into overseas production are a good sign. Labor abroad is generally cheaper than that of the United States, and in recent years, the quality of foreign made goods has come up to par with our locally produced ones. Lower labor and production costs will help enable the money to bring the prices of its products down and compete more effectively in the industry.
Overseas markets
Overseas production also allows the penny stocks company to cater to a wider consumer market. In the less industrialized countries, many of our products are not readily available. Products such as communications technology, clothing, internet technology, and computer equipment are only a few of the things that are in demand. By selling its products abroad where it practically has no competition, the penny stocks company will be able to greatly increase its revenues and thus drive up the value of its stocks.
New market segments
A penny stocks company that enters new markets through a product that no one or very few have thought of before is a good sign. The company has the potential of capturing a niche before the competition discovers it, and this is attractive to investors.
Expansion to new geographical areas
A penny stocks company that expands to new geographical areas. The company’s potential as an investment prospect becomes even more attractive if the area it will expand to is underserved. It will have a monopoly on the market and this, of course, will positively affect its revenue.
Exclusive arrangements with big corporations
A company has to distinguish itself from the competition in order to stand out. This is difficult especially if the penny stocks company is a reseller of somebody else’s products. If it lowers its price, the other resellers can easily follow suit. One way of being different is to enter into exclusive contracts with known brands or services that have established a good reputation. If a penny stocks company is able to enter into an exclusive arrangement with a known brand such as IBM or Wal-Mart, its credibility increases for both customers and the industry.
Affiliations
Individuals are judged by the company they keep, and this also holds true for companies. Penny stocks companies, because of the pejorative connotation given to their stocks, have the added pressure of proving their credibility. Some of the ways of gaining credibility are through sponsorship of events or donations to charity. The company is acknowledged by the beneficiary, it gets free publicity, and it is a good boost for its reputation.
By: Nir Dotan
About the Author:
The management team
Getting information on the company’s management team is important. Are the people running the company qualified? Would you hire them to run your own company? Find out what companies they have been affiliated with prior to joining this penny stocks company. Who is the CEO; is he capable of taking the company to new heights?
Sometimes you hear about a company hiring new management. Find out more about the new chief executive and his credentials. In many cases, a new top man joining the company, especially if his background and experience are impressive it will help to boost the company’s image and its potential for penny stocks value appreciation. Customers will want to purchase the company’s products because of the new chief, suppliers will be eager to provide their services, and investors will not hesitate to buy its penny stocks.
The people sitting on the company’s board are important too. Known politicians, important executives in the industry, and retired military officials because of their contacts and their reputation will bring in more customers and investors, thus raising the value of the penny stocks.
Overseas production
Penny stocks companies that venture into overseas production are a good sign. Labor abroad is generally cheaper than that of the United States, and in recent years, the quality of foreign made goods has come up to par with our locally produced ones. Lower labor and production costs will help enable the money to bring the prices of its products down and compete more effectively in the industry.
Overseas markets
Overseas production also allows the penny stocks company to cater to a wider consumer market. In the less industrialized countries, many of our products are not readily available. Products such as communications technology, clothing, internet technology, and computer equipment are only a few of the things that are in demand. By selling its products abroad where it practically has no competition, the penny stocks company will be able to greatly increase its revenues and thus drive up the value of its stocks.
New market segments
A penny stocks company that enters new markets through a product that no one or very few have thought of before is a good sign. The company has the potential of capturing a niche before the competition discovers it, and this is attractive to investors.
Expansion to new geographical areas
A penny stocks company that expands to new geographical areas. The company’s potential as an investment prospect becomes even more attractive if the area it will expand to is underserved. It will have a monopoly on the market and this, of course, will positively affect its revenue.
Exclusive arrangements with big corporations
A company has to distinguish itself from the competition in order to stand out. This is difficult especially if the penny stocks company is a reseller of somebody else’s products. If it lowers its price, the other resellers can easily follow suit. One way of being different is to enter into exclusive contracts with known brands or services that have established a good reputation. If a penny stocks company is able to enter into an exclusive arrangement with a known brand such as IBM or Wal-Mart, its credibility increases for both customers and the industry.
Affiliations
Individuals are judged by the company they keep, and this also holds true for companies. Penny stocks companies, because of the pejorative connotation given to their stocks, have the added pressure of proving their credibility. Some of the ways of gaining credibility are through sponsorship of events or donations to charity. The company is acknowledged by the beneficiary, it gets free publicity, and it is a good boost for its reputation.
By: Nir Dotan
About the Author:
Nir Dotan is a writer and promoter of
Penny Stocks
services, and
Penny Stocks Preferred source for the latest news and information on the best and brightest Small Cap Stocks.
How To Find Which Penny Stocks Are Worth Buying
Written by troy on Friday, May 01, 2009 | 1 Comment
Categories: Uncategorized Tags: Annual Reports, Nasdaq Stock Market, penny stocks
Before you part with your money to invest on penny stocks, make sure you do your research first and get as much information about the microcap company. Don’t rely on your friends for tips; they probably know less than you do. Because information about microcap companies and penny stocks is hard to find, you will need to do a Sherlock Holmes and ferret out that information.
Investigate whether the company’s securities are registered. Companies that go public must register its securities with the Securities and Exchange Commission.
The law also requires that the following should file reports with the SEC:
* companies that have 500 or more investors and $10 or more in assets,
* companies that are listed on the stock exchange boards of Boston, Chicago, Cincinnati, New York, Philadelphia; the American Stock Exchange, the Pacific Exchange, the Nasdaq Stock Market, and the International Securities Exchange; and
* companies whose securities are listed on the OTCBB
Only the extremely small companies are exempted from filing reports. The information about the company
contained in the quarterly reports, annual reports, and reports of significant events that it submits will indicate whether it is making or losing money, and why. The documents that are filed with the SEC are public records, and you should be able to find them in the SEC or from your state’s securities regulators.
Make sure you know enough about the company’s business and its products or services. If you plan to invest in a company’s penny stocks, you should know what you are buying. Don’t go rushing to buy penny stocks just because you heard a tip that you think is good.
Read the company’s reports, particularly its financial statements. Financial reports are a good indicator of whether a company is making money or not, and therefore worth investing in. Pay particular attention to the company’s revenue, earnings, debts, and assets. Check too if the company’s financial reports are audited and certified by an accountant. If these are not, then be wary.
If a company does not file reports with the SEC but sells its penny stocks, it is still required to file an annual report under Rule 15c2-11 of the amended Securities Exchange Act of 1934. If you cannot find any information about the company or its penny stocks from the SEC, your broker should be able to give you the information that was reported under this rule.
Find out about the people running the company. Information about the people running a penny stocks company can indicate if they have a poor history of moneymaking. Have they made money for their investors before? Have they had run-ins with the securities regulators or the investors? The state securities regulator should be able to give you this information about the company’s heads.
Check if your broker and his firm are registered and licensed. A legitimate broker should be registered with the SEC and licensed to operate in your state. Ask your state regulators too whether the broker has received any disciplinary sanctions or complaints. If it has, take this as a sign that the broker may not be an honest one.
Penny stocks have the potential to give your big earnings for your investment, but only if you are buying into a legitimate and above-board company. Don’t jump into the pool with your eyes closed, otherwise you could be saying goodbye to your hard-earned money.
By: Nir Dotan
About the Author:
Investigate whether the company’s securities are registered. Companies that go public must register its securities with the Securities and Exchange Commission.
The law also requires that the following should file reports with the SEC:
* companies that have 500 or more investors and $10 or more in assets,
* companies that are listed on the stock exchange boards of Boston, Chicago, Cincinnati, New York, Philadelphia; the American Stock Exchange, the Pacific Exchange, the Nasdaq Stock Market, and the International Securities Exchange; and
* companies whose securities are listed on the OTCBB
Only the extremely small companies are exempted from filing reports. The information about the company
contained in the quarterly reports, annual reports, and reports of significant events that it submits will indicate whether it is making or losing money, and why. The documents that are filed with the SEC are public records, and you should be able to find them in the SEC or from your state’s securities regulators.
Make sure you know enough about the company’s business and its products or services. If you plan to invest in a company’s penny stocks, you should know what you are buying. Don’t go rushing to buy penny stocks just because you heard a tip that you think is good.
Read the company’s reports, particularly its financial statements. Financial reports are a good indicator of whether a company is making money or not, and therefore worth investing in. Pay particular attention to the company’s revenue, earnings, debts, and assets. Check too if the company’s financial reports are audited and certified by an accountant. If these are not, then be wary.
If a company does not file reports with the SEC but sells its penny stocks, it is still required to file an annual report under Rule 15c2-11 of the amended Securities Exchange Act of 1934. If you cannot find any information about the company or its penny stocks from the SEC, your broker should be able to give you the information that was reported under this rule.
Find out about the people running the company. Information about the people running a penny stocks company can indicate if they have a poor history of moneymaking. Have they made money for their investors before? Have they had run-ins with the securities regulators or the investors? The state securities regulator should be able to give you this information about the company’s heads.
Check if your broker and his firm are registered and licensed. A legitimate broker should be registered with the SEC and licensed to operate in your state. Ask your state regulators too whether the broker has received any disciplinary sanctions or complaints. If it has, take this as a sign that the broker may not be an honest one.
Penny stocks have the potential to give your big earnings for your investment, but only if you are buying into a legitimate and above-board company. Don’t jump into the pool with your eyes closed, otherwise you could be saying goodbye to your hard-earned money.
By: Nir Dotan
About the Author:
Nir Dotan is a writer and promoter of
Penny Stocks
services, and
Penny Stocks Preferred source for the latest news and information on the best and brightest Small Cap Stocks.