Nov 28, 2011

Posted by in Penny Stock | 0 Comments

Big Penny Stocks: The Ultimate In Investment Homeruns

Raining Down the Cash with Big Penny Stocks

big penny stocksFinding big penny stocks is like coming to bat in the bottom of the ninth inning with two outs and the World Series on the line and hitting the game winning homerun. Every day people pour over financial data, secret reports, historical charts, and industry news all while seeking out company officials in search of the next micro-cap stock that will break the mold and turn their $1000 investment into tens of millions of dollars. It has happened before and it will happen again. However, when that event will be and with what stock it will occur is a mystery and the reason that usually very sane people make some really insane investments.

Big penny stocks have not yet become an industry term because of the relative rarity of small cap issues becoming major players in the financial world. Regardless, investors flock to OTC and pink sheet issues bringing with them millions of dollars of investment capital. Well run companies in the micro-cap sector are those that are actually producing a product or service for sale at the time they begin to issue stock to the general public. The income they receive from their sales is used to fund operating expenses while funds brought in from stock sales allow them to expand and grow. Research and development, new tech, bio-tech and other speculative industries tend to sell their stock in order to pay operating expenses. Unless one of these companies has an extremely rare or in demand patent then most of the time it will turn out to be a sink hole for your cash.

Big Penny Stocks: Making the Right Choice

It is very difficult to obtain good financial, historical and industry specific on penny stocks. This makes it doubly difficult to put together enough information with which to make an informed buying decision. In many cases once you have gathered as much information as you can; you have to make a judgment call and then pull the trigger. Getting involved is easy, getting out is easy, and not getting emotionally attached to your stocks is tough. Always remember that every investment is a tool to get you closer to your financial goals. If a tool is no longer working get rid of it and the same philosophy holds true for micro-cap stocks. Do not be foolish enough to ride a stock into oblivion in hopes that it will reach the big penny stocks stratosphere.

Find more information on big penny stocks on the FREE email list:

Comments are closed.