Are you interested in penny stocks investing? If you are, there are three critical things you MUST know about. There are many young investors who lose a lot more than they make from these volatile stocks. If you are interested in succeeding with penny stocks investing, I urge you to stick around for a bit. Your penny stock picks depend on it!
Obviously, choosing the right penny stocks depends on your ability to judge a company's worth. You need to evaluate a company to see its true potential. Here are 3 things to watch for...
Penny Stocks Investing
1. Revenue
It is amazing to see the number of investors who forget about the most fundamental numbers. They judge a company's worth based on some preconceived notion or "insider secret".
Forget about all of these gimmicks.
The company needs to have increasing revenue. Look for some consistent increases over the past few quarters and this will be a great sign.
2. Market Advantages
This one is very vital to any company's success. What market are they operating in?
There are many large markets which the big players will dominate. This is okay. Does your penny stock company have an advantage within a smaller niche of that market? Does it have something that its competitors do not?
Look for resources and specialization that your company possesses which others do not.
3. Buy Backs
If your company has a buy back plan, this is an awesome sign of future profitability. A buy back plan is where a company commits to buying back its shares over a certain period of time. You want this. The more shares your company buys back, the more your shares (and other publicly traded shares) will be worth!
If you are serious about penny stocks investing, please keep the above concepts in mind. It will get you on the winning track!
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