Penny stocks are high risk but certainly high reward investment. When you select one winner and shares commence movement, profits may increase hundreds of percentage points. Of course you can lose as well. Picking winners is just a matter of analyzing the correct aspects of each company want to invest in.
So exactly how you can get these great collections; if you do your own research into these 3 basic fundamental parameters is important to determine whether you should pursue a penny stock.
1. the company should have increased revenue
Search: Quarter over quarter growth in revenues shows that a company has a strong business plan.Perhaps they are gaining market share; this is a good sign; this information is easily found on the LFS companies. A bad sign is when a company costs rising, increasing revenue, or simply drop in revenue.
2. the company must have improved earnings
Search: a good check is positive net remuneration for consecutive triminwnoi more the better.Earnings measures just the amount of a company is more than what it spends on operating costs.Only about 15% of stocks penny actually positive profit ultimately the smoke clears. This is net profits talk ...no earnings before interest, taxes, deductions and amortization.
3. company must have a competitive advantage.
Search: companies have advantage vast industry or niche in supply chain operations,/distribution, location or intellectual capital; a good check is whether the benefit is sustainable and is not easily reproducible.
If you don't like to research you can use a stock collection service that has a strong track record and is reliable and accurate would recommend watching the collections you receive before any of your own money.
Believe me, whichever way you choose, or you can do your own research or to use a penny stock pick service revenue, improve profits and competitive advantage is critical to making money on penny stocks.
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