Pink Sheet profits-how to find explosive penny stocks Fast

For many years, it was almost impossible to secure reliable information from cards pink and even of OTC Bulletin Board (OTCBB). This was because of the lack of, if not the complete lack of accountability in many respects, including the filing of audited financial statements, the correction of mistakes and even allowing shell companies to offer their own shares of stock.

The good news is that this deplorable situation has changed significantly for the benefit of traders and investors who are interested in penny stocks, but was hesitant because of the above reasons. This change was made possible thanks to the new classification system implemented by pink sheets. The main result is that only trusted companies that were left behind on the pink quotes for traders and investors to choose from as well, investment.

Classification levels

There are three levels of penny stocks on pink sheets. The first step-the top level, if you will-is the PremierOX with the companies listed under classification shall comply with relatively strict requirements. These include price per share of at least $ 1, the number of shareholders of 100 entities with a minimum of 100 shares of stock each and other reporting requirements imposed by the major national exchanges.

The second level is called PrimeOX, which is almost similar to the PremierOX level except for a few differences. These include no minimum price per share and the smallest only 50 shareholders with a minimum of 100 shares for each one, so that the company may be listed on pink sheets.

The third category is reserved for international companies, said level designated as OTCQX. Within this category are recognized two distinct sub-categories-the Premier International OTCQX and international OTCQX Prime. There are only two requirements:

The company must meet the standards for the exchange of national of the country of origin (i.e., a British company must comply with the requirements of the London Stock Exchange) of the deposit of documents must be in English

Steps to reproduce the new pink sheets

With the new security mechanisms in place, so to speak, is now easier to make profit from penny stocks that are traded on the pink sheets. Investors and traders are advised to take these steps:

Look at the companies listed under the previous sort. An important part of the weed control outside the chaff from the wheat is run by pink sheets. These companies now have a measure of God's reliability and accountability instead of a single shell. limiting your options to companies in accordance with a certain set of criteria, which must have acted on before even CONSIDERING the pink sheets. The criteria may be companies with sales of 15 million dollars this year with institutional investors and catalysts of development such as commercialization, take-overs and favorable end legal battles. Execution of technical and fundamental analysis about the top five companies chosen.

These are just the basic steps, of course, as each of these proposals have mini-steps, in a manner of speaking. The most important thing about successful penny stocks is that you will step into the world with open eyes and is open to the possibility of failure, and the mind.

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