One thing is true. They are not right for everybody. Because of how they are sold, penny stocks can be hard to locate. The difficulty is that they are not all created equal, and when you do find one that looks like a good investment, you want to know what you are getting into. The problem there is that you might not have the time to do that. Unlike the stocks on the major markets that you can buy any time you want, these shares are more limited and someone else might move in on you. This lack of availability can also mean that there is a risk that when you wish to sell you might not be able to do that so easily. If the stock price starts to fall, sometimes other investors will not want to climb on to a sinking ship and you are left with stock that has depreciated in value so much that it is worth very little or nothing at all. Penny stocks are very speculative and should not make up the majority of your portfolio. If you have a little extra money that you would like to play around with then by all means look into the penny stocks market. You should be prepared to lose what you have invested, especially if you invest in only one company in the over-the-counter market. Do not gamble the kids’ college fund on these. They are just too volatile. They certainly can make money, and in fact sometimes penny stocks come up really big. There is more potential for a small company to grow and have their stock double in value over and over. Don’t believe what you see in emails, and don’t bet the farm away on these and they might actually be a fun and exciting way to invest your money.
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Last night, two of the biggest retailers in the U. S. increased their estimates of how much money they would make this year. Wal-Mart Stores, Inc. (NYSE/WMT), the world’s largest retailer, has reported that revenue at stores open at least one-year has increased by 4. 3%. Interestingly, Wal-Mart’s CEO Charles Holley was quoted as saying that customer surveys show that Wal-Mart’s customers are now more concerned with employment than fuel and food costs. At The Home Depot Inc. (NYSE/HD), the company is also increasing its earnings forecast for this year. What are consumers buying at Home Depot? Surprisingly, sales of flowers and cleaning supplies are on the rise. Revenue is increasing at Home Depot. The stock was the best performer on the S&P 500 Index yesterday, up 5. 3%. This morning, Target Corporation (NYSE/TGT), the second biggest U. S. retailer after Wal-Mart, reported that it made 3. 7% more in the second quarter of this year on increased revenue, beating analyst expectations. Finally, Dell Inc. (NYSE/DELL), the second-largest personal-computer maker, reported earnings that fell short of analyst expectations. Sales at Dell rose only one percent in the second quarter. The company cited softer demand from consumers. Dell cut its full-year revenue forecast. What does all this tell me? Consumers continue to tighten their wallets, increasing spending at the large discount retailers. On the other hand, while desktop computers are not considered big-ticket items, consumers are cutting back on general, non-essential, spending. Economic analysis would forecast that the current actions of consumers will result in a significant increase in the savings rate, similar to what happened during the Japanese “lost decade. ” As fear set in, consumers cut back on spending, increased savings, and ultimately caused contractions in gross domestic product (GDP). The big discount retailers should continue to enjoy increased sales growth. Michael’s Personal Notes: Some wise words from my fellow editor Robert Appel that I want to share with my readers. . . “Nothing is exactly what it seems. Before the S&P downgrade of the U. S. ‘ credit rating, China’s internal rating agency had already downgraded U. S. debt by a few days, but the press ignored that, which is ironic because China holds more U. S. debt than anyone else. Hence, you might think, the person that eats the most hot dogs is likely best qualified to know when the hot dogs they are eating suddenly start to taste funny. And then there is the double irony in the fact that the S&P itself (as well as all the rating agencies as a group) had been laughed at and belittled by Washington for ‘allowing’ all that toxic debt to be accumulated overseas between 2004 and 2008. But this is more than merely a case of ‘the pot calling the kettle black. ‘ There is just a hint of revenge (a dish, please recall, best eaten cold) in these antics also. Then there is the way that Washington handled the Debt Ceiling issue. Wasn’t it just yesterday that the U. S. system was reputed to the best drafted democratic system on the planet, with so many checks and balances (we were told) that nothing really ‘wrong’ could ever happen?
Well, as the world watched, the two leading political parties took the U. S. , and the world, to the brink of economic collapse. . . and for what? At the end of the day nothing structural was solved. ” They increased the U. S. debt ceiling, but there were no firm cuts in U. S. spending. . . direct cuts to the various government departments or agencies that spend the money. . . were not announced. Where the Market Stands; Where it’s Headed: My sentiment towards the immediate-term direction of the market continues to be positive. There is far too much negativity amongst analysts and investors and for that reason I believe the bear market rally will continue to ride the “wall of worry” higher. A big contrarian at heart, I’ve never known the stock market to abide by what is expected of it. In fact, 90% to 95% of investors didn’t see the credit crisis coming or the multi-year stock market lows of March 2009 on the horizon. Yes, ultimately, the phase III of the bear market will set it, but it’s all a matter of timing. And I don’t believe the timing is quite right for the stock market to advance directly back to its March 2009 lows. As I have been saying since the beginning of 2011, the bear market rally has more life left in it. What He Said: “Interest rates at a 40-year low: The Fed has made borrowing as easy as possible, resulting in a huge appetite for loans and mortgages. We are nearing a debt crisis. ” Michael Lombardi, PROFIT CONFIDENTIAL, April 8, 2004. “We will wish Greenspan never brought rates down so low as to entice so many consumers to have such big mortgages. ” Michael Lombardi in PROFIT CONFIDENTIAL, April 27, 2004. Michael first started warning about the negative repercussions of Greenspan’s low-interest-rate policy when the Fed first dropped interest rates to one percent in 2004. Retire on This One Hot Stock! This stock is up 232% since we first picked it. Our expert analysts say it will go up another 100% in the next 12 months! Our top 19 stock picks were up an average of 173. 57% in 2010 (not a misprint). See where we are making money in 2011 and get our combined 100 years of investing experience working for you starting today. Get your FREE report on our top stock pick immediately here.
When you start penny stocks trading career you first need to decide how much you are wiling to invest. You need to remember that this is not a “sure-fire” income opportunity and that it is possible that you may lose everything, so be sure not to invest more than you can afford to lose. If you have invested all of you cash and your present collection is flat, the only way to buy into rising penny stocks market and get a piece of the action is to either. Use “your own money”, for example money that is not part of your penny stocks investment fund a very bad idea. Or to get on the phone to your broker and see if can sell some of your existing shares so that you can buy into the rising penny stocks. The first is obviously not really a good thing to do and is more similar to gambling than investment. After all if you couldn’t make a profit with the first group of penny stocks, why do think you could with the second. A more likely scenario is that you are throwing good money after bad, except that this time it is not money that you can afford to lose. The second, though more sensible than the first, is not really what trading penny stocks is all about. The whole point is to be able to buy quickly if you think that a stock is about to rise. T sells quickly, as well, when the market seems to have to have peaked for your penny stocks, so that you can maximize your profit and sell before the market starts to fall. The ability to move quickly in response to rapidly rising penny stocks can greatly affect your potential for profits in this most volatile of the financial markets. Keeping a portion of your penny stocks fund liquid will help you to achieve profitability and make the success of your investing venture into the world of penny stocks trading more likely to be a profitable one.
You may have heard about Nigerian stocks already but you have no idea what it is all about. This is one of those opportunities to invest in the stock market and earn high profit from it while it is still hot. It was acknowledged that this is the best time to take the winning side. Before, Nigerians are not aware of their capital market. It was the time that only a few rich people in their country took the advantage of the market stock’s benefit. Most Nigerians simply do not know anything about Nigerian stock market. With the manifestation of democracy essential changes happened in the area of telecommunications. Finally, reconstitution of stock exchange activities was carried out. The restructure that was brought was trading live on computers and credited the transactions into the account of investors within four days. This radical change brought clarity and special sensation into the sector. After that, more numbers of Nigerians abroad and at their country got involved in the activities of Nigerian stocks in the market. As time goes by, people are having difficulties with life due to the global economic crisis. Almost every employee has the fear that they might get jobless anytime that their company dive down. This is a very common scenario these days which made people look for other options to earn money. They will not just sit back and wait for the time that they will get laid off from work. They will be willing to try any other offers of business that can make them earn a good profit for their family to survive. The impact of Nigerian stock market gave some people the idea to enter and now they are enjoying the good benefits that it brings. Although a lot of people are not aware about it yet, some companies are helping out to reach individuals that need this chance of a lifetime. The purchasing of shares should be on the maximum uncertainty that’s why people should take the opportunity immediately simply for the reason that the market of Nigerian stocks gives higher returns, investment can be very small money and you don’t have to be an expert in the field of stock shares. The perfect timing for investment in Nigerian stocks market is now, not tomorrow and not later. Why? Because as of December 31 Bloomberg’s compilation of data stated that Templeton’s Frontier Markets Fund declared that Nigeria’s biggest brewery was recently ranked as one of the 10 largest holdings. Next are stock shares of Nigeria’s flour mills that went up about 700% in just 360 days. This is just the beginning that’s why people really should look into this. Another one is Nigeria’s access bank shares that went up over 500% in just 12 months.