When you invest in penny stocks, it's not unusual to find that the majority of them don't pay dividends, especially if they're growth stocks.
If a company isn't generating enough profits, it won't be able to sustain paying a dividend. And if a company is still ploughing money into its business, it doesn't make sense for it to pay dividends.
But if you find a penny stock that does pay a divid... ››› more
When you're trying to find penny stocks to invest in, there are literally hundreds of things you can look at.
There's an abundance of data in a company's financial statements, including profit margins, growth rates and balance sheet ratios.
You can also look at what the share price has been up to.
But there are some other factors that you should look at too. These can give you clues about... ››› more
Penny stocks have the potential to give your portfolio a boost. Get your picks right, and you could make a serious amount of money.
Of course, the chance of big profits comes with higher risks. You can't just start investing in every stock on the Johannesburg Stock Exchange that falls into the penny stock category.
You have to research each potential penny stock investment just as you would ... ››› more
There are a variety of different approaches to investing. And these different approaches give rise to investing in a variety of different types of companies.
You may focus on dividend paying companies for your long-term portfolio. But when it comes to penny stocks, dividends are something you need to ignore.
So why is that?
Let's take a closer look…
What are penny stocks?
Penny... ››› more
These days with the internet and the wealth of information out there everyone wants to run their own portfolio. And who better to do that; since nobody else cares more for your money than yourself?
The fact is, anyone can manage a stock portfolio. Just like anyone can drive a car.
But it doesn't mean you won't hit a tree or slide off of the road every once in a while.
So you need to know ... ››› more
Crack addicts have constant mood swings, their weight fluctuates between overweight and underweight, and they often lose all interest in life.
I've met a couple of investors that I'm certain are crack addicts…
They buy a share today - with a high conviction that it's going up only to swing to the complete opposite three weeks later, certain the share will crash.
Their investment portfol... ››› more
Investing in penny stocks can prove to be a profitable endeavour. You can make money by investing in the right small company.
When you invest in a penny stock that's soaring, it can be hard to know when to bail out. You don't want to see your profits disappearing as the share price heads south.
That's what it's important to keep an eye on its PE (price earnings) ratio.
Let's take a closer... ››› more
Finding the best penny stocks to invest in can be a daunting task.
There are a lot of small companies that fall into the penny stock category. But where do you start when it comes to filtering through them?
You need a system to help you. Let's take a closer look …
Unearthing a penny stock winner means research
To unearth a diamond penny stock, you need to look for companies that ... ››› more
Investing in penny stocks can prove lucrative. But it can be a bit of a minefield finding the penny stocks with the best chance of future success.
So to help you uncover the penny stocks with the best potential, here are some tips to get you on your way.
Read on to uncover what these are…
Investing in penny stocks tip #1: Forget about profits and think research
Take the rand signs... ››› more
“Francois, I'm no investment expert, but I immerse myself in economic and household data everyday. And I just can't see what it is that's pushing growth for companies any further. Where is the stock market going to from here?”
That's the gist of a discussion I had with a Coca-Cola executive at a wine tasting last night. He's in charge of South Africa's strategy and planning - And he's really... ››› more
Penny stocks have the potential to make you handsome gains. But penny stocks also have a dark side.
There are those who take advantage of investors and use penny stocks as an investor scam.
Luckily, in South Africa with our modest sized stock market, scams aren't very prevalent. But, jump over the pond to the US and it's a completely different story.
Just because you reside here, don't th... ››› more
CYNK Technology has soared from a measly few cents to nearly $15 in less than a month. The stock, which isn't on a regulated exchange such as the New York Stock Exchange, trades on an over the counter (OTC) exchange.
So why has CYNK's share price scaled so high? Is there substance to this company, or is it a classic case of a ‘pump and dump'?
Let's take a closer look…
What is CYNK Tec... ››› more
There are a scourge of people trying to con investors out of their money by investing in penny stocks that are destined to fail.
Maybe you've received a phone call from someone claiming to have the next hot stock for you and it's only trading for a R1. And it's only a matter of time before the share is going to trade at R100 or more.
So how can you detect a scam call like this? And what shou... ››› more
Find the right penny stock to invest in and you could be raking in the profits in the not too distant future. So where should you begin?
The first thing you need to know is, what exactly are penny stocks?
Why do penny stocks have the potential to soar in value?
How can you buy penny stocks?
And how best can you manage your risk when investing in penny stocks?
Read on to discover the... ››› more
One of the most difficult types of penny stocks to base any value on, or project what's going to happen to in the future, is a fledgling penny stock. These young companies don't have years of accounts and history to go through. And chances are they're not making any money yet. So it's a good idea to check out a couple of key things before even thinking about investing in one. Read on to find out w... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.