Penny stock investing isn't an easy task. There are a lot of small companies out there that just aren't going to grow into future success stories. And when it comes to looking at new companies, the task gets even harder. When a company doesn't have a long track record to look at and isn't making any money yet, what can you base your judgement on? Let's take a look at two ways to weigh up young com... ››› more
Once a company is making cash, you can use a variety of financial ratios to help value it. If the company's been going a while, you can look at historic figures. Young companies are the hardest to place value on. If a company isn't making any money yet, how do you know if whether to buy it or not? You need to find answers to a few key questions. Here's what to ask…
Question #1: What product d... ››› more
I get scores of emails from people telling me how badly they want to make lots of money investing. But the problem is, many of these people confess that they're literally just getting started.
That's why today I'm starting at the beginning - and I'll show you how to make money in the markets from square one.
You need to understand investing from square one
The words "stocks" and "shares" c... ››› more
Numerous studies have shown that penny stocks have the potential to handsomely reward investors who get in early. So how do penny stocks have this capability to outperform? Let's take a closer look…
Reason #1 for penny stock outperformance
The majority of investors, whether they’re new to the game or professionals, feel comfortable putting money into companies they’re familiar with. And ... ››› more
Yes penny stocks are more risky than their larger counterparts. But with that risk comes the chance of higher returns. The potential upside from a small company is far larger than that of a large company. Let's take a closer look at how penny stocks could boost your portfolio…
The ‘size effect’ shows small companies produce better returns
Over the years, there has been an enormous amount... ››› more
If you want to try to make a serious amount of money investing, you need to get into a company at the beginning of its journey upwards. By investing in a penny stock, you have the greatest chance of making a lot of money. It's this risk you take on investing in a company at such a young age that could eventually pay off over the long-term. Let's take a closer look…
Penny stocks could be the b... ››› more
Over the last few weeks, with the markets trading at all-time highs, I've heard a lot of investors say, “There are no good growth opportunities left in the market. Everything is trading so high already.”
Well, there is one special kind of share that presents some huge profit potential. Even with the market trading at these high levels… In fact, with a shortage of opportunities in regular ... ››› more
It may surprise you, but think about it: The majority of companies come from humble beginnings. And some of the world's most famous companies began life as small businesses. These small companies were ideas that a select few had which blossomed into hugely successful and profitable companies. So what companies are we talking about? And why should you care? Let's take a closer look…
Famous com... ››› more
If you're looking for a stream of potential penny stock winners, check out new listings. These are companies that have just listed on the stock market. You'll find them on the JSE's main board or the AltX. You could unearth a future blue-chip. Let's take a closer look…
Why companies list on the stock market
Companies ‘go public’ or list on the stock market as it’s a way for them to rai... ››› more
Penny stocks can give your portfolio a boost. By investing some of your portfolio into penny shares, you can try to take advantage of young, dynamic, up and coming companies growing from strength to strength, taking their share price with them. So what exactly is a penny stock? What are the risks? And where can you find them? Let's take a closer look…
What are penny stocks?
In South Africa, ... ››› more
If you want to spice up your portfolio with some speculative investments, penny stocks could be perfect for you. But what is a penny stock? How can you find the best ones? And how can you invest in them? To find out the answers to these questions and more, read on…
Eager to start buying penny stocks, but don’t know where to start?
If you want to know more about buying penny stocks, but you... ››› more
When you invest in penny stocks you can see some volatile price. The price can jump about a lot and all of a sudden soar higher. So why is that the case? What should you do when dealing with penny stocks like this? Should you buy in at whatever price you can get in at? Let's take a closer look…
Why a penny stock price can soar overnight
The large jumps in the price of some penny stocks comes... ››› more
If you're hunting for penny stocks to invest in, you'll probably start off with a long list of potential buys. As you research the companies, this list will become shorter. This research could include looking at company fundamentals, such as financial figures. Then it's time to have a look at price earnings (PE) ratios. So what are you looking for with the PE ratio? And how can you apply it to inv... ››› more
Investing in penny stocks comes with higher risks than investing in their larger stock market counterparts. The risk comes with the smaller size of the company in question. This makes them more vulnerable. So before jumping into investing in any penny stock, you need to check the health of the company first. This means looking at a company's financial statements. Let's take a closer look at what y... ››› more
If you're prepared to do some research in a bid to uncover stocks the stock market hasn't yet realised the potential of, penny stocks are for you. Unlike their big brothers, penny stocks don't attract research by investment institutions, insurance companies and pension funds. This means penny stocks can be undervalued. Let's take a look at how you can find the best penny stock…
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