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
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
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
Planning for your impending retirement isn't an easy task. After the financial crisis, many investors are worried about what the future holds on the markets. But there is a way you can invest your money for retirement and reduce your risk. This retirement plan does this by starting with a solid base. Let's take a closer look…
Retirement plan step #1: Risk
All investors have different attitud... ››› 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
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
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
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
A penny stock is a share trading on the Johannesburg Stock Exchange for less than R10. Generally speaking, this means you'll find these companies in the small-cap index or the AltX. They tend to be growing, up and coming businesses. But there are other companies that end up penny stocks for other reasons. Let's take a closer look at these…
What is a recovery share?
A recovery share is a comp... ››› 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
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