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
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
Investing in shares comes with risks. And to take care of the downside risk, stop losses are a must. You decide how much of your initial investment you're prepared to lose and set your stop loss at that. Then if the share price falls and hits that level, you sell. Simple as that. But using stop losses also comes with its issues. Read on to find out more…
Setting a stop loss level
Using a ... ››› more
Investing in penny stocks isn't just a case of looking for the cheapest shares trading on the Johannesburg Stock Exchange. You need to do some research to uncover the penny stocks with the greatest potential and take it from there. So how can you find the best penny stock to invest in? It all starts with looking for shares that meet certain criteria. Let's take a closer look at what you need to do... ››› more
If you want to buy penny stocks, you need the services of a stockbroker. Buying shares in penny stocks is the same as buying shares in larger companies. So where do you start? How to you place an order to buy penny stocks? And what would you say to your stockbroker? Read on to find out more…
You need an account with a stockbroker
To buy penny stocks, the first thing you need to do is open... ››› more
If you're interested in penny stocks, the first thing you need to do is find them. So where is the best place to start? You have two options. You can look at young companies. Or you can look at companies with low share prices. Let's delve a bit deeper into finding penny share candidates in young companies…
The phases a company goes through
If you think about it, all of today’s corporate... ››› 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.