Finding the best shares to buy when it comes to penny stocks can seem a daunting task. Which penny stocks are going to give you the best chance of profits?
To answer this question, it's worthwhile finding out from a penny stock expert.
Read on to uncover this penny stock expert's tips to find the best penny stocks to buy…
The key indicators of a good penny stock
If you want to fin... ››› more
If you've done your research and uncovered some potential penny stock winners, it's time to buy.
To buy shares, you need an account with a stock broker. So what if you don't have one?
Read on to discover what you need to do…
Find a stock broker
If you want to know how to buy shares on the Johannesburg Stock Exchange (JSE), you need to open an account with a stock broker.
A stoc... ››› more
Penny shares tend to be young, small, fast growing companies. But not all penny shares fall into this category.
Some penny shares were successful companies, but hit hard times and are now trading in penny share territory.
So are these shares worth a look at? And if so, what should you look for?
Read on to find out…
What are recovery shares?
Recovery shares that are now penny sh... ››› more
There are some excellent penny stocks on the Johannesburg Stock Exchange to invest in. But some of the best are trading on the expensive side.
You want to find the best shares to buy trading at the best price.
So how can you do this?
Read on to find out more about a ratio that can help you…
Using the PEG ratio to help you uncover great penny stocks
The price earnings growth (P... ››› more
Finding a penny stock full of potential requires some digging around. You need to check out all aspects of the company before committing.
When it comes to looking at the company's accounts, you'll come across the balance sheet.
So what should you pay attention to on the balance sheet?
Read on to find out…
What is the balance sheet?
You’ll find the balance sheet in the middle ... ››› more
If you've got your eye on a few penny stocks, you need to make sure the management is up to scratch, the share price is showing signs of rising and there's a promising future in the company's sector.
Then you need to start looking into a company's financials. A great place to start is the income statement.
So what should you look for?
Read on to find out…
What the income statement... ››› more
Investing in penny stocks means delving into the smallest companies on the Johannesburg Stock Exchange.
These penny stocks have the potential to soar in value over the years, making you handsome profits along the way. But there's also the chance of buying into a company that won't perform.
So how can you find the best shares to buy?
Read on to find out…
Finding penny stocks to inv... ››› more
In October 2014 I warned investors reading my MoneyMorning column against investing in three specific JSE listed penny stocks.
Of those three Evraz Highveld Steel lost 66% of its value, you'd be lucky to sell the shares in Chempsec if you hold any.
And Firestone Energy is nearing bankruptcy…
It's closer than ever to close its doors. And still I get investors asking me whether they shou... ››› more
If you're prepared to put in a lot of groundwork, investing in small-cap stocks can be a great way to find opportunities to make large returns.
So how can you invest successfully in the smaller companies on the JSE?
Read on to find out…
The appeal of small-caps
Many investors are attracted to small-caps and penny stocks as there’s the chance they’ll unearth a future corporate ... ››› more
The AltX is Johannesburg Stock Exchange's board for small, fast growing companies.
The AltX plays an important role in the stock market in South Africa.
So what is that role? And how can you benefit from the AltX?
Read on to find out…
The role of the AltX
The AltX offers small, growing companies a way to raise money. By listing on the AltX, these smaller businesses can raise ca... ››› more
If you invest in dividend paying companies, chances are you have shares in many of the large, established companies on the Johannesburg Stock Exchange.
These companies have surplus cash flow, which they distribute back to their shareholders.
So what about penny stocks that pay dividends? Are they worth looking at?
Read on to find out…
Penny stocks paying dividends are rare
Gene... ››› more
Penny stocks are speculative investments. Whilst there's a chance you'll hit it big and make large profits, there's also the risk that a penny stock will flop.
So how much of your portfolio should you invest in penny stocks? And how much should you invest in each penny stock?
Read on to find out…
How much of your portfolio should be in penny stocks?
Penny stocks are more risky tha... ››› more
When you invest, you should follow a strategy. By sticking with your strategy you're more likely to remain disciplined and focused. And this pays off over the years.
Not following a strategy is likely to reflect in the performance of your portfolio.
If you're uncertain as to what sort of investment strategy to follow, here's one for you to weigh up…
Introducing momentum investing
... ››› more
Investing in penny stocks can be a risky business. But there is a way to increase your chances of investing in a successful penny stock.
So what is it?
Read on to find out…
Newly listed penny stocks are risky
Buying shares in newly listed companies can be very risky.
The hype surrounding new listings can push up prices, which inevitably, the company can’t live up to. The lead... ››› more
We all know mining companies are having a hard time these days. Through strikes, regulatory uncertainty and low commodity prices many mines are closing today.
But that's where the opportunity lies right now. It's in a sector that's hit rock bottom. Prices for this commodity are down 50% and more in the past three years. Mines are closing left right and centre and investors have all but given up... ››› more
When a company lists on the stock market, there can be a lot of hype. There's the prospect of making quick gains and this gets investors all excited.
But new companies still have to find their feet. The market needs time to assess their worth.
And this is even more so for penny stocks.
So if you want to buy into a newly listed penny stock, it could pay to be patient.
Here's why…
... ››› more
If you want to invest in smaller companies that have the potential for growth and expansion over the years, you should look at the AltX.
So what is the AltX? And what sort of companies can you expect to find there?
Let's take a closer look…
The role of the AltX
The AltX is the Johannesburg Stock Exchange’s alternative exchange. It runs in parallel to the JSE’s main board.
L... ››› more
Historically, penny stocks have performed well over the long-term, outperforming large-cap stocks.
So to benefit from this potential outperformance, you have to invest in them. And the secret to really boosting your returns is investing in penny stocks for the long-term.
Let's take a closer look…
The performance of small-caps
Elroy Dimson and Paul Marsh are both professors of Lond... ››› more
Penny stocks have the potential to perform very well. In fact, they have the potential to put in a better performance than their large-cap counterparts.
But penny stocks are sensitive. If the economy is under pressure, they stand to perform badly.
Let's take a closer look at how penny stocks have performed and what could lie in store for them…
Half a century ago, investing in stocks ... ››› more
It's widely understood that historically penny stocks and small-caps perform better than larger companies.
But why do penny stocks have a tendency to perform better?
It comes down to three factors…
Three factors contributing to penny stock outperformance
Why penny stocks perform reason #1: The risk factor
Investors believe that penny stocks are riskier investments.
This is... ››› more