Where a person can find good penny stocks will be one of the most common questions that you can make if you want to have great stock investment instead of being trapped with the scams.
As we all know, those good penny stocks can provide such a huge profit potential, just like the Monster Beverage Corp. (Nasdaq: MNST) for example. The MNST stock having its shares that were actually worth about $1.28 in 2004, and then jumped over the $100 mark since 2006 for more than the 7.800% in two years only.
However, the penny stock investment is seen to be kind of risky when even not done in a proper way. Not only that, we have seen the rise of CYNK Technology Corp. (OTCMKTS: CYNK) stock here to be such a perfect example. This stock was worth only $0.10, but it then climbed to $21.95 on July, which brings a gain of 21.850% within more than 3 weeks. One good news here would be how there’s nobody really quitting the jobs, just because CYNK is not indeed a sort of penny stock that is able to make someone richer. There’s another closer look revealing that CYNK contains no revenue at all, or even the assets.
In reality, the company has stated that owning one operating loss of $1.5 million in 2013.
It did not even file even a report annually with the U.S Securities and Exchange Commission (SEC). Nevertheless, one senior columnist named Michael Santoli claimed that there would be no business available here, and it’s easy to find several kinds of shell companies like this that are all over the counter market.In other words, the company runs a site, which might depict itself as one of the most social marketplace providing contact info for any business individual or specialist for one fee. The truth is that it can’t have even a business that is indeed taking place. Therefore, it’s not strange to know that the SEC has decided on suspending to trade on CYNK stocks when it starts to investigate the company. For this reason, some of the researches here will be exactly what it actually takes to divide any big penny stock winners from the scam ones which try to separate you from money.
How To Pick Good Stocks and Dodge Scams
- Just attach to the major indexes only in which a large number of penny stocks trades on the Pink sheets instead of being on the major indexes like the New York Stock Exchange or the Nasdag. This is really the best bet for several conservative investors.
- Try to stick to the major indexes and avoid any scam company that having no fully report financial information. Note that any scam company won’t ever give or report the full financial information.
- For the Pink sheets, it can place penny stocks in the PremierOX or PrimerOX. The Premier company usually sells for about $1 for each share in which at least 100 shareholders with a minimum of 100 shares per each.
- Come to stick to two categories will definitely help to remove any scam and other shell firms. Just dodge those companies, which do not usually provide the detailed financials. Learn what kinds of things could bring you to the following strategy.
- It’s needed to do more proper researches as it comes to any investment. It’s very important to know where to look at. Where are you going to start anyway? That’s certainly the index that the firm trades on might offer more company’s information.
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