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Finding Penny Stocks That Are Worth Investing in


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Spending Time Finding Penny Stocks That Make Money

Finding Penny StocksThe truth is that finding penny stocks is easy; there are numerous pink sheets that list all manners of companies.  The problem is figuring out which of these companies are blue chips of the future and which will be bankrupt before the purchase of its stock is processed.  Some pink securities are already bankrupt, but remain on the list, because of the lax financial reporting requirements placed on these small companies.  The stockbroker’s quality will translate into the quality of available penny stocks.

 

Financial Information is Key for Finding Penny Stocks

 

There are not a lot of financial reporting requirements when it comes to a penny stock; this can cause a lot of problems and makes speculating much more difficult.  The fact is though that the pay off from a penny stock can cause a portfolio’s value to double or even triple.  The blue chips of today were the penny stocks of yesterday.  It is just a matter of using what little information is available to decide if a company is going to make it big or go bankrupt.  Some people feel that pink securities are more like gambling than investing; this argument has some truth to it, but research can reduce the probability of a loss.

 

The high risk investments are what will make or break a portfolio at the end of the year.  Investing in low risk blue chips is a great way to hedge the bets on high risk stock; it is also a way to ensure that a portfolio has at least a tiny profit at the end of each year.  The truth is that without doing the research and finding penny stocks or other high risk investments, a portfolio will rarely make more than the cost of inflation.

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