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Opportunities in New Penny Stocks

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New Penny Stocks

Why New Penny Stocks Are Attractive

New penny stocks draw a lot of interest from OTC traders for a couple of different reasons. For starters, the penny stock market is awash in a veritable ocean of stocks. Narrowing your search to new penny stocks just makes it a lot easier to focus because you have a limited number of candidates for your attention.

However, another common phenomenon also interests penny stock traders in the latest entries into this sector of the market. Many new penny stocks were formerly valued much more highly. After a major corporation suffers a terrible setback, its stock can fall into penny stock territory. The New York Stock Exchange will delist any stock that has been trading below the $1 mark for more than 30 days.

These stocks make for potentially great investment targets. After all, many of these companies that have fallen from high values still have a quality infrastructure and base of demand that may make a return to higher values likely. Many traders try to catch these new penny stocks when they bottom out so that they can sell them after they bounce back up. Even if the company in question never regains its old place in the market, it is still likely to provide the kind of volatile jumps from which a trader can reap great profits.

One of the New Penny Stocks 2012

American Airlines is a good example of this phenomenon. Due to all the problems that have beset the air transport world, this company’s parent business has been delisted. The price fell down below one dollar at the beginning of 2012. If you want to see a historical example of how new penny stocks can work, look at this stocks performance since then.

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