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Penny Stock Research: Finding Reliable Recommendations

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The Importance of Penny Stock Research

penny stock researchPenny stock research is an important part of the investment process. While there are many reputable companies that sell solid, low-priced stocks, there are also numerous companies that are only after your money. In fact, the problem is so widespread that many people assume all penny stocks fall into the latter category. A penny stock, however, is defined as any stock that trades for less than five dollars per share, whether it is considered a good or a bad investment. Many can be good investments.

Penny stock research can be difficult, as many of these stocks have not been around long enough to develop a track record. Most are attached to new companies or recently developed products in the drug or bio-tech industries. In many cases, it is very difficult, if not impossible, to find enough information about a stock to feel secure in your investment. To make matters worse, websites that promote their own penny stock research are often unreliable. Some are little more than advertisements, hocking their own worthless stocks.

Finding a Reliable Penny Stock Research Site

Fortunately, there are a number of reliable research sites out there. They are not always easy to find, however, and it may take a bit of your own research to dig up a good one. It is important to find a website that is not affiliated with any of the stocks they are hyping. Many so-called research sites are paid in stocks from the companies they recommend. Some are even owned outright by these companies. Talking to other investors or investment professionals, however, should give you a good idea of whom to go with. Read up on a research service before buying its recommended stocks. Read up on a stock’s track record before making your investment. With a bit of caution, penny stock research sites can be a valuable investment tool.

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