good penny stocks for 2011 2
DESCRIPTION
Stock trading tips on hot stocks to buy now, stock market strategy, picking hot stocks, picking penny stocks, and how to buy cheap stocks. From “How to Find a Home Run Stock” and “How to Pick Hot Reverse Merger Penny Stocks” and also “How the Shorts Raid Your Stock, Destroy Your Company and What to Do About It” all by John Lux.TRANSCRIPT
www.investing-performance.com
Good
Penny Stocks
for 2011
Disclaimer
� Stock speculation is very risky. It may not be
suitable for you.
� Do not trade with more than you can afford to
lose.
� Seek professional investment advice.
� This is not investment advice.
� No warranties, you are on your own.
Good Penny Stocks for 2011
When you have found a bunch of good cheap stocks,
you want to separate out
the ones that will go up
So you need to know
what excites investors
Different Types of Investors
� Buy and hold
� Day trader
� Specialize in specific
industries
Judge the Beauty Contest Judges
� Stock picking is like judging
which girl will win a beauty
contest
� You need to know what the
other judges like
The Ugly Duckling
� To get big returns, find the
ugly duckling that can turn
into a swan – fast
Ugly Ducklings
� Shells are ugly, ducklings
� They may have been
abandoned by their officers
� A deal can turn them into a
swan fast
Learning at Dog and Pony Shows
� IPO Underwriters give due diligence meetings for
brokers to sell their stocks
� As head of trading for a Wall Street underwriting
firm, I might go to two a week
� The company makes their pitch, then the
investment bankers ask questions
� Watching the judges judge stocks
Wall Street likes fads fashions
� Remember - The Internet boom –
Oil and gas boom – Gold stocks –
Technology – Conglomerates –
Uranium stocks – Railroads
Recent fads
� Swine flu
� HIV
� After 9-11
� Oil cleanup stocks
My favorite gold stock
� Scott's Liquid Gold went up
when gold first sold over
$800
� They make furniture polish
Fast Growth
� The prospect of fast growth
produces excitement
� Big untapped markets
� Proprietary products
No Competition
� Monopoly
� Proprietary technology
� Sustainable competitive
advantage
� The next big thing
Great Biotech Drug Idea
� Take it once and you have to
take it every day for the rest
of your life or you die
Beware Penny Stock Promoters
� Penny stocks promoters
often go into hot businesses
� Beware frequent changes of
business
Promotion
� Promotion drives stocks
� Especially penny stocks
Blue Sky Learn More
� The “Blue Sky”is often value
more than reality
� Imagination can get carried
away
� Reality is hard
Learn More
� Subscribe to my videos
� Go to my blogs
� http://www.investing-
performance.com
Learn More
� On Amazon.com:
– How to Find a Home Run Stock
– How to Pick Hot Reverse Merger Penny Stocks
John Lux
� Trader, investment banker,
former OTC Market maker &
attorney
Lux.Investor@ gmail.com
Copyright ©John Lux 2011