How To Find Good Penny Stocks To Buy Right Now

Download How To Find Good Penny Stocks To Buy Right Now

Post on 14-Jan-2017

531 views

Category:

Economy & Finance

0 download

Embed Size (px)

TRANSCRIPT

<p>Slide 1</p> <p>Penny Stock Research</p> <p>How To Find Good Penny Stocks To Buy Right Now</p> <p>Welcome to Penny Stock Research. Every day we bring you the unbiased truth about Penny Stocks. For more information on penny stocks please visit our website PennyStockResearch.com</p> <p>Get Your Free Report On Penny Stocks For 2016! </p> <p>Well tell you about thisSpecial Offer at the end of the video!</p> <p>Hi, My name is Aaron and Im with Penny Stock Research, today were reviewing our recently published article </p> <p>How To Find Good Penny Stocks To Buy Right Now</p> <p>Whats the best way to find penny stocks to buy right now? First, focus on the fundamentals. Discipline yourself to ignore all the intoxicating tales of profits just around the corner spun by pump and dump promoters.</p> <p>What kind of fundamentals? Start with the ability of the company to make money. If you dont think that can happen, why bother? And why not deal with the here and now? Lets look at whats going on with the company today.</p> <p>If management is talking about profits in the future, when does the future arrive? And what has to happen for profits to hit the books? What has to be sold? Has the product been produced? </p> <p>If not, how come? Does it need any kind of regulatory approval? Look at the income statement. See if the company is actually selling something and bringing in revenue. </p> <p>Dig a little deeper on this and see how the revenue is being reported. Heres what I mean. Lets say your penny stock company sells a widget for $24,000. And it reports all of this $24,000 as income for the current quarter. </p> <p>But whoever bought the widget has negotiated payment terms of half up front and the remaining $12,000 spread out over the next two quarters. This can make a difference. It hits cash flow. Heres something else to look at.</p> <p>Good Penny Stocks Have Reliable Revenue</p> <p>See where the revenue is actually coming from. If your company reports $1.5 million in revenue for the most recent quarter, and $1.2 million came from selling off some excess inventory to a wholesaler, thats not good.</p> <p>Or maybe the income the company reports is from a one-time legal settlement. The companys CEO comes out and crows about Income is up 134% this quarter. But theres no mention of the one-time legal settlement.</p> <p>This detailed information will usually be buried in a document like an 8-K. This is a document the company files with the Securities and Exchange Commission, the SEC. These docs arent very exciting, but they can sure be illuminating. </p> <p>The disclosures, exhibits and financial statements are where youll find piles of dirty laundry. But youll also find the good news. </p> <p>And because so many penny stocks are completely ignored by analysts, and fly under the radar, this is where you can find out about opportunities before most other investors have a clue. </p> <p>So when you find solid revenue, real money coming in, you just might have one of the good penny stocks to buy right now. But dont limit your sleuthing to the income statement. Take a look at the balance sheet.</p> <p>Good Penny Stocks Have Clean Balance Sheets</p> <p>Start off by looking at assets. Actual assets, not goodwill. Youd be amazed at how many of the pump and dump penny stocks dont have any assets showing up on the balance sheet.</p> <p>Actually, youd be surprised at how many pump and dump stocks dont even have a balance sheet. If they arent traded on an exchange, they dont have to file one with the SEC. </p> <p>See if the value of the firms assets is growing, shrinking, or staying the same. Look at how much the company owes. Is it long-term or short debt?</p> <p>Based on how much money it spends, does it have enough money in the bank to stay in business? Has it been refinancing existing loans? This is never a good sign. </p> <p>If the company is struggling to stay afloat, and borrowing more money at higher rates, why should you invest in it? You always want to make sure youre buying penny stocks in resilient companies...not companies that spew out endless promises.</p> <p>To protect yourself, commit to mastering the blocking and tackling skills. Some simple fundamentals of due diligence can keep you safe. Want to see how this process plays out? </p> <p>Lets take a look at a penny stock so you can do this for yourself.</p> <p>Good Penny Stocks Have Multiple Income Streams</p> <p>Multiple income streams means money comes in through more than one door. The company doesnt bet the farm on one product. Heres one that did, and look at whats been happening. Macrocure Ltd. $MCUR trades on the NASDAQ.</p> <p>Its a biotech stock, and in the spirit of full disclosure, Ive got to tell you that the biotechs arent very appealing to me. Im the first to admit I dont understand the biotech business. The science takes a better mind than mine to grasp.</p> <p>Being able to carve out the winners from the losers is a challenge even for an expert who lives in the biotech world. Some penny stock traders say that biotech stocks are like lottery tickets. I cant disagree.</p> <p>One other strike against Macrocure - its not an American company. Its based in Israel. You usually get better financial data and stronger disclosure when you invest in a U.S.-based firm.</p> <p>So when we look at Macrocure, lets just look at it as a business so we can learn from the numbers. </p> <p>The day I checked it out, Macrocure had a market cap of $22.06 million and the stock traded at $1.32. Heres how the stock has been doing...</p> <p>Ugly, isnt it? So right off the bat, before I slog through the income statement and the balance sheet, Ill let my curiosity get the best of me and try to find out what happened to send the stock into a tailspin in August.</p> <p>August 19th the stock opened at $12.60. The next day, it closed at $2.98.Sometimes, all you can say is, Wow.Eight days later, the following headline showed up on Reuters.</p> <p>Macrocure's lead drug fails late-stage study. Why did the stock swoon eight days before this information became public? Who knew what and when did they know it? Youve got to wonder.Do you see all the warning signs?</p> <p>Can you find a single good reason to invest in this beat-up biotech penny stock?</p> <p>The Bloodied Penny Stock Balance Sheet</p> <p>When you look at a balance sheet, which you can find on any of the finance sites, go to the line that reports Retained Earnings. Retained earnings mean whats left over from money thats been made after dividends have been paid. </p> <p>Its the money the company invests back into the business, or to pay down debt. At Macrocure, there arent any retained earnings. Only losses. And the losses are steamrolling. Money is flying out the door.</p> <p>In 2014 losses hit $68.2 million. In 2013, they were $47.7 million, and in 2012, $24.4 million. Not exactly an encouraging trend. Have you seen enough?</p> <p>Do you see how spending just a few seconds glancing at a balance sheet can arm you with essential information? If you want to find the best penny stocks to buy right now, find a balance sheet thats in decent shape.</p> <p>Take a look at how much money is in the bank. Is there enough cash on hand for the company to stay afloat while it waits for revenues to come in? Is there a long-term pile of cash tucked away? Are there any real assets?</p> <p>You can always depend on the balance sheet to shed important light on the company. Unless executives are playing fast and loose with the facts, youll know where things stand. How do things stand with your penny stocks?</p> <p>Are you turning up some interesting opportunitie? It would be great to hear from you. And if you have a question about a stock or investment idea, shoot us an email. You can also leave us a comment on the website.</p> <p>Want More from Penny Stock Research?</p> <p>Follow us on Social Media </p> <p>47</p> <p>Want more FREE information on Penny Stocks?</p> <p>PennyStockResearch.com</p> <p>DOWNLOAD NOW!</p> <p>48</p> <p>Nine Penny Stocks To DUMP Now!</p> <p>READ THISFREEREPORT!</p>