Finding the Best Penny Stocks
We have been providing investment information and penny stock tools for over 10 years. Here at pennystocklist.com we utilize the best technology and software to narrow our search. The development of our Penny Heater has been an amazing break through for us.
The PENNY HEATER, used by the PennyStockList.com team, was developed to seek the HEAT of the hottest trending penny stocks. It's a proprietary tool which was pioneered by seasoned penny stock traders who have decades of trading experience. Time is money, and one of the main advantages of the PENNY HEATER is to quickly filter on 7 key data points to find the hottest trending penny stocks. The HEATED list then moves on to the PennyStockList.com team for human analysis. At this point, the team takes careful consideration and performs the necessary due diligence required for our Penny Stock Alerts.
New to Penny Stock Lists?
Are they right for you? If you're looking for a little more excitement in stock trading then the answer may be yes. The old saying of high reward comes with high risk is definitely key in trading. There are numerous draws to trading stocks priced in the pennies. The obvious is the cheap price with a very high reward potential. Purchasing 100,000 shares of stock at .01 would cost you an investment of $1,000. If you so happen to find that stock that rises from .01 to $1, then you've just made a $99,000 profit! The object of the game is to of course find the best penny stocks. You must filter through a lot of data to get even remotely close to build a good Penny Stock List. Be very careful of message boards and emails alerting you of picks. You must have a good "filter" to analyze what you would like to invest in based on as much data you can gather as possible. Once you've done all your due diligence, it is still considered very high risk. The name of the game is to hopefully lower your risk and narrow your list. The more home work you do, the better off you will most likely be in your investment research strategys.
A security is often considered a penny stock when its not listed on one of the Major exchanges. The definition by the SEC considers a security if it trades below $5 regardless of what exchange it's on. They can also be referred to as a micro cap, OTC, pink sheet or nano cap stock. They can be very high risk to include limited liquidity, fraud and lack of financial reporting. Educating yourself in all areas is a must. Trading these stocks can be highly risky and all attempts should be made to be aware of the risks involved.
Pay very close attention to the symbol itself, as it provides critical information. Some symbols consist of more than 4 letters. The last letter or the fifth symbol is the identifier. The fifth symbol is a specific letter of the alphabet, with the letters from A to Z defining an identification. The A for example stands for a class penny stock, while Q symbol defines a company in bankruptcy and the E symbol defines a company that is delinquent on its SEC filings. This is important information when creating your list of penny stocks. See the Resources section for a link to the full list of fifth symbol identifiers and their meanings.
Many are traded on the OTCBB (Over The Counter Bulletin Board) and Pink Sheets. These are stocks that do not meet the requirements to be on a major exchange such as the Nasdaq. Regulation is minimal. Very few market makers present, which sometimes can make trading difficult. You can tell If a company is traded on the Pink Sheets as the symbol ends with .PK
OTCBB fifth symbol identfiers:
| A |
Class A |
| B |
Class B |
| D |
New |
| E |
Delinquent in SEC filings |
| F |
Foreign securities, except ADRs |
| G, H, & I |
Additional warrants or preferreds |
| J |
Voting |
| K |
Nonvoting |
| L |
Miscellaneous situations, such as stubs, depositary receipts, second units, or additional warrants or preferred |
| M |
Fourth preferred, same company |
| N |
Third preferred, same company |
| O |
Second preferred, same company |
| P |
First preferred issue |
| Q |
Bankruptcy - involved in bankruptcy proceedings |
| R |
Rights |
| S |
Shares of beneficial interest |
| U |
Units |
| V |
When-issued and when-distributed |
| W |
Warrants |
| Y |
ADR (American Depositary Receipts) |
| Z |
Miscellaneous situations, such as stubs, depositary receipts, limited partnership units, or additional warrants or units |
Penny Stock Services:
Gain more knowledge using our Penny Stock Services. We provide free, interactive quoting tools. Utilize our site to help you build your own list of stocks! The quoting tools provide easy navigation and sorting. We provide an easy method for an investor to perform research. Click here
Our list is comprised of most stocks listed $1 and below. All stocks listed are .0001 to $1 in price range. Most are traded on the OTCBB and Pink Sheet exchanges. The quoting tools specifically identifies stocks that are priced in the pennies. PennyStockList.com has the investing research tools needed to assist you with finding the best penny stock.
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