Since starting with PennyStocks.com aprox. 3 months ago, I had a 109% cash gain to my account, this by following the stocks closely and following (not all) but most of your advices, keep up the good work! Also I realize the gain was made in troubled time for the nasdaq and world wide stock market, so I am impressed.
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Penny Stocks Q & A Part Two
September 21st, 2006
This is a continuation of the penny stocks Q+A article, from Stockhouse and Peter Leeds penny stocks...
SH: What qualities does an investor need to cope with the risk and volatility associated with penny stocks?
PL: Some risk tolerance, certainly. This type of investing attracts people who are willing to push the envelope because they know their investment could double or triple in value.
SH: How does investing in penny stocks differ from investing in larger companies?
PL: Trading volumes tend to be lower and there's a bigger spread between the bid and ask prices. Liquidity can also be an issue, although the Leeds Analysis weeds out those that aren't liquid. The problem with illiquid stocks is that you may end up paying higher prices for them and they can be difficult to sell, even if the price rises.
SH: What companies do you like right now?
PL: We recently recommended ClickSoftware Technologies Ltd. (NASDAQ: CKSW). They're a niche technology player that helps companies operate call centers efficiently.
CKSW is set up so they can double their business without increasing inventories. They're expanding into China, getting new contracts and their revenues are increasing, along with their momentum.
We also like CoActive Marketing Group, Inc. (NASDAQ: CMKG, BullBoards), which helps to run and track in-store promotions for consumer product companies. They've had some losses recently, but they're returning to profitability and their revenues are increasing.
SH: Anything else?
PL: DRAXIS Health Inc. (NASDAQ: DRAX, BullBoards) is a specialty pharmaceutical company that we've followed for a long time. It's fundamentally solid, has always made money and their revenues are increasing. They sold for $1 a few years ago and although they're now at $4.58, they're still a good investment.
SH: What about resources?
PL: I've stayed away from gold, oil and gas for a year. Resource prices are overly inflated and there's too much downside right now. I think oil will drop significantly and gold won't go much higher. So I'm avoiding them.
SH: What sectors are showing strength?
The Penny Stocks Q + A will be continued on the next blog entry...