Your site will more than pay for itself. I've been very impressed with your stock picks once I put them into a portfolio, seeing above 50% gains for the entire portfolio. And with just one stock "losing" and little at that. Very impressive.
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Recent Penny Stocks Q & A
September 19th, 2006
Here is part one of a recent Q+A interview I did with StockHouse.com.
StockHouse Q+A: A Penny Earned
Peter Leeds is a leading North American expert on penny stocks and the CEO of PeterLeeds.com and The Penny Stock Insider newsletter.
SH: How do you define penny stocks?
PL: For our purposes, anything that sells for under $5 is a penny stock, regardless of market cap.
SH: What are the characteristics of good penny stocks?
PL: They're companies with low debt, improving revenues, good management and solid fundamentals. They often fall through the cracks because there's not much research available on them.
SH: What percentage of penny stocks are good investments?
PL: We put them through the proprietary Leeds Analysis process, a 29-point analysis that combines the most valuable aspects of fundamental and technical analysis. Only 5% make the cut.
SH: Many investors disdain penny stocks. Why do you favor them?
PL: There's plenty of risk associated with penny stocks but they can be incredibly lucrative if you find those with good upside potential.
The key is knowing how to find the good ones while avoiding the pitfalls. If you time it properly and know what to look for, it's much more exciting and your money works harder for you than with blue chips.
SH: What are the pitfalls?
PL: Too often people invest based on unsolicited phone calls or free Web site picks. Those who make such recommendations have hidden motivations-usually an interest in the company-which makes their picks suspect. Fortunately, there's increased market scrutiny and people's hidden motivations are coming to light. That makes it harder to manipulate investments.
We offer a guarantee: my staff and I don't invest in the stocks recommended in the newsletter, nor do we receive any compensation from those companies.
SH: What other pitfalls should people avoid?
PL: Be careful about companies your friends recommend. Everyone thinks they're getting in early but usually a lot of people have already bought it so the price can be inflated. We also avoid pink sheet companies, which can be difficult to sell.
Continued on the next penny stocks blog...