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.
Blog [ RSS Feed ]
Penny Stock Time is Upon Us
November 30th, 2007
Overall, penny stocks have performed poorly in recent months. The bright spot, if there is one, is that the declines were across the board. I know that doesn't sound like a bright spot, but just bear with me.
Since declines occured in penny stock companies across all industries, and all sectors, the weakness is a result of 'market risk'. In other words, there is nothing wrong with the underlying companies themselves, but rather it is the impact of money and activity leaving the sub $5.00 section of the market.
When you should worry is when your company gets hit by 'company risk'. For example, other penny stocks are performing well but you see shares in your favorite penny stock decreasing. This is 'company risk', and it usually warns of something wrong with the specific stock.
Put another way, if all speculative and early stage companies shares' decline together, it is the result of 'market risk.'
The beauty of market risk is that it is temporary. The companies are just as strong, execute their business plans just as well, and have the same upside potential they always have. Only now, they are trading at bargain prices.
Don't let market risk scare you out of your investments. Get involved with solid, fundamentally sound penny stock investments, like the ones we profile at Peter Leeds Penny Stocks, and be patient with them.
Market risk is also a good buying opportunity, since quality stocks are trading on the cheap. Combine this with year-end tax loss selling that is about to start, which I will detail in my next blog, and you are currently looking at one of the best times in recent history to get involved in penny stocks!