Trading Penny stocks can be very rewarding if things are done the right way. For example, we recently saw $LNKDrun from its initial public offering price of $40 all the way to $122; representing a gain of 3 times the IPO price. Unfortunately, not everyone can afford to buy enough of a $40 stock to turn a big profit like this daily. The good news though is that if you have a stomach for risk, you can see profits like this on a daily basis trading Penny stocks.
Penny stocks are stocks that trade under $5.00 and trade on the NASDAQ, AMEX, or OTCBB and PINKSHEETS. These stocks are highly volatile and therefore are considered risky. However, with significant interest, we have seen penny stocks quadruple or even gone as high as 10X. Examples of penny stocks that have gone this crazy are JAZZ, HGSI, and DNDN.
Penny stocks are very sensitive to news and events as it pertains to the company. When a company releases news that is deemed significant or groundbreaking, it is typical for traders to step in and buy the stock, and hold it for forward looking events that will keep the price up or keep interest in the stock.
At http://www.bullseyestox.com/, we scan the market for companies that we think are undervalued based on the company news and events. The company stocks could rise in the process and generate profits for our subscribers and friends.
www.bullseyestox.com/ has been taking advantage of dips for a while now. In other words, we have been letting our trading ideas be known for a while based on technical trends on options trades, and momentum trades on the small cap NASDAQ stocks and the OTC stocks. Lately, we got a nice response from one of Wall Street's most respected stock and trend finders: Jim Cramer
Our call on IBM was so accurate that Jim Cramer sent us a personal response and might have even poked fun at Herb Greenberg in the process. Visit our site daily to get our thoughts and ideas on small cap stocks that could be primed and ready to take off.
Note that while Penny stocks could rip and generate profits as much as 1000%, these companies are susceptible to dilution. Sometimes, these companies have to sell stocks in the open market to raise cash for their operations. When they sell stock, it affects the stock price; sometimes slightly, and sometimes significantly.
Be sure to get our trading ideas by signing up for picks from us @ www.bullseyestox.com/.