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  • Why Are Penny Stock Picks More Dangerous Than Buying Stocks Larger Companies?

    It comes as no secret at all, that buying penny stocks, has for quite some time, been seen as being one of the most risky decisions that one can make, within these markets. While many people just blindly take that as an insurmountable fact and choose to leave them alone, we have found that most people do not in fact know what it is that actually makes them more risky than investments in larger corporations. So often, investors ask us why it is that these micro-cap corporations come with greater risks and though there are many factors involved, the core reasoning for this may come as quite the surprise.

    The key component to penny stocks coming with greater risk, has to do with the fact that they are so much more thinly traded, than larger companies that are known of by far more people. In essence, if people don't know about a company, they naturally will not bother investing in it. This is where free penny stock newsletters and other third party organizations that provide information on these little known, lower priced companies, really come in handy.

    When a stock is thinly traded, it is easier to manipulate it, being that strong buys or sells can significantly affect the direction that the company is heading in and this is the chief situation that tends to hold back micro-cap corporations. With less people trading these low priced stocks, we tend to see individual investors, often being able to control the direction of stock, regardless of the hopes of other investors getting involved. This problem is not seen with such prevalence in larger companies because they amount of money that such manipulation would take, deters the same level of trickery on the bigger exchanges, like the NYSE or NASDAQ. Over time many investors have come to rely on subscribing to free penny stock newsletter services like Penny Investor Network that have the ability to choose good penny stock picks, while at the same time raising awareness to these special plays. With more people knowing that certain smaller companies are out there and able to be traded, these companies often see increased interest in trading among investors, simply by virtue of recognizing that they are out there.

    While light trading is a significant factor in why micro-cap's come with a great deal more risk, another major factor is of course, the fact that there have been many instances of company managers pirposely disenfranchising investors, to line their own pockets with large sums of money. There have been numerous instances of company managers, fraudulently inflating share prices with falsified information, only to sell against their own investors. There have even been times where company owners have completely made up their entire business plan and where things are headed. This sort of situation provides another glimpse into why some of the best information with regard to these lower priced companies, can be found through outside sources that have a vested interest in doing in depth research to uncover the truth for investors. The best penny stock picks tend to be those that are willing to open their books up to public scrutiny, which is why we have continued to stick to platforms like Penny Investor Network. We always tend to seek out penny stock newsletter organizations, that do legitimate research and show themselves to have serious business ethic, in their efforts to uncover information for investors. There are a lot of different organizations out there, so as we have said in the past, you should take it upon yourself to sign up t numerous organizations, until you have managed to find one that best fits the style of investment that you are most comfortable with.

    At the end of the day, while buying penny stocks is certainly more risky than investments larger corporations, all stocks come with a certain degree of risk and cheaper companies do often see far greater percentage gains than can be seen with companies with far more inflated share prices. It is for this reason that we tend to seek out what we feel to be strong micro-cap picks, that have serious potential for future growth. More often than not, these incredibly low priced companies, will fare very poorly in the long run but those that do well, do so in a way that can change things in a powerful way, which is of course the mainstay of the allure of these lower priced stocks. Be sure to conduct intense research and look into organizations that can aid you in your quest for information, if you feel that the information provided by the companies themselves, isn't enough to warrant an investment. It's up to you to clear through the confusion and make the final decisions on what to do with your investments.

    Pennystockdream.com and its employees are not registered as Investment Advisers in any jurisdiction whatsoever. We encourage all of those that are interested in trading penny stocks, or any other form of investment, to conduct their own research to garner a better understanding of what they are getting involved in. Be sure to read the full pennystockdream.com disclaimer, for further information on the penny stock picks released by our free penny stock newsletter platform, at: http://pennystockdream.com/disclaimer.

    Jun 05 8:59 PM | Link | Comment!
  • DOMK (Domark International, Inc.) Has Been Picking Up Some Serious Steam Lately And We Think It May Have Only Just Begun.

    We have been keeping a very close eye on DOMK, for the past few weeks because with the financial statement that they have released, showing continuously increased revenue. When looking at these most recent reports, they seem to foreshadow that DOMK is right on the cusp of seeing not only incredible revenue but full on profitability in the relatively near future, which is something that the vast majority of Penny Stock Picks, rarely manage to attain. This excerpt from the most recent press release, goes to show just why it is that we believe that profitability is right around the corner for DOMK:

    "The operational loss for the quarter was $439,888 compared to $5,760,097 for the same period last year. The operational losses for the 9 months to date was $1,473,285 compared to $7,874,320 for the same period last year. Net loss per share improved to $0.02 from $0.30 for the same period last year. DoMark's total assets have increased to $1,555,289."

    So the operational loss for the third quarter ending February 28th, was $439,888 while the loss for that same quarter last year, was over 5.7 million dollars. That sort of rapid improvement lies testament to how quickly this company has been growing and why it is that we continue to see it as a very strong candidate, as we move forward. The strength of DoMark lies especially true, when pitted up against the vast majority of the Penny Stock Exchange, in comparing it to all these other OTC companies that have not even yet to establish a revenue stream, let alone actually have any sort of expectation to become profitable within the foreseeable future. The company actually stated itself, within the last press release, that they believe that they will be fully profitable soon.

    While DOMK is a very strong play, management here is not too big on releasing steady corporate updates, which can be a very good and bad thing. On the good side, this means that rather than create hype, management prefers instead, to rely on more greatly establishing the company. This is always something that we look for because it usually tends to be those managing directors that stray from hype and choose to focus on actual business, that see the greatest successes when it comes to truly growing their organizations. The bad side of this though, is that as we all know, a great deal of the investments in the OTC, rely on hype to garner increased interest for companies because without it, even the greatest companies with strong profits, can tend to be too unknown to garner serious investors. We released DOMK to our Penny Stock Dream, Penny Stock Newsletter subscribers because we feel that they have shown a true devotion to doing right by their shareholders, while simultaneously providing just enough information to keep investors interested as they continue to grow.

    We will certainly continue to keep a close eye on this Fast Moving Penny Stock Pick and believe that there may very well be an intense push to the upside by the end of the year. It may take a while because they stay from hype in a Small-Cap market that craves it but they seem to be doing right by the business side of things and at the end of the day, that is what counts the most.

    Pennystockdream.com and its employees are not registered as Investment Adviser's in any jurisdiction whatsoever. We encourage all of those that are interested in any other form of investment, to conduct their own research to garner a better understanding of what they are getting involved in. Be sure to read the full disclaimer for this announcement here: www.pennystockdream.com/disclaimer

    May 15 6:07 PM | Link | 1 Comment
  • QASP Today Proved A Perfect Example Of The Dangers Of Hype In The World Of Penny Stocks.

    I have been investing for the past 15 years and never in my life have a seen the sort of hype and excitement that surrounded QASP (Quasar Aerospace Industries, Inc.) today. We have all come to know well, that Penny Stocks often tend to trade more on hype, excitement, and the occasional promotion, more so than they do on real company growth and future prospects but what I saw today, took things to a whole new level, while yielding very few results. As is often the case increased hype with these stocks, is often because there is some nefarious force behind the promotion, with an interest only in selling against investors. The trickery in all of this is that you never really know, if there is some major selling force, unless you are sent by the source to generate interest, so these companies are almost always extreme gambles. With the interest generated today for QASP, it stands to reason that the start of all of this excitement stemmed from a negative selling force and as such, things have not been going well for those that bought into the heightened expectations.

    QASP at a glance, is a great company, with well meaning management, interested in seeing the very best for their investors. Whether or not they are the originators of the incredible increase in interest in trading today, is absolutely unknown but what can be said, is that if it does turn out to have been by their own hand, investors may want to tread carefully here. The increase in interest came with more searches for "QASP," online, than have ever been done before, as well as significantly heightened chatter, surrounding the company than ever before. With so much major attention building, even we believed that it was finally time to release a full on Alert for QASP, through Penny Stock Dream, announcing it as a major contender in today's Penny Stock Newsletter announcement, as being our Top Penny Stock Pick. Were we wrong? There really is no way to tell. At the beginning of the day, QASP traded powerfully, suggesting to many that the heightened expectations were right on the money but to the dismay of many, the stock hit even and then even fell down for about 100% gains. Not quite the massive push that we had all expected, even with more than 200 million shares traded by the middle of the trading day.

    We continue to believe that there is a great deal of upside to QASP, especially if they do indeed complete their first expected medical marijuana deal soon. Considering that they have been up-listed to the Pink Sheets Current Tier of the OTC, there is a great deal of expectation, that we may continue to see increased trading here.

    While we continue to hold high expectations here, today has humbled and reminded us, that we should all be wary of significant hype, when it comes to these plays. None of use ever know who the people behind this advertising efforts may be and though our own efforts were purely for the purpose of doing right by shareholders, there are always others out there that mean to be nefarious beings within these markets, so we must all remember to operate with caution, especially when it comes to Investing within the Penny Stock Market. We highly suggest that you continue to watch QASP closely because there is still a great deal of upside potential here but at the same time, we want today to serve as a significant reminder to be wary of buying into hyped expectations. Remember that you can sign up to receive our Top Penny Stock Newsletter Alerts, at Penny Stock Dream, so that you can stay up to date on our very Best Penny Stock Picks.

    Pennystockdream.com and its employees are not registered as Investment Adviser's in any jurisdiction whatsoever. We encourage all of those that are interested in any other form of investment, to conduct their own research to garner a better understanding of what they are getting involved in. Be sure to read the full disclaimer for this announcement here: www.pennystockdream.com/disclaimer

    May 01 4:00 PM | Link | Comment!
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