penny stocks to buy in september: we'll let you decide

Post on 16-Apr-2017

338 Views

Category:

Economy & Finance

0 Downloads

Preview:

Click to see full reader

TRANSCRIPT

Get Your Free Report On Penny Stocks!

We’ll tell you about thisSpecial Offer

at the end of the video!

Looking for hot penny stocks to buy?What’s your first move?

Well, it’s a given that you want to be looking at financial results.

But after you check out the revenue, or the absence of revenue, and after you go

through the balance sheet to see how much money and how much debt the

company has, there’s more.

Here are 3 things to look for so you can find the best penny stocks to buy right

now.

A Google $GOOG or an Apple $AAPL seems to be on the receiving end of a

lawsuit every day. And for big companies, lawsuits aren’t nearly the big

deal they can be for small companies.

A lawsuit can take your good penny stock and send it plunging. It’s not just

the expense of mounting a legal defense. It’s the possibility of a judgment that

could delay the introduction of a make or break product,

or hit the company with a crippling fine. Maybe the lawsuit could even put the company out of business. This means when you’re buying penny stocks,you

want to keep an eye on the legal docket.

The good news... it’s not hard to do.Publicly traded companies are legally obligated to reveal what kinds of legal

issues they’re dealing with.

You can find this in the 8-K and 10-K reports the company files with the

Securities and Exchange Commission.But there’s a flip side to the lawsuit coin.

And it could work to your advantage.

Your company may be suing another company to protect itself. It could be on the receiving end of a financial windfall if

it’s awarded damages.

Should you count on this happening? Probably not. Projecting revenue based on the outcome of a lawsuit isn’t a good

idea.

When your penny stock company is well-managed and has its ducks in a row, when trademarks, patents, and other

intellectual property rights are protected, that’s a good thing.

Small companies can enjoy big advantages when they have the right

patent. When something happens on the intellectual property front that lets a

small company collect royalties or rights fees from a big company,

revenue can explode. Let’s say you’re looking at a penny stock for a biotech

startup. The company wants to produce an ingredient that a big pharmaceutical

company could buy and use to produce a more effective vaccine.

If the startup has not made an investment in legal fees to protect this ingredient, the entire business could crash and

burn.The big pharma company could legally

cut the small company out of the action.

But the tables could turn, and the big company could cut the small company a

big check if there’s strong intellectual property protection.

When you’re looking for the best penny stocks to buy right now, look to see if the

management team is committed.A good way to find out is to take a look at

how much stock they own.

You can also see if they’re buying or selling their company’s stock.

But here’s something to keep in mind. Just because a key employee owns a large block of his company’s stock

doesn’t mean this person is committed.

Let’s say the employee has 20,000 shares of stock that’s trading at $1.00. A big

company that wants to hire this person only has to offer a signing bonus of at least $20,000 to make this benefit of

stock ownership go away.

Poaching key people from penny stock companies is a very real threat. And

unfortunately, it’s very difficult to measure this risk when you’re looking at

which penny stocks to buy.

You never know with 100% certainty if the key employee sitting on a lot of stock

is committed to his company, and believes the value of the stock is about to skyrocket, or if he’s ready to jump ship.

Prowl through the oilpatch. Think oil and natural gas. Use these tips I just gave

you and see what you can turn up in the energy sector. It’s not hard to find an

energy penny stock that’s been beaten down to a bargain basement price.

You’ve got some real hardship cases. Some legitimate players. But don’t

assume they’re ready for a turnaround, just because oil prices are down. An

outfit like Bison Petroleum Corp. $BISNDis a good example.

When you check out this chart to get a feel for what this company has been

going through... Well, you can’t help but wonder if this penny stock was a pump and dump poster child that’s somehow

managed to cling to life on the pinksheets...

When you look at a penny stock in the energy sector, bring plenty of patience to the table. (The minute you start looking

at Bison, you can tell there’s trouble. The #1 tipoff is that it’s not actively traded.)

Smart investing in penny stocks means steering clear of stocks like this, even when the industry sector is appealing.

As legendary investor Jim Rogers reminds us...

"Bottoms in the investment world don't end with four-year lows; they end with

10- or 15-year lows." So there you have it… some good ways to make a good

decision on the best penny stocks to buy in September.

Lawsuits, intellectual property rights, management’s commitment, they all

matter. (And so does your patience.) If you have a question about a stock or investment idea, shoot us an email or leave us a comment on the website.

Better yet, if you own any of these stocks… or are planning to buy… shoot

me an email and let me know why!

top related