How to earn THOUSANDS of dollars in PENNY Stock Investing
1) Listen to all naysayers.. read their articles...hear them out..Anyone who thinks you shouldn't invest in Penny Stocks is 100% correct....you shouldn't... unless...unless...unless you have good enough, sound reason to believe in a company's near term and longer term future.
2) To identify a penny stock worth buying...you simply need to identify growth potential, partnerships, contract backlogs, earnings report growth, recession resistant strength if any, and a whole host of other things.
If you invest in a company that is NOT recession resistant then you will suffer with a company that will stay as a penny stock for years if not an entire decade. The reward is still there if you have the patience.....
3) Do you want to have a "lottery ticket" penny stock that may or may not net you some income before you turn 80 years old.... Or do you want a penny stock that fits the "growth stock" mold that trades at a ridiculous 8 p/e or less.... and is essentially a penny stock due to investor confidence issues and not due to the True Strength of the Company behind the share price?
It's like throwing money at a Regional Bank after pouring through the bank's earnings potential, product competitiveness, debt ratio, and so on. After you went through all that information and conclude the Bank is not only a survivor but a tremendous VALUE stock to invest in.... Then why in the heck not buy the Bank Stock?
Just because a Penny Stock exists... .Does not mean you discount ever even thinking of investing in it or ever even thinking of turning a profit on it. No... A penny stock is simply a company you need to do some homework on.
I did my homework on "American Defense Systems" after hearing about the company on one of Jim Cramer's shows. Jim Cramer dismissed the company as speculative.
I am here to say that based on the press release related to the "Reset Program" there's nothing to fear here regarding the company's bad debt ratio. Well sure... You can fear share dillution. You can fear shareholder's taken a hit.... You can fear a lot..
But what I mean.. is that this company like so many other example penny stocks I can think of have contract backlogs stretching out YEARS and no company just goes "bust" when they have all of that revenue and income and profit coming at them.
The company projects a 52% revenue gain this year over last.
The company consist of a conglomerate of 3 different companys...because they acquired the Armored Barricades for Police Officers business.
I can think of a lot of things this company can do to protect the interests of their shareholders and limit the impact of the Debt covenants they may certainly trip over soon. They can spin off one of their businesses. They can ask the financial institution for an easier interest rate on their 15 million loan.
There are options.
You can sit in FEAR of investing on the BUY / LONG side...
or you can get in while the getting is good.
Hey.. I invest in companys like (MSM) (ATVI) and (DPS).... But I don't abandon the high risk penny stocks when I see one shining like a JEWEL in (EAG).
As of typing this.... EAG is trading up nearly 30%. That's $1000 in the bank baby as I astutely bought tons of shares near the bottom!