Hemisphere Energy is a Canada-based oil producer operating in eastern Alberta.
Tip No. 2 for Buying Penny Stocks: Look for Positive Analyst Coverage and Bullish Price Targets
Unfortunately, there are hundreds of scammers waiting to pounce on unsuspecting investors who put too much of their savings into a manipulated or entirely bogus shell company. Unfortunately, scams are very prevalent. Shell companies make it appear like they are raking in revenue when they have no incoming money at all.
Scammers will artificially inflate the price of shares, only to sell their own shares once unwitting investors have bought in. Plus, stocks that trade on over-the-counter exchanges aren't held to the same standards as stocks trading on major exchanges like the NYSE and Nasdaq.
So to help you find the top penny stocks to buy in , we've developed our own criteria to uncover penny stocks with the most potential. And today, we'll reveal our how-to guide for investors looking to book the most profits possible from penny stocks in These penny stocks can be very risky.
Stocks on the pink sheets, on the other hand, have no minimum requirement and do not need to file with the SEC. Unless you are willing to take on major risk, it's best to stick to penny stocks which trade on the NYSE or Nasdaq exchanges. Your list of penny stocks to buy will be narrower, but you'll also significantly reduce your risk of buying stock in a shell company.
If you do end up wanting to invest in a penny stock on the pink sheets, then you can use their classification system. The pink sheets do have categories of stocks held to higher reporting standards. After you've narrowed down your universe of penny stocks, start to look for those companies currently receiving positive analyst coverage.
While a high price target doesn't necessarily mean it will come true, if a large investment firm is covering a penny stock, it usually means that stock has more promise than one that has no analyst coverage.
Then, look only at stocks with ratings of "buy" or "hold" and that have price targets above their current price. Again, a high price target isn't a guarantee. But it is an indication of a stock's potential gain over the next 12 months. One of the biggest catalysts for penny stocks can be a new product or drug that is about the hit the market. If it's successful, there's good chance the stock will soar.
Another catalyst that Robinson points out is a potential buyout. Robinson said these top buyout candidates are often penny stocks. They're the kind with a market niche, new proprietary technology, a promising drug or product — and a larger competitor that wants to absorb the niche. When the purchase price is above the price where shares trade, investors get an immediate gain.
Snagging that penny stock that's about to be acquired is one of the quickest ways to find triple-digit returns. Robinson recommends keeping up with the trends in mergers and acquisitions to find industries with the most takeover activity.
Lastly, it's crucial that investors keep the right perspective. Allocating too much of your capital to penny stocks can be a recipe for disaster. Betting on long shots is a poor strategy. Sure, the potential payouts may be higher on long shots, but they're long shots for a reason.
Rarely do they return the types of profits investors hope for. Successful penny stock investing is not akin to buying lottery tickets.
But if you treat them like any other investment, you can make market-beating profits. Now that we've covered all the tips and tricks to investing in penny stocks, here are our five top penny stock picks…. Second Sight Medical Products Inc.
EYES is a Los Angeles-based medical device company creating prosthetics to restore vision to blind people. This is part of the company's strategy to target leading eye centers and distributors around the world, according to CEO Will McGuire. McGuire hopes the adoption of this technology in more places around the globe will mean that the technology is becoming increasingly accepted, which therefore increases demand.
And it seems at least one analyst shares McGuire's optimism. Zix is one of the tech company penny stocks you should consider. Zix, an email provider, focuses on secure messaging. They market themselves specifically to government entities. With this kind of growth, you should definitely be watching and strategizing your investment. As data breaches and privacy concerns fill the news and the minds of the consumer, this company is sure to gain traction.
We don't think people are going to lose interest in cybersecurity anytime soon. Zix has plenty of room to continue to grow. Take on the risk of this low-priced stock now and reap the rewards later.
Often penny stocks are companies that investors haven't ever heard of in the real world. If you've ever played Farmville on Facebook or games on other mobile platforms or social networks, it was probably hosted by Zynga. Zynga has the opportunity to grow as the use of mobile and social networks grows.
We don't think that will be stopping anytime soon. Jump on now to get hold of stock for this company that's quietly growing and turning out a profit. Zynga ranks among our top penny stocks to consider.
Another gaming company to watch is Glu Mobile. The name says it all, this company creates games for smartphones. Multiple of their games are getting popular and recognized by phone and tablet users. It's the biggest selling game?
Not the ones based on video game shooters. It's a game based off of the life of TV star Kim Kardashian. Glu stands out in the gaming industry by not focusing solely on male gamers. This company creates products that are intended for female gamers. And, approximately two-thirds of their revenue comes from these products. It's also the first company to sell an at-home HIV testing kit. That gives the firm an edge over competitors in the HIV diagnostics market, which could grow Click here to jump to comments….
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