Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Buying Canadian penny stocks can lead to a big payday when you make the right choice. But the odds against success are high. Penny stocks are almost always involved in riskier ventures, such as finding mineral deposits that can be mined at a profit, commercializing unproven technologies or launching new software.

What’s more, it’s hard for any new company to grow into a profitable business, and it’s even harder in pioneering fields. But it’s relatively easy to launch a stock promotion that purports to have answers to social problems or ways to profit from emerging technologies.

That’s why penny stock promotions are always more common than legitimate start-ups. Penny stock promoters love to make deals—however indirect—with major, household name companies. They find it far, far easier to sell stock to the public if Goldcorp, BHP Billiton or some other major mining company has agreed to look at possibly financing exploration of their mining claims, or if Apple or Intel or some other household-name multinational has agreed to make them a “channel partner” and perhaps someday sell their revolutionary software or “cloud” application. The link with a major gives them instant credibility, especially with investors who are willing to buy penny stocks.

In fact, when a penny stock shoots up on the news of big-company involvement, and the property/program/revolutionary software is still in the early stages of development, it’s often a good time to sell.

There’s room for penny stocks in your portfolio, but at TSI Network we recommend our three-part Successful Investor strategy for the bulk of your portfolio:

1- Invest mainly in well-established, mostly dividend-paying companies;
2- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities);
3- Downplay or avoid stocks in the broker/media limelight.

Don’t buy a single penny stock until you read this FREE Special Report,
TSX Penny Stocks: Hot Canadian Penny Stocks and How to Invest in Penny Stocks in Canada.

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Penny Stocks Post Archives

Two big risks of Canadian penny stocks you can avoid

Two big risks of Canadian penny stocks you can avoid

Canadian penny stocks can be riskier than other investments, and if investors aren’t careful, early success can actually lead to a big loss.
The appeal of Canadian penny stocks is no different in 2017 than it was in December 2008. Investors looking to add to the aggressive portion… Read More

Penny Stocks: McCoy Global ready to rise

Penny Stocks: McCoy Global ready to rise

A stronger balance sheet has prepared this supplier to the oil-and-gas industry for a rebound in the market.
MCCOY GLOBAL (Toronto symbol MCB; www.mccoyglobal.com; No dividends paid) sells power tongs and other hydraulic gear for oil and gas drilling rigs. (Power tongs are large wrench-like tools… Read More

Penny stocks in gold are an unpredictable investment

Penny stocks in gold are an unpredictable investment

If you’re going to buy penny stocks in gold, read this first
Gold is different from other commodities due to its scarcity, its special physical characteristics like freedom from tarnishing and malleability (the ability of a metal to be hammered into thin sheets), its unique suitability… Read More

5 key penny stock definitions for Investors

5 key penny stock definitions for Investors

These penny stock definitions will give you insights into the risks and rewards of penny stocks
Some investors look to penny stocks as a quick way to boost their investment gains. To understand penny stocks better, we’ve compiled a short list of important penny stock definitions… Read More

Penny Stocks: Questor Technology adds to its losses

Penny Stocks: Questor Technology adds to its losses

The maker of waste-gas incinerators plans to increase its revenue by diversifying its expertise and customers outside of the oil industry.
QUESTOR TECHNOLOGY (symbol QST on the TSX Venture Exchange; www.questortech.com), makes waste-gas incinerators for the oil and gas industry.
The company’s incinerator technology aims to help… Read More

Is penny stock success really an attainable goal?

Is penny stock success really an attainable goal?

Penny stock success is hard to come—but here are some tips to help you
Are you an investor interested in penny stock success? If you are, then it’s important to realize that the longer you invest in penny stocks, the likelier you are to lose.
All penny… Read More

Penny Stocks: Losses mount for The Score

Penny Stocks: Losses mount for The Score

The online sports media company suffered a loss in the latest fiscal year, despite nearly doubling its revenue.
THE SCORE INC. (symbol SCR on the TSX Venture Exchange; www.thescore.com) delivers customizable sports news to fans through their mobile phones and computer desktops. It generates revenue through… Read More