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 July 2017 than it was in July 2007: Investors are looking to add to the… Read More

5 reasons to sell penny stocks

5 reasons to sell penny stocks

Although attractive to aggressive investors, there are many good reasons to sell penny stocks before you lose money
Some investors think the best way to profit in stocks is to buy them when they are just barely starting out on a growth phase they hope will… Read More

Loblaw ready for a test drive with this penny stock

Loblaw ready for a test drive with this penny stock

Pat McKeough recently replied to a question from an Inner Circle Member regarding a Canadian maker of transportable hydrogen generators. DynaCERT focuses on increased fuel efficiency in both heavy vehicles and stationary power generation units. And it sold over 700 units in the first quarter… Read More

Misguided reasons why some investors don’t buy stocks

Misguided reasons why some investors don’t buy stocks

Don’t buy stocks that are hyped too much, but also be aware that negative predictions rarely come true
When investment-related ideas find their way into the broker/media limelight, the focus can shift. Rather than seemingly good reasons to buy a particular stock, brokers and the media… Read More

Share offering cuts debt for UrtheCast Corp.

Share offering cuts debt for UrtheCast Corp.

Pat McKeough recently replied to an Inner Circle member interested in this company, which offers detailed images of earth from outer space. While UrtheCast’s revenue has jumped, says Pat, it remains dependent on a specific pool of clients.
Q: Hello Pat and team: I would be… Read More

How to work successfully with penny stock brokers

How to work successfully with penny stock brokers

Penny stock brokers can give you tips – some of which can be harmful to your investment career
Most stock brokers are commissioned sales people who make investment recommendations that you can accept or reject, and penny stock brokers are no different. There’s nothing inherently wrong… Read More

Penny Stocks: Distinct Infrastructure Group doubles it profit

Penny Stocks: Distinct Infrastructure Group doubles it profit

The telecommunications cabling company has seen profit double and its share price climb on strong revenue.
DISTINCT INFRASTRUCTURE GROUP (symbol DUG on the TSX Venture Exchange; www.diginc.ca) provides design, engineering, construction and maintenance services to the telecommunications, infrastructure and utilities industries. It operates in Ontario, Alberta… Read More