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

Success with drones could send Global UAV Technologies soaring

Success with drones could send Global UAV Technologies soaring

A Member of Pat McKeough’s Inner Circle recently sought his opinion on a Canadian stock aiming for a breakthrough in a developing field.   

Global UAV Technologies began focusing on unmanned aerial vehicles, or drones, in 2017. It has four subsidiaries, each specializing in a different… Read More

Excelsior Mining stakes future on unique copper project

Excelsior Mining stakes future on unique copper project

Recently Pat McKeough replied to a Member of his Inner Circle seeking his opinion on a Canadian penny stock that is developing an unusual copper project in Arizona.   

Excelsior Mining is working with the U.S. Environmental Protection Agency to obtain a permit to extract a.. Read More

Papua New Guinea gold mine now producing for K92 Mining

Papua New Guinea gold mine now producing for K92 Mining

Pat McKeough recent replies to a Member of his Inner Circle who wanted his advice on a Canadian junior with a gold mine in Papua New Guinea.

K92 Mining began production at the mine in February 2018, after two previous owners (including Barrick Gold) had invested… Read More

CTT Pharmaceutical aims for medical marijuana breakthrough

CTT Pharmaceutical aims for medical marijuana breakthrough

Not long ago, a Member of Pat McKeough’s Inner Circle asked him about a Canadian pharmaceutical stock that’s aiming for a breakthrough in marijuana.  

CTT Pharmaceutical Holdings is developing a special wafer to deliver smoke-free medical marijuana. It has an agreement with one of Canada’s… Read More

The ins and outs of how to find penny stocks worth investing in

The ins and outs of how to find penny stocks worth investing in

Strategies on how to find penny stocks should focus on pinpointing speculative stocks that above all have real value—and aren’t just promotions
A penny stock typically trades for under $5 per share, and as the name implies, sometimes for pennies. Most of the time they’re young… Read More

Successful investment marketing can lead to unsuccessful investing

Successful investment marketing can lead to unsuccessful investing

To succeed as an investor, you need to disregard or at least downplay investment marketing messages, especially with new investment innovations.
Investment and consumer companies both work hard on their marketing, because it can attract customers and spur sales. But investment marketing can do a lot… Read More

Penny Stock Trading Online Can be a Great Way to Lose Money

Penny Stock Trading Online Can be a Great Way to Lose Money

It is inherently risky to invest in speculative penny stocks, but once you add the element of penny stock trading online, it gets even riskier. Both trading online and investing in penny stocks can harbour hidden dangers—and here are some of them.
Those following the Successful… Read More