7 keys to penny profit

Article Excerpt

We had to analyze hundreds of penny mines to find three buys. That’s because we weigh pennies against many risk factors, including these: 1. Political stability. Penny investing is risky enough without the threat of expropriation or onerous taxes. 2. Cash reserves. If pennies need to sell shares at low prices, it dilutes the interests of existing investors. 3. A strong balance sheet and good credit, or a partner to finance mine construction. 4. Top managers with successful mine-development experience. 5. Listing on an exchange with strict regulatory and reporting requirements. 6. A moderate stock price, without too much broker or investor enthusiasm. 7. A good balance between market cap and mineral-reserve expansion potential. Our three penny buys in this issue qualify on all seven counts, but still involve high risk. So they’re buys for aggressive investors only. only…