Penny Stock Tips From the Pro's
Posted: Wednesday, November 18, 2009
by Scott Rogers
na
Hi Folks, I belong to a couple of penny stock services. After strenuous research on top of strenuous research, I have two winners. They notify me, several times per week, on stocks they feel are ready to move upward. From there, I take what I've learned over the past several years, and do my own analysis on these tips from the pro's. Following what I've heard to be true I recently came across a medical devices company that was trading at one third of it's book value. Book value gives you a very could indication as to if a company is a bargain, or is overpriced. Book value is defined as a company's net asset value, intangible assets and liabilities. From one of my services I had learned that medical companies rarely trade below their book value. I had trended the stock for a couple of weeks, found it's low range, and pulled the trigger. I scooped up my shares and felt real good about my purchase. One of this penny stocks virtues is that it had a lot of cash, and zero long term debt. Soon the stock broke out of it's trading range to the upside, I sold my shares to a happy buyer at $1.10..a better than 29% return in just a few weeks. Not bad! However this stock was still trading well below it's book value, I was eager to make a profit so maybe I was a little irrational. I left money on the table. So, I guess the moral of this story is the following: 1) take a close look at medical stocks trading below their book value.
3) take your profits, but only after you logically think over your exit point. Let your passive thinking take over.
In taking your profits, some investors prefer to play with house money, on winning trades. In other words, sell as many shares as will get back your initial investment, keep the rest in the stock. You are playing with your profits. Incidentally, about 60 days after selling my medical devices company for a nice gain, there were plenty of legs left in this equity. The stock trades at around $3.55/share. Happy trading!
DA
*********************************************************************************************************** Get Micro-Cap Company Stocks delivered to your in box BEFORE they explode to the upside. Complete info on the gem I have listed for you is at http://www.pennystockgems.com. I have analyzed several stock picking services, over the last few years. My gem has come through consistently, delivering extremely accurate entry and exit prices...Trade beside me as we take our profits on momentum, and move on. With our articles, you will not be just placing a buy when my gems pick is delivered to your in box. You will, over a short period of time, be able to make an educated decision on the opportunity at hand.
Looking forward to having you on board, DA
This Article has been viewed 1 times. (Not updated in real-time.)
No comments yet.We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.