Thursday, July 15, 2010

How to Assign a Value to the Best Penny Stocks

By Chad Kettering
When trying to assign a value to a penny stock, one of the factors to look at is the cash per share that the company has. The cash per share is a public number you can find by going to an online finance site or within a brokerage account you may maintain. By looking at the profile of a reporting company, you should be able to see how much cash per share the company has. Many companies that are struggling still have large cash reserves from previous operations.

Let's use the example of ABC Corporation, a small electronics manufacturer. ABC's current strategy may be faltering because of a recent loss of a big contract. Although ABC no longer has that particular contract, it maintains a $2,000,000 cash reserve from earnings derived while servicing that contract. The $2,000,000 could be used to secure additional contracts to increase its earnings. The cash reserves could be used to start another business or to acquire an existing business. Cash is the most valuable asset a company can have due to its liquidity. If ABC Company has 1,000,000 shares outstanding, it would have cash per share of $2. Many companies in this situation are trading for under their cash value since investors ignore the cash at hand and just focus on the short-term situation of the company. The experienced investor knows that company is an attractive acquisition candidate. Any acquirer can buy the company for $1 and use the cash per share for further business ventures. It would be like going to the bank and withdrawing $10,000 for only $5,000.

Another valuation method is to value a company by the multiples of sales it sells for. This is called sales per share, which is simply the sales of a company divided by the number of shares. At $1 sales per share a $2 stock is selling for twice its sales. Compare that number to other stocks in the same industry and see which stock sells for a lower sales multiple. The stocks with the lower sales multiple would be considered a better value according to this method. Now, many of the best penny stocks do not have sales so you may have to use alternative methods such as book value, PE ratios, market cap and the size of the float to help determine a company's stock value.

About StockProfessors.com

StockProfessors.com is a website that profiles stocks of interest. We are not licensed brokers or financial consultants. Please be advised that the information contained may or may not be complete and is solely for informational purposes only. This is not to be construed as an offer to sell, hold or the solicitation of an offer to buy. Investors are encouraged to seek opinions by their registered brokers or financial advisors after extensive due diligence is performed.


Click Here Secrets of Successful Traders!

For additional information:  [mailto:info@stockprofessors.com]info@stockprofessors.com, or http://www.stockprofessors.com

Article Source: http://EzineArticles.com

Tuesday, July 13, 2010

Everything You Need to Know About Buying Stocks

By Alfred Chai Wei Liang

What are stocks? They are commonly known as shares or equity or property. All the related terms do reflect the meaning of stocks. When you buy a stock, you are practically buying a part of a company and therefore owning part of the corporation yourself. Stocks are able to go public through initial public offering ('IPO'). This means the general public like you and me can buy and own a certain company for a specific price. Welcome to stock trading.

Where to buy? For citizens of United States of America, they buy stocks at New York Stock Exchange ('NYSE'), American Stock Exchange ('ASE') or National Association of Securities Dealers Automated Quotation system ('NASDAQ'). You can even trade stocks from other over-the-counter markets. Note that stock exchange centres differ from one country to another. For example, for a country like Hong Kong, it is called 'Hang Seng'.

How can you benefit from stocks? They generally follow the economy. If economy is good, then prices of stocks will rise too. Therefore, this will earn you greater profit. Some companies or stocks issue dividends too. Dividends are earnings from the company that is distributed among all shareholders (you are one of them). Usually, dividends are paid quarterly in a year.

You also need to be aware of a ratio called price to earnings. This ratio, 'P/E' will determine the level of stock prices relative to the earnings of the company. For example, a ratio of 10 means that stock prices per share (on average) are selling at about 10 times the earnings per share of the company.

Virtually, almost every companies in many different industries issue stock. But some other companies are privately held. This means that they have elected to hair their stock owned only by some management members and a handful of other investors. These companies do not publicly trade their stocks at the stock exchange centre. Therefore, not everyone can buy any companies.

What is market capitalization? It simply means the value of the outstanding stock (the number of total shares multiplied by the market price per share). You will always hear the terms big cap and small cap. Big capitalization means large value of the outstanding stock.

How much profit can you make from the stock market? On average, stock markets can give you a rate of return of 10 percent. But you have to be aware of all the fluctuations given in the many short periods of time. As a rule of thumb, if you can invest in stocks the way you invest in bonds (long-term investing), then you should invest in stocks anyway. Investing via a short-term mindset is not suitable when it comes to stock exchange.

Click Here Secrets of Successful Traders!

Personal finance is important. But have you thought about [http://www.industrialworkbench.net/]industrial work bench  and [http://www.industrialworkbench.net/Heavy-Duty-Workbenches.html]heavy duty workbenches? You need these work benches when performing your repair and hardware work.

Article Source: http://EzineArticles.com

Friday, July 9, 2010

How to Double Your Investments in Trading Stocks Online

By Jonathan Langley
Penny stocks are some of the most potentially profitable investments which you'll find when trading stocks online. By common sense it takes much less trading influence to directly affect the price of a cheap stock, making it commonplace to see one of these stocks exploding value in the short term.

Consequently there's a great deal of money to be made by effectively trading in penny stocks. Many traders turn to enlisting outside analytical programs which is specifically crafted to target penny stocks to take the guesswork out of the equation so that they can trade accordingly, taking those picks to their trading stocks online.

These programs work by milling over current and past market behavior data looking for trends between the past and present. By looking at the factors which led to an explosive breakout trend of the past, you apply those factors to the current market and you can find similar trading opportunities.

The great thing about these investments is that they are typically lower risk. Many of these stocks can be bought for very cheap and typically won't go much of anywhere but up. This affords you the opportunity to scoop up hundreds and thousands of shares of a recommended penny stock for nothing and realized a huge turnaround in profit.

With Best Penny Alerts for example, the first pick which it generated for me was initially valued at $.20. after buying roughly 1000 shares of the stock using my trading stocks online account, over the course of the first market period that stock appreciated to $.41. The next day when the market opened that stock continued to climb, finally reaching a climaxing at $.63 a share.

If you're not convinced or are still understandably skeptical about the ability of the best [http://www.pennystocksoftware.info]trading stocks online software to deliver you the key to your financial independence and dominate and unravel the secrets of the stock/day trading market, you can give it a complete risk free try by clicking the link in this paragraph.

Click Here To Get PennyStockProphet!

You can simply follow along with the [http://www.pennystocksoftware.info]trading stocks online program's picks and watch them quickly gain value overnight just like clockwork. Just try not to smile when your friends or relatives start asking you where you picked up the extra money.

Article Source: http://EzineArticles.com

Saturday, July 3, 2010

How to Pick the Best Penny Stock

By Rohan Smith

There may be a wide choice of penny stocks in the market throughout the year but proper learning and understanding would help one pick the right hot penny stocks at the right time in order to gain the highest profit. Hasty decisions might land you in losing money.

Buying OTC stocks is a very risky affair. One has to put great effort in order to pick the best penny stock, hence reduce the risk of losing any money.

One must consider many factors while calculating a good pick. One can use their own ways to pick a good stock or even do market study of the companies regarding their growth, history and campaigning. It is very important to study about an industry before buying a particular stock. The behavior of the stock is directly related with rise and fall of the industry.

Whereas if you able to get some information about the company before it hits the news stand, then there are a wider chances of making more gains. Like if you get know that the company is planning to launch a new product and number of investors would increase then without any further delay you can buy these stocks as it would definitely fetch you more income. There are many websites that provide  Stock Newsletter on various stocks of the day. Subscribing to them can also keep you updated on the latest developments in the Market.

The performance of the stock would also help you in deciding whether to buy it or not. If you feel the performance is improving or falling down you can take a decision on these grounds whether to purchase a particular stock or not.

Lastly the most important factor we must consider is to see how successful the stock is in the market. If the consistently going up then it is right investment or the right pick.
Click Here For Secrets Of Successful Traders.!

To Subscribe to the Stock Newsletter on the Best Penny Stock of the day you can visit our website: http://pennystockpickalert.com/

Article Source: http://EzineArticles.com

Thursday, July 1, 2010

Earn Fast Cash With Penny Stocks

By Adam Snyder
When it comes to earning fast cash with penny stocks (ps) the one thing you need to know is that you can lose a lot of money and also make a lot of money with little investment and a short amount of time. Penny stocks are easy to find because a ps is anything under $5. So while there are many stocks out there that are classified as penny stocks you need to find the ones that are about to explode. And by explode I mean you want to find the ones that show they go up and down each day at a predictable rate. These are the stocks that you can get in at the low and then ride to the top for a quick sale, that is how you earn fast cash with ps.

All ps's are different, the penny stocks that I like to trade the most are retail ps's. When you trade in retail you get the waves of the retail industry so it is best to trade them on off holiday months. The worst time to trade these stocks is in December and November.

If you really want to earn fast cash with ps's you will take this small advice that I gave you and look into it further, I don't want to give you all the information because then you will most likely not do any of your won research and for any type of investment you need to do your own research, not trust what someone says. I have been earning fast cash with ps's for a few years now and I know what I am doing, but it took years to perfect my method, so take what I have learned and make it better.

Click Here For
Secrets Of Successful Traders.!

If you really want to [http://www.dormroomcash.com]earn fast cash then penny stocks are a great way to do this.

The author of this article is also the inventor of a great [http://www.ingrown-hair-remedy.com]ingrown hair remedy.

Article Source: http://EzineArticles.com