{"product_id":"2940151010320","title":"Penny Stocks \u0026 Micro Cap","description":"Today, many big companies were used to be penny stocks and they moved up to micro caps and even to large caps. Penny stocks are the most profitable but the riskiest while micro caps are less profitable but also less risky.\u003cbr\u003e\u003cbr\u003eThey are not followed by institution investors (fund managers, pension managers, insurance companies...). The small retail investors have a good chance to pick up gems. However, penny stocks are riskier due to a lot of frauds, low volume and huge spread.\u003cbr\u003e\u003cbr\u003eThey are different from the popular IPOs of companies such as Facebook which are not available to retail investors before their IPOs. However, there are more companies that fit into our most profitable category than the handful of big IPOs we have every year.\u003cbr\u003e\u003cbr\u003eThe performance of Russell Micro Cap index including many penny stocks) beats S\u0026amp;P 500 index consistently for the last five years. If you do not have the skill and\/or the due diligence in researching these stocks, you can buy an ETF simulating such an index.\u003cbr\u003e\u003cbr\u003eI further classify this category into:\u003cbr\u003e\u003cbr\u003e1. Penny stocks. \u003cbr\u003eThey are stocks with prices less than $5 (with many exceptions) and are not listed in the three major stock exchanges for my own definition. I cannot include market cap as the definition; some Pink Sheet stocks are large, foreign companies. They have fewer requirements (usually only financial statements in OTCBB and a market maker in pink sheets). \u003cbr\u003e\u003cbr\u003eThis book usually ignores stocks less than $1 as they are far too risky. However, buy them if you fully understand the companies.\u003cbr\u003e\u003cbr\u003eThe majority of them described in this book are traded in OTCBB (OTC bulletin board) and OTCQX (OTC Markets Group. In addition, many others are listed in local exchanges (in both the US and foreign countries). \u003cbr\u003e\u003cbr\u003eSome penny stocks are also named as pink sheets (with symbol names ending with '.PK'). They are riskier as the filing requirements are almost none. The inter-listed pink sheets in their own countries such as Canada and Japan could be high quality and some provide the same information as our large caps. These large foreign countries such as Volkswagen have fulfilled the requirements in their own countries, so they are not as risky as they appear to be.\u003cbr\u003e\u003cbr\u003e2. Micro caps.\u003cbr\u003eStocks with prices ranging from $1 to $20, a market cap between 25 and 300 million and its majority are listed in the three major exchanges. This is my definition and it may vary with others.\u003cbr\u003e\u003cbr\u003eSome stocks are in the gray area. I bought ALU at $1 and had a market cap of 1 B then. I still consider it a micro-cap stock for my purpose as a turnaround candidate. \u003cbr\u003e\u003cbr\u003eFirst, practice market timing. When the market is plunging, do not buy any stock as most stocks fall. In the early recovery (a phase defined by me in the market cycle in Chapter 4), most stocks rise especially the beaten, valued stocks and the candidates to be acquired by larger companies. The strategy \"Buy and Hold\" is dead since 2000. Check out the Power of Market Timing in Section I.\u003cbr\u003e\u003cbr\u003eThere are thousands of stocks (about 30,000 if including smaller and foreign exchanges). How can you find the winners? \u003cbr\u003e\u003cbr\u003eUse one of the simple screens that are available to you free from many web sites (such as the one from your broker) to find a handful of stocks. The filter criteria could be \"P\/E \u0026lt; 5\", \"Sales Growth by 20%\" or a combination. We include 'market cap \u0026gt; 25 and \u0026lt; 300' for micro caps. If the screens consistently find you winners, they are good. \u003cbr\u003e\u003cbr\u003eLast update: 09\/2015     Size: 230 pages (6*9)","brand":"Tony Pow","offers":[{"title":"Default Title","offer_id":47168426803440,"sku":"2940151010320","price":5.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/2940151010320_p0.jpg?v=1763757166","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/2940151010320","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}