Hot Penny Stocks - And the Basics of Penny Stock Picks
Penny stocks are relatively cheap shares that investors buy up in bulk in an effort to make a quick return on their investment by holding their hot penny stocks until they gain in value, then selling them all quickly in order to make money. Many first time investors seek penny stocks to buy as their introductory shares - as holdings that will allow them to get a feel for investing or to make some quick initial money. There is something comforting about hot penny stocks in the sense that they often cost a fraction of normal share prices; people feel some security in this. However, it's important to remember when looking for the best penny stocks to buy, that penny stocks are still just that - stocks. They involve risk and uncertainty just like any other speculative financial activity. Saying that penny stocks are safe is like saying that light cigarettes are healthy.
One important thing to keep in mind is that many penny stock picks are actually cheap stock options that are already in decline. They key is to look for the best penny stocks to buy that have strong earnings and that are actually growing. What are some of the things you should look for when you're trying to determine whether or not your hot penny stock picks are solid? Well, you would want to see the penny stock's recent growth over time. A 75% increase in value over a year or so would represent very strong growth, for example. The next thing to consider when trying to figure out the best penny stocks to buy would be the current market value of the given penny stock picks, so you can budget exactly how many shares you can get yourself for the amount of money you're willing to invest and risk. Another factor you should pay attention to is the overall structure, strength, and recent behavior of the company you are investing in. Is the company struggling to make ends meet? Has upper management recently undergone a major shake-up? What are their projected earnings supposed to be doing over the next quarter? Has the company regularly outdone earnings estimates, or is it always falling short?
The Best Penny Stocks to Buy Right Now
Here are a couple of free penny stock pics, based on a couple of basic factors that help us determine the best penny stocks to buy:
Sirius Xm Radio Inc, abbreviated as SIRI
Sirius xm radio has a couple of important factors to recommend it as being amongst the best penny stocks to buy: firstly, it has demonstrated a growth of over 72% since January of 2010, a good indicator for penny stock health. Meanwhile, it is currently trading at a market value of $1.50, up from $1.03 in early August. Sirius XM radio is one of the world's premiere satellite radio providers, and offers special satellite radio services to the United States. Subscribers to Sirius satellite radio must first purchase a Sirius satellite radio receiver, and then pay a monthly subscription fee in order to receive broadcasts. Sirius broadcasts widely across genres, offering talk shows, sports radio shows, entertainment and variety channels, and music of all kinds. Industry analysts expect the company to continue succeeding, so positive growth can be expected, putting SIRI on the list of hot penny stocks to buy.
Alliance Fiber Optic Products, abbreviated as AFOP
You can add AFOP to your list of hot penny stocks. Alliance fiber optic products is a full spectrum provider of communications products and fiber optic equipment. Alliance fiber optic products handles every aspect of their process, from designing new fiber optic products, to manufacturing, distributing and marketing them. The reason alliance fiber optic products ranks amongst the best penny stocks to buy is that has outperformed two earnings estimates in a row. Alliance fiber optic products is currently trading at $11 per share.
iGo Inc. abbreviated IGOI
Next up on the list of hot penny stocks to buy is IGOI, which is in the business of manufacturing and distributing electronics products. iGo Inc sells products through well known domestic retailers like radioshack. iGo is another of the hot penny stocks to buy that has outdone analysts's expectations for two straight quarters, leading to positive projections for future growth. IGOI last traded at $1.95 per share and still has strong momentum behind its new product devision, placing iGo high on the list of the best penny stocks to buy.
Striking Out On Your Own - Choosing Your Own Penny Stocks to Buy
There's no stopping you from doing your own selections of penny stocks to buy - you can set aside a small amount of money and start off small by picking a couple of hot penny stocks and investing in them. Make an excel spreadsheet, noting important factors like your purchase date and their current market value at that time, so that you can better track the progress of your penny stock holdings over time. After even a couple months of watching their rises and falls, you will begin to become more comfortable with the general behavior of your hot penny stocks. Many investors concerned with getting the low-down on the best penny stocks to buy are in the game for the short trade - they want to buy hot penny stocks when they are low, but growing well, and then turn around quickly to sell them. Obviously, this penny stock trading strategy works best when you buy in volume. You could look for penny stock pics that cost around 30 cents per share, buy 1,000 of them, wait until they appreciate up to 35 cents per penny stock, then turn around and sell them for a profit of $50. You can imagine the potential for earnings especially when these stocks are bought in serious bulk. Lots of pro traders go for big bulk buys on penny stocks and wait for incremental increases in their value to sell off the whole lot and make a killing - in no time flat!