What is the reason behind people looking for the best penny stocks to buy? Why must people demand that someone gives them the hot stock tip of which stock to buy? Cant you just be satisfied with the information provided in the best stocks to buy now home page? These are questions that perplex me. Why in the world would you even WANT a penny stock? Don’t people know that 9/10 penny stocks go to zero? How can you fight those odds? What’s wrong with just asking what is the single best stock to buy now? Anyways, even the best penny stcks have a good chance of going to zero. However, I’m not here to judge, so if you want a screen for penny stocks so you can find the best ones at any given instant, I can come up with something for you.
So first of all, as always money management is important, but in this case it needs to be multiplied by 100 for you to understand the importance. I mean 2% of your capital on a penny stock is probably still way too much, especially if you have not proven your success with it. So cut down that amount just a little bit. If you would only understand money management, any method that is successful will actually produce success. if you win 1000% every 9 stocks that fail or less, there’s no excuse for you not to gain money. The only thing that can hinder you is investing too much. Of course, that’s why eople want these nothing down homes and penny stocks. They have nothing, or only pennies to put down, and they rik it all. Build up capital first before deciding the best penny stocks to buy now.
Okay, so my rant on that is over. However, there’s one more reminder that I need you to take seriously. Ask yourself what are the best stocks to buy now, and then decide if there is any reason that those have to be penny stocks?
For this screen you are going to head over to Zacks and find the free custom zacks screener. Now determine what you consider “penny stocks” For me this means anything under a doller. So go to Price&Price changes and select current price =1.
Now we have 229
Now the thing about penny stocks is there can be panics when companies suddenly go from a positive margin to a negative margin. We want the company to actually have the ability to grow and that requires positive margins.
net margins > 0
operating margin 12 month – most recent > 0
wow, suddenly we’re only down to 25 stocks.
Okay, not the only thing to make sure is that the stocks don’t have negative earnings.
So P/E (trailing 12 months) > 0
wow, suddenly there are no stocks that meet the screen.
Okay, so there’s a possibility that the company is negative now but it’s getting better. For this, delete that last entry and check the forward PE. This is based on the next estimated earnings. And we have 1 penny stock worth buying according to this screen. USOO.OB a trucking company called “US 1 Industries Inc.”.
Now to be fair, not a lot of penny stocks even have estimates. So if you want, you can go through your list of 25 stocks that have been screened and see if some are currently in negative earnings but there’s good reasons why these stocks will not be.
However, instead I would prefer to allow companies with slightly more debt, but positive earnings fit in the screen. So change debt/total capital to less than 9, and put trailing p/e at greater than 0.
Finally, you have 9 stocks that you can look through. the problem is, there’s more things that I would personally want to screen out. For example, I like to make sure that the earnings are actually growing. It’s okay though, if you must buy penny stocks, these are among the best penny stocks you can buy.
CHINA 3C GROUP CHCG
DAC TECHNOLOGS DAAT
DEL GLOBAL TECH DGTC
DIRECT INSITE DIRI
ITEX CORP ITEX
LML PAYMENT SYS LMLP
HEMACARE CORP HEMA
NEUROBIO TECH NTII
ORSUS XELENT TE ORS
US 1 INDUS INC USOO
RADIENT PHARMAC RPC
Personally, I wouldn’t buy a stock with negative growth rate, and all of these happen to have it, and these stocks have too much debt for my taste. But if you want to take risks on a stock, a stock like this with slightly higher debt is at least safer then the rest of the crap penny stocks of the world. Please don’t go making a career out of buying penny stocks, they’re for speculation only. Really, this shouldn’t even be a post, but people keep asking me about the best penny stocks to buy now so I had to at least address the issue. My hope is this will prevent people from making a stupid mistake and loading everything up on a single penny stock, because nothing is for certain, and this certainly is no exception. If you want to buy the best penny stocks in the stock market, then perhaps you do research on all of these 9 companies, and see if everything checks out.
Tags: best penny stocks to buy now, best penny stoks, best stock to buy for pennies, best stocks to buy now for pennies, buy penny stocks, how to buy penny stocks, how to find penny stocks
October 21, 2009 at 8:19 pm
[...] Update Oct 21: Some people only want to know the best penny stocks to buy now. I can’t express my frustration enough at this response, but hey, I like to give people what they want. of course, I’m not just going to give that information without letting you know of the dangers, and of course you should make sure to consult with professionals before thinking about buying penny stocks. However, the best stocks to buy now are probably not going to be penny stocks, but among the nearly 2500 penny stocks, there may be a few that do well. Here, in my own words are how to find the best penny stocks to buy now. [...]