Time to Find Best Penny Stocks May be Now
These tough times may be the best conditions for investors to find the best penny stocks. Where many big name stocks have been affected by the stock market bloodbath of the last couple of years, penny stocks are flourishing.
It’s easy to understand why. Many investors have tried to increase their personal liquidity by withdrawing their capital from the markets. Of course, this withdrawal move has made the markets more illiquid, and resulted in many big stocks seeing their market values go down the drain.
But, look carefully, and investors will discover that not all market segments are suffering. Many stocks are flourishing. And most of these will be found in the penny stock market, where some selected stocks definitely qualify as the best penny stocks to buy. These are stocks which are quoting at amazingly reasonable rates and represent some of the best value around for investors.
The best penny stocks have many of the same characteristics. These stocks possess a sound business model and have good fundamentals. Generally, investors will find that the best penny stocks belong to those companies that are investing in promotion because those businesses have a vested interest in succeeding despite the odds. Usually this means that management is paying attention with active efforts to seize more market share while their competitors remain static.
Another reason that the best penny stocks are doing so well is that their companies have a limited dependence on external debt. These companies have a higher debt service coverage ratio and can be viewed as being leveraged adequately. Here at Cheap Stock Alert, our analysts use scientific techniques to uncover the best penny stocks currently in the market. Other things we look for include:
• Price Earnings Ratio
• PEG Ratio
• Earning Per Share
• Book Value per Share
• Return on Capital Employed
• Return on Net-Worth
We consider these to be some of the most important considerations when seeking put the best penny stocks. We also look for companies with important human elements, such as a vested CEO.
And that’s just a starting point. There are more — and more important — criteria to help you find the best penny stocks. Our Cheap Stock Alert team performs bottom-up analysis – the old-fashioned way –in our hunt for small investments with big returns.
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