There’s a lot of debate as to what is the fastest path to making millions in the stock market. If you’re starting with just a little capital, penny stock investment/trading can certainly pay huge rewards.
A penny stock is basically any stock that trades under 10.00 per share. For many brokers, this is a threshold limit where they will not spend money on research, and will not loan against the value of the stock. Therefore, there is great potential as these large firms are not paying attention to these stocks. Because of that fact, it can be harder to get information on them.
While these smaller stocks are riskier than their larger brothers, they have a tremendous reward potential if you can find the good companies. While some small companies have gone from 50 Paisa to zero, some have also gone from 50 Paisa to Rs.50 or even Rs 100 which is almost 100-200 times returns!!!
More recently, investors are quickly learning that these penny stocks are the future companies of India and the world and have great potential. The greatest potential of a penny stock is its ability to move a large amount in a short amount of time. Think of a large company such as Infosys with a stock price near Rs.1,500 per share. It would take a modern miracle for Infosys's stock price to double to Rs. 3,000 per share - even after several years. However, a small company with a stock price at Rs 2.00 could see its stock double to Rs 4.00 much more easily in a month. In fact, we have seen many stocks with prices like these double in just days or weeks. That is where the great profit potential lies.
Even companies like Praj Industries Ltd, Unitech Ltd, Bliss GVS Pharma Ltd, Gujarat NRE Coke Ltd, Gemini Communications Ltd, Lakshmi Energy and Foods Ltd, Texmaco Ltd, ICSA India Ltd, NMDC Ltd. used to be penny stocks in 2001.
A penny stock is basically any stock that trades under 10.00 per share. For many brokers, this is a threshold limit where they will not spend money on research, and will not loan against the value of the stock. Therefore, there is great potential as these large firms are not paying attention to these stocks. Because of that fact, it can be harder to get information on them.
While these smaller stocks are riskier than their larger brothers, they have a tremendous reward potential if you can find the good companies. While some small companies have gone from 50 Paisa to zero, some have also gone from 50 Paisa to Rs.50 or even Rs 100 which is almost 100-200 times returns!!!
More recently, investors are quickly learning that these penny stocks are the future companies of India and the world and have great potential. The greatest potential of a penny stock is its ability to move a large amount in a short amount of time. Think of a large company such as Infosys with a stock price near Rs.1,500 per share. It would take a modern miracle for Infosys's stock price to double to Rs. 3,000 per share - even after several years. However, a small company with a stock price at Rs 2.00 could see its stock double to Rs 4.00 much more easily in a month. In fact, we have seen many stocks with prices like these double in just days or weeks. That is where the great profit potential lies.
Even companies like Praj Industries Ltd, Unitech Ltd, Bliss GVS Pharma Ltd, Gujarat NRE Coke Ltd, Gemini Communications Ltd, Lakshmi Energy and Foods Ltd, Texmaco Ltd, ICSA India Ltd, NMDC Ltd. used to be penny stocks in 2001.
However, researching penny stocks is more vital than anything else
Whether you’re buying a hot tech stock, penny stock or a well-known stock, do your research always. It doesn’t matter if you’re investing Rs 5,000 or Rs 10 lakhs. You need to do your research. Want to know the secret of truly wealthy people? They value each and every rupee they have.
For details on our short term calls, explore our previous posts, wherein we were mostly successful (with a few exceptions). For our most popular "Business Insight" report, follow the link. For our performance update on "Value picks", follow the link
So, if you wish to make huge money, and lead a luxurious life, well-researched Penny/Micro Cap stocks might be an appropriate investment option for you.
Subscribe for "Penny stock package" from MPS and, and see your self as a millionaire in next 2-3 years.
- Team MPS
0 comments:
Post a Comment