To Buy or Not to Buy Penny Stocks

There are many small and micro cap companies out there that have great potential. However, it’s precisely because they are considered small that conventional advisers and stock brokers don’t bother to follow them. The fact is, these companies are on the public market and often lay at the bottom, counting pennies for their stock, sometimes for months. What unsuspecting investors don’t understand is that these penny stock shares can reward them with big gains, if they get in early enough.

The biggest sticking point, and reason for caution for most potential penny stock investors, is knowledge… or the lack thereof. Business is moving faster than ever and there are many industries sprouting small and micro cap companies in their fertile market, everyday.

So, where do you start? One of the best answers to that questions is… let someone else start it for you.

There are companies, especially in a huge stock market region like New York, that specialize in finding and researching small start up and micro cap companies. They make it their business to do their due diligence and provide their clients with a list of credible, and potentially very profitable penny stock choices.

The key to finding the right small or micro cap company to invest in, is knowing what combination of business and industry elements, create the best chance for a micro cap company to grow fast. So, call a company who specializes in researching micro caps because when you buy into a stock at .02 cents a share and sell it just weeks later at .85 cents… you’ll be thanking yourself did.


  1. Weekly Roundup 2-13-12: Best of the Best! - February 13, 2012

    […] The Budget Snob gives us personal finance advice in 250 words or less.  This weeks tip is on whether or not to buy penny stocks.  These types of stocks are a bit too risky for me, but may not be for others. […]

  2. Financial Planning – Money Management Edition | Personal Investment Management and Financial Planning - February 17, 2012

    […] presents To Buy or Not to Buy Penny Stocks posted at Budget Snob , saying, “There are many small and micro cap companies out there that […]