New companies and small companies have opportunities to flourish and can go public at anytime. Purchasing stocks at a low price and selling them at a high price is the strategy of any investor. Penny Stock Wizard is an informational portal to penny stock investors and a marketer for new companies.

A penny stock is a Pink Sheet traded off market focusing on stocks below $5.00. Penny Stocks are shares of small companies sold to raise capital and Pink Sheets are offered to provide these companies credibility. The risk of penny stocks can be contributed to being unpredictable in nature and easily manipulated. On the flip-side, profitability is possible and this can happen in a very short amount of time.

Penny Stock Wizard offers a free penny stock newsletter; within these newsletters, you will find exclusive stock reports and emerging sector growth analysis projections. It is their goal to find emerging industries and unique opportunities outside of Wall Street’s attention. To pick the right candidate for investors, the analysts screen candidates for book value, price to earnings ratio, volume, moving average, shares outstanding, and market capitalization. They provide insight and explanations to assist members through their penny stock picks.

Penny Stock Wizard initially uses paper trading as a means to produce real numbers; the results are presented to investors as another resource of information. The analysts market candidates using email penny stock alerts, detailed investor kits on companies that warrant special consideration, direct mail, audio and video content, online marketing search engine optimization, and social networks (Facebook, twitter, etc.)

While it is important to know the company you are investing in, it is also important to be cautious of penny stock sales pitches. Some of the penny stockbrokers and sites may have an interest in the stock they are presenting to you. Subscribe to a number of penny stock investment sites, follow their investments and evaluate their findings and success. If they are making good suggestions and if they are providing you accurate information, they probably do not have an interest in the company they are reporting to you or “selling to you”.

Make sure that all of your information is coming from professionals in the financial and investment industry. Don’t trust all of the hype, analyze the stock on your own, taking advice into consideration, always remember that many penny stocks are not successful, but buying the ones that are, can be a great way to make money.

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Killer Penny Stocks (www.KillerPennyStocks.com) is a new penny stock alert website that allows its members to sign up for a free newsletter that will keep them informed of penny stocks with the biggest “gain potential.”

Killer Penny Stocks claims that their stocks are chosen from a series of well thought out criteria: whether the company’s management team has a good track record, their growth potential, recent news involving that company and its products, and the sector in which the company operates.

If you sign up for Killer Penny Stocks’ alerts, you will receive exclusive recommendations, advanced notice about promising companies before the general public, detailed reports based on their extensive research, and insight only regarding companies with gains potential.

What are Penny Stocks?

Penny stocks, or microcap stocks or small cap stocks, are stocks that trade under $5 a share. Generally speaking, most penny stock alert companies concentrate on stocks that trade under $1 a share.

Penny stock trading can be a risky business. It happens that what makes penny stocks so popular also makes them potentially dangerous: they are cheap.

But because penny stocks are so cheap, they are easily influenced. Shares can be purchased by the hundreds or thousands by a company or single investor for a reasonable amount of money.

Once the shares are purchased, this same investor can point to the recent rise in stock price to influence others to purchase this same stock. Then, the investor sells their shares for a profit at the new increased price, and walks away, causing stock prices to fall again.

Is KillerPennyStocks Legit?

Well, if you read the full – not partial – disclaimer provided by Killer Penny Stocks you will see that they are actually an advertising and promotional company, not a stock investment or advisory company.

It’s not unusual for penny stock alert companies to be more influenced by companies who are paying them for promotion than they are by actual research and reports. Killer Penny Stocks does not actually employ any investment bankers, advisors, or analysts.

Before you purchase penny stocks, or stocks of any kind, you should always have an independent investment analyst or advisor look over your purchase. In addition, you should never invest in stocks of any kind unless you can afford to lose your entire investment.

Premiere Penny Stocks (www.PremierePennyStocks.com) is a new penny stock investment website that offers its members free newsletters which alert them to stocks which are “set to rise sharply in value.” Premiere Penny Stocks especially emphasizes that they find the undervalued stocks, which won’t come up on the radar of large investment companies.

In addition, they promise they won’t “inundate your inbox with emails…won’t waste your time with companies that ‘might’ break out.” Instead, you only be alerted when a very specific stock that will raise in value has been identified.

Premiere Penny Stocks promises that it conducts extensive due diligence on companies everyday, and that the success of their subscribers speaks for itself.

What is a Penny Stock?

The market uses the term penny stocks to reference stocks that trade for under $5.00. Though it may seem doubtful, the truth is that there are legitimate stocks being traded at less than $5.00 a share.  In the trading industry, penny stocks are better known as  micro-cap stocks and have been around for a long time.

When researching penny stocks, one of the first things you learn is that the cheap cost of penny stocks makes them a prime target for fraud and market manipulation.

A company can implement a large purchase of cheap stock, which causes the price to rise, and then recommend this stock to others. Due to the recent increase in value, many others will purchase the stock causing the price to rise even higher, and then the company sells their stock, causing the the stock price to drop again, leaving the second wave buyers with a loss.

This is a well established problem with companies that recommend penny stocks, a problem that even pre-dates the Internet and has long made traders consider penny stocks extremely high risk.

Is Premiere Penny Stocks Legit?

It is pretty well known, and the basis for many online jokes, that Americans don’t read Disclaimers or Terms & Conditions pages, instead we simply check the box that says we did and move on.  But PremierePennyStocks.com acts as one of the best examples I’ve seen of the reason why you should read these pages before investing your money.

Every website will have a Terms & Conditions or a Disclaimer that says they don’t take responsibility for your choice to invest your money, and they make no guarantee that you will make any money from their advice. This is very standard.

However, the first sentence of the Disclaimer for Premiere Penny Stocks states not that they don’t guarantee you will make money, but rather that “We are engaged in the business of advertising and promoting companies.” The companies that they recommend in their newsletters are companies that have paid them for their recommendation.

Neither Premiere Penny Stocks nor any person employed by them has any sort of certification or background in brokerage, banking, investment advising, etc. They are a company whose sole purpose is promoting another company, and the way they are doing this is by creating a newsletter that is sent out for free to people who are looking for companies in which to invest.

Hot Penny Stocks Finder, at TheHotPennyStocks.com, is a website dedicated to helping people learn how to buy and trade penny stocks, as well as identify the individual penny stocks that will soon be gaining in value.  In addition to general overviews on penny stocks, and penny stock trading, Hot Penny Stocks Finder offers a free newsletter with trading advice and specifically recommended penny stocks for your investment opportunity.

In general, the information available on Hot Penny Stocks Finder is free.  They don’t ask you for any of your personal information, and they don’t require you to give them your credit card number in order to take part in any of the website’s functions.  Their site is covered with ads, so it’s likely that much of their personal revenue simply comes from pay per click advertising.  Whatever the case, free for you is always a nice thing.

So What’s the Deal with TheHotPennyStocks.com?

Well, despite the fact that the information available on TheHotPennyStocks.com is free, that doesn’t necessarily mean that they’re completely trustworthy.  There are some things to consider.

First of all, penny stock trading is a tricky business, and the reason that it is so popular is the same reason that is hard to support: penny stocks are cheap.  Because penny stocks are so cheap, they are easily influenced.  Thousands of shares can be purchased by a company or single investor for a very reasonable sum of money.  After the shares are purchased, said company or investor can use their resources to influence others to purchase the stock, increasing the price.  Then, the company or investor sells their shares at a profit, and walks away as the stock price falls again because it was artificially inflated to being with.

The truth is that Hot Penny Stocks Finder isn’t a financial advisory website.  No one on their site is licensed to give financial advice; no one on this site is required to have financial or trading experience whatsoever, and yet, they have created a site whose whole goal is to tell you specifically what stocks to invest in.

In fact, Hot Penny Stocks Finder is actually owned and operated by Blue Wave Advisors, LLC, whose entire purpose as a company is to help small companies increase shareholders, ie to help companies sell shares of their stock.   So whatever company pays money to Blue Wave Advisors is the company who will be recommended for you to buy as a “hot penny stock” on Hot Penny Stocks Finder.

If I were you, I would stay far away from the advice being offered to you by Hot Penny Stocks Finder.

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Penny Stock Fortunes is a popular newsletter written by Greg Guenthner and distributed by Agora Financial.  Penny Stock Fortunes promises to give its subscribers the inside information regarding the trade of penny stocks, which are stocks valued under five dollars a share.

According to their website, Agora Inc. is a holding company for publishers of information in a variety of fields, like finance.  It’s important that you understand that the financial information distributed by Agora Financial does not come from Agora Financial, but rather from third party sources that simply use Agora to distribute their information.

The Penny Stock Fortunes newsletter costs $39 to subscribe to for one year, and will automatically be renewed at $59 for each subsequent year.  You can cancel at any time, but you must cancel within the first six months of your year subscription in order to qualify for a refund.

So What’s the Deal with Penny Stock Fortunes?

Penny stock trading is a difficult thing to endorse, for one simple reason: they’re so cheap.  This sounds contrary to logic, but the reality is that because penny stocks are so cheap they are easily manipulated.  A company could buy thousands of shares for pennies, then use their resources to encourage people to buy the stock, resulting in the price rising, at which point the company sells and the stock falls again.  But not before the company has made their profit.

This is why Penny Stock Fortunes by Agora Financial raises red flags.  Greg Guenthner isn’t a financial analyst, he’s an ex-journalist who claims to “dig up” the hard to find information about which stocks will rise next.  His newsletters could easily be a part of potential price manipulation.

Agora Financial has already been charged by the Security and Exchange Commission for a similar situation.  A third party that was working under Agora Inc. distributed financial newsletters that promised investors inside information for a fee of $1000.  After collecting over one million dollars in fees, it turns out that this third party had no such information.

It’s understandable that penny stocks would be intriguing, especially with the promise that for a small investment you could potentially make huge returns.  But the reason why penny stocks are so attractive – their price – is the same reason why they have potential to be dangerous.  I would be careful.

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