This is another new feature that we are adding to Penny Stocks Research, and it is the focus of sub penny stocks. While many people may questions our decision to include this segment under our research banner, we feel that it is important for there to be some form of coverage for this growing section of the over-the-counter stock market.
Each week we are going to focus some attention on the mega-volume sub penny stocks, generally trading on either the Pink Sheets or the OTC Bulletin Board. This attention is not going to be in any way an endorsement of these stocks, but rather a birds-eye view of what is happening with this microcap companies trading at a fraction of a penny.
Keep in mind, trading sub penny stocks is a risky endeavour, as these stocks are largely nothing more than shady promotions with dubious histories, and short windows of trading volume. This market perhaps illustrates the point everyone makes as to how much money investors could potentially lose, as many of these companies trade at a fraction of a fraction of a penny.
One thing to keep in mind when looking at our Sub Penny Stocks to Watch is the number of shares these companies have issued and outstanding. The vast majority sub penny stocks have of hundreds of millions of shares, in some cases several billions of shares or more.
Making money in this is more about trading these momentum stock plays rather than investing in them. Since these stocks usually have a huge number of outstanding shares, and the price is very cheap, price movements can be quick and dramatic, in both directions. Penny stock newsletters and paid promotional services jump on these deals, and begin touting them hard. These stocks are volatile, but once promoted they trade a huge number of shares per day, and can see some enormous gains or losses, but be forewarned as the volume will dry up once the promotion ceases.
Our Sub Penny Stock Report identifies which of these cheap stocks are being promoted, and by whom. The objective is for our subscribers to know which stocks are being actively promoted by the various tout newsletters, and what is the compensation for the promotional efforts.
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