Penny stocks are any shares that are traded anywhere between a fraction of a penny up to five dollars. Investing in them is riskier than average investments, but with that comes the opportunity for a high potential for reward.  There have been cases where these stocks have gone from a few cents to over $20, and other cases where they have lost all value.

Penny stocks have had a negative connotation to them because of the risk and the lack of information associated with their companies.  Today, it is known among investors that penny stocks represent the many small companies all across the United States that are in the process of growing and have yet to be discovered.

One reason for the appeal for penny stocks is that investors can own a stake of a company and only pay a fraction of the price.   That small investment can later be turned into a fortune.

The downside of these stocks is the risk, instability, and lack of information from the corporation.

While many companies initial go public starting at $10 or more, there are a number of well known companies that started off as penny stocks that are well around and well known today.

As penny stock companies grow over the years, they have the chance to radically climb in price.  This is when people who trade in the penny stocks territory can make huge gains from a small starting investment.

Begin researching penny stock companies and follow them for a few weeks and review their corporate history.  A rule of thumb when dealing with penny stocks is the sooner one gets started, the better.  To begin dealing with investing, one can read online newsletters or find information from an investor professional.  Many times these professionals can assist in helping one to go the right direction for their desired investing purposes.  However, there are a number of these professionals that are being paid to promote certain stocks.  They give a negative connotation t penny stocks and lost money to their investors.  Many times they use pump and dump schemes to take advantage of people looking to invest in these types of stocks.  To defend against one of these types of services make sure that the information they provide neutral and unbiased information.

More often than not, investors put money into penny stocks without fully understanding what they are investing in or how to trade.  In the end, this causes them to lose the money they put in.   Getting involved prior to learning the avoidable dangers will save people from the ‘dangerous’ penny stocks.  Check to make sure that the company you plan to get involved with has positive and strong financials

Good penny stocks companies look the same as any other successful company; the only difference is they are smaller.  They will have a strong and experienced management team, solid numbers, and will be providing a great service or product.  If there isn’t much information available about a company, call and speak to their investor relations representative for additional information.  Compare the company with their competitors along with other investment options that you can look into.

Taking the time to learn about penny stocks, finding good companies, and understanding how to avoid the pitfalls associated with trading penny stocks are some of the steps to help turn initial investments into huge profits.

So the DOW broke 10,600 yesterday and held despite a gloomy day for International markets.  Well, we could ask France evidently about the average cash positions of some HSBC private banking clients to substantiate that there is a considerable amount of Cash on the sidelines.  Again we reiterate our opinion that investing in the US stock market is one of the more attractive opportunities currently.  It could be argued in a myriad of directions, but our economy is gaining de facto strength by the weakness the EU is experiencing and uncertainty in China.  Google will see some beta increase today as China and Google are hashing out issues related to hacking issues traced back to some of China’s “government universities computer departments.”   In keeping with the humorous positioning we have seen many governments take in statements related to “diplomatic issues,” China has neither admitted nor denied wrongdoing and a China minister was quoted, “Hope Google will respect China law…internet will develop in China with or without Google.”  It’s also odd to watch the IMF and Amnesty International line up in Nigeria (after a massacre of 100-500 people this week in ethnic conflict), Congo and Sudan.  All countries that China has invested Billions in with the Sovereign Human Affairs clause “we don’t tell you what to do, you don’t tell us what to do.”  Western Africa is also coming under tighter scrutiny.  The Continent is a powder keg that is becoming a focal point in the international game of Raw Materials…China are like the Borg on Star Trek.  The Borg are an alien race that assimilates everything they come into contact with into a dense matter floating platform.  Again note that 100,000 people have been displaced in Somalia since January while China has pumped more than 10Billion into infrastructure in the Country planning a railroad track across the continent to access the iron ore and other natural resources they can take from the Country.  This is going to come to a head with the IMF and the UN.  They are smart and run everything through dual tax treaty tax havens.  Ironically, the Chinese entrepreneurs are taking after their Western counterpart with the brightest and “most creative” figuring how to even get around full tax exposure between African economies and China.   Cameroon cracks down on journalists.

The BOK intervened in and the Won traded up.  This is a platform for artificial parity with the dollar rally vs. the Euro.  Perhaps Korea is also attempting to pace with the Yuan hikes in China.  China traded down today as there is still concern growing about regional banks and tightening.

UBS is urging the Swiss government to pass what is a quasi dual tax treaty document.  As Obama plans to kick his effort to eliminate offshore tax benefits.  It will be interesting to see how the Swiss government responds.  The recent exposure of HSBC private banking information most likely has the country on edge.  Anyone who plays the game of RISK or has done business in Switzerland knows how seriously they take business.  It is still unclear what stance Switzerland will take thought it seems the US is challenging some very sensitive sovereign issues.  I think that Zurich will go silent for a period until the storm blows over.

Europe is trading up on new relative negative news and a strong day for the DOW.  Most of the EU could use ending the week on a positive note after much uncertainty prevailed throughout the week.  Especially after it is being reported that the European Economy will take 2-3 years to recover.  What does that really mean?  It would seem as if the other (or many) shoe(s) may drop in Europe as Greece, Spain and Portugal continue to remain in serious risk of defaulting no matter how they attempt to sugar coat it.

Sweden today recognized the WW1 Ottoman slaughter of an unknown number of Armenians as genocide. Turkey begged to differ.  Having studied the matter we have an opinion, but the stock market cares little for History.  In fact, its greatest strength and greatest weakness is the inability of the market to learn from historical cycles.  We base much of our trading decisions on current international and national trends in conjunction with various algorithms allowing us to process the information in relation to historical trends.  Of course, disciplined trading is a difficult skill to develop.  Accepting stop loss trading points is essential to long term success as a clear definition of risk tolerance must be associated with any trading model.  It has been said that mathematics can provide the answer to any question. ..it would seem the world could use some answers.

The Stoxx 600 US Index is up on the day.  Sign of futures being up in the US, but that can always change over the hours leading up to the bell.  It will be interesting to see if the Dow can hold 10,600 today to go test 10,750 of if profit taking and the Bears will test 10,500.

On a side note, the Oslo exchange is up 78% over the last 12 months.  The performance is amazing and I can’t even interject pickled herring slight as numbers speak for themselves.  We do think that some of the better performing markets may have reached a bit of resistance and the US and perhaps a few South American Indexes, will be the next to perform.  We must also note that Carlos Slim of Mexico just replaced Bill Gates as the wealthiest man in the word per Forbes at 53.7 Billion.  To accomplish this in a country that manages to have the approximately the 5th highest per capita murder rate notwithstanding current international crisis abroad is nothing short of amazing.  Though if we consider the monopolies of Cemex and Pemex (Cement and Oil/Gas), this enormous growth in wealth makes sense.  We will leave conjecture based on banking activities related to ill-gotten gain from drug trafficking out of our discourse on Mexico.

Penny Stocks and Penny Stock Picks

China is the major investor of over 10 billion into Angola.  They are building skyscrapers, highways, a railway system across Africa and a few hospital/schools…etc.  China recently invested in several western African countries, Somalia, Sudan, Nigeria just to name a few the UN has on its list for violations of human rights by the aforementioned governments.  Africa clearly has a HUGE amount of non-durable supplies and natural resources.  Typically, Western investments (government not dual tax treaty “invisible private equity tax haven investments”) come with human rights conditions and anti corruption financial oversight policies.  China has what is called Sovereign Political respect or something like that.  In summary it means China will not interfere or question the human rights policies, such as the documented ethnic cleansing in Somalia and Sudan as it expects those nations to return the favor.  It would be humorous if there were not atrocities and crimes against humans being currently being carried out presumably by the leaders of these nations.  What makes it even more absurd is that China is brining over its own laborers to build the skyscrapers, build the highways and expand the railroads.  There are an estimated 100,000 Chinese (the vast majority temporary laborers) currently in Angola alone.  Can anyone say MASSIVE financial corruption?  In Rwanda, 500,000 people were executed in 30 days, mostly by machete creating a new precedence for the number killed in a genocide in relation to the days the atrocities were carried out.  The country has barely begun to recover only to be targeted by the new imperial invasion.  What’s even more frightening is this same government owns the majority of the debt issued by our always humorous government.  With China warning of regional bank risk could we see bank failure there and could this spurn a run on the banks?  Now this would be fascinating with the Yuan pegged to the dollar.  Definitely not what we expect or would like to see, but the idea has to be mulled over.  China just stated it has instructed local governments not to support the bailout of investment arms.  It’s uncertain if this will cause bank failures and if so how China will react.  I guess you can’t run on a bank with tanks in front of it?

Now there is still a considerable amount of cash on the sidelines.  Of course, the smart money “informed money” sold out of real estate and stocks at their highs.  Now it sits awaiting the latest round of bubble silliness to drive up only to have the lemming bankers buy out the positions and left holding the bag.  Of course the bankers spread this lovely debacle on to their retail clients like a disease through the analyst’s recommendations.  A vicious cycle we would like you to get ahead of thus our recommendation to buy non-durable goods exporting nations index funds and the US stock market in “recession and inflation” resistant sectors.  The war machine will continue for a while as the last great US manufacturing sector where we have an edge on the World. I’m guessing Taiwan will be buying some more jets and missiles as a statement was issued that China now has air superiority.  Boeing will trade up most likely on sale of 20 737’s to Turkish airlines.  Short Precision Biosciences as US Patent offices issued a second actions rejection of a previously granted claim to Cellectis’ Core technology.  So long Cellectis if it’s publicly traded or buy on dips if the open is coming in too high.  Ticker is ALCLS on the CAC “or Paris” but can be purchased though Euronext DJ.  Trading now up…

Penny Stocks and Penny Stock Picks

SpeculatingStocks.com has released penny stocks NSU, EMKR and DNN as its three latest stock picks.

December 3, 2008: 12:01 AM — SpeculatingStocks.com has released three stock picks. All three are penny stocks in different sectors. The first penny stock pick discussed below operates in the gold sector in Africa, the second of the penny stock picks is on the cutting edge of the solar power market, while the third stock pick released by SpeculatingStocks.com operates in the uranium production space.

Russ Urban, founder of SpeculatingStocks.com commented, “SpeculatingStocks.com releases these three stock picks on the heels of several recent stock pick successes.”

SpeculatingStocks.com Stock Pick: Nevsun Resources Ltd. (NSU)

Stock Price: $0.41

Nevsun Resources, Ltd., through its subsidiaries, engages in the acquisition, exploration, development, and production of mineral properties. It primarily focuses on properties with gold, as well as base metal, such as copper and zinc resources/reserves in Africa.

NSU is a small cap gold company trading at a market cap of less than $55 million. It has received a lot of attention in the past and has now pulled back. We believe gold stocks will continue to shine now that gold prices are back in an uptrend. Small cap gold stocks could provide the biggest gains for investors in the gold mining sector.

NSU is trading significantly off of its highs of $2.50+ from earlier this year and off its short-term high of $0.74 in a recent uptrend. Gold moved off its sideways pattern and reached a high above $820 and has now corrected down to around $780 where it has begun to stabilize. We expect gold prices to move back above $800 and challenge $900 in the short-term and in the long-term we believe we will see gold up over $1,000 per ounce as inflation attracts investors to gold mining stocks.

NSU received approval on October 30th for an $89 million commitment to the development of the company’s Bisha Project. The development of this project places NSU in a favorable position to take advantage of rising gold prices. The company has commented that the project has low site operating costs throughout the projected mine life and high returns. Production is expected to start on this project is during Q2 2010. We expect this project to be priced into NSU shares moving forward.

SpeculatingStocks.com Stock Pick: EMCORE Corporation (EMKR)

Stock Price: $1.62

EMCORE Corporation is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and solar power markets.

The solar sector has suffered and EMKR has suffered along with it, but we expect the solar sector to rise and become hot again. We believe EMKR is a real bargain right now trading at a market cap of only around $125 million.

EMKR is trading significantly below its book value of $3.74. EMKR has created a new concentrated photovoltaic (CPV) technology that holds a more efficient solar cell than those created by FSLR’s thin-film technology. EMKR could win a lot of new solar business with their new technology. FSLR has been a leader in the CPV space moving from under $50 to over $300 at one point.

If EMKR’s solar technology catches on, we could see EMKR become a major play from its current level. In the past, EMKR moved from the $4.00 level to close to $16.00.

SpeculatingStocks.com Stock Pick: Denison Mines Corporation (DNN)

Stock Price: $0.79

Denison Mines Corporation is a premier intermediate uranium producer in North America, with mining assets in the Athabasca Basin region of Saskatchewan, Canada and the southwest United States including Colorado, Utah, and Arizona. Further, the Company has ownership interests in two of the four conventional uranium mills operating in North America today.

For the third quarter, DNN sold 517,000 pounds of uranium at an average price of approximately $64.75 per pound. DNN expects uranium production in 2009 to increase by approximately between 25% and 50%.

Several nuclear reactors are being constructed around the world and several more are in the planning stage. Uranium demand will surge as these nuclear reactors start to come online. We believe uranium prices will surge from where they’re at now and investors will look back wishing they had invested in a uranium producer like DNN.

DNN is working off of its lows right now and is a real value at its current price with short-term potential to move higher as well significant long-term potential. General Electric has been investing huge in nuclear related projects. DNN is well-positioned to take advantage of the opportunity in the nuclear wave.

SpeculatingStocks.com searches for great companies and stocks in the right point in their stock chart and in the right sector. We believe the stock picks above will become hot stocks in the short term.