Finding High Valued Penny Stocks

1. Finding High Valued Penny Stocks One of the secrets to maximizing investment in penny stock trading is to find stocks that are undervalued. These are stocks that are presently trading under their perceived values. An undervalued stock is a high valued stock because it will soon realize its actual value. Determining if a stock is undervalued is a great skill to master. To understand how to determine whether a penny stock is undervalued is not complex. Here are some steps that you can use to help you find high valued penny stocks. Check out the finances of the company One of the strongest indicators of the direction of the stocks of a company is the company's financial health. Check the company's financial history for up to 5 years or as many years that are available. The stock may be undervalued if its price is low compared to historical price data, and the substantial value of the company is still the same. Find out how much working capital and how much debt is carried by the company. If the company is using investors' money to expand and grow then you have found a high value stock pick. Reinvestment of funds is a good sign of a high value stock. It will rise and give you profit. Watch sector activity Institutional money moves from sector to sector. When there is strong activity in any sector, share prices start to rise from stock to stock. Look for low priced

2. penny stocks in the sector that have strong fundamentals. These are the stocks that will give you high value for your money. Listen to genuine analysts When you find a quality penny stock that is being sold lower than the value experts placed on it, then it is time to buy. When majority of analyst puts a higher value on a stock, the market can react and cause a surge in price. News Listen to industrial news. The stock market and share prices always respond to news. News of a new discovery or product launch can cause low priced stock to rise overnight. It is to your advantage to buy it before it does. This is another way to find a high value penny stock. If you're interested in making more money with low-risk investments whether you're a seasoned trader, looking for additional income, or a starter, you can absolutely grow your income and improve gains by consulting with our experts at Paradigm Capital Management. We at Paradigm Capital Management have resources that can dramatically increase your returns and reduce the risk of losing your cash. Contact us at (518) 431-3500. Or visit here: http://www.paradigmcapital.com/