Any good tip on how to research penny stocks?

Hi! I am thinking about starting investing in penny stocks. Does anyone have any good idea on how to research them?

I believe it is mutch easier with normal stocks than with penny stocks.

Source: http://www.goarticles.com/cgi-bin/showa....

If you actually want to make money on investments and you have no experience, stick to mutual funds.

Many, perhaps most, penny stock companies have never made money and never will. They basically feed on neophytes such as you to provide a constant stream of income. They merge and have reverse swaps (10 shares for one) until the value of your investment is not worth the cost of one stamp.

Been there, done that, I only lost $250 over a five year period.

It is NOT easier to research penny stocks, because they do not have to reveal as many necessary bits of information. That is why they are not allowed to trade on the major exchanges.
Canadian mining companies are particularly likely to take your money.

You have been warned.

Check out FEZ, IEV, EZU and EWA, all pretty good overseas index mutual funds that have done well recently.

And good luck.

www.pinksheets.com

if you know how to break down a blance sheet this site rocks.... shows you how most of the penny stock are complete BS that make markets by faxing recommendations to idiots.
most dont have 2 nickels to rub together.

If you find a company where the CEO lives in Vancouver, British Columbia, the company's HQ'ers is in Las Vegas, Nev. and the "factory" is in White Sands, N.M. fergetaboutit......
If you find an oil & gas exploration company where the founder/CEO's previous job was the founder/CEO of a dog grooming at home business (that failed) located 2000 miles away, fergetaboutit......
If you find a real estate company selling "premium" investment quality homesites in northwestern Utah, which just happen to be 100 miles from the nearest paved road, electric lines, water lines and each site abuts the neighbors site so there is no way to get to 99% of the "sites" without trespessing, fergetaboutit......
If you find a mining or oil & gas exploration company who brags about "prime super rich" property and the web site shows a fuzzy (so it is unreadable on the web) deed to 50 acres in the middle of Newfoundland, fergetaboutit......
The above are real examples of penny stocks that I have NOT invested in.
Ryan S and I know about most of them, I hope you learn the "easy (not money losing) " way.

When I was young, I wanted to invest so bad and make my fortune, Not having much money I Bought penny stocks because I could not afford 100 Shares of a blue chip stock.

My full service broker said I was doing it wrong, and when you start out investing, you should buy blue chip stuff and not penny stocks.

I didn't listen because if my thousand shares went up $.50 I made $500, So I bought penny stocks

I learned a lot doing this, after 10 years and losing a total of about $50,000 I don't buy penny stocks anymore, I have been investing 40 years now, and the last 30 years has been good, with no penny stocks whatso-ever...I did make money on a few, but lost on most.
Think about it, and do what makes you happy.

Three important steps when beginning to learn about "penny stocks":

1. Decide how much cash you want to invest in penny stocks.

2. Put that amount of cash in a grocery bag

3. Leave the grocery bag in a trash-can outside a 7-11, and go home.

This is the very fastest way to learn that while one in a hundred stocks priced under $5 a share may become a "real company" one day, the other ninety-nine are just trash.

There is a REASON they cost less than $5 a share...they aren't worth anything!

If you have $100 to invest, buy one share of a $100 stock instead of 100 shares of some nonsense. You have to be the luckiest person in the world to make money on penny stocks, and if you ARE the luckiest person in the world, far better you buy lottery tickets!

Wait for a hot stock tip from xfrgygpodud@grammk.it to come into your mailbox. Short that stock.

If I were you, I'd swim in the shallow end. Forget about Penny Stocks.