Trade Penny Stocks and Make Money in Today’s Economy!
It is time to trade penny stocks. There really are some great penny stocks out there! Don’t think that all penny stocks are scams. Yes, there are a lot of scams, but there are also some great gems to be found as well. So don’t let people tell you that you should never buy penny stocks. The same thing goes with buy when people are scared. When people are selling that is when you buy. When people are scared and panicking that is when you remain calm and buy up some good deals.
You have to research the company before you buy anything though. Do your homework. Know who the CEO is, know what kind of job they had before this company. Know about new products the company plans on launching. Find out about the employees of the company. How long have those employees been working for the company? Don’t be afraid to call up the company to do some more research. Most companies have an investor relations person there just to answer your questions. And if a company doesn’t have a number to call, then don’t buy their stock!
There are also a lot of penny stocks they offer a nice high yielding dividend. Owning the stocks that pay out dividends should most likely be held for the long term. So they may not be too many of these micro-cap stocks, but they are out there. Check out some REIT stocks right now, they do really well in today’s economy. When interests rates are low and unemployment is high, these types of stocks do well. They have extremely high yielding dividends around 10% to 15%! I plan to and have already bought up some nice REIT penny stocks. Since congress plans to keep interest rates low until the middle of 2013, I think these stocks are some of the best stocks to own right now. Of course, you have to watch out for when interest rates rise or if inflation hits.
Of course, you may want to buy the penny stocks that are undervalued and are a good strong company. However, don’t start day trading penny stocks of these means. You want to hold on to them for the long haul. A long term investment. You will want to hold on to these ones for 20 or 30 years. These penny stocks are the gems that you go hunting for. Make sure to really research the company completely though. Check out the cash flow, analysis the financial statement, look at the history. There are several ways to buy penny stocks, learn how to start day trading penny stocks and learn how to start investing in penny stocks.
Day Trade Penny Stocks and Invest in Penny Stocks
Trading Penny Stocks = $
Take Wendy’s (WEN) for example. They are a big company that is a penny stock right now. However, do you think they will last? They are really cheap, but do you think McDonald’s (MCD) will take them over in the long haul? Wendy’s has been doing better since they let Arby’s go though, but they certainly are not as good as McDonald’s. However, Wendy’s has been around for a long time and at least they know when to cut their losses. And in this tough economy people are going to probably be buying more fast food because it’s so convenient and cheap. I am not sure about buying the penny stock of Wendy’s. Maybe it is better to save my pennies so I can buy a few shares of McDonald’s instead or Taco Bell (YUM). What do you think? Or perhaps I should do both, buy the penny stocks and Taco Bell. After all, having a diversified portfolio is key in the stock market. I like Taco Bell better than McDonald’s food too and I think Taco Bell may have more room to expand in China as well. Anyway, this is my penny stocks blog, not a large cap blog, so back to penny stocks. I did wanted to note that it is important to have a diversify portfolio though, not just penny stocks.
I am not really a fan of Wendy’s food either. Should that be a reason I shouldn’t buy a stock though? I mean this is just suppose to be business right, whatever makes the most money for me right? My brother and Dad love Wendy’s food though. Well, I do like their 99cent chicken nuggets with their sweet honey BBQ sauce. That is a good deal!
Hmm…Wendy’s is around $5 a share right now. So they are on the high end of their 52 week range, but that price could double or triple in the next few years with their expansions. Their 52 week range is $3.89 to $5.62, their market cap is $1.96 billion, their P/E ratio is 506.00%, and their dividend is 1.30%. Yes, it is not much of a dividend, but at least they are paying out one. Wendy’s could have a nice turnaround since they cut Arby’s. Actually they have had a 5% increase in profits without Arby’s as of August 11th 2011. Be aware that they look worse then they really are since the depreciating from Arby‘s. Also, Wendy’s has room to grow, can you say the same thing about McDonald’s? Everybody already knows about McDonald’s and they are everywhere globally and nationally. Wendy’s plans to expand in Russia, China, Brazil, and over markets internationally. Now, yes all fast food restaurants are suffering during the tough economy because of rising commodity prices, but I still think that fast food places can make it out strong on the other side.
So what do you think? Are you going to be trading penny stocks to beat out this economy? Do you think REIT and fast food micro cap stocks are the way to go? There really are some great micro cap stocks out there. Start shopping around, because it is time to buy, as I said in my last post: Buy Penny Stocks and Big Stocks, Don‘t Panic. Buy the dividend stocks and the strong companies that can tough out the economy. Do your due diligence and really research everything you can about the company. Thanks for stopping by and let me know about any penny stocks trading you have made recently.
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