According to you, which penny stocks currently show the best potential?
I know its a tough question because penny stocks are exteremly risky and at the same time they can be very rewarding. Unfortunately there is not enough coverage and information on penny stocks. Can someone recommend good penny stocks?
The way you find a good penny stock is the same way you find a good non-penny stock. Spend a lot of time looking over the financials and business model of a company. You can get a lot of useful information from the website of the SEC ( http://www.sec.gov ) using the Edgar application. Like the previous answerer said, though, there aren’t a lot of good ones to be found. (I know because I’ve tried looking.) Sometimes, though, you do find some good ones. Odds are, though, that for every good one you find, there will be at least 99 bad ones, so you really have to be very picky here.
I currently own 6 million shares of ADVC.ob, currently trading at about $0.0005. I like the fact that management is contractually tied to the company until 2008, at least, and I expect they will stay on after that, though that expectation is speculation on my part. I also like the fact that, unlike most penny stocks, ADVC is making some serious money. True, its spending more money than it is making, which is a classic business problem, but it is making money. I expect that somewhere between several months and a few years from now it will be doing very well. All of that is speculation, though.
Another company that I like, which I’ve been following, is NAWL.ob. I don’t currently own shares of this company, but I bought a million shares when it was trading at $0.0007 and sold them at $0.0018. (If I’d held them a few hours longer, I could have sold them at $0.0034.) I like the fact that this company has some marketable products and also that they seem to be getting some name recognition within their industry (biotech/pharmacy). I definitely like the future prospects for this company, but the buy-in price right now is a little bit higher than I, personally, like given the risk level of such an investment. The current price, as quoted by Yahoo Finance, is $0.0014 per share. Still, I believe this company also has a very bright future, and I’m guessing it is probably going to be taken over by somebody within the next few years.  Apparently, lots of other people think its a good buy too. Stock is up about 1 tenth of a cent today as of right now on some good preliminary sales results reported for February. 1785% increase over a year ago, but that really wasn’t that hard to do given how little in sales they had a year ago. Still, the numbers are impressive. I still don’t own any shares at the moment, so I missed this particular upward ride and don’t plan to commit at the moment. [end edit]
There are probably other good picks, but I haven’t found them yet. I’m just an average investor myself, so you should do your own research before taking my word on anything as I’m certainly not qualified to give much in the way of investment advice.