P/E and volume with penny stocks?
I know P/E is very important factor to pick a stock but most of the penny stocks doesn’t have it .why it is so?
and i want to know how volume effects the stock price?
Most of the penny stocks just have High,Low,Vol………thats it.How do i pick the stock based on this information.thank you
P/E is a long term fundamental analyst tool.
buying penny stocks, unless your intent is to takeover, is mainly a speculative activity.
the higher the volume, the greater potential for volatile prices. if volume is to low, then you may get stuck with the shares, or will have to offer at a discount to market. also, if volume is too low and you buy a large lot, your buy might affect the market price, so don;t be surprised if the price goes up when you buy, then goes back down soon after.
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