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Top Characteristics of New Profitable Penny Stocks – The Best Penny Stocks for 2011 as Per Expert Opinion
Trading penny stocks has always been a difficult proposition. This is mainly because they are extremely unpredictable, and there is no fundamental reason for the rise or fall in their prices. Penny stocks are not that actively traded on the stock exchanges, and hardly any analyst will recommend them to you for the purpose of investing, though trading activity is suggested by many. However, there are definitely some, hot penny stocks to buy in volatile markets also. So, before I present to you the top penny stocks for 2011, let us know more about their characteristics in the next section.
Characteristics of Penny Stocks
The following are the important characteristics of penny stocks:
- Penny stocks can show huge movements on either sides, depending on investor sentiment and interests
- Many times, penny stocks get sidelined when there is fast movement in large cap stocks and they get into action when investors turn their attention away from these stocks
- Penny stocks can witness tremendous rise in volumes of shares traded even with a small positive news about them
- There are situations where investors will find it difficult to get out of penny stocks because of the lack of buyers at the current market price
- Penny stocks should be traded only with strict stop losses due to their volatile nature
- Penny stocks are meant for the more aggressive traders than the cautious investors as there is always a risk of loosing huge amount of money even by making a small mistake
Ideal Penny Stocks for 2011
The following are the best penny stocks for 2011as per expert opinion:
- Cell Therapeutics Inc.
- Sprott Resource Lending Corp
- Anchor Bancorp Wisconsin Inc.
- Manhattan Bridge Capital Inc.
- Euro Solar Parks
- Amico Games Corp
- Sport Endurance Inc.
- Wireless Age Communications Inc.
- Force Fuels Inc.
- Ireland Inc.
- American Wagering Inc.
The top penny stocks for 2011 are mostly from the manufacturing, mining and electronics sector. If you go through the history of penny stocks, you will find that several companies having billions of dollars as their current market capitalization were trading at very modest prices some twenty to thirty years ago. Then, how did this huge transformation in terms of market capitalization, profits and investor confidence took place? How did a small cap company become a large cap multibagger? Will all small cap companies become billion dollar entities in the future?
These might be some of the questions in your mind. My simple answer is that only those companies with a unique business model and operating efficiency can achieve such stupendous growth. Promoter track record and interest in the business also plays a key role in deciding the success of a company.
A firm which has less competition will emerge successful earlier than the one which operates in a highly competitive industry. Since the stock price is the mirror of a company’s achievements on the financial front, one must not get mislead by the claims of certain individuals that some penny stock will rise hundreds of times from current levels. We have to ask ourselves questions like WHY and HOW before we invest in such stocks. Penny stocks have also been known to cause wealth destruction and so we must be extra careful while dealing in them. Though this article has provided you with the top penny stocks for 2011, you should consider your risk taking ability before making any sort of investments.
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