Saturday, October 2, 2010

Undervalued Penny Stocks – 10 Qualities Of Companies With Undervalued Stock

Undervalued Penny Stocks  CAN make you loads of cash. However, if you want to become rich from penny stock trading you cannot cut corners when trying to find the right penny stock picks. Time invested in research about the company is the answer to finding undervalued penny stocks.  And undervalued stock is the solution to making HUGE  profits.   They can double or even triple your gains. BUT, you must be able to determine which penny stocks are accurately undervalued and which are better left alone.  Below is a list of 10 characteristics of companies with undervalued stock.

1. The company is NOT in the midst of a financial scandal.

2. The company has stable earnings.

3. A low price-to-earnings ratio is NOT due to a major decline in profits.

4. A low price-to-earnings ratio is NOT due to profits realized from capital gains.

5. The company’s price-to-earnings ratio is below its average price-to-earnings ratio for the last 10 years.

6. The company IS selling at a price lower than its tangible asset value.

7. The company’s products are NOT in high-technology that can become obsolete overnight.

8. The company’s trailing 3-years earnings has risen over the past 10 years.

9. The company did not have a loss during the last recession.

10. The company’s credit rating is AAA, AA, or A.

Researching these characteristics can take time.  Sounds like a lot of work?  It is! Having invested in the stock market for over 12 years, it has really simplified my life to use a stock trading program to pick my stocks.  They are pros at finding undervalued stocks, which saves me time. Bottom line this service allows me to spend more time with my family. You might want to look into using one as well. You can click here for more information.  They really help in taking the risk out of investing, especially for people who do not have the experience or the time needed to thoroughly do the research.

3 comments:

  1. Madhav u are great ...

    i have purchase two stock u have suggested in april..parekh and pjilips carbon...even i have done research on that as well.

    i sale those stok very early but got enough profit.

    but today both stock are like rocket....

    Madhava can i have your mail ID or you can send me test mail on chat.patel@gmail.com

    I would always thanks to you and admire for your knowwledge.

    regards,
    Chetan J Patel

    ReplyDelete
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