Sunday, 20 May 2018

Penny Stock Picking Methods and tips

Firstly you need to  follow very strict and rigorous process of research for  Penny stocks since this is a very a volatile segment of stocks and they have the least amount of coverage on them. Conduct  due diligence and follow a set process of research which has proved to be successful.

Here are few of  research parameters:

  • Sales and Profits consistently growing with a CAGR of 25-30%
  • Financially sound company with a cash rich balance sheet
  • Growing market share in the respective industry
  • Having a competitive edge like unique technology or patents over its competitors
  • Hands on promoters running the company themselves and having their personal holding more than 60%
  • High growth projections by the management in coming years with constructive plans to increase CapEx

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