November 23rd, 2009 
Bo Miller In today’s market, there are always up and coming penny stocks to watch. Investors are intimidated by the high prices of stock on the NASDAQ and NYSE. Instead of investing huge amounts of money in blue chip stock, they are turning to their small business counterparts on the penny stock exchanges. These penny stocks are known for their rapid growth and ability to make a lot of money in a short period of time. However, this market is better known for being the highest risk investment you can make.
Let’s face it; most of America is fighting to survive the current recession. Those who have money are not confident in traditional stocks. That low confidence makes it very hard to part with the $5,000 or more required to buy 100 shares of many popular stocks on the NASDAQ or NYSE. The penny stock entry costs of $200 to $1,000 are much more acceptable when times are tough.
Even the people who have the money to buy blue chip stocks are turning away from them. It’s no wonder. In recent years the FEDs attempts to save the market have made it even more unstable and have driven stock prices down quickly. Add to that the constant news about another bank that got greedy and burned its customers or corrupt executives being sent to prison. When all is said and done, people just don’t trust the big businesses represented by the stock exchanges.
Typically, these issues are seen on the penny stock market. This market is made up of mostly small businesses that are run by the person who started the company. The executive or “business owner” has a stake in the company and will bend over backwards to keep it growing. Usually their listing on the penny stock market is evidence of their commitment. The typical penny stock went public so the founder would have the money needed to pay for an expansion or growth.
This growth is usually slower than that of their large business counterparts, as is the growth of their stock value. However, overtime that growth can add up. Further, some companies on the penny stocks will grow naturally from a small business to a large player. Along the way, the value of the stock in the company will grow too. When this growth happens it’s usually very quick. Sometimes it will plateau in as little 24 hours, so penny stock investors have to be prepared to sell quickly.
It is possible for companies to have this type of growth, but it is uncommon. More commonly this type of growth is the result of a shady broker running a pump and dump scam. Their goal is to artificially inflate the stock value of a company. Then when it can’t climb any higher they sell off all of their stocks for a big profit at everyone else’s expense.
The ease of growth, honest values, and chance at rapid growth has created many penny stocks to watch over the years. These stocks can definetly produce stock exchange style returns without the same types of risk or the BS that comes with Fortune 500 companies.
Wondering which Penny Stocks To Watch? Visit SmartPennyStock.Com and find some Hot Penny Stocks.
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