If I were to announce that 99% of all penny stocks are full and complete crap, few would argue that the point. Official statistics are tough to come by due to the tremendous number of micro-capitalization companies.
In addition, anyone — and I do mean anyone — may begin a publicly traded entity. By their default character, penny stocks are not going to qualify to the top echelons of their New York Stock Exchange or the Nasdaq. Therefore, the requirements are much less intense.
Owing to that, penny stocks nearly always prefer the issuer and seldom the investor. The business receives the money, and you obtain a certificate of dreams and hopes. Psychologically, it’s far more appealing to nab 11,000 stocks of a affordable technology startup versus one measly talk of Apple Inc. In an overwhelming number of instances, penny stocks are difficulty — that is why I warned against them!
There are, nevertheless, the ones that argue in favor of micro-cap companies. One of these is Peter Leeds. However, his website declared interesting research in that the success or failure of recently issued penny stocks is highly determined by their underlying sectors. Additional initial public offerings of micro-cap companies are less susceptible to failure compared to higher priced IPOs.
I’m going to select the research with a grain of salt, and so should you. But I’m also going to borrow the overall principle. Penny stocks are harmful not due to their valuation, but the explanations for it. Too frequently, micro-cap stocks are conducted by those who do not care or have businesses which are doomed for failure. But, you will find the rare gems out there which have a solid business and so are waiting for this right opportunity.
Here are 3 intense penny stocks which are several steps before their high-tech peers.
That is because RCCMF is also a tech firm.
Its innovative and proprietary thermal fragmentation procedure is a revolutionary solution to traditional mining. Primarily, mining is an expensive ordeal due to the immense quantity of earth extractions essential to acquire at desired minerals. With thermal fragmentation, you will find fewer extractions — and consequently, reduced costs and environmental impact.
The benefits clearly accumulate. Does Nippon Dragon provide a superior mining methodology, but it also gives new life to mines which were previously deemed uneconomical.
The industry has taken notice, and lots of associates have approached RCCMF to get joint jobs. Such structures typically include using thermal fragmentation units in exchange for a portion of precious metal extracts.
Aside from these types of partnerships, RCCMF also includes its own gold mining project known as “Rocmec 1.” After a long time of rehabilitating the house, the extraction potential using thermal fragmentation is extremely promising.
Ultimately, what really separates good companies from poor are the folks running the show. RCCMF really stands out from the competition due to its hard-working and accommodating staff. Many micro-cap companies will not even pick up the phone — if they even have a working number. However, the business growth and investors relations group, headed by Jean-Yves Therien and John Stella, are delighted to answer questions. That provides a degree of confidence for possible buyers compared to other firms which are ducking inquiries.
But for the speculative portion of your portfolio, Nippon Dragon is a intelligent risk.
I’ll be entirely blunt and say that I’m not too hot about everything which Legacy Ventures International Inc (OTCMKTS:LGYV) does. In actuality, I would not bother giving LGYV a passing glimpse if it weren’t for one very specific item. In the end, this is a business whose market capitalization does not even include up to half a million bucks. By most criteria, that will not even get you into micro-cap status.
As for me, I came across this product this past year in my regional Target Corporation (NYSE: TGT) store. The design is equally simple and remarkably effective. LGYV plays up the environmental component of its core product. It has none of those chemicals that could seep into a liquid that is inside a plastic container. It’s an all round winner.
Needless to say, if it had been only my opinion, no one would care. But individuals do care about what Anne Hathawayhas to state. She along with other Hollywood A-listers have jumped to the opportunity to endorse Boxed H20. Additionally, popular events like the Billboard Music Awards have showcased the item, together with trendy retail stores like Banana Republic and Lacoste.
For me personally, it’s not so much that celebrities love it — it’s that celebrities draw individuals, which translates into earnings for LGYV.
This is not going to be a simple investment. But with Boxed Water, Legacy has a Opportunity.
To get a speculative bet, that is all we could ask for.
In many ways, U.S. Lithium Corp (OTCMKTS: LITH) — which holds and is exploring numerous lithium mineral claims — signifies the reason why mainstream investors despise penny stocks.
First off, it’s impossible to find any information on the corporation. Additionally, U.S. Lithium doesn’t have a phone number listed on its website, along with a “touch” option that feeds to Zimbabwe, for all I know.
Why bother with it?
Despite very obvious defects, stocks are up 136% this past year. Needless to say, penny stocks are proven to generate incredible numbers if they sneeze in the right direction. However, LITH carries a three-month average quantity level of almost 72,000 stocks, which isn’t just liquid, but it’s also not a graveyard. Additionally, there was exceptionally bullish activity this spring in which quantity surpassed 4 million shares.
Someone’s excited to get into the lithium sport, and they are not making pensive stakes.
That is not intended to motivate you to do exactly the same. But I like LITH since its underlying asset might well be the alloy of their upcoming. Lithium powers everything from the laptop to a electric vehicle. It’s sensible to presume that by another generation, we will not be in a position to do anything or go anywhere without lithium.
The primary risk to consider is that a strong lithium market does not necessarily imply achievement for LITH. But with numerous lithium-based investments available, it gives you a ticket into this wild and crazy match.