Press Release Distribution for Penny Stocks

Whether you are new to trading in the stock market or you have been around and enjoy the high-risk investment opportunities, penny stocks have been around for a long time. It is not a magic bullet or a lottery ticket to double your investment overnight, but if you are willing to put in enough time and effort into scrutinizing the fine details of the companies that are listed for penny stocks, you can come out successful. But where does one begin with penny stock information? Let’s look at some of the press release distribution for penny stocks in this article.

Why Penny Stocks

The term penny stocks as the name suggests are stocks under $10 that eventually grow out to possibly $1000 in a few years ahead. Press releases are generally issued by the companies themselves through various sources. Note that press releases from companies directly will always, if not most of the time, highlight positive events. While investing in penny stock, the investor should know that not all stocks are the same. While some spike for the slightest positive press release, there are others that do not move no matter how bright the prospectus is detailed in the PR.

The driving force behind penny stocks

Small businesses are the largest employers in countries like America and it is this sector that contributes to the economic growth in most nations. In order to grow, these small businesses list their stock on the market for cash injection. The often-taboo topic in investing, penny stocks have a bad reputation of making investors lose money if they do not choose carefully – as with all other stock market options.

Interpreting the press release of penny stocks

It is important that you have the ability to read between the lines when you are given access to the press release distribution of penny stocks. Behind all the optimism, there would be a hint dropped if the company is not doing well. Pointers to look out for is the trend in number of employees. For example, if the headcount in a company is increasing rapidly, it means more work needs to be done. This in turn means more sales have been made and the company is headed in the right direction for your investment in their stocks. However, you need to be wary that the company is not diluting shareholders by presenting more shares into the market.

Sources and distribution of penny stock PR

With the advent of super-fast news presenting platforms thanks to the internet, one can easily access and proceed to discussions of the press releases pertaining to their penny stocks of interest on forums, discussion boards and even chat rooms. Since the source of the information put up on message boards are not legitimate, be cautious not to act on impulse based on what you read there. Subscription based newsletters as opposed to free newsletters are more reliable as a guide for businesses that state high quality penny stocks. You can also opt for paid analysts to provide you with detailed info of the company you are planning to invest in. You would definitely prefer consulting with your investment broker before coming to conclusions on the data presented to you.

Investment representative of the penny stock business

Most companies are mandated to have an investor relations representative (IR) who serves as a source of information for potential investors. IR representatives provide due diligence and information like paid analysts who also do sales pitches for the company they represent. But the facts they provide can be detailed and accurate.

What to do with the Press release information

After collecting and analyzing the penny stock market press releases from your company of choice for investment, you will need to decide on the type of order to make. Whether it is a limit order or a market order, the choice is yours. It is advised to opt for limit order buys when it comes to penny stocks because of the price volatility factor of this type of investment.

The bottom line

While penny stocks are a great way for those who are willing to see some gains as a small investment opportunity, the scams and frauds that occur are prevalent. As an investor, it is your responsibility to conduct due diligence without blindly believing everything you read. To separate the wheat from the chaff, it takes precision in reading numbers and picking up on market
trends. If you are in it to make big money, you might want to look into other stock market options.

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