I am pretty new to investing and have started dabbling in penny stocks. I have been trying to learn how to read SEC filings and such to get an understanding of how to extrapolate the information from there into a form that would give me a valuation or a general idea of what the company is worth as opposed to what the market is currently valuing it at. I am interested in mid/long term investing so, not really into trading or anything. I have read some articles about valuing small cap / mid / large cap companies, but micro-caps are kind of weird win that alot of them are not profitable and that causes alot of the financial ratio's to not work effectively. Does anyone know a good strategy for determining the value of a penny stock?
All you need to know about penny stocks is that they go up when they are promoted, and they drop when promoters and insiders dump their shares. There may be good fundamentals or no fundamentals at all, none of it matters. The only thing that matters is if some group is pumping it or not.
This is what work for 90% of the time..but actually you can find interesting stuff in the OTCQX market
Yes I can confirm that OTC stocks lately are quite interesting because surpass the $5 price per share and some are traded per day on $30-$50 per share which is funny is not penny stocks stands.
4 Penny Stocks Insiders Are Buying Today 9:44 AM ET (Benzinga)Print When insiders purchase or sell shares, it indicates their confidence or concern around the company's prospects. Investors and traders interested in penny stocks can consider this a factor in their overall investment or trading decision. Below is a look at a few recent notable insider transactions for penny stocks. For more, check out Benzinga's insider transactions platform. Biostage The Trade: Biostage, Inc. (OTC: BSTG) 10% owner Dst Capital Llc acquired a total of 500000 shares at an average price of $2.00. To acquire these shares, it cost $1,000,000.00.. What’s Happening: Biostage recently named Jerry He to Board of Directors and completed private placement of $2.6 million to continue its clinical transition. What Biostage Does: Biostage Inc is a biotechnology company which is developing engineered organ implants based on novel Cellframe technology. Lannett The Trade: Lannett Company, Inc. (NYSE: LCI) Director Patrick Lepore acquired a total of 20000 shares shares at an average price of $3.31. The insider spent $66,200.00 to buy those shares. What’s Happening: Lannett, last month, reported worse-than-expected Q4 results. What Lannett Does: Lannett Co develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products. Greenlane Holdings The Trade: Greenlane Holdings, Inc. (NASDAQ: GNLN) Director Jeffrey J Uttz acquired a total of 36000 shares at an average price of $2.81. To acquire these shares, it cost $101,160.00. What’s Happening: Alliance Global Partners recently initiated coverage on Greenlane with a Buy rating and announced a price target of $6. What Greenlane Does: Greenlane Holdings is a distributor of vaporization products and consumption accessories in the United States. Parks! America The Trade: Parks! America, Inc. (OTC: PRKA) Director Charles Kohnen acquired a total of 22000 shares at an average price of $0.62. To acquire these shares, it cost $13,690.00. What’s Happening: The company, last month, reported total net sales for the fiscal quarter ended July 4, 2021 of $3,874,100, an increase of $653,892, compared to $3,220,208 for the year-ago period. What Parks! America Does: Parks! America Inc through its subsidiaries involved in the business of acquiring, developing and operating local and regional theme parks and attractions in the United States. © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
