SECRETS OF MAKING
MEGA MILLIONS THROUGH PENNY STOCKS
Penny stocks have many definitions, but the generally accepted is the one that will be use throughout this write-ups. These are stocks that usually their price is N5:00 or less in the stock market. Penny stocks are also called MINOR STOCKS, MIRCO-CAP STOCKS, MINI STOCKS, LOW-CAP STOCKS, MIRCO STOCKS, and SMALL-CAP STOCKS. Some of the stocks in this category are under priced. The stocks reflects the economy more than any other type of stocks .it very risky, but the truth is the high the risk the higher the return; but let me assure you that through this write-ups i will take you through strategy I have used and I have used to train a lot of my clienteles who trade in penny stocks without burning our fingers.
Firstly I need to let you know that ALL the blue chips, defensive, growth and other form of stocks without any reservations were all penny stocks. First bank was N2 in 1992 and it got N72 last year Take a look at the table below.
STOCKS |
Price 5 yrs ago |
Price in 1st quarter, 2007 |
Analyses remark |
ACCESS BANK |
1 |
13 |
Good management |
ETERNAL OIL |
2 |
13 |
Good management |
WAPIC |
1.65 |
7 |
Good management |
R.T. BRISCOE |
2.8 |
32 |
|
PRESCO |
3.6 |
11 |
Consistently good policy |
GT BANK |
5.2 |
36.19 |
Solid system |
UCAN |
4.1 |
40.19 |
Solid strategy |
GLAXOSMITH |
3.3 |
23 |
Solid takeover |
DUNLOP |
2.3 |
6.19 |
Good strategy |
The brokers used to adjust some under priced stock to justify the growth, strength, stability, profitability and capitalization of the company. Therefore it is very important for investors to study companies and their performances so as to identify some under priced stocks and take advantage of the subsequent capital appreciation. These way lots of investors have leverage millions into accounts just through knowledge of penny stock. As you can see from the above table penny stock are good for long term.
These are good for stock trading as well as for long term too. IT is the best for capital gains, which can only be realized in stock trading. December 2004,a man came with 100,000 and after I did analyses for him on a penny stock for him (CFAO) and he was able to make N90, 000 on his N100, 000-making 190,000 in just one month. It is possible to become a mega millionaire trading in penny stocks. I will explain this later with some tables.
To start with let me say there is a lot of money in penny stock from the long-term view. There have been testimonies from many people who have invested in penny stock. Research shows that there are many opportunities in Nigeria stock market for those who know how to positions in penny stock money can also be made from penny stock in the long term. Take a look at the table below.
*Those penny stocks that recorded 500% or over.
From the table above they're some penny stock that just would have made you a millionaire investing in them, even if all the opposition in the world has been against you. Some of these penny stocks will have done you a lot of good of over 1000% returns over 5 years (access bank for example). This implies that if you invested 1million, 5 years ago apart from the dividends and bonus you must have collected your money should be worth 10million now. Then if we are to add all the bonus and dividends you should be having over 14million. Isn't that WONDERFUL?
In long run penny stock pays-off as shown by the table above.
As I early said that penny stock are also good for trading for those looking for capital apperception.
PRICE CHANGES IN THE LAST 12 WEEKS (1 ST QUARTER JAN-MAR. ‘07) IN SOME SELETED PENNY STOCK
STOCK |
OPENING
PRICE JAN.5 |
FEB.23 |
MAR.30 |
REMARK |
|
UTC*** |
1.23 |
3.25 |
4.01 |
GOOD NEW MANAGEMENT |
|
ETERNA OIL**** |
3 |
12.01 |
11.31 |
PUBLIC OFFER |
|
DUNLOP* |
4.16 |
8.52 |
6.49 |
REENERGIZING AND RESTRUCTURING |
|
WAPIC* |
3.85 |
7.22 |
7.80 |
GOOD MANGEMT AND PUBLIC OFFER |
|
FEDLITY* |
2.19 |
4.04 |
4.98 |
GOOD QUARTER RESULT |
|
FCMB* |
4.25 |
7 |
9.95 |
GOOD MANAGEMENT AND RESULT |
|
BANK PHB* |
2.92 |
5.43 |
5.43 |
BANK RECONSTRUCTION |
|
SPRING BANK |
6.81 |
5.59 |
5.59 |
BANK RECONSTRUCTION |
|
STERLING BANK |
4 |
4.83 |
4.26 |
BANK RECONSTRUCTION |
|
WEMA BANK* |
3.20 |
4.89 |
5.16 |
NEW MANGEMENT AND RESTRUCTING |
|
BERGER PAINTS* |
4.18 |
5.25 |
6.95 |
REENGERING AND RESTRUSTRUCTING |
|
D.N MAYER* |
3.05 |
5.29 |
6.94 |
REENGERING AND RESTRUSTRUCTING |
|
TRIPPLE G*** |
1.49 |
6.64 |
5.23 |
PUBLIC OFFER AND NEW BUSINESS FROM CBN |
|
A.G LEVENTIS** |
1.77 |
3.90 |
3.78 |
GOOD BUY INTO |
|
JOHN HOLT* |
1.27 |
2.10 |
2.79 |
TRYING TO RESTRUSTURE |
|
NCR* |
2.75 |
2.80 |
4.95 |
NORMAL MOVEMENT |
|
NIGERIA WIRE AND CABLE**** |
0.73 |
0.94 |
2.18 |
NORMAL MOVEMENT |
|
EKO CORP**** |
1.59 |
4.02 |
5.07 |
PROPOSED PUBLIC OFFERING |
|
EVANS MEDICAL* |
4.95 |
9.15 |
8.69 |
NEW MANGEMNT AND GOOD MOVEMENT |
|
NEMIETH* |
3.40 |
6.52 |
5.25 |
CONSTANTLY IMPROVING MAGEMENT |
|
PHARMA DEKO* |
2.83 |
4.12 |
5.15 |
CONSTANTLY IMPROVING MAGEMENT |
|
BOC GASES |
3.15 |
5.91 |
4.96 |
NORMAL MOVEMENT |
|
FIRST ALUMUM*** |
0.66 |
1.20 |
2.01 |
IMPROVMENT |
|
VITAFOAM |
4.14 |
4.45 |
4.51 |
NORMAL |
|
ALLCO*** |
1.91 |
4.42 |
4.87 |
INSURANCE REFORM |
|
CONERSTONE*** |
0.96 |
2.54 |
2.56 |
REFORM AND GOOD MANAGEMENT |
|
CRUSADER** |
2.67 |
6.05 |
6 |
GOOD MANGEMENT AND REFORM |
|
LAW UNION ** |
1.58 |
1.48 |
3.31 |
INSURANCE REFORM |
|
LINKAGE** ASSURANCE |
1.14 |
1.29 |
2.20 |
INSURANCE REFORM |
|
MUTUAL** BENEFITS |
0.72 |
1.06 |
1.75 |
INSURANCE REFORM |
|
NIGER * INSURANCE |
3.06 |
5.32 |
4.75 |
INSURANCE REFORM |
|
PRESTIGE* INSURANCE |
3 |
5.72 |
4.25 |
GOOD FUDMENTALS AND REFORM |
|
REAN** |
2.77 |
4.36 |
4.41 |
INSURANCE REFORM |
|
UNIC** |
1.57 |
3.63 |
3.65 |
GOOD FUDMENTALS AND REFORM |
|
WAPIC* |
3.85 |
7.22 |
7.30 |
GOOD FUNDEMANTALS,MAGEMENT AND REFORM |
|
C&I LEASING** |
1.16 |
2.61 |
3.42 |
GOOD BUY INTO |
|
UNION HOMES** |
3.37 |
8.24 |
9 |
PROPOSED PUBLIC OFFERING |
|
AVON CROWN** |
1.24 |
1.70 |
3.74 |
NORMAL |
|
BETA GLASS*** |
4.23 |
7.82 |
12.50 |
MANGEMENT |
|
NAMPAK* |
3.90 |
9.05 |
7.03 |
CONSOLIDATION |
|
ACADEMY* PRESS |
1.56 |
2.36 |
2.98 |
CONSISENT RESULT |
|
ABC BUS* |
1.50 |
2.42 |
2.94 |
NORMAL |
|
AFRPRINT** |
0.64 |
1.40 |
1.37 |
NORMAL |
|
UNTIED* NIGERIA TEXTILES |
0.91 |
1.48 |
1.95 |
NORMAL |
|
From the table above you see that it's possible to make fortune trading in penny stocks. The meaning of the* is stated below
*MEANS IF YOU INVESTED N1M NAIRA AS AT JAN.5 YOU SHOULD HAVE AT LEAST N2M NOW UNDER THREE OR EXACTLY THREE MONTH
** MEANS IF YOU INVESTED N1M NAIRA AS AT JAN.5 YOU SHOULD HAVE AT LEAST N3M NOW UNDER THREE OR EXACTLY THREE MONTH.
***MEANS IF YOU INVESTED N1M NAIRA AS AT JAN.5 YOU SHOULD HAVE AT LEAST N4M NOW UNDER THREE OR EXACTLY THREE MONTH
****MEANS IF YOU INVESTED N1M NAIRA AS AT JAN.5 YOU SHOULD HAVE AT LEAST N5M NOW UNDER THREE OR EXACTLY THREE MONTH
Penny stocks are stronger indicators of the movement of the economy from recession to boom. Take a look at the insurance sector .all the stock there were just penny until there was a reform in the sector in early 2007and the stock there moved up a month immediately after the first quarter of the year. They reflect the economy better.
Therefore in picking a penny stock ensure the company has a good profitability, low volume or numbers of shares, good growth in turnover and profit after tax, debt free and good management. The past five year financial report should be free of financial cancer.
Robert T. kiyosaki a great American investor said he predominately trade with low priced stock. With this type of stock you can make over 200% Return on Investment (ROI) and some time you can over 500%.
This is why intelligent Investors are very rich. Build your financial intelligence to invest in penny stock. Do not rely on the total opinion of people or your broker. Spend money to get information and attend seminars. The reward can never be compared to what you spend. Be willing to pay for information. Most often than not some of this information usually accessed freely comparing the returns vis-à-vis with the money paid for their information.
Robert T. Kiyosaki in one of such trading was able to turn $25,000 into one million US Dollars. INTELLIGENT! Isn't it? Now your fingers can be burnt if you are not careful with penny stocks. Some people bought CAP plc shares with the hope that it will skyrocket within a short period it is now still within the same range of N15and N21and is likely to remain so for some timed to come. For instance there was a technical correction in the price of Seven Up from N4 to N30. Over 600% change in price. FANTASTIC!
In summary penny has a lot of benefit, which I summarized below.
WHY PENNY STOCK
· Sometime better appreciation for capital gains investor ; most of the times I have made over 100% returns from penny stocks than blue chip stock .I made 100% from eternal oil on 14th feb.2007 from a stock I bought in 20th December, 2006.diamond bank make 100% between January and February 2007.R.T.briscoe was N2.3 about as at 2002 and Feb. 2007 it got to N20.billions are easy made with penny stocks than BLUE CHIPS if you know how trade them. I will show how to in my subsequent write-ups. YOU CAN MAGA MILLIONS FROM STOCK MARKET MOSTLY THROUGH penny stock trading. Imagine UTC, if you invested N1m in Jan. 5 you should have nothing less than N4million return.
· For any that is for long term, it is easier to buy larger units ; I started recommending access bank to the people I train on how to pick penny stock and my clients when it was N2. Someone that bought at that time has access to larger units of share compare to buying ashaka cement at aboutN20 and the returns you realize from both are not the same. Therefore, if you are buying penny stock for long-term investment then you have more units compared to someone that bought blue chips.
· That was the way of Robert Kiyosaki ; this one of the American great investor that was the way he went.
· That was the way of warren buffet ; warren buffet is the second richest man in the world .the owner and largest shareholder of 63 companies in America , Who got his money basically via stocks and shares. The way he did it was the way of penny stocks.
· Every blue chips stock was once a penny stock e.g. CAP; it was N3 (2004) now about N30 (January 2007). First bank shares wasN2 in 1992 and as at 2006 it got to N72.hence you realize that every blue chip stock was once penny stock. I proved this at the beginning with the first table.
It is most advisable for children investment . For parents who decide to invest for their children is a good way to go. I bought WAPIC insurance for a family @N2.5 and it got to N7.tthe parent bought it for their small kids after about 11 years guess where a stock like that should be.
· Most of the companies in that circle have access to soft loans, which put them on better advantage . Most of the company in that circle has access to soft loan to quickly run business unlike the blue chip companies. For instance, BERGER PAINTS was use soft loans of about 20 banks as at late December and early January until they sack all the banks up to about three.
· They usually lead the stocks market out of recession and attract investors in the long run. This can be proved by the reformed banking sector. Write this down, I tell you that very soon there will not be stock of N10 again among the stocks in banking sector. The insurance sector stocks also prove this.
It reflects the economy better if the economy is moving from recession to boom.
Secrets behind this money making process in penny stocks which I have used over the years I start showing you from next edition.
For details please contact:
Suit311, 3 rd Floor, Akoke Shopping Complex,
525, Agege Motor Road , Opposite Radio Nigeria , Ikeja GRA. Ladipo bus stop.
For Letter: 7, Disu Street, Mushin , Lagos
08073769563,017416410,08069003886,07055278400,
07084405180,07027701935, 07055476135 |