Many investors are familiar with the New York Stock Exchange and NASDAQ but most have never had any experience with micro cap or penny stocks. A micro cap company is often valued at between $25 million to $300 million. Although, small cap stocks are risky, they provide a very healthy potential return within a short time. The term “penny stock” is often viewed negatively but the market data does not support that misguided label.
Since the 1930’s, small companies on OTC have provided robust returns on investment. Review the financial charts showing the positive returns derived from micro cap stocks.
A skilled micro cap investor able to discover the right opportunity by investing money in the proper startup can be richly rewarded with 100% to 300% returns within a short time. But there are a few key factors to consider before investing money in a high flying “Micro Cap” stock writes author, James Dean @ iHumanMedia.com.
- Research the market opportunity. Is the growth potential realistic and healthy.
- Consult reliable sources of information and news worldwide on a daily basis.
- Executive management. Who’s leading the company. Are they reputable?
- Timing. Every micro cap business goes through ups & downs. Buy low. Sell High.
- Proprietary technology. Do they hold patents and unique technology trade secrets.
- Measure your percentage gains. Price per share is pennies, so focus on percentage.
- Find a low cost broker like TradeKing.com that’s right for frequent daily trades.
If your looking for micro cap companies to invest money, consider the following;
Terra Tech Corp. (TRTC) has seen the price of its stock more than double since the beginning of April. On March 31st, the share price fell as low as $0.22, yet on April 18th it rose as high as $0.58, which is an increase of 120%. Terra Tech Corp. is a vertically integrated cannabis-focused agriculture company that is dedicated to creating sustainable solutions for medical cannabis production, extraction and distribution. Additionally, through the use of its exclusive moving table hydroponic system, Terra Tech Corp is able to yield a 30% greater annual harvest, save up to 50% in operating costs, and increase its gross margin by up to 50%.
Skyline Medical, Inc. (SKLN) has the patented and FDA approved cleared surgical fluid disposal device, the STREAMWAY System, which eliminates operating room exposure to harmful or off-putting fluids found in the operating room. Dan Felix, Imaging Services Director at Tuscon Medical Center, spoke about his recent STREAMWAY System purchase, “We chose the STREAMWAY System because it’s self-contained, extremely easy to use and, for us, had a return on investment of approximately nine months, with ongoing annual savings of $22,140 a year. That made it one of the easiest purchase requests I’ve ever had to make.” Skyline Medical’s stock has increased 70.59% since the beginning of April. On March 31st, the share price fell as low as $0.17, yet on April 18th, the price rose as high as $0.29.
StemCells, Inc. (STEM) is in the business of meeting its clients unmet medical needs through the development and distribution of treatments that are cell-based, on the forefront of medical science, and raise the quality of life for the patient. StemCells’ HuCNS-SC, human neural stem cells for the treatment of chronic cervical spinal cord injury, is currently in clinical phase II, and the interim data regarding its performance has been positive. StemCells, Inc. has seen its share price increase 21.17% in the past trading week, as the positive data pertaining to its treatment was released on April 18th. On April 11th, the stock reached its daily low point of $0.23, but on the day of the data being published, the 18th, the price reached as high as $0.28.
Cytori Therapeutics, Inc. (CYTX) is devoted to harnessing the regenerative nature of stem cells through the distribution of technologies that enable further research into the stem cells potential. Due to the wide number of medical application for stem and regenerative cells, Cytori’s product development pipeline spans across a multitude of illnesses and diseases including cardiovascular disease, renal failure, and pelvic health. The price of Cytori’s stock has increased at a rate of 102.87% over the previous four trading weeks. After experiencing a daily low of $0.16 on March 18th, the price for a share of Cytori rose as high as $0.32 on April 18th.
Disclosure : Author has invested in one or all of these penny stock companies.