Three Tools for Picking Penny Stocks

The little-cap universe is packed with thousands of stocks. And we know it can be a daunting task to discover just two or three reliable names… In fact, readers e-mail us every single day to ask how to search for the greatest penny stocks.

With that in mind, here are three tools to help you locate the very best small-cap and penny stocks for your portfolio:

A stock screen is 1 of the most efficient ways to pick up on the very best stock plays the market place has to provide. Brokers and analysts on Wall Street use screens to cut by way of the noise and uncover some of the very best investment opportunities accessible.

Stock screeners are applications that appear by means of a list of every single stock on the market, and find you the ones that meet your particular criteria. For example, when you ask for a stock with a price-to-earnings (P/E) ratio of much less than 14, the screener searches the database and only returns the stocks whose P/E ratio is much less than 14.

The moment you get comfortable with some financial terminology, you can combine metrics to have your stock screen whittle down the broader marketplace to just a handful of stocks that you believe are really worth checking out…


You do not have to be a Wall Street hotshot to run a screen. There are tons of cost-free stock screeners out there that anybody can use. You can discover screeners on the web at economic websites like Google Finance or Morningstar, or you can download desktop screeners like the aptly named Stock Screener Lite.

The Securities and Exchange Commission is the first resource you need to tap when you are ready to analysis a particular stock. Practically all public firms — huge and little alike — are essential to file quarterly and annual reports, financials, insider trading information, and more with the SEC.

All of this details is accessible to anybody with an net connection. Just go to and click “search for organization filings” beneath the Filings &amp Types section. From there, you will navigate to a user-friendly database. It’s totally searchable by firm name and/or ticker symbol.

So you’ve run a display. Then you have picked out what you believe to be the best stocks to analysis. You’ve checked with the SEC database — and printed out the companies’ most recent 10-Qs. Now, it is time to find out what every person else is saying.

Search the internet to see what analysts and other investors consider of the stock. Do not just study message board posts written by cheerleaders who only want to enhance the share price. Gather a assortment of opinions and forecasts.

One particular excellent way to do this is by means of the social networking site Twitter. Traders and investors alike use Twitter to communicate industry details to anyone who would like to comply with them. On the Penny Sleuth Twitter feed, we post daily stock updates on huge movers and other helpful marketplace info you won’t discover in our everyday columns.

You can sign up for a totally free account and comply with us here

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