Penny Stocks, Bulls, Bears and Promoters

1. Penny Stocks, Bulls, Bears and Promoters Unless you've been living under a rock, you've no doubt noticed the action taking place in the penny stocks sector. There are a few things to take particular note of: The action isn't discriminating against any penny stock company or favoring any penny stock sector It’s happening during what some call the beginning of a bull market It’s happening during what some are calling a bull rally in a bear market What this tells us is that money doesn't discriminate among penny stocks. So the big question in your mind should be what makes some penny stocks move, and others not? It's not the charts; every penny stock has a different chart...and a different capitalization structure. Every company, if it wants to can tell a compelling story. Most of these penny stocks are similar in terms of their income statements and balance sheets. So what is the elusive difference? Simple: penny stock promotion. While some companies out there is trying to figure out whether we're in a bull market, or a bear market, penny stock companies that have employed a good stock promoter

2. are increasing their valuations; it doesn't matter if it’s a bull market or a bear market or a bull rally in a bear market. The right stock promoter will always be able to work within the confines of a free economy. So Does the Promoter Matter? Absolutely. The reason we keep mentioning the right "stock promoter" is because the wrong one can completely destroy a company. It’s been proven in the past that SPAM does work, for the spammers. These days, most often, once a stock is spammed, pink sheets puts out skull and crossbones on the stock and large online brokerages like Ameritrade, Etrade, Scotttrade and Schwab will not allow online trading in the stock. So the company hiring the wrong promoter really does suffer. Where's the Advantage? Unless you've been investing in penny stocks for a long time and know the game, it’s hard to tell the players without a program. You could sign up for anyone of a multitude of free penny stock pick sites, but generally you'll get what you pay for. These companies are paid to tout stocks having done almost no research, and without even looking at management. Consult with our experts at Paradigm Capital Management if you want to learn more. We at Paradigm Capital Management are focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance. For more details, visit here: http://www.paradigmcapital.com/