Free Daily List of Top Penny Stocks to Buy – Good Penny Stocks

Investors Hub Bulletin Board – A great tool and resource.

Posted on February 22, 2009 by Penny Stocks Picker

Over the next few weeks I’m going to highlight a few websites that I always check out prior to entering into a trade and prior to listing a specific stock on the penny stocks to buy lists here at SureFirePennyStocks.com.  I’m going to start with one of my favorite message boards which is Investors Hub.

Investors Hub (IHUB.) is a great tool for those who like to trade OTC penny stock.  When it comes to doing research on penny stocks it can be very time consuming, if you can find out anything at all.  Well IHUB has a bulletin board for just about every OTC penny stock I have encountered.  A particular board has a moderator and may also have several assistants (members) that maintain a specific bulletin board.  The first part of the board usually contains lots of useful information about a particular stock.  The moderator and assistants have already done a lot of research and posted the information for you to begin your due diligence (your homework).  The second part of the board is where IHUB members post messages.  I always use both parts of the bulletin board when beginning my research on a particular penny stock.  If your a penny stock enthusiast then you can not be without IHUB.  Check out the Top Active Forums in addition to all the other information it contains.

One of the first things I look for on a IHUB bulletin board is the current share structure.  You are going to want to know how many Authorized Shares (A/S) are available (The current maximum # of shares the company can issue….which can change) and the Outstanding Shares (O/S) (How many shares have been sold, which all or some are available to be traded (The Float)) before you enter into a trade.  The difference between the two (A/S – O/S) is the number of shares left that the company can sell to raise capital.  If there are a lot of shares available to sell by the company, then the company can severely impede any significant move up in the stock price as they sell shares (dilute) and hence increase the O/S.  Secondly you also need to take into account the total Float (The total # of shares currently available to be free trading less any restricted shares).  You, I and everybody else who has shares available to sell make up the float.  If the Float is large, then there is the potential that any advance in price can be limited as traders sell their positions.  The IHUB bulletin board may not always post the share structure nor may it be accurate.  In the near future, I’ll provide you with some other websites where you can research to validate the share structure.  Basically, the larger the share structure with a large float and shares available for company dilution means higher risk (but doesn’t always mean the stock isn’t going to move).

The second thing I look for on a IHUB bulletin board is the messages (chatter).  I’ll first check to see if the chatter is breaking out (are more messages posted then the day/week before).  If breakout chatter is on then we got interest.  Penny stocks usually don’t move up in price unless you got interest (more people buying then selling).  Then I check out each individual message posts and determine if the overall chatter is negative or positive.  Lots of positive chatter (you can consider it pumping) is good and includes pretty much anything that is positive (news, new developments, fundamentals, technicals, pumping).  You can tell a specific message is pumping when it says something like “Going to a dollar”, “Get ready for launch…to the Moon”, and doesn’t provide a real reason why.   When the majority of message posts start turning negative (anything bad) you can be pretty sure the run is over for the moment (The Dump is now on).  You have to gauge the chatter because it’s usually a mix of negative and positive.  I get excited when it’s all positive.

Remember to use your own judgment when researching bulletin boards, don’t believe everything you read.  A good part of the chatter is nonsense and if your a good chartist you are going to be able to just look at the chart and see it all right there.  Just use the chatter to gauge what might happen and get ready if the chart and chatter give you the green light.

Good luck and happy trading.