Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
How to Make Money with Penny Stocks Today
https://mney.co/2hkrPFv
Required Please enter the correct value.
Twitter
Stocks: CYNK, NBIX, ONS, OSUR

How to Make Money with Penny Stocks Today

By Money Morning News Team, Money Morning • September 22, 2017

View Comments

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

If you're looking for tips on how to make money with penny stocks today, we have one tip that can help you find the safest companies to invest in.

Investing in penny stocks is popular for one big reason: The shares are inexpensive, usually below $5, so you can quickly make triple-digit profits. Biotech penny stock Oncobiologics Inc. (Nasdaq: ONS) soared from $0.87 to $1.89 between Aug. 31 and Sept. 11. That's a 117.2% gain in just six sessions.

But penny stocks can be risky if they rally for the wrong reasons...

Video
The 3 Best Strategies for Trading Penny Stocks Today

For example, Cynk Technology Corp. (OTCMKTS: CYNK) surged a mind-blowing 24,900% in just two months, from May to July 2014. But by September that year, CYNK stock had crashed to just $0.20 per share. This aroused the suspicion of the SEC since the company claimed to operate a social media network that nobody had ever heard of.

The SEC eventually determined that Cynk was a shell company with zero assets, zero revenue, and just one employee. The stock's meteoric rise and fall was found to be a pump-and-dump scam operated by a stock promoter named Gregg Mulholland. In February, he was sentenced to 12 years in jail for his role in the scam.

Unfortunately, these types of penny stock scams have become more frequent in recent years. Between 2012 and 2014, the SEC halted trading on more than 1,300 companies due to fraud investigations.

This is why it's essential for investors to know how to find safe penny stocks. Here's one easy tip that can help you immediately identify a potentially dangerous company...

Use This Tip to Identify Safe Penny Stocks Today

When searching for safe penny stocks to buy, you want to make sure the firm's CEO and top executives aren't trying to scam investors. That's why you must always check out the "Executive Compensation" section of the 10-K filing when doing your research.

The 10-K is a report submitted to the SEC every year that tells you everything you need to know about a company. It outlines financials like profit, earnings, and revenue, among other things.

But the most important info for penny stock research is the "Executive Compensation" section typically found in Part III of the report. This is where you can see how the CEO and top managers are paid each year. It'll disclose whether they're compensated in stock options or cash.

The Best Pot Stocks: After months of research, we've found the most lucrative and fastest-growing legal pot stocks in America. And for a limited time, you can get all the details for free. Learn more...

The safest penny stocks to buy are the ones whose CEOs are paid mostly or entirely in options. When they own shares of the company's stock, it shows they're committed to the firm's long-term success. Owning options means the execs want the company to be successful so those options grow in value over time.

Conversely, if you see the executives are being paid in cash, it's a sign the penny stock isn't worth your investment. Cash-only compensation indicates the firm's leaders aren't invested in the firm's long-term health. They may be trying to earn as much money from the company as possible before the stock falls to $0 and it goes bankrupt.

penny stocks today

As a rule of thumb, if the company's management doesn't have faith in the company's success, it's probably not a good idea to buy shares of that company.

But Money Morning Small-Cap Specialist Sid Riggs knows which companies are worth your money...

For years, Sid has consistently recommended winners, including pharma company Neurocrine Biosciences Inc. (Nasdaq: NBIX). That pick has surged 532.2% since first recommending it in December 2013.

Today, he's giving you another small-cap company that develops medical devices. The firm has received three FDA approvals between 2010 and 2012, one of which is for the first at-home HIV test sold over the counter.

This gives the company a profitable edge over other biotechs trying to sell similar HIV tests. This edge has been responsible for the stock's massive 146.1% rally so far this year.

But Sid doesn't expect the rally to end anytime soon, thanks to the company's reputation for crushing earnings estimates...

Since Q3 2016, the company has surpassed analyst expectations by a 54.78% average. That means Wall Street consistently underestimates the firm's profitability.

That gives you a great opportunity to buy in right now...

One of the Best Small-Cap Stocks to Buy in the Biotech Sector

Join the conversation. Click here to jump to comments…

Login
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
a
a
5 years ago

Thank you

0
Reply
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz