The reason why FastMovingStock is always bringing you winners is because we have a team comprised of veteran traders, retired brokers, and writers that personally look into the detailed information of the companies we profiled, insuring that the company we are presenting to you would produce some gains. Our main goal is to educate you about the company we present to you. Before we send out our newsletter, here are a couple of things that we take into consideration. But before I start, I would like to point out that penny stocks (stocks trading less than 5 dollars/share) are a very risky investment. However, if you know what you are doing and put some time into it, you could double your investment within days!
1. We look into the company’s SEC filing and recent news for some major development. A great news headline can have a significant impact on the PPS of the stock.
2. Next, we look at how sound the stock is. Price-to-Earnings Ratio, or P-E, is the price of a share divided by the earnings per share of the stock. It is a good indicator of how valuable the stock is to investors. It shows roughly how much each investor pays per share for the profit generated by the company. P/E is one of the most common indicators in the trading world.
3. Then we move to the stock chart to see which direction is the trend is headed, either Bearish or bullish, to know which way we plan on going with the stock.
4. Sometimes we use PEG. This stands for Price/Earnings/Growth. We are looking for penny stocks with a low PEG as well as a high P/E. To find the PEG, we divide the P-E by the analysts' projected earnings per share over the next 3 or 5 years. A low PEG means the company has great potential for growth and thus the stock will have a good chance of going up over the long term.
5. The float of the stock does matter.
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