Blog : Penny Stocks to Buy Blog

by Peter Leeds on March 21st, 2012

IMPORTANT!  Next week's penny stock pick to buy will be released early (probably very late on Tuesday night) due to a conflicting travel schedule.

In today's penny stocks to buy blog, we'll take a look back to one of our former picks.  Hopefully this will give you an idea of how profitable it can be to get involved with high quality, fundamentally solid penny stocks.

On March 29th, 2011 we selected one of our favorite penny stocks to buy, which manufactures biotechnology products from marine based life forms.

This penny stock was trading at $2.29 at the time, and ramped up to $4.66 in a few months of our profile.  This penny stocks idea was great, the product was great, but we selected it because it had improving results and solidifying financials.

Few penny stocks pass our demanding Leeds Analysis, but this one did, and you can see the results.  We still have a positive outlook for this one, and their financials and product adoption are stronger now that ever.

Too many investors in penny stocks "buy in" to some great story, but don't think to be frightened by awful financials or weak fundamentals.  They will buy penny stocks looking for disease cures that are in debt $100 million, and lose another $10 million every quarter, before they'd buy "less flashy" penny stocks with no debt and ongoing earnings.

Do not buy any penny stocks that haven't passed Leeds Analysis.  Do not buy fundamentally broken penny stocks that have a great story, but nothing else.

Look for penny stocks to buy that have strong management teams, low debt, improving revenues quarter over quarter and year over year, strengthening profit margins, key alliances and partners, and in industries with high barriers to entry.

Also look for what penny stocks to buy that are in sectors and industries you expect to grow over time.

This was all true in this penny stocks' case, and still is, which is why we expect plenty more upside still.

While we're on the topic of Leeds Analysis, and things to look for in penny stocks to buy, also keep an eye on:

- government regulations that may change, and potentially benefit the underlying penny stocks

- social shifts that could affect the penny stocks to buy (ie- people smoke less now, and don't wear fur coats)

- event impacts (with 9/11, all airlines started taking hundred of millions in losses...)

- branding, positioning, differentiation... more on these in an upcoming penny stocks to buy blog