Undervalued Stocks

Penny Stock Prophet Scam ? An Objective Look at This Penny Stock Program

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Penny Stock Prophet is a stock list which is geared towards casual investors without the time to put into the time-consuming aspect of analytics work themselves. The program sends you detailed stock picks in terms of what to invest in and what to expect from those individual stocks via your e-mail. This enables you to trade accordingly in your free time, but it’s difficult to find a legitimate review it without someone raising a Penny Stock Prophet scam flag or trying to sell you it or something else. I decided to confirm or debunk the Penny Stock Prophet scam rumors first hand after I learned of their eight week money back guarantee, so here’s my take on this program.

The program works I discovered by relying on four major trading strategies or traits which all successful stocks which appreciate in the short term have in common. By identifying these traits in a stock, the program is then able to anticipate how undervalued that stock is and put together a quick short-term timetable of what you the investor can expect so that it can use all this information and notify you accordingly so that you can make the corresponding trading moves.

A major distinction between Penny Stock Prophet and other programs is that it only anticipates behavior of cheaper stocks. This makes its stock picks that much more profitable but also it doesn’t spread itself too thin between cheap stock and more established in price stocks which was my complaint with most of the stock programs I’ve tried in the past because it’s a completely different analytical process anticipating behavior of cheap stocks versus a greater priced one.

The very first pick which I received appreciated at a rate of 220% going from $.15-$.48 in less than 48 hours. This is the kind of example which you can expect to receive from this program when you try it as penny stocks require much less trading influence to send them skyrocketing or plummeting. At the time of this article I’ve made money on 20 of 22 picks which it sent my way and it’s recommended that you continue to reinvest profits which you make in subsequent picks and there is even a diagram on the main website page which shows the power of consecutive trading using the program so that you can realistically turn an investment of $1000 into seven figures over the course of 38 averagely performing trades.

The Best of the Cheap Stock Pick Pickers of Today

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Cheap stock pick programs/pickers are those analytical programs which only use their algorithms and are designed to find the best undervalued cheap stocks which are likely set to explode very quickly in the short term. There are so many cheap stock pick programs on the market today are clamoring for attention, claiming to be the best. It’s difficult to differentiate the sales letters for these programs because they’re all guaranteeing your overnight wealth it seems, so here is a review of the actual best of the few specifically cheap stock pick programs on the market today.

As I mentioned in the opening, Penny Stock Prophet exclusively looks for cheap stock pick opportunities. It takes less outside trading influence to affect the price of a cheap/penny stock, making them the sole target for many day traders.

Penny Stock Prophet uses a method known as behavioral comparison. Say, for example, that you have a current stock which is exhibiting similar behavior to that of a well performing stock of the past. These tiny nuances are invaluable to day traders and conventional stock traders alike because they tell you so much of what you can expect from that current stock.

The difficulty is picking up on these nuances, which is why these analytical stock programs which are able to take the full range of the market into account around the clock have become so popular amongst traders of all skill and experience levels.

The prophet potential behind a good cheap stock pick by its very nature is exponentially higher than greater valued stocks. For example, the first cheap stock pick which I receive from this program was first initially valued at 15 cents a share. Over the course of one trading day it had more than doubled to 31 cents a share. Ultimately once the market opened the next day it continued to rise like clockwork and only finally leveled out at 48 cents a share.

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In my last article I have mentioned that the money itself does not make you rich. You can win or inherit millions or even billions of dollars but if you do not know the way of how to handle it, how to invest it than either you can turn to a financial institution for help or you do it by yourself. But do not do it on your own if you do not have previously obtained strong financial education.

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What makes you rich is not the money! It is your strong Financial IQ, your well developed business skills (how to read and interpret a financial statement, how to sell, how to promote a product, etc) which will make you rich. Many people would like achieve great success by investing their saved money on the Stock Exchange. Despite, most people tries to achieve success from advices, tips, recommendations of others. I do not have the intention and the right to insult anybody, but what I would like to say is:

You invest your money! Not your the money of your friend or your money of your broker. You have to acquire those skills and knowledge, by which you can become successful stock exchange investor!!

Since I thought of writing in this article about stock exchange investment. I would like to come up with some hints, advice, orientation for those who plan to invest their money into stocks. Once again, you must invest time, effort and last but not least energy into your self-education. Attend to investment seminars, learn how to read a financial statement, learn the basics between fundamental analysis and technological analysis. Learn how to gain information by using financial ratios, indicators.

But if have your money in your hand, do not rush into the nearest brokerage and say the broker “Sir, I have x dollars to invest into stock! Tell me which to buy!

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Let’s say that you read weekly, monthly some financial magazines(Forbes, Money, Entrepreneur, Wall Street Journal) in which stocks of some companies are suggested for purchase. There can be couple of reasons why these stocks are suggested for purchase: the company has huge possibility for a rapid and dynamic growth or comes up with new products or the stock is strongly undervalued.

What you should do first is to do a research about that industry in which the company operates. Whether the industry stagnates, or grows steadily or rapidly. How many competitors the company has and what market share they have. How the industry achieved in the last five years? You pay close attention and try to understand to the best of your knowledge those economic indicators, which provide information about the possible future of the industry.

I did not start the process of analysis with the Macroeconomic Indicators. The reason is: You have to take into consideration the Macroeconomic indicators whether you analyze the industry or the company. For example the current macroeconomic trend in consumer market: the US consumers cut back their spending, thinking at least twice what they spend on. You have to assume the possible effect on sales volume retailers, producers. If the company produces products, which are purchased on regular basis daily or weekly and needed for the every day life than the possibility of huge drop in the sales volume of the company is theoretically smaller. For example gas prices. It is not price-flexible.

When you start analyzing the company, you must rely on the methods of fundamental analysis versus technical analysis. When you analyzed the company’ financial statement, income statement by using many financial ratios, and basics of value investment than you take close look how the stock of the company moved in the past 5 years. In what price range the stock of the company was in the last 12 months or even 18 months.

Than you set up your theory about the company. According to your research what is the possible future of the company whether it can achieve success or based on its financial indicators it is in difficulties.

And than you turn for the opinion or suggestion of your broker or financial advisor checking how close your point of view to theirs about the current and possible future situation of the company.

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Regional bank stock picks

1. Insider Buying Information

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Insiders are company’s CEO, Chairman, board directors,
executive vice president of various departments.

Insider buying information top my list for obvious reasons.
Insiders have lots of reasons to sell their shares: buying a
house, huge vacation expense, etc. However, there is usually
only one reason when insiders buy their company’s shares
with their personal money: the insiders believe the stock
price are cheap and they can make money by buying their own
stocks.

Insider buying information is also very informative to
understand market sector movement. Many time I looked at
the insider buying information from sector point of view.
Certain sector during certain period of time constantly had
insider buying activities from different companies of the
same sector, which could indicate a sector wide
undervaluation or bullishness. That was exactly what I found
in late 2003 and early 2004 when I found insiders of lots of
oil and natural gas companies constantly buying their
stocks. Eventually I picked two oil and gas stocks in late
2003 and early 2004 Whiting Petroleum (ticker WLL) and
Chesapeake Energy (Ticker CHK) from insider buying
information and they have been huge success for my premium
investment newsletter Blast Investor Real-time Plus (BIRTP)
and rewarded myself financially very significantly.

2. Guru Watch

It is certainly worth the effort to track stock picks or
ideas from legendary gurus such as Warren Buffet, Eddie
Lambert, Jim Rogers, etc.

Wall Street Journal is great source of investment and
financial information. My 2003 stock pick PetroChina (PTR)
was from an article of Wall Street Journal, which published
news of Warren Buffet buying PTR. I immediately bought into
PTR stock on the same day that I read the article and
profited handsomely from this pick.

Warren Buffet is the best value investor in the world and
you can not afford to ignore him. One way to track Warren
Buffet picks is to go to Yahoo Finance and then read news
headlines under stock ticker of BRK-A.

Recently, internet information grew so large and I believe
it is now much easier to track gurus from web rather than
reading newspapers or magazines. An easier way to track guru
picks is to use tracking services offered in the web. Here I
highly recommend the tracking service provided by
Gurufocus.com. Gurufocus tracks almost all the
value-oriented Wall Street gurus. Their list of gurus is
huge, Warren Buffet, Edward Lambert, George Soros, etc. They
even publish a newsletter alerting you the latest guru buy
and sell actions. Their service is great and best yet, it
is all free!

Click to Get Best Penny Stock Pick Program

3. Software Screening Tool

BlastInvest operates internally a Mysql based relational
database storing about seven thousand stocks with all kinds
of valuation metrics and tools that I can do for Benjamin
Graham NCAV ranking, return on equity modeling, low pe or
low price to sale screening, etc. We update database
information every week and I constantly mine the database
looking for the huge winner that can reward both me and my
newsletter readers.

Insider buying information could be even more powerful when
you can combine insider buying information with valuation or
strategy screening, which exactly what we do at BlastInvest
with this powerful internal relational database.

However, I found the free or cheap screening tools out there
in the web are not impressive. Validea.com tool is nice, but
it lacks the powerful feature that I want. Yahoo tool or MSN
tool works, but still they are not for power value
investors. Therefore, I may rank my internal screening tool
very high for getting stock leads, you may be dissappointed
if you do not have access or can not pay for those powerful
tools at reasonable cost.

4. Online Message Board Networking

Stock message boards are wild and you may be surprised that
I put this as one of top sources of information for getting
stock leads. Well indeed, I got tips and found very solid
stock leads from internet message boards.

Actually, I started myself as quite wild BBS stock guru many
years ago before I started blastinvest.com newsletter
business. Lots of Chinese American friends who frequently
visit big online BBS (mitbbs.com, or goofiz.com) would know
my past track record very well. My past BBS investment
performance certainly beat performance of most if not all of
the value mutual funds hands down. My past history
certainly can tell you something on the nature and quality
of message boards. Sure, most of BBS members probably are
not investing gurus, and some folks in the stock forum may
well be dangerous stock promoters or hypers. But certainly
there are some excellent stock gurus there and there are
valuable investing or stock pick information there. So just
be careful and do your homework when you use information
from online stock boards.

Two of the well known value investing forums in US are
Valueforum and Value Investor Club. Unfortunately,
Valueforum is fee based message board and you can not post
any messages without paying fee. Value Investor Club seems
to reject beginners or amateurs and they only want gurus
(maybe Wall Street Gurus) offering stock tips to each other.

I myself certainly disagree with approaches of Valueforum or
Value Investor Club. That is why Blastinvest LLC recently
launched a free forum dedicated for individual value
investors: value-investing-forum.com. For more information
on why you should participate in a forum regardless whether
you are a value investing beginner or a savvy value
investor, please click here:
http://value-investing-forum.com/viewtopic.php?t=483

5. Traditional Newspapers and Magazines

This group includes Investor’s Business Daily, Forbes,
Fortune, Barrons, etc, I read them all from time to time.

If you live near New York city and tune in to Bloomberg
radio, you are going to hear bombardment of ads such as
“Barrons, the best source of stock investing information”.

However, my rating on their capability of giving me stock
leads or ideas are poorer than above channels. The stock
picks published in the public media are pretty mediocre.

Of course, I still believe they are very useful information
to understand economics and to know what Wall Street gurus
are doing or thinking. So they may not be worth subscription
fee for you to pay, they are certainly worth your time to
visit public library once a while to read them.

Click to Get Best Penny Stock Pick Program

Top 5 Stocks

1. Insider Buying Information

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Insiders are company’s CEO, Chairman, board directors,
executive vice president of various departments.

Insider buying information top my list for obvious reasons.
Insiders have lots of reasons to sell their shares: buying a
house, huge vacation expense, etc. However, there is usually
only one reason when insiders buy their company’s shares
with their personal money: the insiders believe the stock
price are cheap and they can make money by buying their own
stocks.

Insider buying information is also very informative to
understand market sector movement. Many time I looked at
the insider buying information from sector point of view.
Certain sector during certain period of time constantly had
insider buying activities from different companies of the
same sector, which could indicate a sector wide
undervaluation or bullishness. That was exactly what I found
in late 2003 and early 2004 when I found insiders of lots of
oil and natural gas companies constantly buying their
stocks. Eventually I picked two oil and gas stocks in late
2003 and early 2004 Whiting Petroleum (ticker WLL) and
Chesapeake Energy (Ticker CHK) from insider buying
information and they have been huge success for my premium
investment newsletter Blast Investor Real-time Plus (BIRTP)
and rewarded myself financially very significantly.

2. Guru Watch

It is certainly worth the effort to track stock picks or
ideas from legendary gurus such as Warren Buffet, Eddie
Lambert, Jim Rogers, etc.

Wall Street Journal is great source of investment and
financial information. My 2003 stock pick PetroChina (PTR)
was from an article of Wall Street Journal, which published
news of Warren Buffet buying PTR. I immediately bought into
PTR stock on the same day that I read the article and
profited handsomely from this pick.

Warren Buffet is the best value investor in the world and
you can not afford to ignore him. One way to track Warren
Buffet picks is to go to Yahoo Finance and then read news
headlines under stock ticker of BRK-A.

Recently, internet information grew so large and I believe
it is now much easier to track gurus from web rather than
reading newspapers or magazines. An easier way to track guru
picks is to use tracking services offered in the web. Here I
highly recommend the tracking service provided by
Gurufocus.com. Gurufocus tracks almost all the
value-oriented Wall Street gurus. Their list of gurus is
huge, Warren Buffet, Edward Lambert, George Soros, etc. They
even publish a newsletter alerting you the latest guru buy
and sell actions. Their service is great and best yet, it
is all free!

Click Here to Get Best Day Trader Tools

3. Software Screening Tool

BlastInvest operates internally a Mysql based relational
database storing about seven thousand stocks with all kinds
of valuation metrics and tools that I can do for Benjamin
Graham NCAV ranking, return on equity modeling, low pe or
low price to sale screening, etc. We update database
information every week and I constantly mine the database
looking for the huge winner that can reward both me and my
newsletter readers.

Insider buying information could be even more powerful when
you can combine insider buying information with valuation or
strategy screening, which exactly what we do at BlastInvest
with this powerful internal relational database.

However, I found the free or cheap screening tools out there
in the web are not impressive. Validea.com tool is nice, but
it lacks the powerful feature that I want. Yahoo tool or MSN
tool works, but still they are not for power value
investors. Therefore, I may rank my internal screening tool
very high for getting stock leads, you may be dissappointed
if you do not have access or can not pay for those powerful
tools at reasonable cost.

4. Online Message Board Networking

Stock message boards are wild and you may be surprised that
I put this as one of top sources of information for getting
stock leads. Well indeed, I got tips and found very solid
stock leads from internet message boards.

Actually, I started myself as quite wild BBS stock guru many
years ago before I started blastinvest.com newsletter
business. Lots of Chinese American friends who frequently
visit big online BBS (mitbbs.com, or goofiz.com) would know
my past track record very well. My past BBS investment
performance certainly beat performance of most if not all of
the value mutual funds hands down. My past history
certainly can tell you something on the nature and quality
of message boards. Sure, most of BBS members probably are
not investing gurus, and some folks in the stock forum may
well be dangerous stock promoters or hypers. But certainly
there are some excellent stock gurus there and there are
valuable investing or stock pick information there. So just
be careful and do your homework when you use information
from online stock boards.

Two of the well known value investing forums in US are
Valueforum and Value Investor Club. Unfortunately,
Valueforum is fee based message board and you can not post
any messages without paying fee. Value Investor Club seems
to reject beginners or amateurs and they only want gurus
(maybe Wall Street Gurus) offering stock tips to each other.

I myself certainly disagree with approaches of Valueforum or
Value Investor Club. That is why Blastinvest LLC recently
launched a free forum dedicated for individual value
investors: value-investing-forum.com. For more information
on why you should participate in a forum regardless whether
you are a value investing beginner or a savvy value
investor, please click here:
http://value-investing-forum.com/viewtopic.php?t=483

5. Traditional Newspapers and Magazines

This group includes Investor’s Business Daily, Forbes,
Fortune, Barrons, etc, I read them all from time to time.

If you live near New York city and tune in to Bloomberg
radio, you are going to hear bombardment of ads such as
“Barrons, the best source of stock investing information”.

However, my rating on their capability of giving me stock
leads or ideas are poorer than above channels. The stock
picks published in the public media are pretty mediocre.

Of course, I still believe they are very useful information
to understand economics and to know what Wall Street gurus
are doing or thinking. So they may not be worth subscription
fee for you to pay, they are certainly worth your time to
visit public library once a while to read them.

Click Here to Get Best Day Trader Tools

Stock Market Cycles Key to Investing Success

Understanding the cycles of the stock market are essential for protecting your money and making a profit. The cycles in he stock market are called the bull market and the bear market.

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Since the establishment of the stock market in 1900, there have been 27 bull markets each with their own bear market. Today we are experiencing the 6th longest and weakest rally in the Dow Jones in it’s history.

The stock market moves in cycles- both long term and short term. The short term cycles are called cyclical and the long term ones are called secular. Secular markets can last a long time between 10 and 20 years. Cyclical markets occur within secular markets and last between 2 and 3 years total.

Therefore, at any given time the market can be described through it’s current state of long and short term markets.
Understanding which markets we are in and how long we have been in those markets are key to being successful in the stock market.

For example the secular market between the years 1982 and 2000 was a bull market. The Dow Jones Industrial Average increased significantly from a low of 800 to well over 10,000. There were also a number of cyclical bear markets like in 1987.

Knowing the market and your placement within it can insure you are on the right side of the trend – which leads directly to profit. Most investors today have only experienced a secular bear market where the trend is almost always down.

The last secular bear market was between the years of 1966 and 1982. The Dow Jones was at 1000 in 1966 and at a low in 1982 of about 800. The Dow Jones was basically flat for 16 years. During flat times money is made not by the trend in long and short markets but in picking the right stocks.

Most people who made money during this time were people who identified undervalued investments, stocks, and companies that were unexpectedly strong.

The long bull market ended in 2000 and most stock brokers advised that investors should make long term investments. This was a good choice for a bull market but definitely the wrong choice for a bear market. The stock market entered into the secular bear market in 2000 and will last at least another 10 years.

The rally which started in 2003 and continues into today is a cyclical bull market within a long term secular bull market. Investing and holding in long terms stock will not create a profit in this type of market.

Due to the constant bull and bear cycles during a secular bear market you must be extremely careful in what investments you make. You must also be ready to sell at short notice if the market turns against you. The erratic behaviors of stocks in bear secular markets makes it high risk to invest, however high risk means high profit if you understand how to buy and sell in the right markets.

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Stock Picking Strategies | Value Investor

As long as the stock market exists, there must always be the bullish and the bearish trends in the market place. These are the two components that make up the stock market. What this implies is that for every single day that the stock market opens, there are people making money, and there are people who are equally loosing money at the same time depending on the direction of the market. As a discerning investor, you need to arm yourself with the strategies that are geared towards securing your investments and also ensuring that you profit from the market daily, regardless of the period on the floor, whether bull or bear. So in order to achieve this, your stock picking strategies and principles has an important role to play here.

The first principle a wise investor should adopt for success, is to go for value investing. This is one of the best known stock picking strategies. How do you go about this? Simply look for the stocks that are selling at a bargain price, but have strong fundamentals, which include the company’s earnings, dividends, cash flow, and book value. These are companies that are undervalued by the market, but are sure to soar immediately the market corrects itself, which is certain that it will do. It is important to note here that not all prices that are down that are cheap.

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So a value investor will know how to do his due diligence before arriving at the conclusion that a particular stock is cheap or not. Price does not always determine whether a stock is cheap or not, the determinant factor is the fundamentals. E.g., if a company’s share price suddenly drops from $20 to $5, it does not mean that the price is cheap at that $5, rather, a value investor will first of all find out why the price nose-dived. Is it as a result of over-pricing which the market is now correcting? Or is it as a result of some fundamental problems? Or just because of profit taking and other market forces which does not affect the company’s fundamentals? These are the questions that a value investor must find answers to before investing his cash. The value investor knows that profits are made not just by trading of shares; rather, profits are made in stocks by investing in quality companies with strong fundamentals.

If you really want to make money in stocks, you have to sit down first, and ask yourself the type of investor you want to be. Ask yourself whether you are just trading in shares or whether you are investing for value. Don’t follow the herd. Do your due diligence before investing. The internet has made things so easy today that you will get any information you need at your finger-tips. When you do this and remove greed, you will definitely make it big investing in stocks. Know when to exit and do so immediately, as waiting a minute or a day longer can wipe out a big fraction from your investment profits which are not a good idea at all.

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