Canadian Penny Stocks Blog

A 2000% Increase In This Penny Stock

Canadian Penny Stocks — Sat, 04 Sep 2010 16:30:41 +0000

If you’ve been following the Canadian Penny Stocks blog for some time now you’ve likely heard about Atac Resources. This company was initially featured a while back and was trading at $0.30. Well it’s always been a consistent performer and exemplifies the reason why penny stocks is so rewarding. When they hit, they hit big.

As of close of markets on Friday ATC closed at $6.00. This phenomenal increase is 1900% so not quite the 2000% as advertised but it rounds up nicely and I have confidence that it will make it to the 2000% level.

Does this mean it’s time to invest? Not necessarily because it’s already experience huge growth and does not mean it will continue at such explosive rates. It will always be up to yourself and your investment advisor to determine what is a good investment opportunity.

The most important thing to recognize from this story is the potential that lies in investing in penny stocks. Sure there will be many losses and significant ones at times, however the returns can truly be phenomenal. A $1000 investment in ATC could have been turned into $19,000 in this case. This is what keeps us coming back for more.

I’m looking forward to sharing more of these stunning success stories in the future. Happy penny stock trading.

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Another Rare Earth Element: Niobium

Canadian Penny Stocks — Thu, 02 Sep 2010 02:22:20 +0000

First we covered off Tantalum and learned that Commerce Resources (CCE.V) is a Canadian penny stock exploring for this rare earth element. The additional element that Commerce Resources is looking for is Niobium. Niobium has its own unique set of characteristics however can often be difficult to distinguish from Tantalum because of their physical properties.

Niobium is effective in high thermal conductivity, it’s resistant to corrosion, and is also heat resistant. The most common use of this element is in making stainless steel alloys. It’s also used in other high-strength alloys. Often times the steel made with niobium are used in the natural gas and oil industries for large diameter pipes. This is a note to those investing in oil fields penny stocks as well. Think of the supply chain implications and making money from one end to the other.

Any application of strength and lightweight metals must be created niobium may be taking a part. It is also used in superconducting magnets.

Brazil and Canada are the two largest producers of the element however Brazil far exceeds the Canadian production currently. If you’re searching for more information on niobium or tantalum take a look at the Tantalum-Niobium International Study Center.

To successfully invest in penny stocks of any kind you will need to have a background into what you are investing. You will not likely have the time to get into all of the specifics; however at least having the basic understanding of what you’re investing your hard earned money in should make you accountable. This is reason behind these rare earth element posts.

I’m looking forward to sharing more information in future. In the meantime click the “starting out” tab above to read more.

A Rare Earth Element And A Company

Canadian Penny Stocks — Mon, 23 Aug 2010 12:18:38 +0000

One of the areas of small cap investing that has been highlighted on the Canadian penny stocks blog has been rare earth elements. There are many exploration and development companies that are traded on the Toronto Venture Exchange and looking for deposits of rare earth elements for various industrial uses. But often times the term “rare earth element” gets used with no specific elements listed. Here is one.

Tantalum – This element is found in our everyday lives and has several uses because of its characteristics. It has a very high melting point 3000 C and is highly resistant to corrosion. Most importantly is that it can very effectively store and release electrical charge.

As a result of these characteristics tantalum is often used in capacitors in consumer electronics. Because of its efficiency of storing and releasing electricity it does not have to be very big and allows for smaller form factors of the overall design of the device.

Tantalum is not traded publicly as a commodity. The price is negotiated between supplier and purchaser. As a result of this method significant pricing power is left in the hands of the supplier. What’s more is that the demand for this rare earth element is growing by 8% – 12% per year for the past 15 years.

Currently Australia has the largest producing tantalum mine. Canada, Brazil, and central Africa all have discovered tantalum deposits that are capable of being mined. The African countries are still at political risk and haven’t been greatly explored to this point.

Mines located in Canada are at an excellent position to be mined. One of the companies positioned in this market is Commerce Resources (CCE.V). They have two projects currently underway; the Blue River project in British Columbia and the Eldor project in Quebec.

The share price is currently around the $0.40 mark but has seen prices as high as $0.80 in October of last year. This post won’t speculate any further on the direction of the share price but leave that to your due diligence as always.

photo credit: Vishay Intertechnology

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Canada: Land of Penny Stock Opportunities

Canadian Penny Stocks — Thu, 19 Aug 2010 20:37:33 +0000

Canada is truly a land of penny stock opportunities. This is the primary reason why this blog makes Canadian penny stocks its primary focus. There are several reasons why Canada, above all other countries makes it a great opportunity to make large profits from small investments. Of course, with high reward comes high risk, but that much is usually a given and applies here.

A Land Of Resources
The most natural reason that Canada is a land full of penny stock opportunities is that it is a land full of natural resources. From oil, gold, and diamonds, to potash and other more industrial type commodities, there are immense stores of these within the Canadian borders and as such many companies setup shop and operate in Canada to seek out and find these resources. If and when they do the companies then face the decision to grow larger or become acquired by another company. In either case the investor is surely the winner.

A Land Of Security
The US surely outnumbers Canada in the number of securities listed in its various exchanges but the reality is that the US markets are rife with frauds. There are so many going on that it’s just not possible for the SEC to manage to find them all. So the frauds continue. In Canada however, the listing requirements for the Toronto Venture Exchange do make it more difficult for fraud to occur. Canada is also a much smaller investing landscape and most of the time the scam artists are only concerned with the bigger market so once again Canada remains safer than its southern counterpart.

So the Canadian small cap equities market is clearly more appealing than the US for the abundance of natural resources within the borders of this northern country and the security that is present in the equities market they are traded on. Until one of these factors changes, Canadian penny stocks will continue to be an investing segment that is worth paying attention to.

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5 Questions You Must Ask Before Your Invest In A Stock

Canadian Penny Stocks — Mon, 16 Aug 2010 14:38:39 +0000

In investing most times you are your worst enemy. It’s a reality that most do-it-yourself investor have to accept. The buy and hold approach only works if you buy and hold. If you’re a day trader, it doesn’t work if you keep your trades going for longer than a day or two. Strategies are meant to be followed and usually it’s the person following the strategy that is the problem. But not you, I would never say that would happen to you. Still, there are 5 questions you should ask yourself about any investment that you’re about to make.

Am I Ready To Lose Money?
This is the most important determining factor in investing. It’s a risk and you should be completely comfortable with the fact that the risk could lose you money. Of course, the risk taking should show some return so that you do actually make money in the long run. Often times when I buy a stock it immediately goes lower and I’m losing money, but I’m ok with that because I ‘m ready to lose money and wait for the investment to turn profitable.

Do I Know My Exit Point?
Another key point in keeping your worst enemy away from your investments is know your exit strategy for a specific investment. This means knowing when to cut your losses, but also knowing when to take the profit from your winners. Both of the elements are critical to your success as an investor but neither of the exit points should be decided after you’ve already put money on the table. Once money has been invested you have an emotional driver that can change your perspective and make you less objective. Keep the decision based on the numbers and decide before you invest.

Does This Match My Risk Level?
Your risk level is something that you will learn as you go. Although you may have an idea of what level of risk you’re willing to take, many people seem change that level once they are invested. That’s OK, but just conscious that it is changing. So when it comes time to thinking about a specific investment you can evaluate it against your risk level as you know at that time. If you’re not 100% comfortable with how it matches up against your risk profile then stay away.

Do You Know What’s Going On With The Company?
This might seem like a simple question of due diligence and essentially, that’s all it is. But many people might just invest on a tip, rumour or news release. You should be able to explain to someone how the company makes money and why they are a good investment.

Do You Know What’s Going On With The Competition?
A very important part of the research process is evaluating what the competition is doing. Before investing you should be very aware of what is happening not only with the company but what its peers are doing to ensure that they aren’t about to crush your investment. That would be bad. By knowing the competition you will be able to show an understanding of the environment your company is involved in. If the investing climate is bad in that sector, it might not be the right time to buy.

There we have it. 5 straight forward questions to ask yourself before you step out there and invest. Of course there is a lot of knowing yourself, knowing the investment, and knowing the competition out there so I suggest taking some time to work on all three. Once you do you’ll be a more confident investor and on your way to a profitable portfolio. Happy investing!

Technorati Tags: Investing, Trading, trading strategies

An Update On Century Mining

Canadian Penny Stocks — Fri, 13 Aug 2010 02:27:33 +0000

A Canadian penny stock mentioned before on this site is in need of an update. Century Mining Corporation is a very well positioned junior gold company with plans of growing in production and land acquisitions. The share price has had an up and down ride over the past 6 months and has settled in the 40 to 50 cent range. The most recent development is the announcement of the resignation of President Margaret Kent.

Of Kent, Ricardo M. Campoy, Lead Director of Century, stated: “Peggy has led Century through some very difficult times and has positioned the Company to achieve its corporate production goals in Québec, Canada and Peru. The Company is greatly indebted to her for her dedication of time and effort and personal sacrifices which she has made for the Company. On behalf of the Board, I wish her every success in her future endeavors.” (source)

When a member of senior management leaves a company it’s an opportunity to reflect on where the company has been and where new management might take the company. When the results of their executive search are made known take the opportunity to see if the person they are bringing on has the experience in bringing companies to the next level.

There is a lot of interest and potential in this Canadian penny stock. Many people speculate a share price of between $2 and $3 once plans are fully implemented. This blog won’t speculate on that right now. All this of course will need to be played out in order to know for sure. But keeping an eye to what they’re doing now through this transition period could be the opportunity to invest in it from an earlier stage.

Due diligence always.

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Start Investing Now. Not Tomorrow.

Canadian Penny Stocks — Fri, 06 Aug 2010 02:17:44 +0000

That’s right, enough reading and studying. Stop procrastinating and start investing. The only way to truly get experience in the field of penny stock investing is to just go out there and do it. You may win some and you may lose some but having the experience with real money is truly the only way to experience investing and knowing yourself.

I don’t mean to come off too harsh here but as someone who has done both the paper trading and the live trading I can tell you that there’s a big difference between the two. First off, things aren’t very emotional when you’re paper trading. That’s a good thing and by design many people will tell you that keeping emotions out of investing is the best road to success. Those people would be correct, however for investing beginners the reality is that the emotions are present when there’s real money on the line. That money plays an important role in the psychological way you react to changes in prices. Especially in the penny stock field where volatility will eat the weak alive. You are the most important part of your investing strategy.

A big drawback to paper trading penny stocks is that your “order” will be filled at the exact price you desire. There’s unlimited volume when paper trading. In the real world there is a limited float of stock available for purchase. This is both a blessing and curse for most investors, but ultimately it’s going to affect when and where your order gets filled. I would always recommend using a limit order and never a market order with these types of stocks, but that does mean you run the chance of your order not getting filled.

Once you’re invested with real money and you see real negatives in your balance sheet you will really see what your emotions are like. When the price drop by 30% are you going to have to stomach to hold on? You may or you may not, but either way you will need a plan and an exit strategy. If you believe in the company you may want to hold on or you may have already set stop losses to prevent you from any deeper losses.
This works on the opposite side of the trade as well.

When you’re profiting all is well and of course you’re amazing and will be a millionaire in just a few short years. Another question you’re going to have to ask yourself is if you’re too greedy or not greedy enough? Letting your profits run is a good thing, however never letting the profit motive cloud your objective judgment of the company behind the share price. Again, have an exit strategy in mind.

Many of the factors mentioned simply don’t exist in paper trading. It’s good to follow companies for a while performing due diligence however to really know yourself and your trading style you will need to enter the real world of trading. It doesn’t have to be your life savings, even a small amount invested will show cracks in your plans faster than a fictitious account.

Go on and sign up for an online brokerage account and start trading!

If you sign up with Questrade there’s a $50 bonus.

Technorati Tags: canadian stocks, Investing, Trading

Focus on Canadian Penny Stock

Canadian Penny Stocks — Mon, 02 Aug 2010 15:20:40 +0000

A reader of the Canadian Penny Stocks Blog has pointed our attention to yet another stock that is worth looking into. In his own words “Great play, promising press releases and the stock is incredibly priced at $.06. Just announced partnerships with MCSFT and Paradigm, NVIDIA is a large shareholder and is feeding them work, AXE are leaders in the GPU field, no debt and growing revenues…real sleeper here”

The company is Accelware Corp (AXE.V).
They specialize in creating computer software and hardware that reduces the processing time for complex mathematical equations. Their solutions are already being used by companies running computer simulations and processing data in large blocks from many industries.

Considering their strategic partnerships and the growth of information and simulations being run by companies in all sectors it seems that this company is well positioned for growth. Companies such as Intel and AMD are actually running into the fact that their processor can’t physically get any smaller so they need to start looking at other ways to increase processing times. Accelware can help.

The 52 week range for the price is between $0.03 and $0.10 while it is currently trading at $0.07. It’s fairly tightly held so getting a piece of this stock might be difficult but it would certainly be a long term hold.

Here is the 12 month chart of the Accelware Corp stock:

Technorati Tags: canadian stock, penny stock profile, technology mirco cap

Two Stock Market Movies To Watch

Canadian Penny Stocks — Fri, 30 Jul 2010 01:52:55 +0000

Investing is a fun game but isn’t it a fun to see how the big boys do it too? I really get a kick out movies about investing and the stock market. There have been a few classics over the years and with the Wall Street 2 “Money Never Sleeps” coming to theatres soon enough I’ll be one of the first people in line to check that one out.

Wall Street

This is classic amongst all money movies. So famous that even Boiler Room has a scene where they quote from the movie Wall Street. The movie has such a cult following that there’s a shirt named after the main character. Did I mention that I’m looking forward to seeing the sequel
The Gecko

imdb link

Boiler Room

Pay close attention to this one all of you penny stock investors and you’ll learn a valuable lesson around pump and dumps. Systems might be a little more sophisticated these days but ultimately it’s the same story.

Bonus viewing material:
Check out the TV show Wall Street Warriors seasons 1 & 2. It’s an actual documentary of people in their different roles on Wall Street along with different places in their careers. Although somewhat staged, is a little more of a glimpse into the reality of Wall Street.

Technorati Tags: Investing, movies, wall street

Sell In July And It’s Time To Fly

Canadian Penny Stocks — Thu, 22 Jul 2010 01:52:25 +0000

The stock market is continuing its stretch of volatility and shows no signs of easing. The announcement from Ben Bernanke today did nothing but bad things to shake the confidence of investors. With the TSX sitting at around 11,500 there are little indications to show support to move higher.

Naturally the overall stock market isn’t always an indicator of success in penny stocks but it’s good to get the big picture too. If you’re looking to find an industry with penny stocks that have potential to go higher, check out Uranium mining companies. Uranium has remained at low prices although the demand for nuclear power is increasing. The supply and demand will only mean good things.

There is a stock filter feature at globe investor that will help you drill down to a list of stocks you might be interested in. Check it out.

Technorati Tags: canadian penny stocks, index, stock market, uranium