How To Buy Penny Stocks The Smart Way

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Penny Stock Research
How To Buy Penny Stocks The Smart Way
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• Welcome to Penny Stock Research. Every day we
  bring you the unbiased truth about Penny Stocks.
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• PennyStockResearch.com

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• Hi, My name is Aaron and Im with Penny Stock
  Research, today were reviewing our recently
  published article

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• How To Buy Penny Stocks The Smart Way

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• Interested in smart investing in penny stocks?
  Let me show you two things to do. First, expand
  your horizons. Look at a few things most penny
  stock investors never pay much attention to.
  Heres what I mean.

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• A lot of people will see that a penny stock they
  like is trading at a 52-week low. They figure
  its a pretty good deal, and they jump on it. But
  hold on.

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• Just because a penny stock is trading at a
  52-week low, why should that mean its about to
  start heading back up?
• All you know for sure is that its cheaper today
  than it was this time last year.

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• You dont know if it will be higher this time
  next year than it is today. (Or if its going to
  keep on skidding.)

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• Sure, its always smart to buy penny stocks when
  prices are low, but put the low price in
  perspective. Know why its low. Pull back the
  curtain. Find the dirty laundry. Dont limit
  your view of the stock to a one-year timeframe.

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• Go back as far as you can. Let me show you how to
  do this, and why it can give you something
  priceless...

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• A Big Leg Up When You Buy Penny Stocks

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• When youre looking for penny stocks to invest
  in, you want to look for penny stocks to avoid.
  Narrow your focus. Find reasons why you should
  NOT invest in a company.

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• When those reasons are stronger than the reasons
  why you should invest, move on. Weak management,
  lame products, an unproven market, these are all
  good reasons not to invest.

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• Another one is a doomed and dilapidated business
  model. Why invest in a business that cant
  possibly make a go of it and turn a profit - no
  matter how talented its management team is?

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• The product can be just fine, but if nobody wants
  it, who cares?
• Use your own common sense to find penny stocks
  where the company hitches its wagon to a doomed
  business model.

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• Want an example? Heres a company you may have
  done business with a few years ago. But Ive got
  a hunch you probably havent done business with
  them lately.

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• Groupon GRPN is the penny stock poster child for
  a company with a doomed business model.

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• This Is NOT One Of The Penny Stocks To Buy Now

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• When you look at Groupon from a long-term
  perspective, and not just from the narrow lens of
  the past year, youll get the message loud and
  clear.
•  

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• Stay away. Dont hang around wishing and hoping
  for a money-making second act, because with
  Groupon, its not going to happen. Heres why.
  Think about the Groupon business model.

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• You send a salesperson to a restaurant. The
  salesperson convinces the restaurant owner to do
  a Groupon offer, to slash his price, wipe out his
  profit margin, and hope that the people

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• who came in for the heavily discounted dinner
  will come back again and pay full price. Well,
  too many restaurant owners have discovered that
  Groupon people arent interested in coming back
  to pay full price.

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• Theyre just hungry for savings.
• So the restaurant doesnt do business with
  Groupon anymore. Its not a good deal. And
  because Groupon cant build up repeat business,
  it never becomes wildly profitable.

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• Those Groupon salespeople might work hard, but
  theyre expensive. During the second quarter of
  2015, each Groupon employee contributed 69,000
  in revenue. At Amazon, the number is 127,000.

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• No wonder Groupon has fired 10 of its employees,
  and no wonder its sold off its majority stake in
  Ticket Monster.
• In 2014, Groupon lost 73 million. In 2012, it
  lost 54 million.

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• A Once Hot IPO Turns Into A Battered Penny Stock

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• Nobody was thinking penny stocks when the Groupon
  IPO came out in 2011.
• The stock was priced at 20. Look at what
  happened...

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• A new CEO was brought in 2 years after the IPO.
  His arrival sparked some hopes, as you can see in
  the chart.
• But things didnt pan out. CEO Eric Lefkofsky
  still owns 700,000 shares of the stock.

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• And the stock is going nowhere. This is a penny
  stock in search of a viable business model.

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• This Is How You Buy Penny Stocks The Smart Way

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• Groupon is a great example of what to look for
  when you want to buy penny stocks the smart way.
  Look back beyond one year. Sharpen your focus
  and find reasons NOT to buy the company.

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• You see a very good reason not to buy when you
  look at Groupon...it cant figure out how to make
  money. Does the penny stock youre looking at
  know how to make money?

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• Does it pass your common sense test?
• So there you go a couple of penny stock tips
  that can help you make money.

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• If you have a question about a stock or
  investment idea, shoot us an email or leave us a
  comment on the website.
• Better yet, if you own any of these stocks or
  are planning to buy shoot me an email and let me
  know why!

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