Suggestions in research methods?
 

In reference to penny stocks and companies in bakruptcy court....what methods or resources are most benificial in doing research in order to make an educated guess?

Please note that this is a strategy question, and no I am not looking for a quick fix. I would like to know tips, suggestions or examples, of ways in which people go about researching a particular stock or industry.

I am semi-new to investing and would appreciate any info.

Re: Suggestions in research methods?
 

avoid penny stocks, that's thing 1.

Re: Suggestions in research methods?
 

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avoid penny stocks, that's thing 1.

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Can you ellaborate on this? I realize the added risk but there is also a lot of potential in some stocks that had a previous high value and are currently in rough waters.

Re: Suggestions in research methods?
 

One of the reasons penny stocks are risky is because some of them are scams. They were driven up to high prices purposely. They are not currently in rough waters, that's their true value.

I'll admit that I don't know much about penny stocks, perhaps somebody on this board trades them and will give his/her opinions.

Re: Suggestions in research methods?
 

Read the SEC filings on EDGAR but don't believe them. Use your own common sense to tell if they are telling the truth or not. Read message boards like Silicon Investor and Investorshub. Pay particular attention to what the shorts and bears say. Sometimes they are lying but more often they are telling the truth. When they are telling the truth, their evidence is easily verified. Remember, very, very few penny stocks stocks are worth a crap.