Use News To Buy Penny Stocks The Smart Way

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Use News To Buy Penny Stocks The Smart Way

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The Volkswagen diesel scandal gives investors in penny stocks a way to make money. Here’s how to use news to capture quick penny stock profits. – PowerPoint PPT presentation

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Title: Use News To Buy Penny Stocks The Smart Way


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Penny Stock Research
Use News 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.
    For more information on penny stocks please visit
    our website
  • PennyStockResearch.com

3
  • Get Your Free Report On Penny Stocks!
  • Well tell you about this
  • Special Offer
  • at the end of the video!

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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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  • Use News To Buy Penny Stocks The Smart Way

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  • Want to buy penny stocks the smart way? Use the
    news.
  • Im not talking about devouring every page of the
    Wall Street Journal or Investors Business Daily.

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  • This approach isnt nearly so time consuming.
    And it follows some remarkably simple rules of
    thumb. When you see that company A gets in
    trouble, try to find the company B that will
    benefit.

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  • Companies get in trouble all the time. And they
    manage to get in all kinds of different trouble.
    When you follow the news, even when youre not
    paying close attention, you cant help but notice
    this.

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  • Or maybe you keep a watchful eye on financial
    news and you notice that a company turned in a
    disappointing earnings report.
  • Remember Newtons Third Law?

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  • For every action, there is an equal and opposite
    reaction.
  • When it comes to penny stock investing, Newtons
    Third Law doesnt hold true with complete
    precision.

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  • But it sure does aim you in the right direction.
    When McDonalds sells fewer hamburgers, an outfit
    like Five Guys sells more. So use the news to
    help you find

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  • the best penny stocks to buy. Let me show you
    how, and why using the news can give you
    something priceless...

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  • A Huge Advantage When You Buy Penny Stocks

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  • Remember the news that came out last week about
    Volkswagen rigging the software on its diesel
    vehicles to trick emissions testing?

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  • That got me interested in diesel technology, so I
    poked around to see if I could turn up any
    interesting penny stocks... a good penny stock to
    buy for a company that could profit from the
    Volkswagen scandal.

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  • I came across a company called Clean Diesel
    Technologies, Inc. CDTI.
  • Its a small outfit in Oxnard, California thats
    been under the radar since it opened for business
    in 1996.

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  • I saw the stock was trading at 1.41. A year ago
    it was at 3.47. Clean Diesel is in the business
    of manufacturing and selling light duty vehicle
    catalysts and heavy-duty diesel emissions control
    systems.

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  • Sounds like something every Volkswagen owner
    would want, right? Maybe even VW dealerships
    would buy a bunch of gadgets from Clean Diesel
    and install them for VW owners.

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  • Or somehow, in some way, the company could
    capitalize on Volkswagens deception. Youd think
    this stock could be back up at 3.47... or even
    better, in no time flat. Well, heres where it
    gets pretty interesting.

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  • Sure enough, there was a nice spike when the VW
    news came out. On September 22, the stock was at
    1.68. The next day, it spiked to 2.20. But
    dreams of overnight diesel fortunes quickly went
    up in smoke.

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  • On September 25th, CDTI was down to 1.67. The
    traders in penny stocks who made money on Clean
    Diesel Technologies, Inc. obviously got in and
    out in a hurry.

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  • Hindsight is 20/20. Its too late to make quick
    money on CDTI. But this approach is a great way
    to buy penny stocks the right way. Just keep an
    eye on the news and use it to spark your
    thinking.

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  • How To Avoid Being Burned When Youre Investing
    In Penny Stocks

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  • Youre not the only one thinking this way, and
    youre probably nowhere near the front of the
    line of investors watching the news. When you
    think you have turned up a hidden gem of an
    opportunity, like a

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  • company nobodys ever heard of, check your ego.
    Somebody else has already stumbled on the stock,
    even if its flying under the radar.

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  • This means you always want to take a look at
    volume when youre trying to swoop in and make a
    timely buy based on news. What happened with
    Clean Diesel was fascinating.

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  • Right after the Volkswagen news broke, the stock
    started going up. And as the price kept rising,
    volume suddenly soared.
  • Check out this chart...

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(No Transcript)
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  • On September 23rd, when the stock broke the 2.00
    mark, volume soared.
  • Then the stock fell back to earth. Volume
    vanished. Looks like people who had been holding
    the stock for awhile figured

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  • this was a good time to get out, while new
    investors looking for an opportunity rushed in.
    Notice how short the timeframe was for the new
    investor to make money. The window slammed shut
    in a hurry.

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  • So you might be wondering...
  • Why didnt the stock price for CDTI stay high
    after the spike, or give back just a little of
    its surge instead of swooning?

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  • Its tough to know for sure, but heres something
    to consider. (And the timing of all this is
    fascinating.) On September 24th, the day the
    stock sank back down, the company released an
    official statement. It said...

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  • We believe our proprietary technologies offer
    vehicle manufacturers superior emission reduction
    performance at substantially lower cost. We
    intend to accelerate commercialization of our

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  • breakthrough compliance-enabling technologies."
    Not a word of any specific deals in the works.
    Nothing substantive, nothing to let investors
    know that VWs troubles would provide an
    immediate opportunity to profit.

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  • So what happens next? Now that the stock price is
    back down to earth, is CDTI something to
    consider? Put me down as skeptical. The balance
    sheet is a mess. Theres lots of debt. And
    revenues keep skidding, year after year.

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  • So thats the story on Clean Diesel. And a
    reminder that keeping an eye on the news is a
    great way to find the best penny stocks to buy.
  • Let me know what you think.

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  • Shoot us an email or leave us a comment on the
    website. And when you use the news, dont forget
    about our other insights for you, like the three
    easy ways to find awesome penny stocks.

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