Title: Use News To Buy Penny Stocks The Smart Way
1Penny Stock Research
Use News To Buy Penny Stocks The Smart Way
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4- Hi, My name is Aaron and Im with Penny Stock
Research, today were reviewing our recently
published article
5- Use News To Buy Penny Stocks The Smart Way
6- 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.
7- 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.
8- 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.
9- 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?
10- 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.
11- 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
12- the best penny stocks to buy. Let me show you
how, and why using the news can give you
something priceless...
13- A Huge Advantage When You Buy Penny Stocks
14- Remember the news that came out last week about
Volkswagen rigging the software on its diesel
vehicles to trick emissions testing?
15- 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.
16- 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.
17- 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.
18- 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.
19- 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.
20- 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.
21- 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.
22- 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.
23- How To Avoid Being Burned When Youre Investing
In Penny Stocks
24- 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
25- company nobodys ever heard of, check your ego.
Somebody else has already stumbled on the stock,
even if its flying under the radar.
26- 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.
27- Right after the Volkswagen news broke, the stock
started going up. And as the price kept rising,
volume suddenly soared. - Check out this chart...
28(No Transcript)
29- 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
30- 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.
31- 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?
32- 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...
33- We believe our proprietary technologies offer
vehicle manufacturers superior emission reduction
performance at substantially lower cost. We
intend to accelerate commercialization of our
34- 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.
35- 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.
36- 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.
37- 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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