• 2 days Robinhood’s $40B March IPO Is In Grave Danger
  • 3 days Are Bots Responsible For GameStop’s Massive Runup? 
  • 4 days Learning From Buffett’s $11 Billion Mistake
  • 7 days The Token Boom Spawns Digital Gold Mine in Art, Collectibles
  • 8 days The “Oil Of The Future” Is Set To Soar In 2021
  • 8 days Wealthy Could End Up Footing The Bill For States’ Budget Shortfalls
  • 8 days Could This Be The Hottest Commodity Play Of 2021?
  • 9 days JP Morgan Says Fintech Will Steal The Disruptor Show
  • 11 days Facebook Plays Dirty Down Under
  • 11 days Could This Be The Most Exciting Lithium Play Of 2021?
  • 14 days China Sidelines US As EU’s New Top Trading Partner
  • 16 days 3 Smart Ways To Play the Global Chip Shortage
  • 17 days Flying Taxis Are The Number One Speculative Bull Arena
  • 18 days Ocean Power: The Missing Link
  • 23 days Luxembourg’s Ultra-Secrecy Still Attracts Hundreds Of Billionaires
  • 24 days Robinhood Is Under Fire And Trading ‘Democracy’ Is In Question
  • 25 days Bitcoin Could Be Worth $12 Trillion In The Long-Term
  • 26 days The Biggest Tech IPO Since Uber … For Farmers
  • 28 days The Biggest Boost Yet for the Cannabis Industry
  • 29 days Biden Administration Signs $231 Million Deal For At Home COVID Tests
Dudley Baker

Dudley Baker

Dudley Pierce Baker is the founder and editor of Common Stock Warrants and its predecessor, Precious Metals Warrants and a 1967 graduate of St. Mary’s…

Contact Author

  1. Home
  2. Markets
  3. Other

Penny Stocks Exploding Higher

As gold, silver and many commodities continue higher the shares of the penny stocks traded on the Toronto Venture Exchange are starting to explode.

Many investors have some of these penny stocks in their portfolio and some have probably been held for a long time and some have not recovered from the meltdown in 2008. We like to say the boat is starting to float and even the dogs and cats are beginning to rise.

Some would define a penny stock as one that is selling for less than $5.00. Frankly, we would define a penny share as shares selling for $1.00 or less. Traditional investors watching CNBC would think it insane to purchase penny stocks but if investors do their homework they can still find some excellent values. Your selection process should always include the quality of management, location of properties, insider buying or selling, etc. This is not that difficult but does take some time to accumulate this information.

To get a handle on how penny stocks are performing we like to look at the CDNX, the Venture Composite Index.

The first chart below shows that the Venture stocks are performing well and the second chart shows that we are still substantially below the highs reached in the first half of 2007.

Image 1

Image 2

The next chart shows Venture stocks outperforming the strong move in gold.

Image 3

However, even with the strong move in the Venture stocks they are still lagging the HUI (Gold Bugs Index) and currently consolidating.

Image 4

We are of the opinion this major move up will continue into the first of the year and investors still have time to capture some excellent gains.

We are being given the rare possibility of a once-in-a-lifetime-opportunity, what will you do with it?

 


For those readers unfamiliar with our services:

PreciousMetalsWarrants.com provides:

  1. An online database for all warrants trading on the natural resource companies in the United States and Canada. Our database is the most comprehensive database that you will find.
  2. In addition for our Gold Subscribers we provide:
    1. "A Look Over My Shoulder" - This is my entire personal portfolio and I provide an audio update each Thursday evening and emails as I buy or sell securities or warrants. Each subscriber can decide whether to follow me but this is your decision and we suggest that subscribers do their own due diligence before buying any securities.
    2. Insiders Trading Data: We track the insider trading on the Canadian Securities and issue BUY and SELL Alerts as we deem necessary. We have a great track record of approximately 100% gains on all closed trades.

We encourage all readers to sign up for our free weekly email.

 

Back to homepage

Leave a comment

Leave a comment