Pick The Sizzling Micro Cap Shares Right Now
Pick The Sizzling Micro Cap Shares Right Now
Looking over the company's financial statement is a great place to start looking. Examine the how much profit or loss the company made over the specified timeframe and make sure the health of the financials is strong. Evaluate how much debt the company is carrying now versus how much it was carrying in the last report. Keep in mind that a company that has performed well previously it is not a useful indicator of future performance but it helps.
{Looking to skip straight through to review how you can find the hottest small cap stock picks? - Check out The Penny Stock Experts - Product Reviews}
Financial reports are generally long documents and it can difficult to navigate your way through and find what is relevant. You want to begin by looking at the balance sheet which will give you a snap shot of the company's financial position on the date specified. Here you will also be able to take a look at the amount of debt that is owed as well as the cash position and the liabilities.. The book value can also be located here which represents the shareholders equity and is displayed as the excess of assets over the liabilities.
You want to look more closely at the company's earnings statement as you want to know how much money the company brought in from the sales of its good and services and how much they had to pay out in the form of wages and taxes, etc. You can work out how much of a profit or a loss the company made by subtracting one from the other. The final amount which refers to the net earnings is how much money the company actually made minus all the taxes.
{For the complete guide to investing in small cap shares check out Click Here}
To give you an indication of the company's ability to repay its debts and how liquid the company is you can compare changes in the financial positions over time and you should go back at least 2 years if possible.
You should look at lots of different company's financial statements in order to understand what a good one looks like and especially what a bad one looks like so you know that there is little chance that stock is going to be hot tomorrow and you can avoid investing in it. Of course there are other internal and external factors that can influence the price of the share and this type of analysis does not factor in any unsuspected news that could change the price significantly in either direction.
Those small cap shares that go from 20 cents to 5 dollars do exist and although you may find it challenging at first to find them you will inevitably become better at doing your research and will be successfully picking the hot penny stocks of tomorrow.
Looking for more? - Check out Penny Stock Investing