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Market Mondays

The Wrap Up: HOW TO EVALUATE PENNY STOCKS

Market Mondays

EYL Network

Entrepreneurship, Business, Investing

5.04.1K Ratings

🗓️ 15 July 2021

⏱️ 11 minutes

🧾️ Download transcript

Summary

In this clip Ian discusses how to evaluate penny stocks.


Link to Full Episode: https://youtu.be/_V0nX0DGa9I


Link for Red Panda Stock Club: https://bit.ly/3hjaDfd


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Transcript

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0:00.0

A lot of you have been asking me about these penny stocks so I want to go through them.

0:04.1

I'll tell you if they're good or bad but there are a reason that most of these stocks that

0:08.0

are pennies are low value or cheap as hell.

0:10.9

That's because they have now went up over time.

0:13.3

Now it's different.

0:14.3

If they IPO at a low price and let's say they IPO at 15 bucks and there's a solid business.

0:21.1

But if a company has been out for 8, 9, 10, 15 years and they're hovering around 5 to

0:25.2

15 bucks, it's usually no good but let's go look at the chart.

0:29.6

So the first one is ticker symbol OCGN.

0:33.6

The high was at 26820 and 2016.

0:37.6

It is now at $7.29.

0:41.0

Now the good candidate.

0:42.0

But let's go out.

0:43.0

If I go out 10 years, the previous high was 778 bucks and it's at $7.29.

0:49.1

Does this look like a good candidate to be a good long term investment?

0:53.7

But when I want to make absolute sure and look at this, it's also underneath this 200A

0:59.2

moving average.

1:00.2

I want stocks that are constantly above the 200 not dancing in stand below.

1:07.6

So this is the maximum data allowed on it.

1:12.4

Downside is no good.

1:14.4

E and F will be the next one.

1:17.0

Let's look at it.

...

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