Penny Share Pro

In Penny Share Pro we identify penny shares with serious profit potential.

There is nothing quite as exciting or rewarding as investing in promising penny shares – those on the path to growth, profits, and big returns to their shareholders. 

Why invest in penny shares?

Many academic studies from the UK, US and Japan, have proven that over the long-term, the shares of smaller companies have massively outperformed both medium and large companies. 

This outperformance is often described as the “size effect”.

The fact is that smaller companies can often grow much faster than larger companies. 

It comes down to simple economics. Put it this way, if a small company earned £1 million last year, it could quite easily double its profit to £2 million this year. However, a large company that earned £1 billion last year would have to earn 1,000 times more money than the small company just to deliver the same growth rate.

Basically, it’s far easier for a small business to double or treble in size than a large company. And that’s why penny shares have huge profit potential.

Yet the reality is penny shares are overlooked by many investors.

A lot of fund managers simply won’t include these shares in their portfolios. They simply have too much capital to invest. It isn’t that fund managers dislike penny shares, it simply doesn’t make sense for them to go and find them.

This gives private investor’s an opportunity to gain an edge by getting in before the crowds arrive.

But over the course of time, successful small companies will grow in size and value. Eventually they will show up on the radar of fund managers and brokers. And as the City finally wakes up to their potential, this leads to an influx of institutional money, sending the shares up even further.

While private investors have the opportunity to jump on board these promising small companies before the City catches on, many stick to the same large companies that the fund managers are compelled to buy. 

The end result is that many private investors just do what everyone else is doing and become fixated on large familiar companies.

But this is a missed opportunity…

Penny shares can be seriously mispriced.

With penny shares, you have situations where real bargains can be unearthed if you know what to look for.

And that’s exactly what Penny Share Pro aims to do. 

How do you find cheap penny shares?

There are no shortcuts when it comes to finding potential winners in the penny share universe. 

But having a clear investment process and detailed checkpoints will help flush out the losers and put you on the path of those potential winners. 

At Penny Share Pro we run all potential candidates through a five-point checklist:

1. How does the company make its money?
   We start by gaining a thorough understanding of its products and its customers.
2. What’s its track record like? 
   Ultimately business is about delivering numbers not words. 
   
3. Who are its competitors? 
   It’s important to know how crowded the marketplace is and how quickly it’s growing. 
4. How good is the management team? 
   This isn’t just about having the right technical expertise. Industry knowledge and contacts can also be vital. 
5. How strong are its finances? 
   A good idea can be worthless if a company doesn’t have the cash to see it through to commercial success. 

The key is to figure out which penny shares are worth your time and money. 

If you are looking to invest in penny shares by yourself, it’s even difficult to figure out where to start. 

Sifting through the 1,200 or so companies listed on the Alternative Investment Market (AIM) can be a back breaking and time consuming process. 

And without much public coverage, investors can struggle to uncover the information needed to separate potential winners from the most likely losers. But Penny Share Pro is here to help.

At Penny Share Pro we know WHERE to look and WHAT to look for 

First we tell you exactly what we’re recommending and what price to buy at. Typically, we provide two or three new recommendations each month. 

Of course we don’t just provide a recommendation and then forget about it. We closely monitor all our recommendations and keep you up to speed with any significant developments. Plus, we’ll tell you what action to take on your existing shares, whether to buy more, sell up or hold on for the time being.

And remember, you can choose to follow some, all or none of the advice. It’s entirely up to you.

Whether you’re a new or experienced penny share investor, you can put the strategies from Penny Share Pro to work from day one. Best of all, our team of experts are behind you every step of the way.