One of my favorite investment types are penny stocks.
  Some investors shy away from these sorts of investments since they assume that they are full of risk.
  Don't be nervous though - there's incredible cash to be made if you know how to analyze these stocks.
Any stock under two dollars is what I consider to be a penny share.
  When I choose a stock to buy, I look for a company that is new and growing.
  There are numerous organizations that are now trading less than two dollars because the company has had certain difficulties.
  Rather than invest in these companies, I look for upcoming companies that are growing.
  By focusing on these companies I can make exceptional money later on when the business starts to be successful.
So how do you pick the stocks to buy?  This, of course, is the key question!  The first thing to look at is to scope out the industry that the organization is in.
  Is it a growing industry or a dying one?.
  Look at whether a new company into the industry can actually succeed considering the competition in the industry.
   You must look at the industry in general to make sure that the company is supplying a product or service that there is enough demand for.
Next, how about the company itself?  Are you happy with the management?  You also have to consider what the company offers and determine if their product or service differs from what others in the industry are offering.
  You should try to locate companies that either provide a unique product or differentiate themselves by having some different factor such as price.
  If the organization offers a product or service that isn't exactly like what the other companies offer then the company is a good deal more likely to produce strong sales.
Now it's time have a peek at the financial statements of the company, although don't panic if you notice that they have no income.
  This is frequently the situation with developing companies.
  Nevertheless I need to see that the business has money available to them or credit so that the business can continue to grow.
As a final note, it's always a smart thing to have the ability to find new information on the company.
  By being able to get periodic updates from the company, either on a website or some sort of press release, you have the ability to know exactly what is happening within the organization.
When you begin to search for penny stocks and making investments, you can end up earning some massive gains.
  By knowing how you can find\locate a good penny share, you can make  some terrific profit.