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In the most recent quarter ending March 31, China Shuangji Cement (OTCBB: CSGJ) reported strong sales and earnings. The earnings report shows the reality that China which may be struggling with inflation but is still creating jobs and growing at a near double-digit pace. Headlines about China’s monetary issues sow fear and doubt for investors, but the numbers continue to indicate the central bank is managing to slow growth without creating a recession.
Chinese government officials are intent on quadrupling the size of the economy by 2020, and they have already created 22 million jobs since the start of the global recession in 2008. Just as the United States demonstrated in the Great Depression, public works projects are a great way to put people to work. Roads are still needed to connect the villages of the vast country and factories will continue to be built to employ millions more in the years ahead.
Penny Stocks are stocks traded for under $2 and they represent the small cap companies. They trade on the OTCBB so you will not find them on the major stock exchanges. They are very cheap stocks and normally come for businesses needing capital. They are a very risky investment as the business can go under and leave you with a stock worth nothing. However that being said penny stock trading can be a great money maker, and there are numerous traders who make 6 figures and more from them each year.
The best reasons to trade in penny stocks are the fact that they do not require a large initial investment, meaning that they are an affordable investment for many. Penny stocks are cheap. For example if you were to buy 1000 shares in a company with shares at 10 cents, you would only require an investment of $100, whereas if the shares cost $5 you would require an investment of $5000. Penny stocks also have the potential of huge gains, and have been known to rise as much as 1000% daily. Therefore your $100 investment can be worth $1000. This is very unlikely to happen to other stocks from large cap businesses.