How to Perform Due Diligence For Penny Stocks

 

Step 2- Note Reasons the stock price may go lower

Next you’re going to file the “good information away” and go back to http://otcmarkets.com and look for forward looking statements that suggest the stock might go lower. This time the goal is to look for possible negative stories that might effect the future.

Statements suggesting high earnings estimates that seem hard to achieve, or only having funding for only a certain time period, with no backup funding will go here.

Step 3- Note Key Event Dates

Last but not least you’ll want to become aware of all of the “key event dates” in your stocks cycle. You’ll want to go back at least 1 year for this data. Key dates are big events like “investor Lock-Up periods” ending so stock holders can sell their shares.

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