Joe’s Jeans Inc. (JOEZ) designs, produces and sells apparel and apparel-related products to the retail and premium markets under the Joe’s® brand and related trademarks. Its productline includeswomen’s, men’s, and children’s denim jeans, pants, shirts, sweaters, jackets, and other apparel products under the Joe’s brand. The company also offershandbags, clutches, belts, and small leather goods under a license agreement. It sells its products to variousretailers, including department stores, specialty stores, and distributors, as well as through its retail stores. As of May, 2010, Joe’s Jeans Inc. operated 13 full price retail stores in Chicago, Illinois; and San Francisco, California, Washington D.C, Boston, Cincinnati as well as 4outlet stores in outlet centers.

JOEZ stock is up more than 70% year-to-date thanks to strong revenue and sales. In spite of its premium garments with expensive prices, Joes Jeans has turned a quarterly profit in each of the last four periods — including fourth-quarter profit that topped Wall Street estimates by 400%! That’s earnings growth you can take to the bank, making JOEZ a great penny stock to buy now.

It is a Stock with a lot of growth potential and relatively low priced right now.

Matthew Brown, founder of the Investors Hub website, pleaded guilty this week to securities fraud for his role in pump-and-dump schemes involving four different penny stocks, StockWatch has reported. Together with six other defendants, StockWatch said, Brown allegedly manipulated the stocks through “prearranged trades that were timed to coincide with misleading news and posts on Investors Hub” and then dumped the inflated shares.

According to U.S. authorities, StockWatch said, the group pocketed more than $6 million in illicit profits as a result of the complex scheme. One of Brown’s codefendants, Gerard D’Amaro, is expected to plead guilty to similar charges next month, StockWatch said. Four others – Joseph Mangiapane, Pawel Dynkowski, Marc Riviello and Jacob Canceli – have pleaded not guilty, StockWatch said, while a fifth – Pawel Dynkowski – has yet to enter a plea in the case at all. Brown could have faced up to 50 years in prison for his own role in the scam, StockWatch noted, but he expects to receive a lighter sentence in exchange for his guilty plea.

What are the factors of Fundamental Analysis of Penny Stock? Fair stock analyzis is a must before investing in any stock.  

Fundamentals: To determine the health, quality, efficiency, and potential of a company.

Primary

• Increasing Profits
• Competitive Strength
• Little or No Debt
• Improving Financial Ratios
• Trades by Company Officers
• Company Buy-Back Plans
• Industry Conditions
• Political and Social Trends
• News and Company Announcements
• Alliances and Tie-Ups
• Institutional Ownership

Secondary

• Market Risk
• Industry Risk
• Competition
• Management / Board Changes
• Legal Action / Lawsuits

Online Share Brokers

Who is the best online broker? There are many factors to consider. We are comparing the performance of Online brokers. This table will be updated as more information is available.

1. OptionsXpress

• Fees/ Trade:
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 2. Zecco

• Fees/ Trade: $4.5
• Free Trade:  10 free trades monthly with $25,000 Asset or after 25 trades
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3.ETRADE

4.SogoTrade

• Fees/ Trade: $3.00
• Free Trade: 100 free trades
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• Others: Free virus scan
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5.TradeKing

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6. tradeMONSTER

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7.ShareBuilder

• Fees/ Trade: $4.00
• Free Trade:
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8. FolioInvesting

• Fees/ Trade:
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9.Scottrade

• Fees/ Trade: $7.00
• Free Trade:
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10. Schwab

• Fees/ Trade:
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Note: We are not responsible for any errors in the data. If you have any objections or suggestion please submit through the comments. Investors are advised not to take this as a bench mark. We are not liable for any decision taken by you because of this information. Please do your research for your safety.

The terms “micro cap” stock and “penny stock” have been used to describe a particular segment of the securities market. As both terms suggest, these stocks are generally low-priced securities issued by small companies. A penny stock is generally a security that is priced at less than $5 per share and is not traded on Nasdaq or listed on a stock exchange. “Micro cap” stock generally describes a low market capitalization of less than 5 million when the number of shares is multiplied by the stocks price. Commonly Penny Stocks are also called Pink Sheets.  Pink Sheets is an electronic quotation system for a number of over the counter (OTC) securities. The name is derived from the color of the paper on which the quotes were originally printed. The Pink Sheets of today are published on the internet and the bulk of those listings are the so-called penny stocks.

It is possible that penny stocks can be traded on the regular stock exchanges, the companies that typically list in the Pink Sheets are the ones that are unable to meet the requirements of larger exchanges such as the Nasdaq and NYSE. The Pink Sheets do not have any listing requirements, allowing any company, even a company with no financial history, to be listed.

Due to the nature of the Pink Sheets, being an unregulated exchange, there is generally more of a risk to investors than stocks that are on the larger exchanges such as AMEX.

Advantages of Penny Stocks
Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. The low cost of Pink Sheet securities is the primary advantage that they offer. Investors who wish to get in on a new company at the onset can pick up stock for literally pennies. If a company does well and grows that initial investment can grow from pennies to much large dividends.

Pink Sheets do pose more of a risk for investors, though. A company may simply vanish, leaving worthless stock issues in its wake. If you invest in penny stocks, you should be prepared to lose it all. Because of this risk, Pink Sheet investments should only represent a small percentage of your investment portfolio.

A lack of liquidity is another risk to investors of Pink Sheet listings. The volume is usually very low and it can be very difficult to find a buyer for the stock. The seller may have to settle for a price that is much lower than initially anticipated just to be able to unload his or her shares.

There are some tips to help the penny stock trader avoid making costly mistakes.

Due Diligence
Stocks listed on the Pink Sheets don’t have to file annual or quarterly statements. This makes starting your due diligence difficult. Often, the information is sketchy at best, and typically, its biased. You should expect a shareholder to say good things about the company. If the company didn’t have potential, they wouldn’t be holding it. Or, they might be hoping to unload their shares and hope to talk you into buying.

Stocks listed on the OTC BB file annual and quarterly statements. This provides some measure of financial success. You’ll find most penny stocks lose money, whether through managerial incompetence, or research and development. The key is to identify the companies whose management has a record of consistently making money, or at the very least, delivering on their business plan, and decreasing expenses.

Check the voloume.  If the trading volume is less it will be difficult to unload the shares.

Do your homework, don’t believe the hype, and protect your capital.

Form 10K is the annual report filed by every company with a total capital of 100million. This  gives a comprehensive summary of a public company’s performance. Although similarly named, the annual report on Form 10-K is distinct from the often glossy “annual report to shareholders”, which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document). The 10-K includes information such as company history, organizational structure, executive compensation, equity, subsidiaries, and audited financial statements, among other information.

Companies with more than $10 million in assets whose securities are held by more than 500 owners must file annual and other periodic reports, regardless of whether the securities are publicly or privately traded. Smaller companies may use Form 10-KSB. If a shareholder requests a company’s Form 10-K, the company must provide a copy.

In addition to the 10-K, which is filed annually, a company is also required to file quarterly reports on Form 10-Q. Information for the final quarter of a firm’s fiscal year is included in the annual 10-K, so only three 10-Q filings are made each year. In the period between these filings, and in case of a significant event, such as a CEO departing or bankruptcy, a Form 8-K must be filed in order to provide up to date information.

Penny stock trading can be extremely profitable.  The stock market can present you with a lot of hot penny stocks every day. Some of them are high technology stocks that come from the nanotech, biotech, telecom or internet sectors. Some of these trading opportunities are extremely risky while others are not as good as they seem.

When you know how to approach and choose among the best ones, you are able to generate a consistent and respectable amount of money in a very short period of time.

When investing in penny stocks you have the opportunity to dramatically increase your profits, however, you can just as equally loose your capital quickly.  However there is always room to make plenty of money while trading in Penny Stocks.

Trading Volumes

Look for consistent high volume of shares being traded.  Don’t look at average volume only.  In order to get in and out at an acceptable rate of returns, you need consistent volume.

Do your Research

If your company knows how to make profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these facts on the company you are investing.

Entry and Exit Plan

Well defined entry and exit plan is required to safe guard your money.  Penny stock quickly move up, and move down just as quickly.  So you have to decide the selling price as you buy the stock.

Your Source of Information

How did you find about the stock? Is it through a mailing list? There are some good penny stock newsletters and there are many who just pump and dump.   However, not all newsletters are bad.

Last of all, don’t put all of your money in penny stock. Only put a portion say 25% in penny stock.

How we can invest in penny stock?  What are to be considered for that.

Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved. These risks include limited liquidity, lack of financial reporting, and fraud.

Penny stocks are often relentlessly promoted as part of illegal pump and dump schemes. This is  explained below:

“A company’s web site may feature a glowing press release about its financial health or some new product or innovation. Newsletters that purport to offer unbiased recommendations may suddenly tout the company as the latest “hot” stock. Messages in chat rooms and bulletin board postings may urge you to buy the stock quickly or to sell before the price goes down. Or you may even hear the company mentioned by a radio or TV analyst. Unwitting investors then purchase the stock in droves, creating high demand and pumping up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and investors lose their money. Fraudsters frequently use this ploy with small, thinly traded companies because it’s easier to manipulate a stock when there’s little or no information available about the company.”

There are all sorts of variations of the classic pump and dump, from short-and-distort to selling chop stocks — the last being a scam in which shares are acquired for pennies under Regulation S and then illegally sold to overseas or domestic retail investors. Other features of the typical penny stock scam include spam e-mails and junk faxes that tout ludicrous and fraudulent claims, crooked newsletter writers who promote a stock for a fee, message boards swarming with “buy now!!!” postings about a stock from anonymous, paid posters,  fake or misleading press releases issued by the company, or boiler rooms full of cold-callers targeting naive, elderly, or foreign buyers all in attempt to drive up the share price while the insiders sell.

A more recent outbreak of penny stock fraud is far more brazen, and is based mostly overseas.  Organized crime gangs in Eastern Europe and Asia will acquire a large number of shares of a moribund penny stock. Then, using passwords and logins to electronic brokerages, such as E*Trade, stolen at public computer terminals in hotels and elsewhere, they will then use the hijacked customer accounts to buy up shares, while at the same time selling their own shares, draining the customer accounts and leaving their victims holding thousands of shares of worthless penny stocks.

While not all stocks listed on the Pink Sheets or the OTCBB are fraudulent, one Business Week article estimated that chop stocks alone “make up perhaps half the 85 million-share daily volume of the OTC Bulletin Board.”

In the Penny Stock Reform Act of 1990, it was defined as “any stock which is not selling on a major exchange and has a purchase price of less than $5 per share.”  Most post-reverse merger stocks are initially penny stocks when they begin trading.  Penny stock market  refers to the trading activity in lower-priced stocks on the Over-the-Counter Bulletin Board or Pink Sheets.

Pink Sheets: A centralized quotation service that collects and publishes market maker quotes for Over-the-Counter securities. Unlike the OTCBB, issuers do not have to be fully reporting companies with the SEC for their shares to be quoted on the Pink Sheets.

Penny Stock cpmpanies often will not have a successful product to market.  They are primarily in the development stage of the production.  They are attractive to private investors who do not have enough capital to purchase more expensive shares.

 Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved. These risks include limited liquidity, lack of financial reporting, and fraud