Fundamental Analysis of Penny Stock


September 9, 2009

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

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