PENNY STOCKS

Although most financial advisors will steer you away from penny stocks, for those of you with a higher tolerance for risk, read on. The best performing stocks on the market are companies with lots of cash, innovative products and growing businesses.

The one thing that makes these stocks different is they’re still small enough to make them affordable for small investors and surprisingly, statistics show that over the last 80 years, NO other group of stocks has made investors more money than penny stocks. Not mid caps, not large caps, not gold stocks and not retail stocks.

After compiling cold, hard data on small and large-cap stock returns from 1926-1996, Ibbotson Associates [a major research firm based in Chicago] proved that small-cap penny stocks outperform large caps…

* 56% of the time in any given 1-year period
* 66.1% of the time if you hold for 10 years
* 94.2% of the time if you hold for 20 years

In other words, investors who buy shares of the smallest companies on the market beat those who buy stock in companies like Microsoft, Google, Apple, Intel and Cisco.

Additionally, there are 3 times more small-cap stocks than large caps on Wall Street right now. That means you have 3 times as many opportunities to make huge gains every month.

Small companies offer individual investors like us many other advantages. Most institutional investors, who have billions of dollars to allocate, must avoid small caps, at least until they grow larger. That makes small caps underfollowed and increases the chances that they’re undervalued.

By devoting time to researching some of the market’s smallest stocks you get to buy growth opportunities often in overlooked areas and position yourselves before these stocks catch the attention of the market at large.