Penny stock newsletter reviews are often the first place an investor will look when starting research into penny stocks or especially when trying to get ideas on which stocks to buy.
Most newsletters have their own websites where they post their comments and research. A few have special “members areas” where they have premium content.
Many of these sites include chat rooms and streaming audio/video presentations where a Head Trader will give real-time market commentary and sometimes give trade entry and exit suggestions for listeners to act on.
In addition to providing newsletter guidance, many newsletter sites have extensive training and education sections, where investors can learn investment strategies, how to do their own research and how to delve further into individual stocks.
Almost all of the best penny stock newsletter review sites have periodic webinar presentations that give training on some aspect of penny stock trading or investing.
Buyer Beware! Pump And Dump Schemes
Penny stocks usually trade at relatively low volumes. Because of this, it is possible for unscrupulous traders to manipulate the price. Price manipulation can sometimes even happen in higher volume and higher priced stocks, but the monetary scale has to be several hundred million or even billions of dollars. It is much easier to achieve in low volume penny stocks and the practice is know as a “pump and dump scheme”.
A pump and dump scheme can happen in a newsletter when the newsletter “pumps” up the qualities of a company that doesn’t really deserve it. The penny stock review will contain false or misleading information. The company may be about to run out of money (a fact that only a few insiders might know about), be subject to some regulatory sanction, have money being funneled out of the company by a greedy CEO, or any of several unknown circumstances. Giving false and misleading information easily inflate the price of the stock. Then, after the price has risen to a ridiculous level, the promoters of this information cash out their stocks and stop promoting the shares. When reality sets in, the shares crash back down to their appropriate level, causing catastrophic losses to unsuspecting investors that are left wondering what happened.
Because of the very real existence of pump and dump schemes it is necessary to perform due diligence not only on the penny stocks that you want to buy, but also of the newsletters that you want to follow.
There are two general types of penny stock newsletters: paid and unpaid (also called subscriptions). Let’s look at the differences between the two and why you might want to choose one over the other when choosing penny stocks to watch for.
Free Penny Stock Newsletters
Free penny stock newsletters are notorious for executing pump and dump schemes. A promoter can set up a website and start spouting dishonest information very easily. Many of the newsletter sites (both free and paid) include chat rooms (also known as forums or message boards) where a moderator gives news and recommendations about what to buy and sell at certain price levels. Again, this is where due diligence comes in and one must take into account the moderator, how long he/she has been in business, and what is their track record.
Free newsletters often take in advertising revenue to make money. This advertising may take the form of “reviews” or “research” when really it is just a slickly packaged infomercial. This same tactic is also used in television and print media. There will often be some disclaimer written in fine print so always be on the lookout to check if anyone presenting information to you might have an ulterior motive.
Paid (Subscription) Newsletters
Paid newsletters seem to have a little better reputation. A subscription-based newsletter usually makes the majority of its money off of paid subscriptions. Because of this, it is more important for the newsletter to present accurate and unbiased opinions.
For this reason, we recommend that penny stock investors focus on finding a subscription-based newsletter that has a higher chance of getting a positive penny stock newsletter review. After scouring the Internet we present the top two choices that we recommend to get started. Please keep in mind that there are hundreds of penny stock newsletters so we select these two based on their longevity and the quality of their content.
So without further ado…
Top Two Penny Stock Newsletter Recommendations
Peter Leeds Stock Picks is an outstanding website devoted to penny stock newsletter reviews, trading and investing. Peter Leeds is also the author of ‘Penny Stocks For Dummies’, which is available for purchase directly on the website. There is a l lot of great information on the site, including a blog and also a section with various interesting infographics about penny stocks.
Also on the site is a section that includes several YouTube videos about penny stocks and also some previous news articles and interviews that he has done on various financial programs. There is also a free newsletter subscription. However, because there is also a paid subscription available there is less concern to the avid penny stock watcher about the issues discussed in the above section.
There is also a page that explains that the site does not accept any paid advertising or sponsorship, and that no employees are involved with any penny stock companies. Peter Leeds claims that he has been involved in penny stock investing for 15 years. This type of longevity is exactly one of the primary reasons that his firm has been selected for our top recommendation.
A subscription to the newsletter is $19.99/month or $199/year as of the summer of 2016.
Global Penny Stocks is a penny stock newsletter site that has been online since 1996. Their track record of wins and losses is posted for each year from 1997 to the present.
George Schlieben and his team do the research and make recommendations. He also states on his site that he does not receive any payments or own any shares of any of his stock recommendations.
Barron’s and Forbes recognized the site as being one of the best penny stock newsletters - a fact that is featured prominently as a banner. One of the only few negatives are that the site is covered with ads. The primary content is apparently inside the newsletter area but it is somewhat annoying to see them.
The newsletter is $89/year with the second year free. There is also a 5-month trial offer for $58 and a 6-week intro offer for $19. Like the Peter Leeds site, there is also a free version of the newsletter.
Global Penny Stocks is not as slick and flashy as the Peter Leeds site. However, posting the entire trading history track record is impressive. There have been some losses but there have also been several massive gains. The main page of the site has a list of their most impressive recommendations. The most impressive call was for a company called Netegrity, which rose from a stock price of $2.18 to $73.20 - a whopping 3487% return! It wouldn’t take too many home runs like that to make a subscriber rich indeed!
If you're looking for a service that lets you get up-to-the-minute updates on your phone or email on the best stocks to invest in, Jason Bond offers this service. His expertise has yielded a verified 280% performance for his clients. He offers a mentorship program too, if you'd want a more in-depth learning.
Both of the sites in this review seem to offer great value and the ability to help both novice investors and seasoned veterans. These newsletters certainly have the potential to make any of their subscribers rich. However, as both sites emphasize, investing in penny stocks is not a get rich quick game. The trick is to use a systematic method to select penny stocks with the best chances of appreciation. In the long run you can hope to come out ahead. Quick riches are certainly possible but not something to be counted on. Constant due diligence and not taking positions that are inappropriate for your account size are the keys to success. Use these penny stock newsletter reviews as a starting point to your successful journey in penny stock trading and investing!