PennyStockObserver.com is a website specializing in providing information about small cap stocks, including penny stocks. Its main page brings the latest news related to the economy and financial markets as well as penny stock quotes. The site claims to screen hundreds of penny stocks on a daily basis and bring a list of potential trading opportunities. In addition to visiting the site, users can subscribe for free to their news and alerts.
The “List of Penny Stocks” section brings to a view multiple selected companies with their charts and related information for readers to review. Meanwhile, the “Featured” section of the site contains a narrower list of companies with interesting stories. Furthermore, under “Penny Stock News” users can select an industry and see recent news about penny stocks. This way, news about specific penny stocks in different industries can be found.
Under disclosure section, this site admits to that they’re paid advertisers, also known as stock promoters. This means they’ve been compensated to promote specific companies. What’s more, they don’t guarantee that information will be sent to all investors at the same time. They also disclose that during campaign, the trading volume of promoted stocks as well as their prices are likely to rise. Moreover, they admit that they only publish favorable information as this is what they’re compensated for by the companies they promote.
As a trader or investor in penny stocks you need to be well aware of these factors. Some of the news can be hype. Therefore, be careful how you act on this information as you may be caught on the wrong side of the trade. This is not to say that this information is useless. In fact, it will allow you to see which stocks are being promoted and either potentially gain from their initial rise or avoid trading them.