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What Is Blue Chips Stocks?

Penny stocks to blue chips?

  • what are the indicators (factors) of a penny stock converting itself into blue chip

  • Answer:

    It will always come down to just one thing delineating the difference and that's the stock's market capitalization. For a penny stock to move dramatically higher, it will usually possess a solid business model unlike most others of its ilk. Management believed to be capable of delivering on the stated mission must be in place for credibility and credit purposes. A great many blue chips began as penny stocks. For this reason, I play pennies regularly and have done well...certainly better than had I gone the more usual route of playing it "safe" which, as we know, is never safe on Wall Street. When pennies move strongly, they exhibit a rising profitability trend, quarter over quarter. Cash flow is always applied towards corporate growth and not dividends or even share buybacks. Expansion plans are carefully mapped out and PR's issued won't present fluff nonsense designed to make the appearance of market gains. Execution and performance will be ev er present and conspicuously so. Len

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its your luck..nothing else

ultimate winner

The probability of that happening is just about that same as your winning the Power ball. In fact your winning the Power ball is more probable. Do you realize how many blue chips there actually are? Depending on how you count them somewhere between 50 and 200 world wide. I tend to gravitate towards the lower number. A run of the mill penny stock has zero chance. What it would take would be maybe a penny gold mining stock making a major discovery or a penny oil company striking a mega well or a penny technology company making a major new innovative product. Even if any of those were to happen there is probably a better chance that they would get bought out by a company that has the capital to develop the discovery.

muncie birder

There are none. Just luck. At the time Microsoft was a penny stock, 99.99% of the population didn't know what a computer was and thought software was some kind of fuzzy underwear. Well, maybe not just luck. Peter Lynch selected up and coming stocks with some criteria and I believe he wrote a book about that.

HillClimber

1.Top Management : Honesty,Integrity and their past credentials 2.Industry:The growth opportunities available 3.Innovation:Are they bringing some exciting new product to the market Financials generally dont work for a penny stock because they are in the beginning stages and more often than not it will indicate a poor picture. Cheers, www.buzzingstocktips.com

Someone probably told you that the way to riches is to buy a penny stock just before it goes mega. or you heard a story of that happening. This is a urban myth. yea it happens. but the chances of you accually managing it is about as good as the lotto. (so go buy some tickets instead.) the way to make money on stocks is to learn how to trade for the short term. Its risky but with proper learning and management its achievable. for instance i Trade Currency and am looking to retire within 10 Yrs (Starting with $2000). I have been learning for about 2 Years already. If you want to start somewhere "Trading for a Living" by Alex Elder.

Paul E

in order..... 1. belong to elite group 2. exceptional management 3. high growth sector

mukesh mahadeo

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