Penny Stocks Invest Blog

In this piece we’ll again be looking at penny stocks for the long term. Remember, the information in this article represents a snapshot in time (11/7/08). In other words, the penny stock pick we discuss today appears ready to move. That may or may not be the case by the time you see this information. Be sure to do your own research before investing.

As the financial sector continues to demonstrate freefall, dragging the rest of he market with it, mining companies, especially those engaged in the mining of precious metals become more attractive. In an earlier post we looked at the three main criterion for picking a long term penny stock. These were: the industry or sector, the company officers and the chart. Lets take a look at a promising mining company based in British Columbia, Canada by the name of Midway Gold Corp. Ticker: MDW. Yahoo Finance is a good place to start your search for many top penny stocks. http://finance.yahoo.com. This company trades on the American Stock Exchange. The price is currently $.30.

You can enter the ticker symbol into the search field on Yahoo Financial and get a wealth of information on this top penny stock. First you’ll see the price and information on daily activity. On the left hand side of the page you’ll find links to the company profile, SEC filings, financials (lots of important info here), insider holdings and more. There is also a section where you’ll find recent press releases. The first item you’ll want to examine is Company Profile.

Here you’ll find a brief description of the business and current operations. Also listed here are the company officers. You can easily do a search on these people to learn of their background and experience. Next you’ll want to take a look at Major Holders. Here you’ll see both companies and individuals holding large blocks of shares. Notice that Barrick Gold Corp. owns 10% or more of Midway’s stock. This is a positive sign as Barrick is a major gold company trading on the New York Stock Exchange. The natural logic would be, if Barrick is bullish on Midway, they might worth holding for the long term. Other information found here would be recent news released by the company in the form of press releases.

After researching the information found on Yahoo, you’ll want to check out a chart to see if the stock is in a position to move. Go to http://stockcharts.com/charts or http://bigcharts.marketwatch.com and enter the ticker symbol. You’ll find that the stock recently bottomed out and has begun a steady climb. It appears to be trading in a sideways pattern on this particular day, but overall the trend is up. However, you might want to wait until the movement is more definitive. If you’re reading this well after the first week in November, you can go back to look at the stock’s movement described in this article.

The tools described in this article will get you started. As you gather information, you’ll find and develop your own resources for research. I suggest you create a folder titled: top penny stocks and save all of your valuable links. And check back here often as I’ll be adding many more resources in the days to come. Good luck!