Questions for any potential stock

First and foremost - do your research, as thoroughly as possible.

• How old is it? Older penny stocks tend to stay that way.
• Who manages it, follow the trail backwards… and what sort of background have they got when you get there?
• Will the company be honest with its stockholders, do you think? Or as honest as any of them ever get…. how’s the financial transparency looking
• Has there been any talk of take-overs or buy-outs recently?
• If it does happen to be a relatively new company, has it set up a development plan for the coming years?
• If an older company - how has it done in credit-crunches and lows of the past?
• And if their press releases are straightforward hyping of the stock? Well, that’s a pretty good danger sign.