The move from hype to profits in penny stocks is a non winning proposition

 Profits in penny stocks are rare, Those who love excitement find them boring, their news of a small profit doesn't generate the hype news of an exciting new technology or industry break through does.  Media profiteers know human nature is to be drawn to the hype of not wanting to miss an opportunity for investment wealth.   There is so much hype based on breaking news, well run companies making profits and generating sales are forgotten investments in the penny stock market. 

Media profiteers know investors don't want to miss out on the potential hanging on every exaggerated word that is highlighted, capitalized, written to excite the investor to action.  The action statements, don't miss out,  Tomorrow is the big day, This stock is going to explode. 

The hype generates action, creating movement in the stock as investors jump in to get their share of the profits.  The companies share price moves quickly as volume increases.    Most, not all hyped penny stocks, share prices will drop as fast as they rose.  This leaves many investors with losses, a bad taste in the penny stock market and not much interest in additional investments.  

Media profiteers give clues to investors in the fine print.   They will let you know they will profit from their work promoting a companies news.  Many will be paid an advertising fee in stocks or have done this so long, they will have bought in before the investors rush in and profit when they sell.  

It is said, a companies shares price has profits already figured into the shares price when profits are announced.  If profits aren't what was forecasted shares drop, if higher, the stock may move, but more often it is the news of the next quarters profits that drive the shares higher.

Penny stocks are an exception.  There are no forecasters interested in penny stocks.   Their share value for the most part doesn't recognize the companies profits.   I believe investors will find more profits from companies interested in surviving and growing then in those hyped by media profiteers.   These companies are lost among the hype.   They are the companies with little promising news that generates hype with the hope of millions in sales and revenues.  They may have announcements, profits up this quarter, Expenses reduced generating higher income and profits going forward.  

I find this news in penny stocks much more exciting then hopeful promises media profiteers are paid to promote.   What type of investor are you?   I have been one who followed media profiteers and lost money.   Not once, but a couple of times.   Yet the question I know I will be asked is how do you find penny stock companies who earn profits.   It takes work but they are out there. My goal is to begin the discussion allowing investors to share what they discover as they look for profitable penny stocks.