Today's Chinese Proverb:

Be slow in choosing a friend, but slower in changing him.

Are All Penny Stocks Created Equal?

The SEC defines penny stocks as "low-priced (below $5), speculative securities of very small companies. While penny stocks generally are quoted over-the-counter, such as on the OTCBB or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market."

By this definition, the financial sector stocks like Citibank and Bank of America, are penny stocks.

Last fall, the SEC took the unprecedented action of banning short sales and calling for a short cover on financial sector stocks that taken a beating by the shorts. It's a lament that penny stock companies have been complaining of for years, but went unheeded.

And now these established, down-on-their-luck financial companies have convinced the American public that they are deserving of billions in taxpayer dollars because they are established companies and not traditional penny stocks as defined by the SEC.

So what have we really done for these behemoths? We've altered the definition of penny stocks to accommodate them. We've altered the level playing field by exempting them from short sellers. And now we're giving them tax dollars like some government sponsored clinic while hard working entrepreneurs have to fight for their place in this shrinking economy.

Are these billion dollar bailout babies really that different from your traditionally defined penny stock?

Traditionally, risk characteristics attributed to penny stocks include:

1. Penny stock companies are usually start-ups that lack of information about the company, its history and its management. I would argue that financial sector companies suffer from the same lack of transparency. After all, how could anyone not see the leverage and the misguided asset classifications and still invest in these behemoths? The derivatives are way too complicated for the layman to analyze. So we rely on the banks to tell us the truth, while they have a conflict.

2. Large control blocks. Penny stock company founders traditionally have a large block of stock (albeit restricted) to ensure their interests are aligned with the rest of the shareholders while ensuring they cannot sell their shares for a quick profit at the detriment of other shareholders. In the financial sector, these large blocks are held by fund managers who similarly cannot sell their blocks quickly without lowering the market price and thereby impairing the return to themselves. What's more, the CEO's of the companies barely have any stock in their portfolios, eliminating the alignment with shareholder values. Instead, it's become vogue to pay these CEO's via stock options, giving them an incentive to show short term results and then cash out their options while the rest of the investing public holds shares that were sold by insiders.

This is done by using unwitting brokers, paid analysts and unquestioning media to tow the company line. And because the CEO's and the companies have been held in high esteem, no one questions the use of these tools or their motives.

Penny stock companies often use similar tools. Only with a penny stock it's called stock promotion. And penny stock companies have better motives: without stock promotion, the best company in the world won't be worth anything because no one would have heard of it - and therefore the enterprise would be hard pressed to raise money for growth. Promotion should be a driving investment criterion for choosing a penny stock.

The issue with promotion is that the SEC often believes that stock promotion involving a penny stock needs more supervision than the promotion being conducted by billion dollar house hold names. Is there in fact an opportunity for fraud in the penny stock market? Of course there is.

But I contend that the risk is much higher with well established companies that have CEO's holding stock options (big motive for early liquidation since options expire) rather than actual restricted stock (unsellable) for which they actually paid (as many penny stock companies experience). Empirical proof is offered by the billions lost in the financial sector right under the nose of, and with the blessing of the SEC and other regulatory bodies than has ever been lost on penny stocks.

3. Penny stocks are often accused of being used by scam artists who sell them through spam email or off-shore brokers. As the recent IRS/SEC probes have proven, many, many, many American CEO's have offshore accounts making them no more honest or dishonest than the operators of penny stock companies.

Both traditional penny stock startups and the fallen as exemplified by the financial sector have the potential for growth and for fraud. Both are blighted by cash requirements, by short sellers and by image problems.

The difference is that the fallen companies have the government and SEC fighting for them while the typical startup penny stock company is vilified. The dichotomy is even more surprising when we stop to think that economists have long been telling us, and the American experience has long proved that the start-up is what drives the economy, diversifies the job base, creates the most jobs and is lean enough to take advantage of changing times.

A New Audio Interview with Karen Clark, CEO of Green Energy Live Inc., is now at SmallCapVoice.com

Jan. 21, 2010 (Business Wire) -- SmallCapVoice.com, Inc. announced today that a new audio interview with Green Energy Live (OTCBB: GELV) is now available. The interview can be heard

SmallCapVoice.com is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients' financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and investor fact sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit http://www.smallcapvoice.com/services.html.

StockSource

Penny Stock Investing And Trading

In the financial market of U.S., penny stock are common stocks that have low per share price. The trading process of penny stocks includes share prices for less than $5. Penny stock stakes the provisional security of small companies regardless of market capitalization or its trading process such as it trades on over the counter listing service: Pink Sheets or OTCBB or on a securitized exchange like NASDAQ or NYSE.

Sometimes, the names small cap, micro cap, nano caps, refers penny stock. Market capitalization is out of consideration in determining the status of penny stock. It is the share price, which is the main key factor that determines the status of penny stock

Penny Stock-A Risky Investment:

The technical investors observe a great risk in going for penny stocks. Since many penny stock companies are fraud. The main motive of these companies is to sell shares and they are not inclined towards business development.

However, the truth is that, penny stocks are not the concept of those who do not want to take risk. It is for potential investors. Penny stock caters to a very risk business. Therefore, by following some tips, the investors can invest only money, which they can bear to lose.

Why to stake in Penny Stock:

No-doubt it is very risky, but it offers great opportunities for the investors to pile a lot of money. If the investors know their objectives then there is a possibility of winning some money in a short period. For the Penny stock enthusiasts, good investment advice and right tools help to survive and make a lot of money.

Discover a Perfect Penny Stock: The investors need to investigate to find a perfect penny stock before they buy in. There are numerous websites, which help the investor to list out the right penny stock.

Below mentioned features, help investors to acquire essential information about a company prior to investigating in them.

• Stock Structure: OS(Outstanding Stock and Float) and AS( Shares Authorized)

• SEC listing

• Transfer agent transparency

• Turn Over and Financial record

• Business Structure

• Valuation and Position of the Company

For instance, if the company maximizes the OS and closes to AS then it signifies no dilution in stocks. Following the transfer agent and insiders of the company is a good strategy to know about the company.

When to buy Penny Stocks:

After finding the right penny stock, the investors have to decide the entry point and execute the stocks in an appropriate way. Analyze the trading chart for a few days. It offers valuable information.

The message boards that analyze the chart and discuss penny stock trading help investor to plan for the execution of trade. Patience is the dominant tip to execute the penny stock trade. Buying stocks at the BID price is a nice option.

When to sell Penny Stocks:

It is very personal and depends on different investors. Investor needs to implement their strategy soon after the execution of buying order. Mostly, it is good to sell 50% of shares at around 25 % to 35 % PPS spike. Another 20% to 25 % rise in PPS then sell another
50 % of current stake and let the remaining as it is for a while.

Usually, the exit strategy needs to be flexible and vary with momentum, volume and news. If the investors sell, ASK, 90 % of time, it will not harm the run.

Green Energy Live Focused on Biowaste-to-Energy Conversion to Meet Growing Needs of U.S. Farmers and Ranchers

GRAND RAPIDS, MI -- (Marketwire) -- 01/13/10 -- Green Energy Live Inc. (OTCBB: GELV), a growing clean energy company, has identified a pressing need for sustainable biowaste-to-energy conversion solutions for the $154 billion U.S. livestock industry. Green Energy Live is focusing its acquisition strategy and technology initiatives on the development of on-site, small footprint manure-to-energy converters to enable America's farmers and livestock operators use the manure produced by their operations to generate clean energy.

According to the U.S. Department of Agriculture, changes in the structure of livestock farms from smaller to larger increasingly specialized operations have altered manure management practices. Large-scale livestock operations are striving to develop ways to manage the problems associated with concentrating more livestock on confined animal feeding operations, including the problems posed by nutrient management, and ammonia and methane emissions. (US Department of Agriculture, "Amber Waves," September 2009)

The Department of Agriculture's June 2009 Report to Congress titled "Manure Use for Fertilizer and for Energy" found that livestock production has shifted to much larger operations which consolidate large quantities of manure in limited geographic areas. The quantities of manure nutrients produced on many large livestock operations exceed the capacity of the farm's crops to absorb them. Excess nutrients can lead to water and air pollution.

In response to environmental risks, Federal, State, and local authorities are expanding their regulation of manure storage, transport, and application. Many operations now must prepare, file, and comply with detailed plans for managing manure to limit the possibilities for catastrophic spills or for land application in excess of the agronomic needs of crops. Some need to change manure management practices to comply with the plans.

The USDA Report continues: there is widespread interest in using manure as a feedstock for energy production. Current examples include combustion power plants and anaerobic digestion systems designed to capture methane gas and burn it as fuel for electricity generation. While each technology is in commercial use in the United States, neither is widespread. But because such projects use existing resources, they could provide society with benefits if manure replaces newly mined fossil fuels in energy production, and if methane, a greenhouse gas, can be captured. Those societal benefits have led to proposals to support the use of manure for energy projects through State utility mandates (to purchase electricity from farms and to invest in renewable production sites), subsidies for capital costs, and direct subsidies and credits for energy production. Expanded support could lead to a substantial growth of energy applications for manure.

Green Energy Live intends to utilize its proprietary gasification technology for the development of self-contained, small footprint, renewable energy gasification systems to be rapidly and economically deployed at the waste site. The company is focused on innovative biowaste converters to process methane gas from the manure of animals including cows, pigs, turkeys and chickens and convert it into electricity. The clean power could then be used to supply the farm's power requirements and generate revenue selling surplus power back to local utilities.

Karen Clark, President/CEO of Green Energy Live, commented: "We believe the market for manure-to-energy conversion systems among ranchers and farmers is large and underserved. We see that farmers and ranchers are looking for clean energy solutions to enable them to manage their manure, decrease their disposal costs and reduce environmental impact. Green Energy Live is committed to developing technology that will create a win-win solution for America's livestock operators."

Green Energy Live Pursuing Opportunities in Growing Green Energy Sector

GRAND RAPIDS, MI -- (Marketwire) -- 01/11/10 -- Green Energy Live Inc. (OTCBB: GELV) is a growing clean energy company engaged in developing sustainable biomass-to-energy conversion solutions for the $154 billion U.S. livestock industry. Green Energy Live is pursuing opportunities to leverage its proprietary gasification technology to develop solutions for the thriving clean energy market which, according to new industry reports, is expected to achieve significant growth this year.

Bloomberg News, citing data from market research firm New Energy Finance, reported that renewable energy investment is projected to climb to a record $200 billion worldwide this year. New Energy Finance forecasts private and public spending on clean energy technology will rise approximately 50% from $130 billion in 2009 and top the previous high of $155 billion in 2008. Government spending on green energy is projected to more than double from 2009 levels to approximately $60 billion in 2010. The U.S., China and 10 other nations have approved a total of $177 billion in stimulus funding for green energy over several years. (Bloomberg, "Copenhagen Failure Defied by $200 Billion in Green Investments," December 3, 2009)

Venture capitalists surveyed by the National Venture Capital Association (NVCA) believe cleantech is the sector most likely to show growth this year. Of 325 venture capitalists surveyed nationwide, 54% believe VC investment in the cleantech sector will rise in 2010, according to Venture View 2010, the annual predictions survey conducted by the NVCA and published December 16, 2009.

Green Energy Live is working to leverage its proprietary gasification technology to develop on-site manure-to-electricity conversion systems to convert animal waste into clean energy. The company intends to develop solutions that will enable livestock farmers and ranchers to achieve energy independence, reduce the use of fossil fuels, cut energy costs and reduce air and water pollution by recycling the manure produced by their operations.

Karen Clark, President/CEO of Green Energy Live, commented: "We are thrilled to see investment in and demand for green energy technology increase. Green Energy Live intends to become a leading provider of sustainable biowaste-to-energy conversion solutions for America's livestock farmers and ranchers. To that end we are currently focused on moving forward with technology development and communicating with other young clean energy companies to find our next acquisition within this vibrant market sector."

Buying Penny Stocks For The Novice

Buying penny stocks, although it can be highly profitable, can also be very risky. The amount of risk involved can be significantly lowered by thoroughly researching the stocks you are interested in, but the research can be very difficult and time consuming.

There is a new computer "bot" that has been created that analyzes penny stocks thorough in-depth mathematical analysis and by doing so dramatically decreases the risks and increases the profits from buying penny stocks, while greatly simplifying the work of choosing what stocks to buy and when. As you probably guessed, a system this effective comes at a rather high cost, but there is an inexpensive way for even the smallest stock investor to get beneits from it.

Penny stock investing has big advantages when it comes to large, rapid returns on investment, and the fact that penny stocks are priced low enough for even very small investors to buy stocks and have the opportunity for a diversified portfolio. Because penny stocks have such low values, just a few cents change in the price of the stock can equate to a huge change percentage-wise, and potentially a huge profit to the investor, depending on the amount of the total investment, particularly in comparison to the profits possible with larger value stocks.

To show the power of penny stock price changes, let's do a comparison. If you wanted to invest $1000 and found a stock you decided to buy at $100 per share, if it increases by $1 per share, you'll have made $10. But, if you took that same $1000 and invested it in a penny stock selling at $1 per share and then it increased by $1 per share, you would earn $1000 on your investment!

Unfortunately, for the same reason that penny stocks can make so much money so quickly, they can also lose a lot of money quickly, which is one of the big reasons you need to be very careful in buying. Another reason that penny stock investing is risky is because of shady or outright fraudulent practices of some individuals involved in marketing and selling penny stocks. It is often very hard to get reliable information to really evaluate penny stocks, as companies that issue these stocks are not legally required to file financial reports with the Securities and Exchange Commission.

Various unscrupulous tactics may be used to lure unsuspecting investors into buying penny stocks as a ploy to drive up the stock price and then insiders may quickly sell of their stock at a high price. The sell-off drops the stock value sharply and the investors take a big loss. It is normal for investments with the greatest potential rewards to also have the greatest potential risks, but in buying penny stocks, the relatively large amount of fraud drives the risk much higher than what would occur just from the whims of the market.

In order to reduce the risks of buying, it has usually required a large amount of time and effort to evaluate the stocks so that one could avoid the frauds and obtain a good return on investment. A careful penny stock investor could spend quite a bit of time evaluating a single stock. This effort would hopefully pay off in the long-run, but the time required in doing this often made penny stock investing out of the question for part time investors.

Then along came "Marl", which is a penny stock buying computer bot designed by a couple of guys that had the unusual combination of computer programming expertise and in-depth understanding of stock investing. Marl has several advantages over human investors, but the biggest advantage Marl has is that there are no emotions involved in his stock picks. Marl makes his picks based on cold, hard, statistical calculations. Plus, Marl can do a detailed analysis of hundreds of stocks in less time than it would take even an expert stock analyst to do a cursory evaluation of just one stock. This doesn't completely eliminate the risks of buying penny stocks, but it does cut down on the risk considerably.

Marl has been so effective that he has allowed for huge gains by advanced investors. Because of this, Marl is considered a bargain at the $28,000 licensing fee, but bargain or not, this is well beyond the means of small investors. There is an option to use Marl that is available to investors with even the smallest of budgets though. The guys that developed Marl put out an e-newsletter that gives Marl's top penny stock pick for each week. For new investors, this might be even better than buying the full Marl program, as it narrows down the investment options to just one stock every week, instead of figuring out what to buy out of hundreds of options. Using this system, even complete novices have the potential to make good returns on their penny stock investments.

Although the inventors of Marl have indicated that they will be limiting their subscriber list to the newsletter and may stop selling new subscriptions in the near future, hopefully they will have compassion for the small investors who need all the help they can get and continue to allow new subscribers long-term. In the meantime, small investors now have an option to dramatically assist them in buying penny stocks.

Today's Motivational Quote:

While we try to teach our children all about life, our children teach us what life is all about. -- Angela Schwindt

Green Energy Live Achieves Milestones Including Increased Sales, Ongoing Revenue, Key Acquisition and New Technology Focus

GRAND RAPIDS, MI -- (Marketwire) -- 01/06/10 -- Green Energy Live Inc. (OTCBB: GELV), a growing clean energy company engaged in developing sustainable biomass-to-energy conversion solutions for the U.S. livestock industry, achieved significant milestones in 2009. Green Energy Live closed its first acquisition of a revenue-producing company, and, using its proprietary gasification technology, anticipates developing on-site manure-to-electricity conversion systems for sale to the nation's 1.2 million ranchers and farmers. The company intends to build on that growth to pursue additional acquisitions, increase revenues and move forward with technology development this year.

In the third quarter of 2009 Green Energy Live closed the acquisition of Comanche Livestock Exchange. Comanche is a profitable provider of live animal auction and hauling services and has been in business for 60 years. The acquisition of Comanche was a strategic accomplishment for Green Energy Live. Comanche provides Green Energy with a source of revenue to support technology development as well as an established market presence in the livestock industry. Green Energy Live intends to leverage Comanche's proven sales channel and extensive network of dairy and livestock industry contacts for its planned manure-to-energy conversion solutions.

Green Energy Live recently disclosed strong third quarter financial performance for Comanche, which is a wholly owned subsidiary. Comanche generated an 18% increase in revenue and a 6% increase in net income for the three months ended September 30, 2009 over the same period in 2008.

Green Energy Live intends to utilize proprietary gasification technology to develop self-contained, small footprint, renewable energy gasification systems that will enable livestock operators to convert animal waste into clean energy. The company is focused on developing innovative biowaste conversion technologies that will process methane gas from the manure of animals and convert it into electricity to supply the farm's power requirements and generate revenue selling surplus power back to local utilities. By recycling their manure operators will be able to reduce hauling and disposal costs, handle surplus waste and reduce its impact on the environment.

The company has focused on the livestock industry which has a critical need to dispose of the waste generated by its operations. Green Energy Live phased out previous plans to expand into the ethanol industry in favor of endeavoring to develop manure to energy conversion systems which the company believes has the greatest potential for widespread adoption and commercial success.

Karen Clark, President/CEO of Green Energy Live, commented: "Having closed out a very successful year, Green Energy Live is excited to build on the progress achieved. Additional strategic acquisitions, expansion of Comanche's revenues and market share, and technology development are our primary objectives for 2010."

Green Energy Live's Form 10-Q filed on November 24, 2009, which includes its consolidated financial statements and incorporates Comanche's financial results, can be viewed on the SEC's EDGAR website at http://www.sec.gov/edgar/searchedgar/companysearch.html. As disclosed in the Form 10-Q, for the three month period ended September 30, 2009, the company reported an overall net loss of $250,873, an increase of $99,397 or 39% over the same period in 2008. Green Energy Live did not report any revenues in 2008. Green Energy Live's management believes that its acquisition of Comanche and the inclusion of Comanche's revenues in its operating results will cause its net losses to decrease, and that eventually it will achieve profitability; however, there is no assurance that this will occur.

Sure Fire Tips on How to Pick the Best Penny Stock

So you want to make money in the stock market, good for you! Maybe you're new to Penny Stocks or worse, maybe you've tried your hand at this type of investing, but just failed miserably at it. Well if that was you, don't feel bad about 97% of investors that try Penny Stocks fail miserably.

Why?

For Several Reasons-- maybe bad advice, haphazard trading or incomplete research. From this point on, whatever caused you to fail is in the past. From now on you will know exactly what to look for when trying to find a good resource for Penny Stock Tips.

Before we get started with what makes a good Penny Stock, we should get a definition of what penny stocks are and why they are so appealing. Generally speaking, Penny Stocks are stocks that are traded for less than $5. My definition of a Penny Stock is any option that is traded for less than $2.

Now you may or may not know this, but Penny Stocks are traded just like your bigger stocks or Blue Chips. You will hear a lot about Canadian Penny Stocks because there are definitely Hot Penny Stock Picks that you can only trade on CDNX- the Canadian Venture Exchange. Other markets that trade Penny Stocks are NASDAQ SmallCap, Pink Sheets (most widely known) and Over the Counter OTC.

Why are Penny Stocks so appealing?

Well first off, they're exciting and fun! But most importantly they are a vehicle to the potential of huge gains in short amounts of time. Your Blue Chips will never perform like the right Penny Stock.

So what should we consider when choosing a Penny Stock ?

Here are 10 crucial things you should look for:

• Make sure that they Can Be Traded on the CDNX. Many top penny stock picks can only be traded here.
• Look at last years picks and the performance of each pick.
  
• Look for information that demonstrated the picks to be worthy of passing them on. The more info the better. Not only should the numbers (profit & loss, Capital, etc.) come into play, but things like Management and information on the competition is imperative.
• Look for comparisons on Brokers.
  
• Have information for all levels of investors?
• Do your research don't be fouled by the first thing you read
• Stats can be deceiving - make sure you understand what you are reading
• If your a beginner try not to get carried away!!!
  

What do Mark-ups mean?

The last pricing factor concerning penny stocks is called the mark-up. A broker-dealer who has held the security in its account and subject to the risk of market price fluctuation, may mark the price of the security it sells to you up by a certain percentage, on top of the spread. This is to compensate broker- dealers for maintaining inventory sufficient to supply demand for an orderly and liquid market. What it means to the average investor is another cost that creates a built-in loss at the time of investment. In other words, the instant your transaction is effected, your securities are worth less than you paid for them. Although it is no guarantee of a good price, you are more likely to get a better price in an agency transaction using a broker-dealer that has no interest in the transaction, due to the pricing factors above. In the typical penny stock transaction, the broker-dealer buys from its customers at the bid and sells at the ask, capturing as compensation the spread, plus any mark-up.

Welcome

Dear Fellow Traders

Welcome to our new blog: Penny Stock Focus.

We have created this blog so more people can benefit from the valuable advice and services we provide.

We aim to publish imparcial posts about the hot Penny Stocks to invest it, what to look out for, tip, advise and much much more. We are also are here to answer any questions or querys you may have.

Investing in Penny Stocks is easeir than you may think and with our advise we hope you will be laughing all the way to the bank!

If you think our services would be of value to your friends please suggest StockSource.us to any one, you think, would be interested in making money from investing in breakout penny stocks

Thanks very much

And here’s to a successful day of trades to you all

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