The Penny Stock Egghead And His Claim To Help You Retire Rich!

Online, August 4, 2011 (Newswire.com) - Many investors don't take microcaps or what you call penny stocks seriously. The most probable reason for this is that penny stocks mostly get traded on the Pink Sheets and Over The Counter Bulletin Boards (OTCBB). These Pink Sheets and OTCBB are not highly regulated as compared to the regular Stock Exchanges like the NASDAQ and NYSE. Due to less stringent listing requirements, dubious companies also get the chance to get listed on OTCBBs and Pink Sheets.

As compared to regular stocks where a few dollar increase in the stock price can translate into a small capital gain, a few cents increase in penny stocks can result in a whopping capital gain. Suppose the APPLE stock AAPL increases by just a few cents from $236 per share to $236.20 per share. This 20 cents increase results in a miniscule capital gain of 0.0084% to your investment portfolio. If on the other hand, a penny stock trading at only 3 cents increases in price to 20.3 cents, this represents a capital gain of 666.6% to your investment portfolio.

Studies have shown that microcaps have been outperforming the mid caps and the large cap stocks over the last few decades. Micro cap companies are those companies that are startups and don't have enough funding to get listed on the major stock exchanges. These companies get listed on the Pink Sheets with the hope of making it big one day and eventually graduating to the regular listings. Finding penny stocks on the verge of making a breakthrough in the next few days to a few weeks is a sure recipe of making whopping capital gains. However, unearthing penny stocks that are on the verge of making a massive move in the market does require a lot of research and analysis something a retail investor will find difficult and tedious.

Nathan Gold is a maths whiz kid who claims that he had found a secret formula that helps him uncover those penny stocks that are on the verge of making a breakout. Nathan Gold who likes to call himself the Penny Stock Egghead says that he is regularly able to spot microcaps that are on the verge of making gains like 100%, 200%, 500% and even 1000%. Imagine investing only $1000 on a penny stock that makes a gain of 1000% in the next few weeks. If it does, it means turning your $1000 into $10,000 with a simple investment!