Successfully invest in penny stocks with our systematic approach
Our newsletter is unlike other investment newsletters. We don't simply stick to recommending companies. We preach an investment strategy in the form of the Bowser Game Plan. Of course, whether or not you follow it is up to you. However, it has been revised, tried and proven over our more than 39 years of publication. We will attest to its success, but so will our subscribers. Below, you will find a detailed description of our Game Plan for investing in penny stocks.
1: DO NOT PAY more than $3/share for a stock. Doing so keeps costs down. More than that, the less expensive the stock, the greater the leverage. This is because so often, these small companies are thinly traded. So, it takes a smaller amount of capital for a $3 stock to double versus a $10 stock.
2: CREATE A PORTFOLIO of 12 to 18 stocks. The key here is DIVERSIFICATION. By investing in multiple companies, your success is not riding on just a few. Stocks go up and stocks go down. We do our best to pick only winners, but that's never case. By diversifying, you offset (and more) those that do go down with those that soar.
3: DO NOT SELL when a stock goes over $3/share. Just because the company is up, you don't want to sell. Instead, following the SELLING PLAN, or rule number 5.
4: DO NOT SELL when a stock moves into a lower category. Again, the key here is follow the SELLING PLAN. A stock moving down a category (in the newsletter) does not mean that your investment has gone awry. Sure, the company has done something to become less attractive, but if it's on page 4, it's still a generally sound company.
5: SELLING PLAN: Sell half of your holdings when the stock doubles from your purchase price; sell the remainder when the stock drops 25% from its most recent high AFTER doubling. If the stock falls 50% from your purchase price BEFORE it has doubled, cut your losses and sell your holdings. Otherwise, sell when we tell you to in the newsletter.
This selling plan serves many purposes: (1) protection from losses; (2) removal of the emotional aspect of investing by giving specific sell parameters; and (3) maximizing gains by covering costs after doubling, then allowing the remainder to be taken as 100% profit.
6: RECORD proceeds from sales. Recording of proceeds from sales keeps track of the money that you have made. Most Bowser portfolios become self-financing in a relatively short amount of time. Proceeds from sales includes what you have bought, what you have sold and where your portfolio stands after all of your purchases/sales.
7: PORTFOLIO EVALUATION = Portfolio's current value + Proceeds from Sales. Taking into account both current value and proceeds from sales more accurately shows your portfolio's gain. Bowser companies can have a high turnover rate, and displaying proceeds from sales along with the current value makes sure to account for all of your investments.
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Should you have any questions about our newsletter or Game Plan, feel free to contact us!
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The Bowser Report is a monthly financial newsletter that specializes in small stocks trading for $3/share or less. Our goal is to provide the individual investor with relevant information on microcap stocks. Each month, we recommend a new company, provide information on past recommendations and report news surrounding the microcap marketplace.
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Information in this blog post may contain references to past Bowser recommendations. This blog post contains no recommendations, and instead relies on data gathered on past recommendations from sources thought to be reliable.
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