The Bowser Report's Game Plan for Penny Stocks
Since 1976, The Bowser Report has provided individual investors with a low-cost method of investment. We have heard many success stories from our subscribers who have made money in penny stocks. The majority of those success stories have one thing in common: they follow the Bowser Game Plan--our method of investing that has evolved over the past 37 years.
Created for the average Joe, the Game Plan is simple. It involves 7 rules that all serve to cut losses and grow profits, resulting in the highest possible gains while eliminating some of the risk associated with penny stocks. Read on for a detailed description of each rule:
- Do not pay more than $3/share for a stock. The cheaper the shares, the greater the leverage. A $1 stock doubles at $2, a $2 stock at $4, a $3 stock at $6 and so on. Each dollar extra dollar that the company costs is a higher doubling price. Keep the prices low and it will be easier for your penny stocks to double.
- Create a portfolio of 12 to 18 penny stocks. This is one of the most important rules of the Game Plan. Diversification is key! Some of our recommendations will go down, some will go up and some will fly. By diversifying, you are protecting yourself against losses (see our article on how our Game Plan limits losses). Ideally, your portfolio would consist of 12 to 18 companies with equal share amounts OR initial dollar amounts. For example, you could buy either 100 shares of each company OR $1,000 worth of each company. This balances your portfolio.
- Do not sell after the stock goes above $3/share. See the SELLING PLAN below for when to sell.
- Do not sell when a company moves down a category in the newsletter. Again, refer to the SELLING PLAN below for when to sell.
- SELLING PLAN: (1) Sell half of your holdings when the stock doubles from your original purchase price. (2) Sell the remaining half when the stock drops 25% from its most recent high. OTHERWISE, sell all of your holdings when (1) it drops 50% from your purchase price without doubling OR (2) when we recommend it be sold in the newsletter.
- Keep track of your Proceeds from Sales. Because your Bowser portfolio can turnover rather quickly, it is important to keep track of the money that you have made. Eventually, your portfolio will become self-financing. So, writing down your Proceeds from Sales can help you know how much money you have made and how much money you have put back into your portfolio.
- Portfolio evaluation = current value + proceeds from sales.
Follow these rules when investing in Bowser penny stocks and you will be on your way to making money!
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 contains 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.