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To: Randi who wrote (3126)6/5/1998 12:02:00 AM
From: Daniel Miller  Read Replies (2) | Respond to of 9440
 
Of course you look at all the other aspects of the stock. It would be almost idiotic to base your entire trade on wether there is alot of volume or how many trades are being made. The major things which I look for before investing in a penny stock is:

1) Volume
2) News (historic news, future news)
3) Stock historic prices (charts- Price, Volume)
4) Call the company- Find out the float, outstanding shares etc....
5) Whether I believe the companies product is a product which is a "trend starter" or a bad idea which will never catch on. (An example of this is Startronix. They had a great product but it never caught on. Fell over 1000% since I last checked it.)
6) When the company will be realising earnings and wether they will be positive or not.

7) I am now adding to how many trades are being made to the list.

There are also other things which I check but since I ussually don't hold onto a stock for more then a few weeks, the rest is not worth checking out. Also most pennies don't have Earnings, etc...