Making money in gold penny stocks the US

Investment profits in any stocks are not guaranteed. It is a common saying that penny stocks are unworthy and won’t give you anything. The penny stock mining companies are however with characteristics comparable to the blue-chip companies. The management team of the company has to be experienced management to proceed in the best way. The finances need to be strong to attract the capital investment having a trend of growth in businesses. Penny stock shares have per stock value of $5 or lesser and this value can change for the companies having the capability to meet the targets of a larger gold mining organization.

Checking company’s operations

Penny stocks are traded on pink sheets or Over-the-Counter Bulletin Board. There are numerous companies having existence only on paper. The organizations acclaiming to be gold companies have land access with gold reserves and have on-going mining operations. The companies having land acquisition have public legal records. It is important to make sure that the company has got the true location on the public lands and has a right to mine for ore. The documentation of the land ownership of the gold-mining associations is available with the US Bureau of Land Management.

Evaluation of the Regulatory Compliance

Investment in gold stocks is tricky. The company’s filing history has to be evaluated. The real companies on OTCBB need to complete its registration with SEC (Securities and Exchange Commission) & need to have a quarter and annual sharing of the financial data through reports. There are very fewer requirements for OTCBB companies for filing than for the major stock exchange listed groups. It is a warning signal to the investors for choosing the companies listed only on OTCBB and not illustrating their financial statistics or futuristic plans. You can check the SEC website for the documents and the companies enlisting their documents and verify its status with the filings.

Financial Data is Important

The financial statements are basically the public records available on the finance-related websites. The penny stock gold companies can be analyzed by getting the financial health status. The balance sheets include the assets and the liabilities of the companies. The account for equipment reveals the amount invested by the company in the mining equipment. Needless to state, the assets of a successful company are larger than the liabilities. The financial statements of companies should be sensible enough to make you decide if the stock is worthy of a purchase.

Management with a Difference

The management level, the board of directors and officers play the vital role in determining the future of a penny gold stock. The academic experts with experience have a great chance for producing the most desired results from their efforts for the company’s success. The technical team of geologists, mining experts & competent engineers can lay a strong foundation for the gold mining company. It is essential to look for whether the management is buying or selling the company stocks. The managers having the larger stock holdings and low selling rate gives an idea that they are highly committed to the success of the company and trusts its own organization.