Most OTCBB and Pink Sheet companies have no analyst coverage thus leaving investors an opportunity for finding great potential momentum stocks.Investing on the momentum of small but rapidly growing companies has great appeal because of the tremendous upside. These penny stock companies are usually brand new to the markets and are exteremely low priced and have no where to go but up, way up. There are tons of stories of investors gaining tremendous wealth from buying low priced penny stocks and holding on to it while the company grows into huge companies. Perfect example of this include Microsoft in the 80s when certain investors identified the potential and others later got in early on the momentum that lasted over 20 years. Not all penny stock trades are this lucrative, or even profitable, but the potential that exists in the OTCBB and Pink Sheet markets cannot be matched.
Penny stocks, techically those stocks priced below $1, usually exclusively trade on the OTCBB and Pink Sheet stock exchanges.
Most successful penny stock investors are "momentum" investors. When penny stocks move up (or down), they make big, lasting moves, the moves are a result of momentum. Some one or some group has identified a great company and have bought massive amounts, momentum investors recognize this and buy more, then a vast amount of institutions, index investors and the general public buy even more keeping the momentum going even higher. This is how penny stock momentum investors create their wealth. Here at OTC Momentum, we are dedicated to finding these OTCBB and Pink Sheet stocks that are in the early stages of this momentum or have yet to gain momentum but have the potential for a big momentum up in price.
Companies listed on the OTCBB and Pink Sheet stock exchanges share similar characteristics with other publicly traded companies on the Nasdaq and NYSE and are affected by events such as interest rate changes, economic changes and changes in the general business environment. Every investor is different and each has their own risk profile and no single portfolio should consist entirely of microcap OTCBB and Pink Sheet penny stocks, but a reasonable allocation put towards these stocks can help to increase overall long term investment results. Along with checking OTC Momentum daily, you should follow the general financial news for the changes mentioned above and adjust your investing allocation accordingly.