When a company, once magnificent and strong, falls into financial disrepute, it may become de-listed from major stock exchanges. One recent example of this was video retailer Blockbuster's removal from NASDAQ in July of 2010. It was de-listed, moved to the pink sheets, and lost much of its value. Sometimes these can be the best penny stocks to invest in.
De-listed stocks are often hard to find because the ticker symbol changes when a stock gets moved into the pink. Nevertheless, if you're trying to maintain a penny stock list of what's profitable and what's bogus, you should figure out how to research these stocks, or receive reliable penny stocks recommendations.
Specifically, you need to know whether any given micro stock is actually a reputable company that moved to the pink sheets voluntarily, or whether it is just a scam. If the stock is being heavily promoted by free services, chances are there is little profit to be made.
This is why you need to make a penny stock list. Because the other 10% are a dream come true. The average Joe can make it big by investing in reputable, de-listed penny stocks. The trick is figuring out what's good and what's bad in the business world. The only way to do this is to read the financial section of your paper.
For instance, people make a decent profit trading Nestle, which has remained voluntarily in the pink sheets for years. Ever since Blockbuster changed its ticker symbol from BBI to BLOKA last July, people have been trading the stock furiously, trying to get a grasp on its true value.
If you want to know how to research Pink sheet stocks you have to figure out how to organize the information that you find. You want to have a list of good, solid companies to trade pink stocks as well as a list of slightly iffy companies that provide the potential for great profits.
The solid companies are what you'll trade daily, while the iffy companies have the potential for a breakout depending on the news. Your penny stocks recommendations service should include a live feed of news around the world, so you can get first dibs on any latent trends about to emerge.
When a major stock de-lists, you should monitor its progress very clearly. Some companies, facing the strange new world without the corporate trappings of a place on the coveted NASDAQ or NYSE, may not always make the best decisions for their new to-be shareholders. If it shows signs of survival past the first day or two, then it's buy, buy buy.