Penny Stock Insider
Matthew Chitty rates this 4.5/5
Average User Rating (1 ratings)
Peter Leeds Penny Stocks From: Peter Leeds (PennyStocks.com)

Pros
100% unbiased picks, active member support, and generally favorable reviews from real users around the web. A REAL microcap stock pick service, in other words...

Cons
Some members report rather "sparse" information in the member's area about each pick. Not every stock pick turns out well (obviously, but still...)

Verdict
The fact that Peter Leeds isn't a pump-dump promoter is, in itself, rather amazing given the industry. If you have some risk capital to play with, the Penny Stock Insider is worth a try.

Peter Leeds' Penny Stock Insider - The Real Deal? (Or Will it Leave You "Penny-Less")...

To paint an accurate picture of of Peter Leeds' Penny Stock Insider membership (penny stock picks), it's necessary to take a brief look at how this industry works in general - and therefore why Leeds' service is so drastically different... which in this case is a good thing.

First things first - what are "penny stocks"? (And why would someone want to trade them)?

Penny stocks (also called microcap stocks, in some cases) are generally not listed on the "normal" exchanges or markets like the NYSE, the NASDAQ or the TSX, but are instead traded on either the PinkSheets (PK) or the "OTCBB" (Over-The-Counter bulletin board), which are unregulated by the SEC, aside from legal requirements regarding filing in some cases, and certain disclosures.

They're designed for companies wishing to "go public" and raise capital, but without the heavy-handed regulations attached to the mainstream markets, nor the massively expensive cost involved in making a traditional initial public offering (IPO).

However, the low barrier to entry on the Pinks and the OTC - coupled with the near-total lack of regulation creates an environment rife with corporate scams, shady companies and otherwise highly volatile (and risky) investments. It's often said that the shares in these companies are worth "pennies" for a reason...

What makes penny stocks so appealing?

The low share prices of a penny stock means that investors can buy up literally thousands of shares for next to nothing (depending on how they're priced). For example, if a stock was priced at $0.50 per share, you could buy 1,000 shares for $500 (and for the sake of simplicity, let's not factor in broker fees, etc.)

Now, because of the volume of shares that someone can acquire - and with such low figures involved - even the slightest fluctation in price can produce a MASSIVE swing (upwards or downwards) on the value of your position in that stock. It's not uncommon for penny stocks to double or triple in value overnight. But keep in mind that they can just as easily halve (or worse) in value, just as quickly.

For example, you'll very rarely see a regular stock on a mainstream exchange double or triple in value over the course of a day, a week or even a month's time. Assuming a regular stock does double or triple in value, it's more common to see this process happen over a course of several years. So if you invest $500 into a "regular" stock, it would realistically take years for your money to double/triple, assuming your stock's price increased at all.

With penny stocks, however, since it really doesn't take much for a stock worth $0.50 to move to $1.00+ (or down to $0.05, for that matter) - and this can happen overnight - you can watch your $500 double or triple, sometimes in the space of a few hours or days. But keep in mind that this volatility can just as easily result in your $500 becoming $50...

Which is exactly why Professional Penny-Stock Pickers (like Peter Leeds) are in so much demand...

Now - you need to realize that for all of the above-mentioned reasons (potential for fast & massive gains, volatility, near-zero regulation, etc.) the penny stock picking industry is also the proverbial "snake-oil pit" of the investing world.

In fact, and somewhat shockingly, the vast majority of penny stock "pickers" are nothing more than thinly-disguised stock promoters, who not only receive compensation from the companies that they "pick" for their followers...

...but who also routinely purchase large volumes of shares in such companies before promoting them, and then pulling out of the stock almost immediately telling their loyal followers to "invest". Thereby inflating that stock via artificial means - and literally profiting as a direct result of the impending loss of capital that their followers will experience when the stock "resets". This is called a Pump & Dump operation, and typifies almost all of the so-called stock pick services for microcap/penny stocks.

The scary part?

Everything I just described above is legal. (No, really - it is.) All the "stock picker" has to do is properly disclose their compensation details if promoting a stock on behalf of a company, and disclose whether they own shares of a certain stock being discussed. Other than that, it's pretty much wide-open.

As you can imagine, these barely-legal scams are making money hand over fist - at least until they run out of suckers to filch. And that just makes it all the more prolific, especially in the anonymous world of the internet.

And all of this begs the question...

Should penny stocks basically just be avoided at all costs?

Surprisingly - and depending on your risk-tolerance as an investor - the answer is no. The fact is that major trading firms, investment banks and even certain hedge funds actively take positions in penny stocks all the time. They do so because it CAN be extremely profitable, and because they have allocated a percentage of their trading capital as "high risk".

In other words - they're probably only trading with stuff they can afford to lose (which is a model I'd recommend following).

But the difference between an investment bank and you - and yes, I'm generalizing - is that they have the resources to hire an entire staff of researchers whose only purpose is to go out and find stocks worth betting on, and more importantly, WHEN to do so. And you very likely do not.

And this is where a stock-picking service or subscription would come in very handy - if only you could actually find a REAL one, that isn't just a stock-promoting pump & dump pretending to be one.

Which brings us to Peter Leeds and his Penny Stock Insiders (stock-picking service)...

Amazingly - it's the real deal. For about $200 a year, you get access to Peter's actual stock picks, none of which are biased or promoted. They are actually real stock picks.

In terms of credibility, Peter has been interviewed on TV and various established online sources, and he's also a featured contributor on Forbes.com. This type of profile is definitely not what you'd be expecting to see from your run-of-the-mill pumper dumper. No, instead, what we have here folks is the genuine article.

According to actual user reviews around the web (places like Investimonials, for example), the majority of people are very happy with the overall success-rate of Peter's picks, with the only real gripe being that the information surrounding a particular stock pick can sometimes be on the sparse side of things - but this may just be a matter of subjective measurement.

And while members do caution others to do their own homework on each stock, as well as spread their risk - the general consensus appears to be that people are actually making money with this. Which, in this industry, appears to be extremely rare.

Users further mention that customer support is good, and Peter is quite accessible and transparent - there's even an official Facebook page for the Insider's, where you can see real people interacting, talking about recent picks, getting advice on their own stock research, etc.

The Bottom Line?

The only reason this is rated 4/5 stars is because some members complain about a lack of information surrounding the stock picks, although this could be an issue with marketing (ie. customer expectations), rather than service quality.

No, not every pick will "win", and that's not what's advertised.

But you do get full access to an Ace Penny-Stock Trader's personal trading moves before he makes them, and most people who've followed him seem to have made money.

In an industry rife with scams, Peter Leeds' Penny Stock Insiders is a shining light, if for no other reason than because it's legitimate. Furthermore, they offer a free 14-day trial, so you can test drive it (and ideally paper-trade) before you ever commit to spending money.

If you've got some funds to play with and understand the risks - this one's a no-brainer...
Date Reviewed: September 23, 2011, 4:05 pm
Reviewed by Matthew Chitty
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1 Review
Lisawrite I've read this book and I agree with the review. Good stuff! lisawrite Rating
Sat, March 10, 2012 8:15PM • By: lisawriterssreport user
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Research Sources
http://www.facebook.com/pages/Peter-Leeds-The-Penny-Stock-Pr...
Peter's facebook page for the Insider's Newsletter, where you can see real members comment and interact, where reviews and interactions are quite positive.
http://www.investimonials.com/newsletters/reviews-pennystock...
Several user reviews of Peter's service, on Investimonials.
http://www.onlinetradersforum.com/showthread.php?t=17519&pag...
Favorable user review, and Peter himself addressing some of the naysayers on an investor forum.
Legal Info
Reviewer has: Researched Only
Reviewer has not owned or tested this product, all information contained in this review is based of research the feedback of others that may or may not have owned the product.

Compensation Disclosure: Commission On Sale
Compensation for purchases made through links clicked in this review may result in the reviewer and/or Ukritic.com being compensated for any referred sales or actions.

Additional Disclaimer:
The content on this page IS NOT "financial advice", "investment advice" or, for that matter, anything other than content to be treated as "entertainment only". Please do your own due diligence before making any financial decisions.
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