How to Ensure Product or Service Acceptance for Penny Stocks - dummies

How to Ensure Product or Service Acceptance for Penny Stocks

By Peter Leeds

For penny stocks, especially those with brand-new products or services, acceptance of those wares by customers is of paramount importance. The demand will tell you everything about the company, from its potential future revenues to its chances for increasing its share price.

To gain an understanding of the acceptance of the wares and improve your own knowledge of the upsides and downsides of their offerings, you should do the following research:

  • Find out what customers are saying. You can go online and read customer reviews and comments. Look at message board posts, blogs, surveys, and online reviews.

  • Find out what the competition is saying. Even more telling than what a company says about its own product are comments made by its competitors. You may need to filter out the standard competitor-induced negative positions. The best way to get a competitor review is to call that competing company and ask for help in deciding between the various options of product.

  • Try out the wares. When possible, try the product or service the penny stock is selling. Besides making for great due diligence and potentially revealing aspects of their wares you may not have anticipated, you will have the added benefit of getting to use the product.

Keep a very close eye on the acceptance and benefits of any product or service the penny stock is offering. Customer appreciation and demand are the first steps to uncovering a profitable penny stock investment.