High-risk investments

Interactive penny share
performance assessor

  

Plan to invest in a penny stock? Find out if it is a penny wonder or a penny dreadful. Put your favourite penny stock through our assault course.

Answer yes or no to the following ten questions:

 1. Does the company have significant and rising sales? Yes   No
 2. Does it have significant cash flow? Yes   No
 3. Are there profits, or projections for these within a measurable time frame? Yes   No
 4. Has the company been going for at least a year? Yes   No
 5. Are the directors and management experienced in their field? Yes   No
 6. Does the company have a full London Stock Exchange or AIM listing? Yes   No
 7. Is its net asset-backing higher than the share price? Yes   No
 8. Can you deal in the company's shares through a London stock exchange
     member firm?		 Yes   No
 9. Is there a significant free float in the shares (meaning that they are not
     too tightly held by minority investors)?		 Yes   No
10. Is there a company-specific reason for optimism that the market has not
     yet factored into the share price? (For example, planned restructuring or
     takeover interest.)		 Yes   No

 
Your result is   

8 - 10 Consider investing, but only after you have done your research.
6 - 7 As an investment proposition, this stock has deficiencies. But if
the benefits are strong enough, you may still wish to invest.
4 - 5 Avoid - unless you know something that nobody else does.
0 - 3 Don't touch this stock with a barge pole.

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