Alternative Energy OTC Penny Stocks – Updated Article with New Information.

More details on the advantages and disadvantages of alternative energy OTC penny stocks. A few of the most promising alternative energy OTC penny stocks.

Renewable energy penny stocks can bring great rewards to investors who are not adverse to risk. What are the advantages and disadvantages of alternative energy penny stocks?

Advantages:
Many investors have made quick and impressive returns on penny stocks as they have shot up on the backdrop of good news from the company and heavy interest from investors. Penny stocks, as the name suggests, are cheap, and so represent a viable option for investors who do not wish to risk large amounts of money.

Renewable energy is the future of the world economy. There is a critical need to implement non-polluting sources of energy around the world, and for the first time, the last few years have seen politicians in many countries draw up large scale plans for the low carbon economy of the future. President Obama recently gave a speech on energy, which he dedicated to explaining how critical it is for the US to develop and implement renewable technologies. It follows that there are a large number of green energy companies that stand to make huge amounts of money in the years to come.

Disadvantages:
Many financial experts suggest that you take great caution when investing in penny stocks. The reason for this is that the risk levels are high and that the industry has suffered from the actions of scammers over the years.

The risk levels are high because the penny stocks are not traded on the exchanges, and are not subject to their requirements. The penny stock company maybe be new, or have very little history. This means that even experienced investors can find it hard to obtain adequate information on the company, and be sure that it is a good investment choice.

There have been many high profile cases in which penny stocks schemes have made scammers rich and unwary investors poor. In such schemes, the owner of a stock recommends it to a large number of people via an email feed or something similar, watches the stock go up rapidly and then sells all the stock in one go, causing the price to plunge. The moral of the story is that you should be very cautious about penny stock recommendations. You should always do the research yourself, and not take other people’s so called “research” as read.

Examples of promising alternative energy penny stocks that are worth researching into (at the time of writing: October 2010)

Enviro Resolutions – many people believe that the stock price of this company could grow significantly in the future. The company is developing pollution removal technology that has great potential.

Green Star Products – This company makes products such as lubricants that do no harm the environment, and rumors are spreading that this company is preparing to enter the electric car market: a lucrative and highly promising sector.

Origin Oil – This company has heavily invested in algae biofuels, and there are high hopes that this research will soon lead to a viable end product.

For the original article, click here

For more information on penny stocks, go to:
en.wikipedia.org,
www.sec.gov.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.