Canadian Penny Stocks Research – What To Do Step By Step!
How We Research Canadian Penny Stocks…
Earlier this week, we published an article about the penny stock game industry. Our reader Daniel had asked about a Canadian gaming company called TransGaming $TNG.
I dug into the financials and didn’t like what I read.
So, I kicked the company to the curb.
However, there was a bunch of readers asking about how and where I found the financial numbers… Apparently many of you are interested in Canadian penny stocks, but don’t know how to get the financial research to do your due diligence.
So, that’s what I’m going to share with you today.
I’m going to show you how to find the best penny stocks in the Canadian markets… It’s easy to do, but you need to know a critical piece of information…
The Secret To Researching Canadian Penny Stocks
Alright… here we go. I want you to write this down, or better yet, bookmark this link.
The one critical piece of information you need to know in order to research hot penny stocks in Canada is sedar.com.
Let me say that again… sedar.com.
As you know, I tell everyone you must do your due diligence on any penny stock BEFORE you buy.
You’ve got to read about a penny stock, study their products, their sales, their expenses, their margins, and the business.
There are three things to focus on:
- The company website… this should give you a great understanding about the business
- The press releases and news… this should tell you all about the market and how the company operates, and
- The SEC filings… these are the legal documents the company files with the government as a public company. They tell you everything important about the company.
But that’s where the problem starts.
Foreign penny stocks will have a website… and press releases & news. But, since they don’t trade on the US exchanges, they don’t report any financials to the SEC. So there’s nothing to research!
Depending on the location where a foreign company trades, there are a number of different resources you can use.
For Canadian Penny Stocks, the source is sedar.com.
What You Need To Know About Sedar.com
If you’ve never been on sedar.com, go right now and give it a look.
The first thing you’ll see is the welcome page and an option to visit the English documents or the French documents.
Despite four years of high school French, I still just read the English documents! 😉
After you click on the English option, you’ll be taken to a new page and you’ll see the option to “Search Database”. Select that option and you’ll see an option to search for public company documents or search for Investment Fund Documents.
Since we’re researching Canadian Penny Stocks… select the Public Company Documents link and on the next page you’ll be able to search by company name.
Yes, I know this is a crazy long way and a lot of clicks just to start researching a company… but trust me, the data you uncover will be like GOLD!
Your Next Steps Researching Canadian Penny Stocks
Now here’s a tip.
Look closely at this screen shot. After you type in the name of the company you want to research, click the Search Button… NOT the “Search Help” button.
I went ahead and added the red arrow and circled the correct button to click… I have no idea why, but that made the “Search Help” button more prevalent. I can’t tell you how many times I clicked on the wrong button.
Anyway, after you click ‘Search’, you’re going to see some very interesting information.
You won’t see the traditional 10-K and 10-Q and 8-Ks that public companies in the US produce. Here you’ll see a different set of documents.
What you want to focus on are the ones labeled:
- Annual Information Form
- Annual Report
- Annual Audited Financial Statements
If you’re a few months after the close of the year, you’ll be interested in the Interim Financial Statements. You’ll see documents like:
- MD&A
- Interim financial statements
- Material Change Reports and
- News Releases
If you read all of these documents for the Canadian Penny Stock Companies you want to invest in, you’ll be well educated! Sedar.com is a fantastic research tool that every investor needs to know about!
So, do your due diligence!
Tell me, do you own Canadian Penny Stocks? If so, which ones? Leave a comment on the blog!
Good investing…
Brian Kent
Note: If you’re interested in learning more about Brian Kent’s Penny Stock All-Stars premium service… and learning about the stocks we’re trading for profit… you can get the inside scoop on penny stocks here.
Category: BEST Penny Stocks
