Hello Profit-ly community,

 

As I posted several weeks ago, I'm currently writting my master thesis about Penny Stocks or what you could call more generaly Micro Cap Stocks.

The title of my thesis entitles " The Penny stocks niche as a potential investment field for day-traders and the relevance for price building on the secondary market". The goal of my thesis is to show that the stock market is a very competitive place with a lot of institutional investors, HFT, etc.. mostly on the biggest market caps. That's why the alternative "Penny Stocks" could be interesting for day-traders.

In the third part of my work " Application of Financial Economics to Penny-Stocks ", as the titld say I have to try to apply the knowledge of corporate finance on Penny Stocks.

So first I need to look at the "Fundanental approach" (does it makes sense to look to the balance sheets? Fundamental key ratios ? etc..)

Then I need to try to apply the "Portfolio theory" on Penny Stocks. But I'm not sure how to do that. That's where I'm asking you for you advices because I'm not sure how to proceed. Do you have any idea how could I verify is the portfolio theory is useful and effective in Penny Stocks ?

 

If you have any suggestions I would really really be happy to hear them

Thanks have a great trading session!