Wall Street

Should Wiley E. Coyote ever get into buying stocks, I have no doubt he would stack his portfolio with shares of ACME. I'm just not so sure any savvy penny stock investor should follow the economic advice of a coyote.

Online Stock Market Trading Investors of the two-legged kind, whether they're looking at a penny stock or a blue chip behemoth, tend to take a myriad of details into consideration before investing. And so they should.

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Stock Investing Course But a recent study suggests that investors of every stripe take mental short-cuts when it comes to investing...at a time when they should be more rational.

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Stock Market Game Wall Street gurus and penny stock investors alike it seems, are more likely to purchase newly offered stocks that have an easily pronounceable name, say a pair of Princeton University researchers.

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Stock Investing Game Adam Atler and Danny Oppenheimer found that a stock's performance immediately after an initial public offering (IPO) appears to be linked to how easily investors (penny stock or otherwise) can pronounce its name and stock ticker symbol.

You can't delegate this to anyone. You've got to do it. Truth is, nobody can watch over your money like you can. (Farmers have a saying that the best fertilizer is the farmer's own shadow.) Strangely enough, when you make the commitment to watch every penny, the dollars start to add up quicker. If compound interest can make a single dollar bill grow into a million dollars...then it can also make a single penny grow into a million pennies... and that's ten thousand dollars. From a single penny Have you ever walked by a penny on the sidewalk and not picked it up because it was just a penny The truth is, that hidden beneath that penny is a pile of a million pennies. Pick up that penny and invest it right.

Journal Prime Rate Street Wall Danny Oppenheimer, commented, "These findings contribute to the notion that psychology has a great deal to contribute to economic theory."

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Stock Market News The two said the effect also extends to ticker symbols. For example, all things being equal, a stock with the symbol BAL should outgain a stock with the symbol BDL in the first days after an IPO.

Stock Investing Basics "We looked at intervals of a day, a week, six months and a year after IPO," Atler said. "The effect was strongest shortly after IPO. For example, if you started with $1,000 and invested it in companies with the 10 most fluent names, you would earn $333 more than you would have had you invested in the 10 with the least fluent."

Stock Investing Software Oppenheimer acknowledged that their findings do not tell the whole story about the post-IPO success of a stock, not are they good indicators of long-run performance of a penny stock.

Stock Market Trading "You shouldn't make changes to your stock portfolio based on our findings. The primary contribution of this paper is to add a piece to the jigsaw of understanding how the markets operate," said Oppenheimer.

Stock Investing For Dummy So, what does this mean for the green and seasoned penny stock investor? It means you should still take an exhaustive look at any company you're interested in. It also means that, in the early stages at least, it doesn't hurt to find a company with a catchy name and ticker symbol to boot.

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Stock Investing Tip A seasoned investor with a keen interest in international business and current affairs, John Whitefoot has been working alongside Peter Leeds for the last several years. With over ten years experience in the investing community, Whitefoot is devoted to uncovering the news, trends and ideas that shape penny stocks on a daily basis.

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