Talking to customers is a sure fire way of understanding individual penny stocks.

Users of a companies products and services is probably the best source of information on a penny stock you can get.

You can pose as a potential customer and ask the company for references. Any company knows that a new customer is likely to want references and it would certainly be a red flag if non were forthcoming.

Naturally, they may only refer you to satisfied customers but dig around, try locally or via internet forums to get a good cross section.

Find out how long they have used the product or service and whether they are satisfied or not. Are they good at communicating, what is their follow up service like, etc.

You need to find out how strong your penny stock company’s relationship is with their customers as those customers are the lifeblood of the business.

Dave J

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