Microcap Newsletter Reviews

Stock Market ReviewTrading microcap stocks (or "penny stocks") has always been a bit of a minefield. BIG potential gains, but just as big or even bigger potential risks. Wild price swings in terms of percentage is what makes penny stocks attractive to traders. However, finding good information and research is the hard part.

That's where good microcap or penny stock newsletters can help...

Microcap newsletters can be a great way to get in on smaller stocks and let someone else do that research and information gathering for you. BUT...which ones shell out some decent and profitable picks? Quite a few penny stock newsletters are honestly just full of you know what...

To help you sort through the penny stock newsletter scams, we decided to check out and review a few popular newsletters floating around. The following are 3 penny stock newsletters that seem to have the have some decent profit potential.


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#1 Microcap Millionaires

Microcap MillionairesWebsite: www.microcapmillionaires.com
Pick Quality: 8/10
Biased: No
Random "Dartboard Sampling" Win Rate: 72%

Methodology: Essentially, these guys scour undiscovered or undervalued stocks and analyze indications of institutional or "big player" buying interest...through factors such as block trades, investor relations firm hirings, etc. Their goal is to predict some near and long term heavy buying interest. Kind of like a surfer looking out for a big wave.

Overview: While the sales page is a bit hyped up, Microcap Millionaires does an excellent job of delivering a steady flow of profitable penny stock picks based on the above mentioned methodology and analysis.

How are the results? Paper trading on a dartboard sampling of 10 microcap picks resulted in an average 153% gain per pick. Pretty decent!

Most of these stocks are in the ultra low price range $.20 and under, so realize that these are truly either a win or loss scenario. In other words, it's best to expect a total loss from the losers. However, the ultra low priced picks can typically work very well on the upside, as the "wins" tend to be quite high.

That being said, it's important with these picks to not try and parlay trades you may do on them. Instead, break up your capital and use sensible money management to suit your risk tolerance.

Cons: None...aside from the fact that liquidity could potentially be an issue on some picks if you plan to place large trades (say $10,000 or more). If most of your trades are small, this is not much of a concern.

Bottom Line: Definitely worth trying out if you'd like to play the microcap market, but don't have the time or expertise to go through the trial and error of developing your own microcap stock picking strategy.

FREE PICKS: Want an easy way to check out Microcap Millionaires before joining?

Try Out 2 Free Penny Stock Picks From Microcap Millionaires Here

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#2 Promo Stock Picks

Promo Stock PicksWebsite: www.promostockpicks.com
Pick Quality: 6/10
Biased: Unable to determine, but appears to be somewhat biased
Random "Dartboard Sampling" Win Rate: 61%

Methodology: From what we could gather, stock picks tend to be based primarily on microcap stocks that are being heavily promoted in the market via investor relations and PR efforts.

Overview: Jason Fuller is the head honcho of the Promo Stock Picks newsletter. And while his stated background and credentials appear to be a bit overblown, from strictly a standpoint of producing decent microcap picks, it offers a pretty good value for the money.

On average, his newsletter puts out 1 stock pick per week, and note that access is limited to 6 months.

Our random sampling results over 10 picks for Promo Stock Picks turned out to be 114%, a little less than Microcap Millionaires.

Cons: It's unknown whether or not this newsletter is biased, which may or may not be a concern to you. Also, information is sometimes a bit sparse on why certain stocks are picked.

Bottom Line: Good, basic penny stock picks based on information that's not easy to identify without some labor intensive searching on your part.

100% Guarantee: As stated on the website, Jason offers a personal guarantee of 100% gains in the next 5 out of 8 picks or your money back.

Read More About PromoStockPicks Newsletter Here

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#3 Doubling Stocks

Doubling StocksWebsite: www.doublingstocks.com
Pick Quality: 6/10
Biased: Yes
Random "Dartboard Sampling" Win Rate (2 months): 63%

Methodology: Various technical indicators via "MARL, the stock trading robot", with a bias in terms of getting compensated by companies for their stock picks.

Overview: Doubling Stocks is a HEAVILY advertised and fairly controversial penny stock newsletter. Some say it's a total scam, others say they've had good results from it.

Now, hopefully you don't believe there is a real robot sitting there making stock picks...obviously a marketing gimmick.

Probably the biggest controversial point about Doubling Stocks is the "robot" aspect gives the impression that stock picks being unbiased, yet the fine print discloses that they are being compensated for their picks.

While we are not legal experts or anything, but a quick scan of SEC newsletter regulations seem to indicate this is practice is allowable as long as they provide disclosure of compensation, which they appear to do.

So the main question is, are biased stock picks good or bad? Well, it depends on your point of view...

If you just feel more comfortable with truly objective information, biased picks are obviously going to present an ethical dilemma.

If you're only concerned about profits, these biased picks can actually be good simply from the standpoint of the large number of subscribers on this newsletter jumping on board.

The key though with biased picks and newsletters like this, is jumping on picks fast before the rest of the subscribers do, and getting out fast before the hype and promotional influence dies down. If you get greedy, you're going to probably just ride it up and back down for the most part.

Bottom Line: Riding newsletter pick waves with Doubling Stocks can potentially be profitable. Our average "dartboard sampling" average gain was the highest at 213%, yet the questionable compensation practices and resulting bias on stock picks may not set well with everyone so we are ranking this last.

Read More About MARL the Stock Trading Robot and Doubling Stocks Here

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