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Published:July 20th, 2007 08:29 EST
Miami Vice: Good Cop's Bad Penny Stock Investors

Miami Vice: Good Cop's Bad Penny Stock Investors

By Anne Laszlo Howard

by John Whitefoot for Peter Leeds, Inc.

Miami, FL (rushprnews) - A friend of mine recently purchased the first two seasons of "Miami Vice" on DVD and invited me over to watch a few episodes. Naturally, I jumped at the opportunity. After spending umpteen hours in front of the TV, it became abundantly clear that Crockett and Tubbs were certainly adept at fighting, corralling criminals and having the ocean wind blow through their hair and stubble. Unfortunately, I didn`t take anything away from the episodes that I could use in real life. As a penny stock investor, I found their brash, impulsive work ethic to be a little out of synch with mine.

Yes, Crockett and Tubbs are in a dangerous, risky line of business"but so am I. If you don`t believe me, just ask any small, medium, or large cap investor what they think of penny stocks.

After the initial scowl and howl, they`ll tell you exactly why penny stocks are the surest way to lose money, and why their preferred avenue of investing"is not.

And the truth is penny stocks are risky; but no riskier than their large cap peers. Yes large cap stocks can have greater liquidity, more cash, and product diversity"but you still have to devote a significant amount of time researching both kinds of companies. Assuming your goal is to make money.

Think bigger is better? I`m willing to bet that there are a lot of investors out there who lost a serious amount of money on some ubiquitous large cap companies over the last few years. I`ll even bet they watched the ensuing court cases.

The point is you certainly wouldn`t invest in a Fortune 500 company without doing research. Just because they`re BIG doesn`t mean they`re in great shape. And just because a company is small, doesn`t mean they`ll stay small; if anything penny stocks have more room to grow.

Whether you want to find an undervalued penny stock or blue chip behemoth"you need to do lots of research. And then do some more. In doing so, you`ll understand what`s driving the business and figure out how to profit from it.

In addition, penny stock investors don`t look at their portfolio the same way other investors do. The vast majority of penny stock investors don`t hang onto penny stocks for very long. It`s more of a short to medium term opportunity. At least it is if you invest wisely.

Strangely, most investors don`t do a lot of research. They let others do it for them, or they react to press releases...or water cooler gossip. In doing so, they chase up over valued, hyped stocks. Trust me"it`s a lot easier to be a proactive penny stock investor than it is a reactive penny stock investor.

And when it comes to investing, there are few places in the Unites States more enamored with penny stocks than Miami"well Florida. According to Google Trends, Florida comes third in states that search for penny stocks. In addition, three of the top five locals are located in Florida: Jacksonville, Tampa and Orlando.

And there are a lot of great investing opportunities for penny stock investors in Florida"or at least companies that have operations in Florida. A few years back I became aware of Home Solutions of America, Inc. (HSOA) a company that specializes in restoring and rebuilding homes and businesses that have been damaged due to fire, weather or other natural disasters.

At the time, HSOA was trading for under $2.00 a share; a year later, it broke through $14.00 per share. Remember, you don`t hold truepenny stocks for very long. If as a shareholder you aren`t happy with a 600% return"then there`s little hope for you.

To book an interview with Peter Leeds, please contact his publicist, Anne Howard, at 310-295-9578, or write her at anne@annehowardpublicist.com.