Thursday, February 9, 2012

Canada cheap stocks.

Canada offers wide range of investment in penny stocks.Opportunities are a plentiful in penny stocks with low capital outlay but good capital appreciation potential.

The most natural reason that Canada is a land full of penny stock opportunities is that it is a land full of natural resources.

The Canadian dollar gained for a third straight day against its U.S. counterpart for the first time in February as crude oil, the nation’s biggest export, touched the highest level in a month.

The currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, rose the most in almost two weeks and then pared gains as Greek Finance Minister Evangelos Venizelos said Europe’s wealthier countries are toying with the idea of expelling the country from the 17-nation euro area.

From oil, gold, and diamonds, to potash and other more industrial type commodities, there are immense stores of these within the Canadian borders and as such many companies setup shop and operate in Canada to seek out and find these resources. If and when they do the companies then face the decision to grow larger or become acquired by another company. In either case the investor is surely the winner.

The US surely outnumbers Canada in the number of securities listed in its various exchanges but the reality is that the US markets are rife with frauds. There are so many going on that it’s just not possible for the SEC to manage to find them all. So the frauds continue. In Canada however, the listing requirements for the Toronto Venture Exchange do make it more difficult for fraud to occur. Canada is also a much smaller investing landscape and most of the time the scam artists are only concerned with the bigger market so once again Canada remains safer than its southern counterpart.

So the Canadian small cap equities market is clearly more appealing than the US for the abundance of natural resources within the borders of this northern country and the security that is present in the equities market they are traded on. Until one of these factors changes, Canadian penny stocks will continue to be an investing segment that is worth paying attention to.