Welcome to SuperHotPennyStocks!

For years, investors have utilized savvy techniques that scan for stocks which have generated above average returns. Some would even say the gains are "mind boggling."

Yet, traders utilize these same techniques today to maintain consistently high returns that have increased their investment porfolio year-after-year-after-year!

I also use some of these techniques when presenting our subscribers with news and information about companies which show strong potential to rise. Some of our previous picks had risen 17%... 25%... even over 100% after our subscribers were alerted!

Just look at the profit position traders could have been put into on KCMH...

You see, many savvy traders know that unconventional investments are what create staggering profit growth. Those investors who have been mentored by ultra experienced traders have been outperforming the market for years. And making massive returns doing it.

Purchasing CD's and bonds is fine. You can certainly generate a slight increase in your portfolio.

But let's face it. ‘Special Situation Stocks' are where real gains are created.

And that's what I focus on…SPECIAL SITUATION STOCKS that meet specific criteria in which investors could make tremendous returns.

The bottom line is this: If my criteria for a Special Situation Stock is met…and after I've done my due diligence on all of the factors that I normally check for…then the stocks I pick could reap explosive returns to my members!

And I've picked stocks that have cracked 100%... 200%... even 650% gains!

So let's start by detailing how I operate…

My Secret Formula For Picking ‘Special Situation Stocks' that Could Break the Bank

FIRST, I do a standard check of the downside risk on all of the stocks I'm considering. That entails reviewing the bid support levels, share structure, filings, potential legal issues, etc.

Because - like in sports - the best offense is a great defense. Why do you think some of the most successful athletes and coaches preach how “defense wins championships”?

Which is why I literally spend hours, days, sometimes weeks researching aspects that could cause a stock to drop. Because in this game, you cannot risk more than you can afford to lose. But I only intend on introducing picks that provide profit opportunities…so let's move forward…

SECOND, I look at what elements of the stock could make it double, triple, quadruple or even provide ten-fold returns. Not that every stock is going to hit those numbers. But if the positive aspects of a stock don't appear to have the strength to double in value then, quite frankly, it's not good enough for me to pick.

It's just that simple.

Well, kind of…

You see, there are several specific commonalities that I've witnessed that are precedents to many of these explosive stocks. These ‘Surge Factors', as I call them, aren't always simultaneously present, but they are consistent with what I've found in stocks that spiral upwards!

Top 7 Factors I Look For in a Penny Stock

Number 1: Proprietary Technology, Product or Service. Some companies have unique, one-of-a-kind and patented, or patent pending product/service that are a dramatic improvement over the competition. That can be a catalyst for dramatic sales growth. And a dramatic growth in sales often spells a dramatic growth in share price. Then POW!…a stock makes a whopping upward surge and early entrants bank.

Number 2: Solid Growth Potential. Like I just mentioned…a spike in sales could lead to a spike in share price. One of the most important developments traders react to is the announcement of a revenue based milestone. For example, the signing a major distribution agreement; a major increase in sales; the acquisition of another business entity, and; . Countless times announcements such as these have proven to be the spring board for other investors to drive the stock to higher levels…leaving initial investors a wind fall of profits.

Number 3: Stock is Trading At a Base. Often times, a stock is trading at low levels and many indicators are signaling a “sell.” But what if the stock is barely even trading…there has been little to no news released…the stock has done a reverse split (another catalyst I will discuss further)…and it happens to be at a low? Many early investors could have sold out, paving the way for another uptick. For example, if a stock was trading at $1.00 and sold off to $0.10 and is now only lightly trading, it could be in a position to make such a run, especially if it announces a large increase in sales. If it should retrace to $.20 that's a 100% increase. And should it retrace and test its original price before falling off the cliff, then CONGRATULATIONS! You've just hit a ten-bagger!

Rest assured, stocks in good companies will turn back up, the Bull will charge again, and perhaps this is the best investing scenario since the early 80's.  It is happening now and savvy traders are scanning for these opportunities, then positioning for the run.

Number 4: The Lower the Stock Price -> The Bigger the Upside Potential. Based upon experience, I agree with the philosophy that says, “it's easier for a stock to move from $0.10 to $1.00 compared to moving from $10 to $100.” Even though each scenario provides 1000% returns, the amount of dollar volume and investor awareness that would normally cause a stock to trade from $10 to $100 would be significantly higher. Low priced stocks can provide mega returns for traders!

Number 5: Positive News Announcements. When a company is releasing news, it's an indication that they're on the move. Multiple news announcements are a tell tale sign that management is burning the midnight oil, outworking the competition and showing that they are more hungry then the guy next door to meet and beat the markets expectations. And when news keeps coming out and expectations are beat…traders start buzzing and the stock price typically increases.

Number 6: Small Float. This is a no-brainer folks. The smaller the float, the fewer shares that are in the way to block a stock's upward charge. In fact, this could be the #1 most important factor in determining the profit potential of a stock. I love low floaters!!

Number 7: Recent Reverse Split. This is actually very closely related to Reason #6. Why? Well, if a Company reverses their stock then they've reduced the number of shares that investors are holding. And that leads to a massive decrease in the float…and a “new beginning” in the life of a stock. I've seen plenty of Bull Runs in stocks whose shares were reversed and the wall of sellers gets wiped out. With the right combination of the factors mentioned above, a company's share price can SKYROCKET!

What it All Comes Down to…

With all that being said, ultimately My Secret Formula is that the upside potential must exceed the downside potential…and be in a position to double in order for me to believe in the stock.

Because I know that not every one is going to hit that level of return…but if it doesn't, then it should at least make a strong enough move upward to provide investors the opportunity to make substantially solid returns.

Otherwise, I'm not doing my job. And my job is to put investors in the position to make money. BIG MONEY.

So, finally – after I've identified a potential blockbuster super hot penny stock – and it meets some or all of the factors I've mentioned above - I detail why I think the stock is super hot and could blow through the roof!

And you make the decision whether you want to sit on the sidelines…or play the game that the wealthy play.

But remember... penny stocks can absolutely explode out of the gates and generate mega-massive returns over 1000%... and just as quickly they can drop like a hot potato.

There are massive returns investors can make in this game. And that's what I aim to introduce you to.

So, sign up for my free newsletter that identifies super hot penny stocks picks that are poised to pop off like a champagne cork on New Years Eve!