Where’d you find your last slam-dunk stock?

Sometimes it seems like looking for investment ideas can be the toughest part of the investing game. After all, there are tens of thousands of stocks out there — way too many to consider one by one. If you’re in need of a good pick, where should you turn? Well, for starters, this list of Five Places to Get Stellar Investment Ideas should help you out quite a bit…

5. Stock Screeners

Stock screeners are one of my favorite ways to cut through the fluff in today’s stock market. It’s easy to find a great product or service, but all too often a company’s shoddy fundamentals ruin its prospects as a good investment.

Stock screeners let you focus on what’s important to you — like P/E ratio, net income, or gross margins — and screen out the stuff that doesn’t make the cut. The best part about running stock screens is the fact that they’re free to do…just about any big investing news site has free screens you can run to find the best the market has to offer. And if you have an online broker, chances are they’ve got screening tools too.

4. Your Household

This might come as a surprise, but your home may actually hold some of your best investing prospects. That’s because it’s chock full of the products and services you use every day…products and services that can spell the difference between profitability and failure for scores of companies around the world.

I can’t count the number of times I’ve stumbled across awesome investment opportunities that were right under my nose.

If you want to harness your insider knowledge to find the next stellar stock, think about the products you love and the trends you see emerging. In other words, if you’ve just found a clothing brand or website that you can’t stop talking about see if there’s a way to turn it into an investment play.

3. Investing Websites

While this one should come as no surprise to Penny Sleuth readers, investing websites can offer tons of good investing ideas. Were you with us a few months back when we talked about a Chinese financial play just weeks before it rocketed 45%?

Big financial news sites push out dozens of articles every day talking about the next big things…all you have to do is log on and look out.

But be wary when you look for investment ideas on the net, especially when you’re trying to find the next big penny stock play; message boards and SPAM emails are a not too subtle reminder that some sources are better than others. And remember, no matter where you find your investment ideas, do your due diligence before you make a trade.

2. Popular Media

Would you believe that popular media is good for something after all? Well, when it comes to investing, TV, magazines, and newspapers shouldn’t be forgotten. In today’s hype-driven market, catching a media trend first can be your ticket to massive gains.

Imagine taking a bite of Crocs (CROX) before the sandals became a pop culture phenomenon…just one example of a stock you could have found in the media. And you’d better believe that there are more hype trains fueling up right now.

While this method of finding investment ideas requires a bit more tact and skill, it can lead to a windfall if you play your cards right.

1. Trade Publications

Scouring the trade publications can be a great way to find a new play for your portfolio, especially if you have a particular industry in mind. The trade rags keep in-the-know people abreast of the latest technologies affecting their sectors, and they can help you figure out where your money should be for the future.

Any industry from energy to IT has a handful of trade publications circulating, many for free…

Even though there are more stocks out there than you can shake a stick at, there are plenty of ways to narrow your search for the next penny stock powerhouse.

Cheers,
Jonas Elmerraji
November 14, 2008

Jonas Elmerraji

Jonas Elmerraji is the managing editor of the Penny Sleuth, and an editor of Penny Stock Fortunes. Jonas also occasionally contributes to financial publications like Forbes, TheStreet.com, and Investopedia. He has been quoted as an investment expert in Investor’s Business Daily, Consumers Digest, and MSNBC.com among others. Before joining Agora Financial, Jonas worked at an investment management firm and at a “Big 4″ public accounting firm. He holds a degree in Financial Economics.

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