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Canadian Penny Stocks to Watch in 2012

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I found a great resource for penny stocks to watch and thought I would share it with my readers. The original article was for small cap stocks, however since my blog is for penny stocks I removed anything trading over $1 and compiled a nice list of 2012 Canadian penny stocks to watch

Yukon-Nevada Gold Corp. (YNG-T 0.280 ), which has been trading near a year low 23 cents, has announced a revised mineral resource estimate for its wholly-owned Jerritt Canyon operating gold mine in Elko County, Nevada, USA. It said Jerritt Canyon’s measured and indicated mineral resource has increased by 428.8K ounces of gold, representing a 21 per cent increase over year-end 2007 levels.

Petroamerica Oil Corp. (PTA-X 0.10 ), which has been trading near a year low 8 cents, announced preliminary results from the Balay-3 appraisal well that was drilled to evaluate the northern extension of the Balay field in the Balay Block of the Llanos Basin, Colombia.

Sea Dragon Energy Inc. (SDX-X 0.09 ) announced that it has entered into an arm’s length share purchase agreement with Golden Crescent Investments Ltd. whereby an indirect wholly-owned subsidiary of Sea Dragon will acquire all of the issued and outstanding shares of National Petroleum Company Egypt Limited for consideration of $60-million (U.S.) in cash and the issuance of 350,000,000 common shares of Sea Dragon to be issued to Golden Crescent at the closing of the Acquisition, at a deemed price of $0.25 (U.S.) per share, subject to any adjustments made in accordance with the terms of the Purchase Agreement.

Nevada Exploration Inc. (NGE-X 0.07 ) reported that AuRico Gold Inc. (AUQ-T 8.750 ) has received the final drill results from AuRico’s 2011 drilling program and that AuRico has elected to terminate the Exploration and Option to Enter Joint Venture Agreement for the Awakening Gold Project.

Hunter Bay Minerals plc (HBY-X 0.21 ) announced it has identified gold mineralization in soil anomalies at the Sela Creek Project. Over the weekend it announced that it has completed a bulk sampling program of the alluvial tailings located within 14 medium scale prospecting and mining permits in the Mazaruni and Puruni Mining Districts of Guyana.

Score Media Inc. (SCR-T 0.90 ) announced today its financial results for the first quarter ended Nov. 30, 2011. The media company said revenue for the quarter increased by $1.6-million or 14 per cent to $13.4-million compared to the previous year’s $11.8-million. EBITDA, however, fell to $1.9-million from last year’s $2.7-million as a result of a planned increase in expenditures on personnel and technology to support the significant growth in the audience of the company’s digital media platforms.

Management company CVTech Group Inc. (CVT-T 0.970 ) announced today that its energy segment subsidiaries have won contracts with a total value in excess of $38-million. Andre Laramee, CVTech President and Chief Executive Officer, said: “These contracts highlight the expertise of our subsidiaries and their strong relationships with the main players in their target markets.”

Bellhaven Copper & Gold Inc. (BHV-X 0.440 ) today announced the appointment of Mr. Patrick Highsmith to the position of Chief Executive Officer and Director. Mr. Highsmith’s appointment will become effective on Feb. 1, 2012.

Thanks to the globe and mail for this great resource

Technorati Tags: canadian penny stock picks, canadian penny stock to watch, cve, cve stock picks, January 2012 penny stocks to watch, penny stocks picks, tse, tse penny stock picks, tse stock picks

Victory Ventures Inc – Canadian Penny Stock to watch CVE:VVN

Victory Ventures Inc.  (Google Finance CVE:VVN – VVN)- Commencement of trading August 2, 2011 – Gross proceeds received by the Company for its IPO (initial public offering) were $1,050,000 consisting of 7,000,000 units priced at $0.15 per unit, with each unit consisting of one common share and one transferrable common share purchase warrant.

Interesting Points about Victory Ventures

  • A New company, low shares issued & outsatnding (15.7M)
  • a low trading price 0.06-0.07
  • New property next to a massive copper / gold mine.

VVN Announced the commencement of exploration on its Gold, Silver & Copper Blustry Mountain Property in BC. (Sept 12, 2011) – Announced official trading on the Frankfurt Stock Exchange. (Oct 11, 2011) – The Blustry Mountain property is a 43-101 compliant epithermal gold-silver prospect, with vein or replacement style mineralization, situated approximately 10 kilometers east of the town of Lillooet, BC. The property comprises 22 mineral claims covering 9,404 hectares, and includes a known epithermal gold-silver target called the Top Hat Showing. – Past exploration on the Blustery Mtn. included soil and rock geochemistry, and an Induced Polarization (IP) survey in the Top Hat Showing area.

 Victory Ventures Acquires New Gold & Copper Properties (Dec 14, 2011)

The Copau Gold & Copper properties are approximately 11 kilometers to the south of Imperial Metals Corporation’s Red Chris copper deposit. Imperial Metals is working towards development of a 30,000 ton per day open pit mine.

Red Chris Mine – Imperial Metals Corp. http://www.imperialmetals.com

  • Reserves of over 300 million tonnes grading 0.359% copper and 0.274 g/t gold provide for a 28 year project life at a milling rate of 30,000 tonnes per day.
  • The Red Chris ore body is exposed at surface resulting in a comparatively limited pre production phase.
  • Recovered metal in concentrate would total 2.08 billion lbs copper and 1.324 million oz gold.

Quick Facts about Victory Ventures

Victory’s Copau properties are crossed by a main gravel road extending eastward toward the old BC rail line.

Mapping by the BC Geological Survey in 1994 led to the discovery of the B31 copper showing, in which magnetite, chalcopyrite and lesser pyrite occur in proximity to fractures and cataclastic microstructures within a small syenitic stock.

A magnetometer survey outlined a prominent magnetic anomaly trending northwestward from the showing.

The property, which has not been drilled, is prospective for:  Alakalic copper gold porphyry, or Skarn hosted copper gold mineralization.

An exploration and drilling program is expected in spring of 2012.

Shares I/O -15,760,000

52 wk Hi – Lo 0.17 – 0.06

Symbol: VVN.V

Website: http://www.victoryventures.ca

Technorati Tags: canadian copper penny stocks, canadian penny stock, copper penny stock, victory ventures, vvn

“The Best Global Broker Award 2011” and “The Best Forex Broker in the Middle East, 2011 IBTIMES Trading Awards”.

1) Where is the Head office: London, United Kingdom
2) What is the minimum deposit? $50
3) What is the maximum leverage? 1:300
4) What is the spread on EUR/USD? 2 pips
5) What deposit and withdrawal methods you accept?
The deposit methods are Credit Card, PayPal, Wire Transfer and ePayment.In case of withdraw fund from your account the withdrawal amount will go to the deposit source.


Regulation:
FSA License No.: 186171, DFSA License No.: F000048, SFC License No.: AAD534, HKEx Broker No.: 0180, 0181, 0188, 0189, Henyep is a member firm of Hong Kong’s Chinese Gold and Silver Exchange Society.

To open a live account visit this link

To open a demo account visit this link

HYM Review

HY Markets has its global headquarters in London and is authorized and regulated by the Financial Services Authority of the United Kingdom. The Group has over 30 years of operational history and is the trading platform of choice for investors seeking fast and direct access to the world’s capital markets.

This long-standing expertise has enabled us to develop our revolutionary web-based Internet trading platform, which enables clients to invest in all major capital markets from one integrated account in an easy-to-use interface.

HY Markets is a division of the Henyep Group, a global diversified conglomerate with business in financial services, property, education, and charity spanning 3 continents and 20 countries worldwide. The Henyep Group of companies are registered and authorized in world-leading jurisdictions including London, United Arab Emirates, and Hong Kong. This provides clients with the comfort and security of a global institution.

HY Markets provides investors with efficient and direct access to all their trading needs. Start trading with the security of an FSA regulated company”.

~HY Markets website

The top benefits trading with HY Markets:

HY Markets is authorized and regulated by FSA of the United Kingdom. HY Markets offers transparency and security of the world’s leading financial centers. Moreover, HY Markets has a long history, more than 25 years.

HY Markets offers easy account opening procedure. You can start trading with just $50 in few minutes and fund account with credit card. HY Markets offers Multiple Trading Platforms: revolutionary web-based trading platform – does not require program downloading and can be used from anywhere with Internet connection. In addition, award-winning download platform with advanced charting and technical analysis tools. Lately, HY Markets introduced HY Markets MT Mobile. It is integrated with MT4 account, works on iPhone, iPad, BlackBerry and Android. You can experience live prices, trade execution, charts, online account monitoring and more.

HY Markets introduces complete product offering. You can trade Forex, oil/gas, metals, commodities, indices and stocks with up to 400:1 leverage.

HY Markets offers personalized customer support. 24 hours support by phone, email and chat, experienced support desk in local languages, personal VIP services.

Any trader can find a suitable account type. HY Markets has MINI account where you can start trading with $50 or more; up to 300:1 leverage; 1/50 premium contract; 4 pips spread.

Standard account: start trading with $750 and up; up to 300:1 leverage; 1/10 premium contract; 3 pips spread.

Premium account: start trading with $2,500 and up; up to 300:1 leverage; regular contract size; 2 pips spread.


HY Markets offers customized accounts and Islamic accounts to meet the demanding needs of all investors. Such service includes tailor-made accounts customized to individuals’ needs, personal dealers, and dedicated account executives.

HY markets provide investing education. You will learn about all the products (Forex, oil/gas, metals, commodities, indices and stocks). Moreover, you will learn all about trading basics: margin trading, order types and account information. Furthermore, you can learn how to use charts and statistics to make investment decisions.

You may also receive daily updates on all major capital markets to stay on the top of the investment decision.

At HY Markets you can learn the ability to forecast Forex movements by analyzing: economic data, announcements, news and macroeconomic factors.

Canadian Platinum Corp. (CPC.V) – newest platinum discovery

Canadian Platinum has the world’s newest significant platinum discovery. The demand for platinum group metals is forecast to grow.

About CEO Todd Montgomery

Management is led by CEO Todd Montgomery, has an outstanding success rate in the junior mining industry. Mr. Montgomery was the discoverer of Anglo Potash in Saskatchewan, which was bought out for $8.75 a share by mining giant BHP Billiton.

Mr. Montgomery, has had huge success in the province of Saskatchewan. He founded CanWest Petroleum oil sands project and it traded over $8.00 a share. South Africa, the largest producer of Platinum Group Metals is becoming more politically unstable with each passing day resulting in less production.

Saskatchewan is one of the most stable mining environments in the world. Saskatchewan’s Swan Lake Complex is the world’s largest `Bushveld` South Africa like complex. Ultramafic rock is the host rock for Platinum Group Metals. The Swan Lake Complex is North America’s largest Ultramafic complex.

Canadian Platinum has one of the largest land positions for the exploration of Platinum Group Metals with 600,000 ha of mineral properties (all 100%  owned).

The Swan Lake complex in Saskatchewan is the largest ultramafic complex in North America according to the Canadian Geological Society.
5 core drill programs completed for 13,350 meters over 43 holes

Announced a winter 2012 drill program on the Swan Lake project which is anticipated to include 3,000-6,000 meters of diamond drilling to test the recent new EM targets.

A 1,000 meter reconnaissance drill program is currently underway on the South Project to test certain high priority EM anomalies.

NI 43-101 compliant properties

$6M in exploration completed to date

$3M in cash

Quick Investor Information About Canadian Platinum Corp

  1. Canadian Platinum has Canada and the World’s newest significant platinum discovery.
  2. Saskatchewan is one of the most stable mining environments in the world.
  3. The Swan Lake Complex is the world’s largest unexplored ‘Bushveld’ South African like complex.
  4. Ultramafic rock is the host rock for platinum group metals. The Swan Lake Complex is North America’s largest ultramafic complex.
  5. Management has a great track record of new discovery prospects.
  6. Management was the founders of Anglo Potash.
  7. Management represented the first junior potash project in Saskatchewan (Anglo Potash).
  8. Anglo Potash signed a deal with BHP as a partner in 2006.
  9. Anglo Potash was bought out for $ 284 million in 2008.
  10. BHP is developing the world’s largest potash mine on Anglo Potash’s Jansen Lake site.
  11. “Saskatchewan has some of the best platinum group occurrences in Canada if not the world” – from the Geological Survey of Canada.
  12. South African production of platinum group metals is becoming more unstable and unreliable with every passing day.
  13. Over 76% of the world’s platinum group metals come from South Africa with the current and real threat of nationalization looming.
  14. Demand for platinum group metals is forecast to grow as the auto catalyst and jewelry markets expand in India and China (catalytic converters are used to reduce CO2 emissions in vehicles).

For more information about the company please visit http://canadianplatinumcorp.com

To see the stock chart visit the company page on the TSX website CPC.V

 

Technorati Tags: canadian platinum stock, canadian platinum stocks, small cap platinum stocks

Gold Stocks Continue to Make Gains – PMV appears strong

With the gold stocks continuing to show strength it may be a good time to look at some junior positions in small cap gold stocks. If you are a penny stock investor I am sure you know that the gold mines are a dime a dozen, but also some of the most exciting stocks to own. Take Centerra Gold for example CG ,during the recession it traded as low as $1.27 per stock but is currently trading at $21.25. You don’t want to miss opportunities like that!.

PMI GOLDPMV – PMI Gold made big news just a few weeks ago surging 60% in one day when they announced that they had found more gold than expected.

“TORONTO (SHfn) – PMI Gold (TSX: V.PMV, ) shares powered 60% higher to 93 cents on Friday after the gold junior announced a 270% increase in the NI 43-101 gold resources for its flagship Obotan Gold Project in Ghana, West Africa, to 1.22 million ounces Measured, 2.00 million ounces Indicated, and 1.29 million ounces Inferred. The company added that this paves the way for completion of a Pre-Feasibility Study on a gold mine development by the end of this year.”

Looking at their chart they have had a continuous rise (with a few spikes) over the last year.

B2GOLDBTO  – While not quite a penny stock this one is trading around $3.85 and looks like a great investment for anyone who reads charts. Check the trend for the last few years and it is NOTHING but up with this stock going from .35 to $3.85 in a couple of years.

shares of Kilo Goldmines (TSX: V.KGL,) rose 19% to 19 cents as the micro cap explorer reported results from four diamond drill holes and four trenches on its Canal Prospect, Somituri Project in Democratic Republic of Congo, which included 7.71 grams per tonne (g/t) gold over 12.6 metres.

Technorati Tags: b2gold, bto, canadian gold penny stocks, canadian gold stocks, canadian penny stocks gold, gold penny stocks canada, PMV, small cap gold stocks canada

Ucore Rare Metals CVE:UCU is spiking unexpectedly today

To the surprise of many penny stock investors the stock UCU or Ucore Rare metals is spiking, going from 50 cents to 56 cents in just a few hours. That is a one day gain of 13% so far.

Recent news from Market Watch suggests that Ucore was in the Chinese spotlight as they clamped down on the production of rare earth metals (essential to the production of electronics)

“NEW YORK, NY, Oct 12, 2011 (MARKETWIRE via COMTEX) — Demand for rare earth elements continues to skyrocket as the metals play an integral role in modern technology. It is estimated that China holds about 30 percent of the world’s rare earth deposits, but accounts for over 95 percent of global production. With prices for the elements surging higher, explorers worldwide are finally trying to cash in on this lucrative sector. The Paragon Report examines investing opportunities in the Rare Earth Industry and provides equity research on Lynas Corporation Limited (pinksheets:LYSCF) (asx:LYC) and Ucore Rare Metals, Inc. CA:UCU +9.09% (pinksheets:UURAF). Access to the full company reports can be found at:

http://www.paragonreport.com/LYSCF www.paragonreport.com/UCU

Ucore Rare Metals Description

Ucore Rare Metals Inc. (Ucore), formerly Ucore Uranium Inc., is a junior exploration company. The Company focuses its exploration activities on its Bokan Mountain/Dotson Ridge property in Alaska. Ucore owns a 100% interest in 422 claims at Bokan Mountain/Dotson Ridge. The Lost Pond uranium and rare earth element (REE) property is located near the province’s west coast. Ucore holds a 100% interest in the Sandybeach Lake property, located in southwestern Nunavut. In addition to the Lost Pond property, Ucore holds a portfolio of uranium properties. Its wholly owned subsidiaries include Ucore Resources LP (NS) Inc., Rare Earth One LLC (AK), Mineral Solutions LLC (AK), Landmark Alaska Limited Partnership (AK), Landmark Minerals Inc., 5621 N.W.T. Ltd. and Landmark Minerals US.

Learn more about Ucore Metals on their Google Finance page – Ucore Metals

Technorati Tags: canadian uranium penny stock, CVE:UCU, rare earth metal penny stock, ucore metals, ucore metals inc, UCU, UCU tsx, uranium penny stock

Hot Penny Stock CB Gold Inc – October 2011

Over the last 5 days CB gold, or CBJ on the TSX is up 104% CB Gold Inc. is engaged in the business of mineral exploration in Colombia, South America. For those of you who like Penny stock investing this is a very interesting play. The most recent news from CB Gold is positive

CB Gold Announces $11 Million Non-Brokered Private Placement
CB Gold Inc. (TSX-V: CBJ) (“CB Gold” or the “Company”) announces that it has arranged for a non-brokered private placement of 10,000,000 units (the “Units”) at a price of Cdn$1.10 per Unit

The Company has agreed to pay a finders’ fee of Cdn$330,000, payable in common shares of the Company to be issued at market price at the date of closing of the private placement.

CB Gold intends to use the proceeds from the private placement to fund exploration and development at the Company’s Colombian properties, working capital and general corporate purposes.

“We are very pleased to announce this financing and strengthen our relationship with Lumina, a group with a very successful track-record, such as their investment in near-by Ventana Gold. This transaction is extremely positive for the Company moving forward, and will allow us to continue expanding the newly discovered high-grade zone at Real Minera” commented Fabio Capponi, CB Gold’s CEO.

CB Gold Company Description

CB Gold Inc. is engaged in the business of mineral exploration in Colombia, South America. CB Gold has one wholly owned subsidiary, Cedar Business Investment Ltd. (Cedar), and Cedar has one wholly owned subsidiary, Leyhat Corporation (Leyhat). Both Cedar and Leyhat were acquired by CB Gold on July 20, 2009. Leyhat has one branch in Colombia, Leyhat Colombia Sucursal, which holds its interest in the Norte de Santander Gold Project and the Vetas Gold Project. The Norte de Santander Gold Project and the Vetas Gold Project are referred to as the Colombia Projects. As of December 31, 2010, it held the rights to explore and develop two exploration properties in Colombia totalling approximately 62,000 hectares. On October 28, 2010, CB Gold and First Source Resources Inc. completed the Amalgamation. In connection with the Amalgamation, CB Gold Inc., the predecessor company (Private CB Gold), and First Source ceased to exist and the amalgamated company continued under the name CB Gold Inc.

Learn more about CB Gold on the Google Finance page

Technorati Tags: cb gold, cbj, tse:cbj, tsx penny stock

TSX Penny Stocks on the rise

I have noticed a few of the penny stocks that I have been watching are making big moves. Now that the threat of the European banks is being addressed I think more investors are putting more confidence in penny stocks and taking some bigger gambles. I have seen GREAT returns in a lot of the investments I made on some large cap stocks but I will share that in my new Canadian high Dividend stocks section. Lets get to those hot penny stocks

TSX Penny Stocks to watch October and November 2011

Yellow Media

YLO – This stock has been soaring lately and I nearly picked it right at the bottom! If you don’t know Yellow Media here is a bit of information about them “is a media and marketing solutions company through its network of companies that include Yellow Pages Group (YPG), Trader Corporation (Trader) and Canpages Inc. (Canpages). YPG is Canada’s media and marketing solutions company, serving Canadian businesses and consumers nationwide”

Current price: $0.54
Where I bought: $0.18
Amount purchased: $300

When it comes to investing in penny stocks I don’t like to put in more than $300 because of the risk, ESPECIALLY with a company like Yellow Media. This is a stock that went from $6 to under 15 cents in less than a year and I truly believed they were going to ZERO. I put in $300 and it’s just about up to $1000 now.

If you are going long on this stock do your research, there could still be some money to be made on the short side though.

Uranium One

UUU – This is a Uranium stock that was getting hit because of the low markets, and the commodities / metals getting beat up. I always like to buy when a stock is down in a double whammy situation, but they are still a good company. I didn’t buy any UUU but I picked up some copper stocks at $20 and they are already up to $30. UUU is up 22% in the last month! I think there is still lots of room for them to go up.

“Uranium One Inc., along with its subsidiaries, is engaged in the acquisition, exploration and development of properties for the production of uranium in Kazakhstan, the United States, Australia and Canada. It owns a 70% interest in the Akdala and South Inkai Uranium Mines in Kazakhstan. It holds a 50% interest in the Karatau joint venture, which owns Karatau uranium mine in Kazakhstan, 49.67% interest in the Zarechnoye joint venture, which owns Zarechnoye uranium mine in Kazakhstan, and a 30% interest in Kyzylkum joint venture. It owns a 51% interest in the Honeymoon Uranium Project in Australia”

Current price: $2.90

 


Technorati Tags: canadian penny stock picks, penny stock picks, tsx penny stocks

Should You Be Building A Portfolio Of Penny Stocks?

For most investors out there penny stocks are usually a long shot taking up a small percentage of their portfolios while there are others who are swinging for the fences and fully invested in the grandslam wealth creation approach. I’m not judging you on where you’re at; everyone has their own level of risk tolerance. But if you have any penny stocks at all, have you considered them as a portfolio?

The Portfolio Approach.
In a general investing sense you would be diversified, so why not do the same in penny stocks. It’s a great way to spread your risk across different industries, stages of companies, and timeframes.

All of the same rules for picking larger companies still apply to picking the smaller market cap ones too. There are a few more things to consider when you’re dealing with riskier decisions though, but a key investing tennet is diversification through portfolio building and as such it’s worth considering.

Need to learn more? Read about picking profitable penny stocks

Margin Account Investing: Profiting With Other People’s Money

We’re digging into the CPS archives to bring back a few posts that you might have missed. These archives are ones that have been particularly popular. Hope you enjoy.

Margin account investing is a great way to really amp up the earnings of your portfolio without actually having to put more of your own money in.  You can borrow up to 70% of the value of an investing in a stock which means you only need to put up 30 cents on the dollar.  Of course there is added risk that naturally comes along with added reward but if you’re interest is piqued read the following on Margin Accounts.

What Is A Margin Account?

Margin accounts are setup to allow clients to buy and sell stocks on credit and requires them to pay part of the full transaction price.  The brokerage firm the client uses lends the remaining capital to the client and charges interest on the loan to the client.  The client is expecting to make much more money than the interest charged out on it, and therefore a little interest is not a deterrent for the added service the firm provides.

The word margin itself refers to the amount of money that the client herself has to put up.  The remaining amount is the loan provided by the brokerage firm.  There are two types of margin positions that can be taken by an investor; long margin positions and short margin positions.

Margin Positions

A long margin position is when the investor buys a stock using only a portion of their own money and borrowing the remaining amount from the broker.  There are specific levels of money that a brokerage firm is willing to loan out which is based on the selling price of the security.  Each quarter there is a document produced that lists the stock eligible for reduced margin.  These are generally stocks that have less risk and very liquid as such, they require you to only put up 30% of the total investment.  The following is a list of those percentages:

Stock Price Maximum Loan Value
Reduced Margin Stock 70% loan
$2.00 and above 50% loan
$1.75 to $1.99 40% loan
$1.50 to $1.74 20% loan
$1.49 and below No loan

Taking a short position in a stock is selling a position in a stock that you don’t currently own.  This type of transaction is executed on the belief that the price of a stock is going to fall.  The terms of margin are the opposite when taking a short margin position because you are actually lending money to the brokerage firm because you technically sold a stock to them and they are paying you the proceeds.  To cover the risk in this situation though the client must put up more than the total value of the short sale.  The following is a list of the maximum loan values for short positions:

Stock Price Maximum Loan Value
Reduced Margin Stock 130% loan
$2.00 and above 150% loan
$1.50 to $1.99 $3 per share
$0.25 to $1.49 200% loan
$0.24 and below 100% loan + $0.25 per share

Margin Call

When the margined stock is purchased the account must maintain sufficient funds to cover the position value. The brokerage firm lends you money but you are also provided with the stock so the full value of the investment is contained within your portfolio.  However if the price of the stock goes down your investment total will be less than the loan amount.  In this case a margin call will be triggered.

Example Of A Margin Call

Client A would like to buy 100 share of OPC.TO at $2.87
Total Cost of Shares $287.00
Maximum Loan (50% * $2.87) - $143.50
Total Margin $143.50
…time passes and share drop to $1.83
Original Total Cost $287.00
Revised Maximum Loan (40% * $1.83) - $ 73.20
New Margin Requirement $213.18
Original Margin Amount - $143.50
Margin Call Amount $ 70.30

In the example shown above you would need to fund the account with an additional $70.30 immediately or have the position liquidated automatically by the brokerage firm.  That’s not something you want to have happen so it’s important to keep a good amount of money in your margin account and try not to come too close to the limits.

Using other peoples’ money to invest can lead to a rapid increase in profits but comes at an increased risk.  When using leverage always take care ensuring that your account won’t come anywhere near a margin call.  That type of situation could result in significant losses as the use of leverage amplifies the loss.  Although many penny stocks don’t use margin, there are still some junior companies that would be eligible in the sub $5 range that could be traded in a margin account.