This week’s recap of penny stock ideas brings up an essential foundation in any investment philosophy. And it’s always good to go back to basics even if you’re a seasoned pro. Just like the pros in baseball go for spring training, sometimes we as investors need to go back some basic lessons to keep ourselves grounded. So this foundational lesson is that of diversification.

The three stock ideas posted last week were:
BNT.V – $0.12 – $0.11  -9.0%
SFF.V – $0.50 – $0.55  +9.0%
CGT.V – $0.70 – $0.74  +5.4%

So the end result of this week was two positive performers and one negative one. The power of diversification at work in this case making you profit after one week. In penny stock investing as in investments at large diversification is essential.

It’s sometimes tempting to go “all-in” on a stock and go for the big win but this is rarely the recipe of success in investing and is even less likely to be repeatable. By spreading those investing dollars across multiple stocks in this case you would be able to profit overall even though one of the stocks actually lost value during the course of the week.

Here are a few more penny stocks to take a look at over the next week:
GUL.V – $0.05
AZD.TO – $0.39
UCU.V – $0.91

Some interesting moves in these stocks. UCU is another rare earth stock which has been a general theme here on the Canadian Penny stocks blog. AZD is another stock that’s poised to do well with continued high oil prices. Oil prices should still break through the $100 mark and there are certainly some psychological investors that will be piling in to oil once it breaks through that level so we could see sustained prices for some time at that level. Great news for these types of penny stocks.

Technorati Tags: canadian penny stocks, oil, penny stocks, rare earth