Navigating Penny Stocks

By Chad McMillan

Unlock the potential of penny stocks with Chad McMillan, seasoned senior executive and strategic advisor with over 20 years experience in and around the capital markets and penny stock companies. Through personal anecdotes, strategic insights, and clear explanation, McMillan shares his extensive knowledge of key principles, strategies, and catalysts that he has seen grow many of the best performing penny stocks in his career. Whether you aim to profit from investing or better understand the inner workings of penny stocks from a c-suite perspective, this book is an essential resource in helping you achieve these goals.

• Language: English
• Publisher: Chad McMillan
• Release date: Jun 12, 2024
• ISBN: 9781777690168

Book preview

Navigating Penny Stocks

CHAD MCMILLAN

Navigating Penny Stocks

Chad McMillan

Vancouver, Canada

chadmc.com

Navigating Penny Stocks © 2024 Chad McMillan

All rights reserved. No part of this book may be used or reproduced in any manner without written permission from the author, except for the inclusion of brief quotations in a review.

ISBN: 978-1-7776901-6-8

DISCLAIMER

This document is for informational purposes only and is based on years of the author’s experience working with and building companies of this nature.  Chad McMillan, nor his companies are registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.

Penny stocks are subject to potentially high price volatility, and other performance risks such as access to working capital and project implementation, results, and otherwise general target market acceptance.  Investing in penny stocks is not for everyone.  Chad McMillan nor his companies cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing.

Chad McMillan and his companies accept no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Thoughts, Opinions, and Insights Expressed Herein are my Own.

* * *

Dedicated to my father, who now retired, was in finance a long time and with whom I’ve long enjoyed talking and strategizing about the markets nearly every day.

Also dedicated to my late friend and business associate Ryan Fletcher. You were one of the good ones buddy, an up and coming wizard of the penny stock world.

* * *

TABLE OF CONTENTS

I. FOREWORD

II. WHAT ARE PENNY STOCKS?

III. WHAT YOU NEED TO GET STARTED

IV. WHERE CAN I FIND PENNY STOCKS?

V. THE PURPOSE OF PENNY STOCKS

VI. THE POTENTIAL OF PENNY STOCKS

VII. HOW DO PENNY STOCKS WORK?

VIII. A +1000% RETURN PENNY STOCK

IX. KEY PENNY STOCK TERMS

Public Company

Penny Stock

Nano Cap Stock

Micro Cap Stock

Small Cap Stock

Bid

Ask

Level 2

Volume

Shells/Shell Companies/Vehicles

Recapitalizations/Recaps

Reverse Takeover / RTO

Bought Deal Financing

Roll Back

Forward Split

Arranged a Financing

Option Agreement

Joint Venture

Acquisition

Merger

Change of Control

IPO

Insider Trading

X. EVALUATING PENNY STOCKS

XI. MY EVALUATION CATEGORIES

Sector

Share Structure

My Share Structure Matrix

Management

Treasury

Ownership

Project

Deal Structure

Blue Sky Potential

Timing

Catalysts

Promotion

Endorsements

Comparables

Trends

Cycle

Positioning

Area plays

Downside Risk Mitigation

Psychology

Intuition

XII. PENNY STOCK LIFE CYCLE

XIII. THE PENNY STOCK POWER SCALE

XIV. PERFECT PENNY STOCK PROFILE

XV. KEY CATALYSTS & MILESTONES

Recapitalizations

Material News Releases

New Management

Seasonality

Financings

Positioning Rounds

Warrants and Options

Warrant Acceleration

Bought Deals

Strategic Partnerships

Acquisitions

Technical Indicators & Breakouts

Project Results

Hostile Takeovers

Friendly Takeovers

XVI. BUILDING A NEWCO

XVII. PENNY STOCKS RESOURCES

News Sources/Company Tracking

Discount/DIY Brokerages

Stock Screeners to Find Stocks

News and Promotions Platforms

Discussion Forums

Social Media Channels

My Trading & Investing Tool Stack

XVIII. GETTING INVOLVED

XVIV. FINAL THOUGHTS

DUE DILIGENCE QUESTIONNAIRE

DUE DILIGENCE SCORECARD

* * *

Penny stocks can and do generate over 1000% returns, and I should know, I’ve both built and invested in companies that have. 

This is my method.

Chad McMillan

* *

I.

FOREWORD

Penny Stocks can make you (and I) a lot of money.

I often hear conservative minded market pundits shun the ‘penny stock,’ the Micro Cap or the Small Cap stock as precariously risky - the eyes wide open deer in headlights kind of risky - but I don’t as often hear the other narrative; of the visionary start-up minded entrepreneurs who build these kinds of startup public companies and who have made millions upon millions of dollars in the process.

The truth is, many haven’t been on the inside of these companies.  Many simply don’t understand how they are built, how these deals are structured, the lifecycle of a small cap venture, and where the windows of opportunity to make money