Although we prefer to tell you about the best penny stocks, we just had to tell you about this strange penny stock: Motors Liquidation Corp (MTLQQ).

Here's the strange story behind this penny stock: General Motors (yes THE General Motors) filed for bankruptcy about this time last year. In what was basically a big bunch of corporate paper and red tape being pushed around, the General Motors was bought by a company called NGMCO (an acronym for "New General Motors Company") which then immediately changed its name to General Motors Company.

In yesterday's blog post we talked about market capitalization, a valuation metric investors use which is determined by multiplying a stock price time the number of shares.

In yesterday's post we identified the four kinds companies based on market capitalization. There are the "high market cap" companies with high prices and a lot of shares; there are the "medium market cap" companies with either high prices and few shares or low prices and a lot of shares; and there are the "low market cap" companies with few shares and a low price.

Market capitalization – frequently called "market cap" – is a way that investors can quickly value a company. It is calculated with only two factors: The number of outstanding penny stocks shares multiplied by the price of those shares.

In a previous blog post we highlighted the oil spill in the Gulf of Mexico and discussed three possible applications for your portfolio. Here's another interesting oil-spill-related investing opportunity for you to consider.

When investors look for penny stocks to buy, they're obviously looking for the best penny stocks that are most likely to increase in price within the timeframe that the investor is hoping to profit within. But how can someone trading penny stocks ever really know what will do well in any given period?

One way to find cheap penny stocks that can turn into remarkably great penny stock picks is to watch for penny stocks companies that are targets for acquisition. Consider a business timeline to see what I mean:

In looking for the best penny stocks, it's sometimes easy for investors to find great penny stocks that meet some kind of "sexy" qualification: They are in a hot industry like biotech or green energy, which people absolutely love and buy like crazy. It's a flavor of the month situation. Penny stocks investors can profit from that, of course, but it means that many penny stocks investors over look other penny stocks that could be really good but lack the eye-catching quality.

Penny stocks traders will argue forever about whether fundamental analysis or technical analysis is the way to find the best penny stocks.

We've asserted in a previous blog post that you can do both. Unfortunately, new traders who hear the words "penny stocks analysis" tend to run the other way because it sounds boring; like being locked in a library. However, penny stocks analysis doesn't have to be boring. The secret is to get a system to help you analyze penny stocks. Creating and implementing a system will make your penny stocks analysis go blazingly fast.

Gather any group of people together and you will get a debate about something! Political enthusiasts will debate from liberal or conservative viewpoints. Muscle car owners might debate the worth of GM versus Ford versus Dodge. And penny stocks enthusiasts will debate whether or not the best way to do research prior to trading penny stocks is through either fundamental analysis or technical analysis.

Which penny stocks research method should you choose?

Whenever you get a group of people together who have a similar interest, conflict invariably arises over methodology and technique. Put a bunch of fishing enthusiasts into a room and you're going to get discussions of which kinds of lures to use. Put a bunch of penny stocks enthusiasts into a room and you're going to get discussions about whether fundamentals or technicals are the prefer choice to influence trading penny stocks.

Penny Stocks Fundamentals

If you are thinking about trading penny stocks, you have a few different ways to play the market. In general, though, think of it as two different ways:

Long term penny stocks portfolio: This is a buy-and-hold system. You expect the penny stocks you're invested in to rise over time and you tend to ignore the fluctuations on the way. Your timeline to cash out might be one or more years. This method is popular among blue chip stock holders but those who buy penny stocks will find it helpful to.