Verify the evidence
We prioritize direct company releases, SEC filings, government or defense announcements, earnings and financing documents. Confirmed facts are separated from our technical interpretation.
Transparent by design
How PennyWatch evaluates speculative stocks
Our system is designed to surface evidence-led setups while making the failure case visible. It is a repeatable research framework, not a promise of performance.
Measure participation
Price action is assessed alongside volume versus a recent baseline, liquidity and support or resistance. A price move without meaningful participation receives less weight.
Price the risk
Every setup considers dilution, financing, balance-sheet pressure, liquidity and thesis-breaking events. High dilution risk cannot receive an enter classification.
Classify, don’t predict
Each monitored name is classified enter, watch, take profit or exit risk. Conviction measures evidence strength—not the probability of a guaranteed return.
The enter threshold
An enter classification requires every one of these conditions: conviction of at least 70/100, relative volume of at least 1.5×, a specific verified catalyst, verified current data, a defined entry zone and an invalidation price below that zone. High dilution risk is an automatic disqualifier.
What each classification means
- Enter
- All required entry gates are met at the observed price. It remains a high-risk research setup.
- Watch
- Potential exists, but price, volume, evidence quality or risk does not yet justify entry.
- Take profit
- Price has reached or exceeded a research target, or reversal risk makes protecting gains relevant.
- Exit risk
- An invalidation, financing, filing or technical break materially weakens the setup.
PennyWatch excludes OTC-only securities, illiquid shells, stale quotes and obvious promotional patterns whenever identified. Data errors can still occur; always verify sources before acting.
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