@markgadala: This guy literally doubled his...
@markgadala
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Sep 17, 2025
1
This guy literally doubled his savings in just 3 months using ChatGPT to pick penny stocks.
I recreated his entire workflow and will be testing this myself. Full prompt/workflow below:
I recreated his entire workflow and will be testing this myself. Full prompt/workflow below:
2
Before I begin this is NOT financial advice & there's a high risk of losing your money.
Here's the process:
I had ChatGPT create 2 structured prompts, 1 for identifying 5 stocks & another for analyzing those 5 stocks. I will run ~50 stocks through this process & buy the top 5
Here's the process:
I had ChatGPT create 2 structured prompts, 1 for identifying 5 stocks & another for analyzing those 5 stocks. I will run ~50 stocks through this process & buy the top 5
3
Prompt #1 - This prompt will focus on identifying, screening, and justifying the selection of the 5 candidates that have the highest probability of producing a 10× return in 7–10 years, based on publicly available data.
Here’s the fully structured prompt:
Task: Now rank these 5 penny or microcap stocks (price < $5/share or market cap < $300M) with the highest probability of achieving a 10× return over the next 7–10 years. The output will be a ranked short list with strong supporting rationale for why each candidate was chosen.
Scope & universe:
Screen U.S.-listed equities (NYSE, NASDAQ, OTCQB/OTCQX preferred; avoid Pink No-Info unless data is sufficient).
Include ADRs only if full audited filings and disclosures are available in English.
Price < $5 or market cap < $300M at current date.
Exclude shells, SPACs, companies under active SEC trading suspensions, and firms flagged as “Delinquent” on OTCMarkets.
Selection criteria (apply in order):
Liquidity filter: average daily dollar volume > $200K over last 90 days (to ensure tradability).
Fundamental viability: positive or improving gross margin; revenue > $5M TTM (or clear path to commercialization if pre-revenue biotech with funded Phase 2/3 program).
Balance sheet health: cash runway ≥ 6 months (based on latest filings), no undisclosed going-concern warnings, no imminent bankruptcy filings.
Growth potential: target TAM large enough to support 10× market cap expansion; presence of secular growth drivers (AI, EVs, biotech, infrastructure, clean energy, etc.).
Upcoming catalysts: identifiable value inflection points in next 12–24 months (clinical trial data, major contract awards, product launches, regulatory approvals).
Insider alignment: insider ownership > 5% and/or recent insider buying (if available).
Governance & transparency: up-to-date SEC filings, credible auditor, no major fraud allegations, no history of reverse splits every 6–12 months just to maintain listing.
Market sentiment: avoid tickers showing clear pump-and-dump characteristics (massive one-day spikes without news, promotion-heavy social chatter, paid email campaigns).
Data to collect for each candidate (concise, for screening stage):
Ticker, exchange, price, market cap, float, avg daily volume (90-day).
Sector & business model in one sentence.
Most recent quarterly revenue, YoY growth, and gross margin.
Total cash, total debt, net cash/debt, months of cash runway (est.).
Key upcoming catalyst(s) (max 3 bullets).
Insider ownership %, recent insider transactions (if any).
Notable risks/red flags (bullet list).
A quick "10× Path Sketch": in 2–3 bullets, explain what would have to go right for this stock to grow 10× (revenue growth, margin expansion, market multiple re-rating, etc.).
Ranking methodology:
Score each candidate 0–100 using weighted rubric: Growth potential / TAM (25) Strength & clarity of upcoming catalysts (20) Balance sheet health (15) Valuation attractiveness (15) — low EV/Revenue or EV/EBITDA relative to peers. Insider alignment & governance (10) Liquidity (10) Risk profile / red flags (-10 to -30 penalty if severe)
Rank top 10 candidates by score, then pick top 5 with strongest combination of upside + realistic execution path.
Output format:
Executive summary table: Ranked top 10 candidates with ticker, price, market cap, sector, score.
Detailed candidate profile (1 paragraph each) for the top 5: Business snapshot (1–2 sentences) Key growth driver(s) & TAM Catalyst timeline (near-term) Strengths & opportunities Top risks (red flags) Why this is a 10× candidate
Watchlist section: list other 5 candidates that almost made the cut (1 line each) with reason for exclusion (e.g., too illiquid, too speculative, cash runway too short).
Source requirements:
Link to latest 10-Q/10-K, company presentation, investor deck, or press release for each major datapoint.
If data unavailable, mark “Missing” explicitly (do not guess).
Use reputable market data providers for price, volume, market cap (Yahoo Finance, NASDAQ, NYSE, OTCMarkets).
Legal disclaimer (place at top): “This report is strictly for informational and research purposes only. It is not investment advice or a recommendation to buy or sell any security. Microcap stocks carry extreme risk and volatility. Investors must conduct independent due diligence and consult a licensed advisor before investing.”
Deliverable:
A clean PDF or structured markdown with: Executive summary table Top 5 candidate profiles (short deep-dives) Watchlist (near-miss) list Data source citations (with links)
Here’s the fully structured prompt:
Task: Now rank these 5 penny or microcap stocks (price < $5/share or market cap < $300M) with the highest probability of achieving a 10× return over the next 7–10 years. The output will be a ranked short list with strong supporting rationale for why each candidate was chosen.
Scope & universe:
Screen U.S.-listed equities (NYSE, NASDAQ, OTCQB/OTCQX preferred; avoid Pink No-Info unless data is sufficient).
Include ADRs only if full audited filings and disclosures are available in English.
Price < $5 or market cap < $300M at current date.
Exclude shells, SPACs, companies under active SEC trading suspensions, and firms flagged as “Delinquent” on OTCMarkets.
Selection criteria (apply in order):
Liquidity filter: average daily dollar volume > $200K over last 90 days (to ensure tradability).
Fundamental viability: positive or improving gross margin; revenue > $5M TTM (or clear path to commercialization if pre-revenue biotech with funded Phase 2/3 program).
Balance sheet health: cash runway ≥ 6 months (based on latest filings), no undisclosed going-concern warnings, no imminent bankruptcy filings.
Growth potential: target TAM large enough to support 10× market cap expansion; presence of secular growth drivers (AI, EVs, biotech, infrastructure, clean energy, etc.).
Upcoming catalysts: identifiable value inflection points in next 12–24 months (clinical trial data, major contract awards, product launches, regulatory approvals).
Insider alignment: insider ownership > 5% and/or recent insider buying (if available).
Governance & transparency: up-to-date SEC filings, credible auditor, no major fraud allegations, no history of reverse splits every 6–12 months just to maintain listing.
Market sentiment: avoid tickers showing clear pump-and-dump characteristics (massive one-day spikes without news, promotion-heavy social chatter, paid email campaigns).
Data to collect for each candidate (concise, for screening stage):
Ticker, exchange, price, market cap, float, avg daily volume (90-day).
Sector & business model in one sentence.
Most recent quarterly revenue, YoY growth, and gross margin.
Total cash, total debt, net cash/debt, months of cash runway (est.).
Key upcoming catalyst(s) (max 3 bullets).
Insider ownership %, recent insider transactions (if any).
Notable risks/red flags (bullet list).
A quick "10× Path Sketch": in 2–3 bullets, explain what would have to go right for this stock to grow 10× (revenue growth, margin expansion, market multiple re-rating, etc.).
Ranking methodology:
Score each candidate 0–100 using weighted rubric: Growth potential / TAM (25) Strength & clarity of upcoming catalysts (20) Balance sheet health (15) Valuation attractiveness (15) — low EV/Revenue or EV/EBITDA relative to peers. Insider alignment & governance (10) Liquidity (10) Risk profile / red flags (-10 to -30 penalty if severe)
Rank top 10 candidates by score, then pick top 5 with strongest combination of upside + realistic execution path.
Output format:
Executive summary table: Ranked top 10 candidates with ticker, price, market cap, sector, score.
Detailed candidate profile (1 paragraph each) for the top 5: Business snapshot (1–2 sentences) Key growth driver(s) & TAM Catalyst timeline (near-term) Strengths & opportunities Top risks (red flags) Why this is a 10× candidate
Watchlist section: list other 5 candidates that almost made the cut (1 line each) with reason for exclusion (e.g., too illiquid, too speculative, cash runway too short).
Source requirements:
Link to latest 10-Q/10-K, company presentation, investor deck, or press release for each major datapoint.
If data unavailable, mark “Missing” explicitly (do not guess).
Use reputable market data providers for price, volume, market cap (Yahoo Finance, NASDAQ, NYSE, OTCMarkets).
Legal disclaimer (place at top): “This report is strictly for informational and research purposes only. It is not investment advice or a recommendation to buy or sell any security. Microcap stocks carry extreme risk and volatility. Investors must conduct independent due diligence and consult a licensed advisor before investing.”
Deliverable:
A clean PDF or structured markdown with: Executive summary table Top 5 candidate profiles (short deep-dives) Watchlist (near-miss) list Data source citations (with links)
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Prompt #2 - This prompt will do the final deep dive on the 5 selected penny stocks and evaluate their realistic chances of 10x over 7–10 years. The goal is to find ones that have at least a "moderate" chance of hitting the 10x.
You can run this in the same chat as the first prompt or provide it the 5 stocks from a previous chat.
Prompt:
Task: Perform a comprehensive, forensic deep-dive on FIVE penny/microcap stocks (each trading under $5 or as specified). The objective is to assess and rank their probability of delivering a 10× (ten-bagger) total return over a 7–10 year horizon. Produce a structured, evidence-backed report for executive review.
Scope & assumptions:
Time horizon: 7–10 years.
“Penny stock” here is any public company trading under $5 per share OR with market cap under $300M (adjust to user preference).
Do NOT give personalized financial advice. Provide objective research, assumptions, models, and probability ranges.
Cite every factual claim with direct primary sources where possible (SEC filings, company presentations, reputable financial news, exchange data). Provide links to filings (10-K, 10-Q, 8-K, S-1 if applicable) and the exact citation for each major datapoint.
Required data to fetch for each company (absolute minimum):
Ticker, exchange, current price, market cap, float, outstanding shares, insider & institutional ownership percentages.
Average daily trading volume (30-, 90-, 180-day), typical bid-ask spread, and liquidity notes.
Latest financial statements: trailing 12 months (TTM) revenue, gross profit, operating income, net income, EBITDA (if available), free cash flow, total cash, total debt.
Historical financials: at least 3–5 years of revenue, EBIT/EBITDA, margins, cash flow, capex, and balance sheet snapshots (or since listing for newer firms).
Recent financing history: equity raises (dilution), convertible notes, warrants, PIPEs, debt matures/covenants, and timing/size of future funding needs.
Management & board: bios (experience, prior exits or fraud flags), insider buying/selling in last 12 months.
Business model & TAM: core product/service, revenue mix, gross margin drivers, go-to-market strategy, customer concentration (top 5 customers %), and Total Addressable Market estimates with source.
Competitive landscape: direct competitors, substitute risk, switching costs, and a Porter’s Five Forces sketch.
Intellectual property: patents, licenses, proprietary tech, regulatory approvals (if biotech/medical), and any dependency on third-party licenses.
Catalysts & milestones: near-term product releases, clinical trials (phase + timelines), regulatory decisions, large contracts, strategic partnerships, or M&A rumors.
Litigation, regulatory, or governance issues: outstanding lawsuits, SEC inquiries, delisting risks, auditor resignation, or going-dark risk.
Short interest and sentiment indicators: short % of float, social promotion history (pump indicators), and notable promotional activity.
Analyst coverage and public research: any sell-side or independent research notes, and whether the company is being promoted on OTC forums.
Key ratios & metrics to compute: P/S, P/E (if meaningful), EV/Revenue, EV/EBITDA, price-to-book, revenue growth rates, gross & net margins, ROIC, current ratio, quick ratio.
Macro / sector outlook relevant to company (growth drivers/risks).
Due-diligence red flags to explicitly check and report (if present, flag as high risk):
Frequent small trades or bursts of trading consistent with pump-and-dump patterns; huge bid-ask spreads and low liquidity. :contentReference[oaicite:3]{index=3}
Recent or repeated equity raises causing rapid dilution.
Going-dark risk (stopped SEC filings) or auditor resignation.
Management with prior regulatory enforcement actions, fraud, or serial failed ventures.
Discrepancies between press releases and filings; promotional language on social channels or paid promotions.
Offshore structure or opaque related-party transactions.
Unclear or impossible product claims (esp. in biotech, crypto, or mining) — verify with primary documents and independent verification. (Refer to FINRA red flags and regulatory notices when a red flag is observed.) :contentReference[oaicite:4]{index=4}
Valuation & modeling tasks (run multiple cases):
Scenario DCF: build 3 scenarios — Bear, Base, Bull — with explicit revenue growth paths, margin expansions/contractions, capex and working capital assumptions. For each scenario: Show projected 10-year cash flows, terminal value (explain method), and discount rate(s) used. Provide probability weights for scenarios and a probability-weighted valuation.
Comparable multiples: identify 3–6 true comparables (same sub-industry and business model) and show implied multiples for revenue/EBITDA.
Market cap / share count mechanics: project share count evolution under realistic financing needs and dilution assumptions.
Monte Carlo or sensitivity table: vary key drivers (revenue CAGR, margin, discount rate, dilution rate) and show distribution of possible outcomes, highlighting probability of ≥10×.
Break-even and path analysis: what revenue and margin profile is required to reach 10× given likely dilution and market multiples?
Quantitative scoring / ranking framework (apply same rubric to all 5 stocks; produce a numeric score 0–100):
Business quality & TAM (20) — product-market fit, defensibility, addressable market size.
Financial health & growth (20) — revenue growth, margins, cash runway, debt.
Funding & dilution risk (15) — past raises, expected future capital needs, warrants/convertibles.
Management & governance (15) — track record, insider alignment, red flags.
Liquidity & tradability (10) — average daily volume, float, spread.
Catalysts & timing (10) — milestone calendar and probability of success.
Regulatory/Legal risk (10) — presence of major litigation, clinical/regulatory hurdles. Give each category a numeric subscore and the final weighted score. Translate the final score into a probability band for 10× (e.g., 0–10% / 10–30% / 30–60% / 60–90% / >90%) with explanation for the chosen band.
Required deliverables & format:
Executive summary (1 page) per stock: quick verdict (High / Medium / Low probability of 10×), numeric probability band, top 3 reasons FOR and top 3 reasons AGAINST.
One-page scorecard per stock (the rubric above, with source citations for each datapoint).
Full technical appendix per stock: Raw data table (financials, volumes, filings links). Modeled projections (DCF schedules, scenario inputs). Sensitivity / Monte Carlo outputs and charts. Timeline of expected catalysts and funding needs. Copies or links to key filings and evidence for any claim (quotes from filings with citation).
Comparative table summarizing all 5 companies side-by-side (key metrics and scores).
Risk register listing all identified red flags and suggested mitigation checks (e.g., verify customer contracts, third-party audits, on-site visit suggestion).
Appendix: Sources — list all primary sources (SEC EDGAR links, exchange pages, audited financial statements, reputable news items) and date/time fetched.
Formatting and style:
Use clear headings, tables, and bullet points. Charts should be labeled and include units and assumptions.
For every major conclusion, include the specific source and date (e.g., “10-Q filed 2025-08-12, p. 23 — shows $5.4M cash”).
Highlight any assumptions you made that materially affect the result.
Provide raw CSV or spreadsheet of the financial model and source data.
Deliver a short README on how you computed the probability band and the weights used.
Legal & ethical disclaimer (must appear at top and bottom of the report):
“This report is for informational and research purposes only. It is not investment advice or a recommendation to buy or sell securities. The probability estimates are forward-looking, model-based scenarios with high uncertainty. Investors should consult a licensed financial advisor and perform their own due diligence before making investment decisions.”
Quality check (before final delivery):
Confirm all SEC/official filings are attached or linked. If a filing cannot be found, mark as “missing” and explain attempts to locate it.
If a company is OTC/PNK or stops filing, highlight immediate increase in risk and cease further valuation until filings resume.
Flag any instance of promotional paid content discovered and provide screenshots/links.
Output: produce a ZIP containing:
PDF executive report (cleanly formatted).
Spreadsheet (xlsx or CSV) with the financial models and raw data.
Folder of screenshots/PDFs of primary filings and promotional posts used as evidence.
End.
You can run this in the same chat as the first prompt or provide it the 5 stocks from a previous chat.
Prompt:
Task: Perform a comprehensive, forensic deep-dive on FIVE penny/microcap stocks (each trading under $5 or as specified). The objective is to assess and rank their probability of delivering a 10× (ten-bagger) total return over a 7–10 year horizon. Produce a structured, evidence-backed report for executive review.
Scope & assumptions:
Time horizon: 7–10 years.
“Penny stock” here is any public company trading under $5 per share OR with market cap under $300M (adjust to user preference).
Do NOT give personalized financial advice. Provide objective research, assumptions, models, and probability ranges.
Cite every factual claim with direct primary sources where possible (SEC filings, company presentations, reputable financial news, exchange data). Provide links to filings (10-K, 10-Q, 8-K, S-1 if applicable) and the exact citation for each major datapoint.
Required data to fetch for each company (absolute minimum):
Ticker, exchange, current price, market cap, float, outstanding shares, insider & institutional ownership percentages.
Average daily trading volume (30-, 90-, 180-day), typical bid-ask spread, and liquidity notes.
Latest financial statements: trailing 12 months (TTM) revenue, gross profit, operating income, net income, EBITDA (if available), free cash flow, total cash, total debt.
Historical financials: at least 3–5 years of revenue, EBIT/EBITDA, margins, cash flow, capex, and balance sheet snapshots (or since listing for newer firms).
Recent financing history: equity raises (dilution), convertible notes, warrants, PIPEs, debt matures/covenants, and timing/size of future funding needs.
Management & board: bios (experience, prior exits or fraud flags), insider buying/selling in last 12 months.
Business model & TAM: core product/service, revenue mix, gross margin drivers, go-to-market strategy, customer concentration (top 5 customers %), and Total Addressable Market estimates with source.
Competitive landscape: direct competitors, substitute risk, switching costs, and a Porter’s Five Forces sketch.
Intellectual property: patents, licenses, proprietary tech, regulatory approvals (if biotech/medical), and any dependency on third-party licenses.
Catalysts & milestones: near-term product releases, clinical trials (phase + timelines), regulatory decisions, large contracts, strategic partnerships, or M&A rumors.
Litigation, regulatory, or governance issues: outstanding lawsuits, SEC inquiries, delisting risks, auditor resignation, or going-dark risk.
Short interest and sentiment indicators: short % of float, social promotion history (pump indicators), and notable promotional activity.
Analyst coverage and public research: any sell-side or independent research notes, and whether the company is being promoted on OTC forums.
Key ratios & metrics to compute: P/S, P/E (if meaningful), EV/Revenue, EV/EBITDA, price-to-book, revenue growth rates, gross & net margins, ROIC, current ratio, quick ratio.
Macro / sector outlook relevant to company (growth drivers/risks).
Due-diligence red flags to explicitly check and report (if present, flag as high risk):
Frequent small trades or bursts of trading consistent with pump-and-dump patterns; huge bid-ask spreads and low liquidity. :contentReference[oaicite:3]{index=3}
Recent or repeated equity raises causing rapid dilution.
Going-dark risk (stopped SEC filings) or auditor resignation.
Management with prior regulatory enforcement actions, fraud, or serial failed ventures.
Discrepancies between press releases and filings; promotional language on social channels or paid promotions.
Offshore structure or opaque related-party transactions.
Unclear or impossible product claims (esp. in biotech, crypto, or mining) — verify with primary documents and independent verification. (Refer to FINRA red flags and regulatory notices when a red flag is observed.) :contentReference[oaicite:4]{index=4}
Valuation & modeling tasks (run multiple cases):
Scenario DCF: build 3 scenarios — Bear, Base, Bull — with explicit revenue growth paths, margin expansions/contractions, capex and working capital assumptions. For each scenario: Show projected 10-year cash flows, terminal value (explain method), and discount rate(s) used. Provide probability weights for scenarios and a probability-weighted valuation.
Comparable multiples: identify 3–6 true comparables (same sub-industry and business model) and show implied multiples for revenue/EBITDA.
Market cap / share count mechanics: project share count evolution under realistic financing needs and dilution assumptions.
Monte Carlo or sensitivity table: vary key drivers (revenue CAGR, margin, discount rate, dilution rate) and show distribution of possible outcomes, highlighting probability of ≥10×.
Break-even and path analysis: what revenue and margin profile is required to reach 10× given likely dilution and market multiples?
Quantitative scoring / ranking framework (apply same rubric to all 5 stocks; produce a numeric score 0–100):
Business quality & TAM (20) — product-market fit, defensibility, addressable market size.
Financial health & growth (20) — revenue growth, margins, cash runway, debt.
Funding & dilution risk (15) — past raises, expected future capital needs, warrants/convertibles.
Management & governance (15) — track record, insider alignment, red flags.
Liquidity & tradability (10) — average daily volume, float, spread.
Catalysts & timing (10) — milestone calendar and probability of success.
Regulatory/Legal risk (10) — presence of major litigation, clinical/regulatory hurdles. Give each category a numeric subscore and the final weighted score. Translate the final score into a probability band for 10× (e.g., 0–10% / 10–30% / 30–60% / 60–90% / >90%) with explanation for the chosen band.
Required deliverables & format:
Executive summary (1 page) per stock: quick verdict (High / Medium / Low probability of 10×), numeric probability band, top 3 reasons FOR and top 3 reasons AGAINST.
One-page scorecard per stock (the rubric above, with source citations for each datapoint).
Full technical appendix per stock: Raw data table (financials, volumes, filings links). Modeled projections (DCF schedules, scenario inputs). Sensitivity / Monte Carlo outputs and charts. Timeline of expected catalysts and funding needs. Copies or links to key filings and evidence for any claim (quotes from filings with citation).
Comparative table summarizing all 5 companies side-by-side (key metrics and scores).
Risk register listing all identified red flags and suggested mitigation checks (e.g., verify customer contracts, third-party audits, on-site visit suggestion).
Appendix: Sources — list all primary sources (SEC EDGAR links, exchange pages, audited financial statements, reputable news items) and date/time fetched.
Formatting and style:
Use clear headings, tables, and bullet points. Charts should be labeled and include units and assumptions.
For every major conclusion, include the specific source and date (e.g., “10-Q filed 2025-08-12, p. 23 — shows $5.4M cash”).
Highlight any assumptions you made that materially affect the result.
Provide raw CSV or spreadsheet of the financial model and source data.
Deliver a short README on how you computed the probability band and the weights used.
Legal & ethical disclaimer (must appear at top and bottom of the report):
“This report is for informational and research purposes only. It is not investment advice or a recommendation to buy or sell securities. The probability estimates are forward-looking, model-based scenarios with high uncertainty. Investors should consult a licensed financial advisor and perform their own due diligence before making investment decisions.”
Quality check (before final delivery):
Confirm all SEC/official filings are attached or linked. If a filing cannot be found, mark as “missing” and explain attempts to locate it.
If a company is OTC/PNK or stops filing, highlight immediate increase in risk and cease further valuation until filings resume.
Flag any instance of promotional paid content discovered and provide screenshots/links.
Output: produce a ZIP containing:
PDF executive report (cleanly formatted).
Spreadsheet (xlsx or CSV) with the financial models and raw data.
Folder of screenshots/PDFs of primary filings and promotional posts used as evidence.
End.
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Here's on example report from this process. One of them has a 20% chance of hitting the 10x, pretty decent odds!
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