An old-fashioned, but beneficial tool to help penny stock investors screen for hot penny stocks, is to create a penny stock to watch list.
Using financial techniques like PE ratios and market cap analysis, can help you produce a list of companies to follow.
Here are some simple steps to helping you create your list:

1. Determine 2-3 industries you want to follow and choose 3-5 stocks in that industry.
   Unless you are a full-time trader or investor, following more than this may be a bit too much.
   
2. Using your analytical and research tools, create a spreadsheet or use broker software to include the names, stock symbols, PE ratios, market caps and any other items you deem important to follow.
   
3. Estimate what range you would be willing to buy the stock at.
   You'll need to determine if you are purchasing a stock for a short-term trade or for a long-term hold.
   Only you know what your financial objectives are.
   
4. Determine your exit point.
   This is a probability game, so you need to have a plan at what point you get out if the stock doesn't go as planned.
   It's all about limiting loss.
   
5. Know your profit objective.
   Similar to determining your exit point - begin with the end in mind.
   You must know what your target point is for making a profit, just like you want to know your target point for cutting your losses.
   
6. Know your own personal risk/reward ratio.
   Take the emotion out of it, buy sticking to your entry and exit points that were determined by your research in the first place.
   

Most investors lose money in the stock market because they don't have a plan or simple system to help them select stocks.
The above suggestions are basic in nature, but will help you begin to find the best penny stocks.