These companies have the wind at their sails from an earnings perspective, these penny stock prices will not last long. Now is the time to pounce before the rest of the market catches on. Here are best penny stocks to buy now:
Best Penny Stocks To Buy: SORL Auto Parts Inc. (SORL)
SORL Auto Parts, Inc., through its principal operating subsidiary, Ruili Group Ruian Auto Parts Co., Ltd., engages in the development, manufacture, and distribution of automotive brake systems and other safety related auto parts for commercial vehicles, such as trucks and buses. The company, through its 90% ownership in Ruili Group Ruian Auto Parts Co., Ltd., a Sino-foreign joint venture, offers various products, including spring brake chamber, clutch servos, air dryers, relay valves, and hand brake valves.
It also provides auto metering products, auto electric products, anti-lock brake systems, retarders, hydraulic brakes, and power steering products. SORL Auto Parts, Inc. markets its products under the SORL brand to automotive original equipment manufacturers and the related aftermarket customers in the People?s Republic of China and internationally. The company was founded in 2003 and is headquartered in Ruian City, the People?s Republic of China.
Advisors’ Opinion:
* Robert Hsu2011-9-13Sorl Auto Parts(NASDAQ: SORL) has purchased the assets of the hydraulic brake, power steering, and automotive electrical operations of Ruili Group Auto Parts. As a result of this acquisition, Sorl’s product offerings will expand to both commercial and passenger vehicles’ brake systems and other key safety-related auto parts. The company expects it will allow the company to streamline its management organization, as well as create efficiencies in production, R&D and its sales network. In addition, Sorl’s management expects the acquisition will be beneficial to the company’s revenues and earnings.Sorl paid 170 million yuan — or about $25 million — for the acquisition, and the company believes it will generate about $35 million in revenues and about $4 million in net income in 2011. In addition, Sorl expects the acquisition to generate incremental free cash flow in both 2010 and 2011. SORL has outperformed earnings estimates for four consecutive quarters, and its stock price rose 71.7% over the past 12 months. Now, the chairman and CEO of Sorl Auto, Xiao Ping Zhang, is also the controlling shareholder of the Ruili Group. However, the price paid for the acquisition was based on a valuation of the purchased business performed by Asia’s leading appraisal company, DTZ Debenham Tie Leung — lessening the possibility of a conflict of interest with regards to the sale.
Overall, I think this was a good purchase by Sorl. The acquisition will allow the company to offer its customers more high-quality products to fulfill their needs from one source. In addition, because both companies share similar visions, I expect the combination of their internal resources will create favorable economies-of-scale that will strengthen earnings and create shareholder value. Buy SORL under $10.
Best Penny Stocks To Buy: J.M. Smucker Company (The) (SJM)
The J. M. Smucker Company engages in the manufacture and marketing of branded food products in the United States and internationally. Its principal products include coffee, peanut butter, shortening and oils, fruit spreads, canned milk, baking mixes and ready-to-spread frostings, flour and baking ingredients, juices and beverages, frozen sandwiches, dessert toppings, syrups, and pickles and condiments. The company offers its products under various brands comprising Folgers, Dunkin? Donuts, Smucker?s, Jif, Hungry Jack, Uncrustables, Snack?n Waffles, Dickinson?s, Crosse & Blackwell, Adams, Laura Scudder?s, Goober, Golden Temple, and Magic Shell, Crisco, Pillsbury, Eagle Brand, Borden and Elsie design, and Martha White. It also provides its products under the LaPina, White Lily, Softasilk, Funfetti, Pet, Plate Scapers, Bick?s, Five Roses, Robin Hood, Carnation, Europe?s Best, R. W. Knudsen Family, Santa Cruz Organic, Double Fruit, Recharge, and Red River brand names. The company sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, and military commissaries; and through retail channels, and health and natural foods stores and distributors, as well as through foodservice distributors and operators, such as restaurants, schools and universities, and healthcare operators. The J. M. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.
