what to invest in 2012, now we will show you as follow:
8 Tech Penny Stocks to Buy Now
Technology stocks have been on a tear lately, with the tech-heavy Nasdaq outperforming the Dow Jones Industrial Average 17% to 13% across the last six months. But it’s worth noting that many small-cap tech stocks have done much better than that, while blue chips like Microsoft (NASDAQ: MSFT), Cisco (NASDAQ: CSCO) and Google (NASDAQ: GOOG) have all underperformed.
You can see the power of the tech sector best in small, agile penny stocks that are surging recently. I of course don’t mean penny stock in a literal sense – as a rule, any micro-cap pink sheet or OTC investment that goes for only a few cents a share is a massive gamble. By “penny stock” I mean ultra low-priced companies, but ones that are larger than $100 million in market capitalization.
To help you share in the tech penny stock surge, consider these 8 investments and their recent gains:
Sirius XM Radio Inc: Year-to-date, stock of Sirius XM Radio Inc. (NASDAQ: SIRI) is up +13%. Sirius offers satellite radio content on music, sports and news in the United States for a subscription fee. In the last 12 months, SIRI has gained an impressive +112%, compared to much smaller gains by the broader markets.
ICO Global Communications: Mobile satellite service operator ICO Global Communications (NASDAQ: ICOG) has posted an impressive stock gain of +132% in the last 12 months. More recently, this penny stock is up +44% in the last 30 days alone. If bought at the right time, ICOG can be great for your portfolio, as it jumped +40% in one day in March. ICO Global is an example of how explosive tech penny stocks can be.
* Related Article: 10 Best Stocks for 2014
8×8 Inc: Known for its telecommunication services, 8×8 Inc. (NASDAQ: EGHT) has gained +19% year-to-date. Looking in the longer term, EGHT is up +86% in the last year. This quarter, analysts are predicting EGHT will posted EPS of four cents, up from two cents last year. But percentage-wise, that’s a 50% increase! This shows how just a small jump in earnings can really mean big things for a penny stock in the tech sector.
EMCORE Corp: Offering a wide range of semiconductor products, EMCORE Corp. (NASDAQ: EMKR) has experience a jump in stock price of +119% since the beginning of 2011. This stock has also jumped +73% since the beginning of February, and posted a quarterly revenue growth of +23% in its last income statement. This penny stock has a 52-week range of 71 cents to $3.25 – but just touched its high a month ago before the March contraction. There’s no reason EMKR stock can’t get back to those levels very soon.
* Related Articles: Dividend Stocks to Buy
Dot Hill Systems Corp: Provider of storage systems and enterprise server software, Dot Hill Systems Corp. (NASDAQ: HILL) is another penny stock worth keeping an eye on. Year-to-date, this tech stock has gained +70%, compared to a gain of just +7% for the Dow Jones. In the last 12 months, this stock has soared +101% as well.
Identive Group Inc: Focusing on identification-based technologies, Identive Group Inc. (NASDAQ: INVE) has watched its stock gain +7% year-to-date and +47% in the last 12 months. Shareholders of INVE can also point to the company’s quarterly revenue growth, which was reported as +111%, in its last income statement.
RAE Systems Inc: Known for providing wireless sensor networks that enable its customers worldwide to identify safety and security threats in real-time, RAE Systems Inc. (AMEX: RAE) has the potential to grow your portfolio in a hurry. Over the last year, this penny stock is up +115%. In September, RAE stock jumped +42% in just three days, showing the penny stock’s short term potential. Buy this penny stock as it trades just below its 52-week high of $1.88.
Mad Catz Interactive Inc: Known for its video game accessories, Mad Catz Interactive Inc. (AMEX: MCZ) has been the highest performing stock on this list. In the last year, MCZ is up an incredible +381%. The success has continued as of late, as this penny stock has gained +115%, year-to-date. A quarterly revenue growth of +91% and a quarterly earnings growth of +73%, only add to this stock’s impressive resume.
Showing posts with label Peny Stocks to Invest. Show all posts
Showing posts with label Peny Stocks to Invest. Show all posts
6 Software Penny Stocks to Buy in 2012
There is no better place to find explosive growth than with low-priced penny stocks. I’m not talking about pink sheet stocks that are potentially nonexistent, or fraudulent names set to crash. I’m talking about real companies with real earnings — companies listed for more than one year on a major exchange like the AMEX, NYSE or Nasdaq, and that have a market cap in the ballpark of $100 million.
The returns can be even more powerful when you combine the power of technology stocks and penny stocks. Specifically, the software space is seeing lots of action thanks to the mass acceptance of smart phones and personal computing devices.
These devices are quite powerful, but they still need programs to make them run. The best software companies are those that make users more productive. In this tough economy, those companies that help workers do more with less are poised to be the penny stocks that really move higher.
Because 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 six software penny stocks to buy now:
Shares have drifted lower since peaking near $2.40 per share earlier this year. You can buy this penny stock today for just $1.60 per share. That is a bargain that you should exploit.
NetSol beat estimates in the last quarter by 4 cents per share. Look for a similar result when it announces quarterly results. For the full year, the expectation is for a profit of 18 cents per share. If the company does better than expected, this stock could really take off.
Cover-All Technologies is in the business of providing software products and services for the property and casualty insurance space. That sector has been getting headlines this year with the uptick in natural disasters and inclement weather. Any chance to save money with technology will be more likely to be advanced under more difficult financial times.
Cover-All is profitable and expected to make seventeen cents per share in the current fiscal year. That number jumps 3 cents to 20 cents per share in 2012. The company has beaten estimates in the last two quarters. You can buy that 17% growth for less than 15 times estimated earnings.
Top Image system is in the business of making software with respect to data capture and manipulation. This Israeli-based company was founded in 1991. Shares of the company blasted higher in early May after the company reported positive results for its first quarter of 2011.
In the period, the company saw a 36% increase in revenue and posted a profit of seven cents per share as opposed to a loss in the year prior. That was enough to move the stock from $1.34 per share to $2.20 per share. Those are the types of moves you can expect from a penny stock when it delivers solid operating performance. I expect a repeat performance in future quarters.
I don’t think the gains are done there. This sort of momentum is what I like to see. Historically riding these waves of momentum has been very lucrative to me and my investors.
Authentidate is growing and continually adding to its impressive roster of customers. Most recently the company signed a deal with the Department of Veteran Affairs to provide telehealth solutions. The company is expected to lose money in 2011, but to be profitable in 2012. If so, the stock will double again from here.
Use the selling to get in on this penny stock ride. Cinedigm provides technology solutions and digital content to theater exhibitors. The company just completed a year of operating losses that it expects to sharply narrow in the 2012 fiscal year. Sales are growing rapidly and that is what investors should focus on today.
To the extent they beat expectations, profitability may arrive sooner than later.
The move lower comes on the heels of a less-than-stellar quarterly earnings report for its first quarter ending March 31, 2011. Year over year revenue in the period was lower, but the company did post a profit of six cents per share. In addition to reporting a backlog to be recognized this year of $10.2 million Mind CTI had previously declared a cash dividend of 32 cents per share.
With telecom and wireless being all the rage around the globe, I expect Mind CTI to perform quite well for the remainder of the year.
The returns can be even more powerful when you combine the power of technology stocks and penny stocks. Specifically, the software space is seeing lots of action thanks to the mass acceptance of smart phones and personal computing devices.
These devices are quite powerful, but they still need programs to make them run. The best software companies are those that make users more productive. In this tough economy, those companies that help workers do more with less are poised to be the penny stocks that really move higher.
Because 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 six software penny stocks to buy now:
6 Software Penny Stocks to Buy in 2012 - NetSol
NetSol Technologies (NASDAQ:NTWK) is a penny stock with a near $100 million market cap. This is a real company with real products and real revenues. The company makes application software for the automobile finance and leasing industry as well as the banking, financial services and healthcare industries globally.Shares have drifted lower since peaking near $2.40 per share earlier this year. You can buy this penny stock today for just $1.60 per share. That is a bargain that you should exploit.
NetSol beat estimates in the last quarter by 4 cents per share. Look for a similar result when it announces quarterly results. For the full year, the expectation is for a profit of 18 cents per share. If the company does better than expected, this stock could really take off.
6 Software Penny Stocks to Buy in 2012 -
Cover-All
The penny stock Cover-All Technologies (AMEX:COVR) has a market cap of $63 million and is part of the Russell micro cap index. In May, the stock was listed on the AMEX exchange taking shares off bulletin board status. The stock has gained about 50cents per share since that time.Cover-All Technologies is in the business of providing software products and services for the property and casualty insurance space. That sector has been getting headlines this year with the uptick in natural disasters and inclement weather. Any chance to save money with technology will be more likely to be advanced under more difficult financial times.
Cover-All is profitable and expected to make seventeen cents per share in the current fiscal year. That number jumps 3 cents to 20 cents per share in 2012. The company has beaten estimates in the last two quarters. You can buy that 17% growth for less than 15 times estimated earnings.
Top Image
One of the problems owning penny stocks is trading volume is thin and liquidity makes it tough to sell shares for a profit. In the case of Top Image Systems (NASDAQ:TISA), we have a stock that sees an average of 300,000 shares trading hands each day. Clearly this stock will be followed by a fairly large group of investors.Top Image system is in the business of making software with respect to data capture and manipulation. This Israeli-based company was founded in 1991. Shares of the company blasted higher in early May after the company reported positive results for its first quarter of 2011.
In the period, the company saw a 36% increase in revenue and posted a profit of seven cents per share as opposed to a loss in the year prior. That was enough to move the stock from $1.34 per share to $2.20 per share. Those are the types of moves you can expect from a penny stock when it delivers solid operating performance. I expect a repeat performance in future quarters.
Authentidate
Authentidate Holding Corp. (NASDAQ:ADAT) is in the business of making the health care industry less paper-intensive. Offering web-based solutions for health systems and physician groups, this penny stock has nearly doubled in value since early April.I don’t think the gains are done there. This sort of momentum is what I like to see. Historically riding these waves of momentum has been very lucrative to me and my investors.
Authentidate is growing and continually adding to its impressive roster of customers. Most recently the company signed a deal with the Department of Veteran Affairs to provide telehealth solutions. The company is expected to lose money in 2011, but to be profitable in 2012. If so, the stock will double again from here.
Cinedigm Digital Cinema
Penny stocks can be quite volatile. Shares of Cinedigm Digital Cinema (NASDAQ:CIDM) have been on a roller coaster this year. In mid-March the stock caught fire and jumped a dollar per share over the course of a couple of months. Since that time, shares have given up half that gain to the ballpark of $1.90 per share.Use the selling to get in on this penny stock ride. Cinedigm provides technology solutions and digital content to theater exhibitors. The company just completed a year of operating losses that it expects to sharply narrow in the 2012 fiscal year. Sales are growing rapidly and that is what investors should focus on today.
To the extent they beat expectations, profitability may arrive sooner than later.
Mind CTI
Mind CTI (NASDAQ:MNDO) is an Israeli-based technology company that provides convergent end-to-end billing and customer-care product-based solutions for service providers as well as telecom expense management solutions. After peaking at nearly $3.60 per share, the stock has slipped to current levels at $2.80 per share.The move lower comes on the heels of a less-than-stellar quarterly earnings report for its first quarter ending March 31, 2011. Year over year revenue in the period was lower, but the company did post a profit of six cents per share. In addition to reporting a backlog to be recognized this year of $10.2 million Mind CTI had previously declared a cash dividend of 32 cents per share.
With telecom and wireless being all the rage around the globe, I expect Mind CTI to perform quite well for the remainder of the year.
How to invest in stocks 101 | learn stock market basics for beginners
Whether you are an active investor or just looking for a place to park your retirement money, your best bet is with the stock market. You can reasonably expect a 8-12% annual return over time. That could end up being a lot of money if you compound those returns over a long time horizon. You really can’t expect those types of returns from other types of investments.
That being said, you really have to know how to invest in stocks in a variety of markets and economic conditions if you want these types of returns. You generally won’t get this type of ROI by sitting on your hands the whole time.
It’s not difficult to learn how to invest in the stock market. Even beginners can get started almost right away with the right investment strategy. If you want to get started right away as you learn the basics, consider investing in a broad market index fund like the SPDR ETF, which is a vehicle that tracks the S&P 500 composite index.
You can also look at the Vanguard Total Stock Market Fund which tracks 3,000 stocks in an effort to match the broader US stock market. Both of these index funds have historically produced the returns of 8-12% a year that I was talking about.
But again, if you want to get exceptional returns, you will need to do some learning.
This doesn’t mean you should give up ownership of your own finances. No one will care more about your personal finances than you. You cannot hand this responsibility off to someone else.
At the same time, you don’t want to reinvent the wheel. You can also benefit from another perspective as well as any research and investing ideas they might be able to offer.
You could go with a standard stock broker, but there are a lot of downsides to doing that if you are a beginner investor. I would look for a fee based investment advisor that you can trust and feel comfortable with. Some of the larger fee based advisory firms are Edward Jones and Ameriprise Financial Advisors.
If you are going to stock pick yourself, be warned. Most people cannot average market returns. If you don’t beat the market, there is no point in actively picking your own stocks. You might as well invest in a S&P 500 index fund ETF. You would get better returns, cheaper transaction costs and with the fraction of the time investment.
If you are older and closer to retirement age, you should be more conservative. That means investing in large cap stocks that offer dividends with low risk of capital depreciation. You should also start reallocating your assets into bonds and other fixed income investments as well.
For example, let’s say you want 80% in stocks and 20% in bonds. In 3 months from now, your stocks may appreciate to 90% of your portfolio and bonds 10%. To rebalance to get you back to your optimal ratio, you should sell your stocks and buy bonds. Either that, you can leave the stocks the same and allocate more capital from elsewhere to your bonds.
In stock market investing and trading, those owners can freely sell their share of the company to a buyer for the market price. Or they can buy additional shares in that company or in another company. The stock market gives investors and traders an avenue to do this freely, efficiently and it streamlines this whole process. These are basic things you need to know whether you are doing stock market trading or day trading for a living.
Here are some stock market investing basics terms and definitions you will need to know to understand what’s going on in the market. You can find these terms and learn more about them in stock market for dummies 101 books that I will eventually do a post on. In the mean time, here are some of the more important ones that you would learn in most stock market courses and tutorials.
The Dow – When a CNBC reporter refers to the Dow, she is referring to the Dow Jones Industrial Average. This is the average of the share price of 30 of the largest and most influential stocks on the New York Stock Exchange. The Dow typically is looked at as an indicator of the state of the US economy.
S&P 500 Index - This is another composite of companies compiled by a credit rating agency called Standard & Poor’s, hence the S&P. The 500 part refers to how many companies are included in this index. S&P has a set of criteria to pick the 500 most important companies in the US. This again is used to indicate the health of the US economy and stock market.
Share Price – Refers to the price of a single share of a company.
Market Cap – Also known as market capitalization, this is a measurement of the company’s size. It’s calculated by taking the share price and multiplying it by the number of outstanding shares. The 3 main categories of market caps are large-cap, mid-cap and small-cap.
P/E Ratio – This is the price per earnings ratio. It gives an indication of how much real money a company is earning relative to it’s share price. If their P/E is high, that means the price is way higher than what they are earnings, which means there is a market expectation that this particular stock will go up at some point in the future, the earnings will rise significantly, or both.
Stock Broker – Everyone needs one of these in one form or another to buy and sell stocks. A broker trades shares on your behalf and you pay them a commission each time you do it. Back in the old days, you’d have to call them on their landline to place an order. You can still do that, but most people have an online brokerage account that they trade from these days.
Mutual Fund – This is when a money manager puts together an investment portfolio and let’s other people get in on it. It’s like if you were picking stocks to invest in and other people started to ask you to do it for them. You are basically paying a professional to invest your money for you and you pay them a management fee.
Investment Portfolio – This is your overall basket of stocks, bonds and other assets that you have invested in. If I own shares in GE, Microsoft and Coca-cola, I would say that those stocks are in my investment portfolio.
Diversification – This is an important concept to understand when you are developing your investment strategy. Diversification is the idea that you don’t put all of your eggs in one basket. By buying a variety of stocks, bonds and other kinds of assets, you are diversifying your risk. If one goes down the tube, you have other assets to make up for it. It is unlikely that all of your assets will tank. And if one does extraordinarily well, it will make up for the losses. But you have no way of knowing which ones will do well and which ones won’t, so you buy all different kinds.
That being said, you really have to know how to invest in stocks in a variety of markets and economic conditions if you want these types of returns. You generally won’t get this type of ROI by sitting on your hands the whole time.
It’s not difficult to learn how to invest in the stock market. Even beginners can get started almost right away with the right investment strategy. If you want to get started right away as you learn the basics, consider investing in a broad market index fund like the SPDR ETF, which is a vehicle that tracks the S&P 500 composite index.
You can also look at the Vanguard Total Stock Market Fund which tracks 3,000 stocks in an effort to match the broader US stock market. Both of these index funds have historically produced the returns of 8-12% a year that I was talking about.
But again, if you want to get exceptional returns, you will need to do some learning.
Finding a Financial Advisor
Before you do anything, you should find a financial advisor. A good one will do far more than just give you investment advice about individual stocks. They will help you create a comprehensive investing strategy that is based on your risk profile, time horizon and financial objectives.This doesn’t mean you should give up ownership of your own finances. No one will care more about your personal finances than you. You cannot hand this responsibility off to someone else.
At the same time, you don’t want to reinvent the wheel. You can also benefit from another perspective as well as any research and investing ideas they might be able to offer.
You could go with a standard stock broker, but there are a lot of downsides to doing that if you are a beginner investor. I would look for a fee based investment advisor that you can trust and feel comfortable with. Some of the larger fee based advisory firms are Edward Jones and Ameriprise Financial Advisors.
Online Stock Market Trading Account
The next thing you will probably need to do is set up a trading account with a stock broker. Most people these days go with an online stock broker. The big ones that most investors use are Etrade, TD Ameritrade, and Scottrade. Just put a “.com” after their name and you are there.Stocks or Mutual Funds?
Again, it really depends on how active you want to be. If you want someone else to manage your money for you, you should invest in a mutual fund. If you are very interested in the stock market and would like to pick your own stocks, you can do that as well.If you are going to stock pick yourself, be warned. Most people cannot average market returns. If you don’t beat the market, there is no point in actively picking your own stocks. You might as well invest in a S&P 500 index fund ETF. You would get better returns, cheaper transaction costs and with the fraction of the time investment.
Time Horizon
It is important that you consider your time horizon when investing. If you are young and have 20-30 years before retirement, you should be a little more aggressive. You should look at investing in small cap growth stocks or a mutual fund that does the same.If you are older and closer to retirement age, you should be more conservative. That means investing in large cap stocks that offer dividends with low risk of capital depreciation. You should also start reallocating your assets into bonds and other fixed income investments as well.
Rebalancing Your Investment Portfolio
There is a spectrum to follow. As you get older, you should get progressively more conservative in your investment strategy. You do this with something called re-balancing. This is where you check in with your portfolio regularly to reallocate your assets based on your time horizon.For example, let’s say you want 80% in stocks and 20% in bonds. In 3 months from now, your stocks may appreciate to 90% of your portfolio and bonds 10%. To rebalance to get you back to your optimal ratio, you should sell your stocks and buy bonds. Either that, you can leave the stocks the same and allocate more capital from elsewhere to your bonds.
Introduction
First of all, the stock market is a financial exchange where buyers and sellers get together to trade shares or stock in public companies. Public companies issue shares of ownership in their company. Some may have 1,000 owners, some may have 1 million owners. In either case the owners are said to own stocks in that company.In stock market investing and trading, those owners can freely sell their share of the company to a buyer for the market price. Or they can buy additional shares in that company or in another company. The stock market gives investors and traders an avenue to do this freely, efficiently and it streamlines this whole process. These are basic things you need to know whether you are doing stock market trading or day trading for a living.
Terms and Definitions
Here are some stock market investing basics terms and definitions you will need to know to understand what’s going on in the market. You can find these terms and learn more about them in stock market for dummies 101 books that I will eventually do a post on. In the mean time, here are some of the more important ones that you would learn in most stock market courses and tutorials.
The Dow – When a CNBC reporter refers to the Dow, she is referring to the Dow Jones Industrial Average. This is the average of the share price of 30 of the largest and most influential stocks on the New York Stock Exchange. The Dow typically is looked at as an indicator of the state of the US economy.
S&P 500 Index - This is another composite of companies compiled by a credit rating agency called Standard & Poor’s, hence the S&P. The 500 part refers to how many companies are included in this index. S&P has a set of criteria to pick the 500 most important companies in the US. This again is used to indicate the health of the US economy and stock market.
Share Price – Refers to the price of a single share of a company.
Market Cap – Also known as market capitalization, this is a measurement of the company’s size. It’s calculated by taking the share price and multiplying it by the number of outstanding shares. The 3 main categories of market caps are large-cap, mid-cap and small-cap.
P/E Ratio – This is the price per earnings ratio. It gives an indication of how much real money a company is earning relative to it’s share price. If their P/E is high, that means the price is way higher than what they are earnings, which means there is a market expectation that this particular stock will go up at some point in the future, the earnings will rise significantly, or both.
Stock Broker – Everyone needs one of these in one form or another to buy and sell stocks. A broker trades shares on your behalf and you pay them a commission each time you do it. Back in the old days, you’d have to call them on their landline to place an order. You can still do that, but most people have an online brokerage account that they trade from these days.
Mutual Fund – This is when a money manager puts together an investment portfolio and let’s other people get in on it. It’s like if you were picking stocks to invest in and other people started to ask you to do it for them. You are basically paying a professional to invest your money for you and you pay them a management fee.
Investment Portfolio – This is your overall basket of stocks, bonds and other assets that you have invested in. If I own shares in GE, Microsoft and Coca-cola, I would say that those stocks are in my investment portfolio.
Diversification – This is an important concept to understand when you are developing your investment strategy. Diversification is the idea that you don’t put all of your eggs in one basket. By buying a variety of stocks, bonds and other kinds of assets, you are diversifying your risk. If one goes down the tube, you have other assets to make up for it. It is unlikely that all of your assets will tank. And if one does extraordinarily well, it will make up for the losses. But you have no way of knowing which ones will do well and which ones won’t, so you buy all different kinds.
On January 10, 2012, in Investment Strategy, Stock Market, by David
The euro zone is falling apart, and although the US economy is improving, we are still far off from a full recovery. So the question becomes, are there any good stocks to buy now in a climate like this? The answer is yes! Whether you are in a bull market, bear market or in limbo, which is what we are in now, you can make money in the stock market. As this tumultuous year winds down, here are some stock investment ideas for 2012.
Many investors are sitting on the sidelines right now figuring out the next phase in our global economy. They are sitting on cash, US Treasuries or gold. These are all super defensive plays.
Then there are the risk takers who are trying to find deals. Among the sectors where you might find undervalued stocks are in the financial sector and technology. Banks have been struggling since the 2008 financial crisis. They have not fully recovered. There is also nervousness about the exposure to European debt and new financial regulations that are coming down the pike. But for the true believers, they are confident that banks will recover and thrive in the long run, making these good stocks to buy now while they’re cheap. This includes all the bankers right now taking stock options in lieu of cash bonuses. If these insiders didn’t believe it, they wouldn’t be taking their bonuses in stock.
Defensive Stocks – Strong Now, Strong Later
Many experts and analysts are recommending defensive stocks as good stocks to invest in right now. Defensive sectors would be things like healthcare, consumer staples and utilities. Many are also advocating that you should invest in large multinational corporations that have a strong presence in the emerging markets. This will give you financial strength to weather any downturns, but also offer opportunities to leverage the massive growth in developing economies.
You generally think of defensive stocks as those that you invest in when there is a downturn in the economy. But I like the following defensive stocks because I think they will continue to be strong even when the economy is no longer in a recession. The thing is that if you do strict valuations, it looks like the entire stock market is undervalued. So when the economy recovers, it should cause a rising tide that raises all ships, including defensive stocks. They are one of those win-win plays.
Johnson & Johnson (JNJ) - I really like JNJ. They are the largest health care company in the world, in an industry that is ever growing. They have extremely strong brands for consumer products all around the world. They also have a strong business on the medical technology end as well. As the world grays with increasing numbers of the elderly, a massive and emerging middle class in the emerging markets and just the nature of the health care industry in general, I think JNJ is very well positioned to take advantage of significant growth over the next decade. They are also lending money to European banks. That means they have a lot of cash.
Exxon Mobil (XOM) - Again, another company that will win either way. This is the largest company by market cap on the US stock market. That makes them a safe haven asset when the economy is going south. But in addition to their defensive qualities, they also have great long term prospects for growth. They are always finding new reserves of oil. But they are also investing in other energy sources as well like natural gas. I think they will be a huge player in the natural gas power generation business in years to come. I’m bullish here because I think gas will become a major player in the power generation industry in the US. It burns cleaner than coal and safer than nuclear.
Growth Stocks – Speculation Play
If you are a speculator and looking for high growth stocks to buy, here are the ones you want to watch. Remember, with the potential for high returns also comes equal downside risks. Especially right now, only use money you can afford to lose on these stocks.
Google (GOOG) – This stock has been going up higher and higher for at least the last 10 years. They don’t seem to be letting up. On the fundamental side, their market share is growing as well as the market itself. They are starting to get into the social networking space as well with the recent release of Google+. The thing you want to watch for is their operational costs. It’s been rising very quickly due mostly to hiring costs. I don’t foresee that stabilizing at any point. Just make sure the earnings are growing faster than rising costs.
Apple Inc (AAPL) – This is another technology stock with great potential. With each new release of an iPhone or iPad device, the stock continues to climb. They have the “wow” factor down and I don’t see this changing any time soon. Their new server farm in Charlotte, NC just went online as iCloud. I think this is going to make a huge long term difference. But in the short term, you have very regular releases of new versions of their flashy devices. As long as they keep that up, the stock will continue to rise. Although Steve Jobs is no longer here with us, he probably left a road map for Apple to follow for the next 3-5 years. The question will be whether Tim Cook will be able to execute on those plans.
Netflix Inc (NFLX) – I’m not as crazy about this one. Their stock price has risen considerably for sure. Even the great speculator George Soros is said to be holding this stock. But I think the growth is going to be short-lived. Publishers don’t like them and that will only hurt their licensing costs. In addition, their business model of streaming movies and TV shows has relatively low barriers to entry. I think if Google buys Hulu as it’s rumored to be, I suspect Netflix might feel their final blow as a speculative growth play. I would put this in the category of stocks to not buy right now or one to look for short selling opportunities.
Stocks to Buy in a Recovery
Cyclical stocks are ones you want to invest in during a time of economic growth. The ideal time to get into these stocks is right when a recession is turning into a sustained recovery.
Ford (F) - I like Ford for several reasons. First of all, I respect this company. They were the only ones not to receive a government bailout. They stuck it out on their own and survived. Now they are thriving. But I need a little more than respect to want to invest in it. They have a strong presence and penetration into emerging markets. They have been able to adapt to the new environment they find themselves in with low cost, smaller vehicles. They have the pulse of the emerging market consumer. In addition, and this is very important to me, their financials are very strong.
JC Penny (JCP) – JC Penny is what they call a consumer discretionary stock. These are companies that do well during good economic times because they sell stuff that people don’t absolutely need. I like JC Penny in particular because they have not been doing well. Yes, that’s right. I like them because of their failure. That is because they are turning their failure into an opportunity and the best success stories start out that way. In their failure, they have hired a master retailer to become it’s next CEO. Ron Johnson has been the brains behind Apple’s spectacular success with their retail stores. He also has a design background, which you can see when you walk into an Apple store. If you wonder what his potential contributions could be, just walk into one of their stores and get the Apple experience. Johnson is an innovator and I think he’s going to lead a retailing revolution.
Emerging Market Stocks
The emerging markets are growing at an incredible pace. Most retail investors do not have access or the information necessary to access these markets. You can invest in them indirectly with stocks that have a lot of business interest in these regions. These stocks are a bit risky, especially if we start to see a slowdown or even a bubble pop in countries like China, India, Brazil, Russia and Southeast Asia.
Caterpillar – This company makes heavy equipment like backhoes and diggers for the construction industry. This sector has taken a hit in the US and the Western world, but is booming in other emerging economies. As long as there is this building boom in developing countries, you will see companies like Caterpillar do well. The only thing to watch out for is if and when a potential building bubble in China bursts. Then you might see it screech to a halt temporarily.
IBM – I like IBM here because they are providing the hardware and IT infrastructure necessary to equip these economies with the technology to grow. Their server business will only get better as these economies develop. In addition, they are providing the hardware for cloud computing, which is the next mega-trend in technology.
Yum Brands! – This used to be the restaurant arm of Pepsi Co. They were spun off a few years ago. You would recognize the brands that they own like Pizza Hut, KFC and Taco Bell. They also do A&P Restaurants as well. That is why you are seeing combo restaurants in many places now.
They are actually doing quite well. They are also well-positioned to take China by storm. If you know any Asians, you know that many of them love Kentucky Fried Chicken. I’m not exaggerating. Just think about how much you can scale this demand in a place like China. As the middle class grows in that country, there will be tons of opportunities for this brand to expand. KFC is doing even better than McDonald’s in China.
Index Fund Investing
Everyone is trying to beat the market by finding the best stocks to invest in. From professional money managers, to institutional investors on Wall Street, to the retail individual investor on main street, to those looking to skim on penny stock investing, everyone is trying to out-do the stock market. But the harsh reality is that a few actually end up finding the top stocks to invest in.
Research studies are starting to recognize that only a handful of investors actually beat the market consistently over time. So if a professional money manager for a large mutual fund management company can’t consistently beat the market, an individual investor should be wary of stock picking for himself.
That is where index fund investing comes in. You don’t have to spend hours to find good stocks to invest in. Instead, you let the market pick them.
The reason why index investing is highly recommended by so many smart investors, Warren Buffett being one of them, is that over time, they will almost surely give you a return. Now instead of beating the market, you are trying to grow with it. Historically, the market has always grown over time.
Penny Stock Investing
If you are looking for hot stock tips, you will probably run into many penny stock investing opportunities. These are abundant, especially online. They tout really cheap stocks and how you can get in on the ground floor.
Historically, many frauds have come from penny stock investments. They are hard to catch or even see on the radar because they are so small. The SEC has a hard enough time watching the big blue chips let alone tiny IPO’s. In addition, many of them are based outside of the US, which also helps them fly under the radar.
All I have to say here is to be careful of penny stock investing. The only smart way to do it is if you know the company personally or can walk down to their operations and see with your own eyes that it is a legitimate company.
The other problem is that liquidity is horrible on these stocks. That means you won’t get the optimal entry and exit prices on these stocks.
Many investors are sitting on the sidelines right now figuring out the next phase in our global economy. They are sitting on cash, US Treasuries or gold. These are all super defensive plays.
Then there are the risk takers who are trying to find deals. Among the sectors where you might find undervalued stocks are in the financial sector and technology. Banks have been struggling since the 2008 financial crisis. They have not fully recovered. There is also nervousness about the exposure to European debt and new financial regulations that are coming down the pike. But for the true believers, they are confident that banks will recover and thrive in the long run, making these good stocks to buy now while they’re cheap. This includes all the bankers right now taking stock options in lieu of cash bonuses. If these insiders didn’t believe it, they wouldn’t be taking their bonuses in stock.
Defensive Stocks – Strong Now, Strong Later
Many experts and analysts are recommending defensive stocks as good stocks to invest in right now. Defensive sectors would be things like healthcare, consumer staples and utilities. Many are also advocating that you should invest in large multinational corporations that have a strong presence in the emerging markets. This will give you financial strength to weather any downturns, but also offer opportunities to leverage the massive growth in developing economies.
You generally think of defensive stocks as those that you invest in when there is a downturn in the economy. But I like the following defensive stocks because I think they will continue to be strong even when the economy is no longer in a recession. The thing is that if you do strict valuations, it looks like the entire stock market is undervalued. So when the economy recovers, it should cause a rising tide that raises all ships, including defensive stocks. They are one of those win-win plays.
Johnson & Johnson (JNJ) - I really like JNJ. They are the largest health care company in the world, in an industry that is ever growing. They have extremely strong brands for consumer products all around the world. They also have a strong business on the medical technology end as well. As the world grays with increasing numbers of the elderly, a massive and emerging middle class in the emerging markets and just the nature of the health care industry in general, I think JNJ is very well positioned to take advantage of significant growth over the next decade. They are also lending money to European banks. That means they have a lot of cash.
Exxon Mobil (XOM) - Again, another company that will win either way. This is the largest company by market cap on the US stock market. That makes them a safe haven asset when the economy is going south. But in addition to their defensive qualities, they also have great long term prospects for growth. They are always finding new reserves of oil. But they are also investing in other energy sources as well like natural gas. I think they will be a huge player in the natural gas power generation business in years to come. I’m bullish here because I think gas will become a major player in the power generation industry in the US. It burns cleaner than coal and safer than nuclear.
Growth Stocks – Speculation Play
If you are a speculator and looking for high growth stocks to buy, here are the ones you want to watch. Remember, with the potential for high returns also comes equal downside risks. Especially right now, only use money you can afford to lose on these stocks.
Google (GOOG) – This stock has been going up higher and higher for at least the last 10 years. They don’t seem to be letting up. On the fundamental side, their market share is growing as well as the market itself. They are starting to get into the social networking space as well with the recent release of Google+. The thing you want to watch for is their operational costs. It’s been rising very quickly due mostly to hiring costs. I don’t foresee that stabilizing at any point. Just make sure the earnings are growing faster than rising costs.
Apple Inc (AAPL) – This is another technology stock with great potential. With each new release of an iPhone or iPad device, the stock continues to climb. They have the “wow” factor down and I don’t see this changing any time soon. Their new server farm in Charlotte, NC just went online as iCloud. I think this is going to make a huge long term difference. But in the short term, you have very regular releases of new versions of their flashy devices. As long as they keep that up, the stock will continue to rise. Although Steve Jobs is no longer here with us, he probably left a road map for Apple to follow for the next 3-5 years. The question will be whether Tim Cook will be able to execute on those plans.
Netflix Inc (NFLX) – I’m not as crazy about this one. Their stock price has risen considerably for sure. Even the great speculator George Soros is said to be holding this stock. But I think the growth is going to be short-lived. Publishers don’t like them and that will only hurt their licensing costs. In addition, their business model of streaming movies and TV shows has relatively low barriers to entry. I think if Google buys Hulu as it’s rumored to be, I suspect Netflix might feel their final blow as a speculative growth play. I would put this in the category of stocks to not buy right now or one to look for short selling opportunities.
Stocks to Buy in a Recovery
Cyclical stocks are ones you want to invest in during a time of economic growth. The ideal time to get into these stocks is right when a recession is turning into a sustained recovery.
Ford (F) - I like Ford for several reasons. First of all, I respect this company. They were the only ones not to receive a government bailout. They stuck it out on their own and survived. Now they are thriving. But I need a little more than respect to want to invest in it. They have a strong presence and penetration into emerging markets. They have been able to adapt to the new environment they find themselves in with low cost, smaller vehicles. They have the pulse of the emerging market consumer. In addition, and this is very important to me, their financials are very strong.
JC Penny (JCP) – JC Penny is what they call a consumer discretionary stock. These are companies that do well during good economic times because they sell stuff that people don’t absolutely need. I like JC Penny in particular because they have not been doing well. Yes, that’s right. I like them because of their failure. That is because they are turning their failure into an opportunity and the best success stories start out that way. In their failure, they have hired a master retailer to become it’s next CEO. Ron Johnson has been the brains behind Apple’s spectacular success with their retail stores. He also has a design background, which you can see when you walk into an Apple store. If you wonder what his potential contributions could be, just walk into one of their stores and get the Apple experience. Johnson is an innovator and I think he’s going to lead a retailing revolution.
Emerging Market Stocks
The emerging markets are growing at an incredible pace. Most retail investors do not have access or the information necessary to access these markets. You can invest in them indirectly with stocks that have a lot of business interest in these regions. These stocks are a bit risky, especially if we start to see a slowdown or even a bubble pop in countries like China, India, Brazil, Russia and Southeast Asia.
Caterpillar – This company makes heavy equipment like backhoes and diggers for the construction industry. This sector has taken a hit in the US and the Western world, but is booming in other emerging economies. As long as there is this building boom in developing countries, you will see companies like Caterpillar do well. The only thing to watch out for is if and when a potential building bubble in China bursts. Then you might see it screech to a halt temporarily.
IBM – I like IBM here because they are providing the hardware and IT infrastructure necessary to equip these economies with the technology to grow. Their server business will only get better as these economies develop. In addition, they are providing the hardware for cloud computing, which is the next mega-trend in technology.
Yum Brands! – This used to be the restaurant arm of Pepsi Co. They were spun off a few years ago. You would recognize the brands that they own like Pizza Hut, KFC and Taco Bell. They also do A&P Restaurants as well. That is why you are seeing combo restaurants in many places now.
They are actually doing quite well. They are also well-positioned to take China by storm. If you know any Asians, you know that many of them love Kentucky Fried Chicken. I’m not exaggerating. Just think about how much you can scale this demand in a place like China. As the middle class grows in that country, there will be tons of opportunities for this brand to expand. KFC is doing even better than McDonald’s in China.
Index Fund Investing
Everyone is trying to beat the market by finding the best stocks to invest in. From professional money managers, to institutional investors on Wall Street, to the retail individual investor on main street, to those looking to skim on penny stock investing, everyone is trying to out-do the stock market. But the harsh reality is that a few actually end up finding the top stocks to invest in.
Research studies are starting to recognize that only a handful of investors actually beat the market consistently over time. So if a professional money manager for a large mutual fund management company can’t consistently beat the market, an individual investor should be wary of stock picking for himself.
That is where index fund investing comes in. You don’t have to spend hours to find good stocks to invest in. Instead, you let the market pick them.
The reason why index investing is highly recommended by so many smart investors, Warren Buffett being one of them, is that over time, they will almost surely give you a return. Now instead of beating the market, you are trying to grow with it. Historically, the market has always grown over time.
Penny Stock Investing
If you are looking for hot stock tips, you will probably run into many penny stock investing opportunities. These are abundant, especially online. They tout really cheap stocks and how you can get in on the ground floor.
Historically, many frauds have come from penny stock investments. They are hard to catch or even see on the radar because they are so small. The SEC has a hard enough time watching the big blue chips let alone tiny IPO’s. In addition, many of them are based outside of the US, which also helps them fly under the radar.
All I have to say here is to be careful of penny stock investing. The only smart way to do it is if you know the company personally or can walk down to their operations and see with your own eyes that it is a legitimate company.
The other problem is that liquidity is horrible on these stocks. That means you won’t get the optimal entry and exit prices on these stocks.
5 Stocks Under $5 That Insiders Love to invest in 2012
Penny stocks have a solid reputation for being a risky investment; however, if the potential rewards excite you, then the list below might provide an interesting starting point for your search.
To create the following list, we took a universe of penny stocks (priced under $5 per share) and searched for names with a market cap over $300 million experiencing significant levels of insider buying over the past six months.
Here are some of the things we looked at when compiling the list of penny stocks:
5 Stocks Under $5 That Insiders Love to invest in 2012 - Market Capitalization (Market Cap): Market capitalization, commonly referred to as market cap, is the total market value of a company’s outstanding shares. It can be thought of as a measure of a company’s size. Market cap can be calculated by multiplying the number of shares by the current price of the shares. Companies with higher market cap are considered to have more trustworthy information because they have greater histories of profitability and data.
5 Stocks Under $5 That Insiders Love to invest in 2012 - Insider Trading: Many analysts follow insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading. Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.
Now that you’re armed with information, take a look at the following list of penny stocks that insiders seem to think are good values. Use this list as a starting point for your own analysis, and always keep in mind that a low share price does not mean low risk. Companies below $5 are there for a reason. Use caution and stop losses at all times.
5 Stocks Under $5 That Insiders Love to invest in 2012 - Opko Health, Inc. (AMEX:OPK) is in the medical appliances and equipment industry and has a market cap of $1.16 billion. Net insider shares purchased over the current quarter comes in at 6.85 million, which is 5.03% of the company’s 136.31 million-share float.
The stock is a short squeeze candidate, with a short float at 9.47% (equivalent to 10.83 days of average volume). The stock has had a couple of great days, gaining 10.74% over the last week.
5 Stocks Under $5 That Insiders Love to invest in 2012 - MannKind Corp. (NASDAQ:MNKD) is in the biotechnology industry with a market cap of $335.28 million. Net insider shares purchased over the current quarter comes in at 3.48 million, which is 4.39% of the company’s 79.29 million-share float.
The stock is a short squeeze candidate, with a short float at 28.55% (equivalent to 25.89 days of average volume). The stock has had a couple of great days, gaining 6.67% over the last week.
5 Stocks Under $5 That Insiders Love to invest in 2012 - Vantage Drilling Company (AMEX:VTG) is in the oil and gas drilling and exploration industry with a market cap of $363.33 million. Net insider shares purchased over the current quarter come in at 5.35 million, which is 3.22% of the company’s 166.05 million-share float.
This is a risky stock that is significantly more volatile than the overall market (beta = 2.08). The stock has performed poorly over the last month, losing 23.78%.
5 Stocks Under $5 That Insiders Love to invest in 2012 - TransAtlantic Petroleum Ltd. (AMEX:TAT) is in the oil and gas drilling and exploration industry with a market cap of $387.33 million. Net insider shares purchased over the current quarter comes in at 1.67 million, which is 0.81% of the company’s 205.75 million-share float. The stock has performed poorly over the last month, losing 27.4%.
Mueller Water Products, Inc. (NYSE:MWA) is in the industrial equipment and components industry with a market cap of $342.30 million. Net insider shares purchased over the current quarter comes in at 125,000, which is 0.09% of the company’s 132.60 million-share float.
This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock is a short squeeze candidate, with a short float at 7.27% (equivalent to 6.24 days of average volume). The stock has had a couple of great days, gaining 7.84% over the last week.
To create the following list, we took a universe of penny stocks (priced under $5 per share) and searched for names with a market cap over $300 million experiencing significant levels of insider buying over the past six months.
Here are some of the things we looked at when compiling the list of penny stocks:
5 Stocks Under $5 That Insiders Love to invest in 2012 - Market Capitalization (Market Cap): Market capitalization, commonly referred to as market cap, is the total market value of a company’s outstanding shares. It can be thought of as a measure of a company’s size. Market cap can be calculated by multiplying the number of shares by the current price of the shares. Companies with higher market cap are considered to have more trustworthy information because they have greater histories of profitability and data.
5 Stocks Under $5 That Insiders Love to invest in 2012 - Insider Trading: Many analysts follow insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading. Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.
Now that you’re armed with information, take a look at the following list of penny stocks that insiders seem to think are good values. Use this list as a starting point for your own analysis, and always keep in mind that a low share price does not mean low risk. Companies below $5 are there for a reason. Use caution and stop losses at all times.
5 Stocks Under $5 That Insiders Love to invest in 2012 - Opko Health, Inc. (AMEX:OPK) is in the medical appliances and equipment industry and has a market cap of $1.16 billion. Net insider shares purchased over the current quarter comes in at 6.85 million, which is 5.03% of the company’s 136.31 million-share float.
The stock is a short squeeze candidate, with a short float at 9.47% (equivalent to 10.83 days of average volume). The stock has had a couple of great days, gaining 10.74% over the last week.
5 Stocks Under $5 That Insiders Love to invest in 2012 - MannKind Corp. (NASDAQ:MNKD) is in the biotechnology industry with a market cap of $335.28 million. Net insider shares purchased over the current quarter comes in at 3.48 million, which is 4.39% of the company’s 79.29 million-share float.
The stock is a short squeeze candidate, with a short float at 28.55% (equivalent to 25.89 days of average volume). The stock has had a couple of great days, gaining 6.67% over the last week.
5 Stocks Under $5 That Insiders Love to invest in 2012 - Vantage Drilling Company (AMEX:VTG) is in the oil and gas drilling and exploration industry with a market cap of $363.33 million. Net insider shares purchased over the current quarter come in at 5.35 million, which is 3.22% of the company’s 166.05 million-share float.
This is a risky stock that is significantly more volatile than the overall market (beta = 2.08). The stock has performed poorly over the last month, losing 23.78%.
5 Stocks Under $5 That Insiders Love to invest in 2012 - TransAtlantic Petroleum Ltd. (AMEX:TAT) is in the oil and gas drilling and exploration industry with a market cap of $387.33 million. Net insider shares purchased over the current quarter comes in at 1.67 million, which is 0.81% of the company’s 205.75 million-share float. The stock has performed poorly over the last month, losing 27.4%.
Mueller Water Products, Inc. (NYSE:MWA) is in the industrial equipment and components industry with a market cap of $342.30 million. Net insider shares purchased over the current quarter comes in at 125,000, which is 0.09% of the company’s 132.60 million-share float.
This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock is a short squeeze candidate, with a short float at 7.27% (equivalent to 6.24 days of average volume). The stock has had a couple of great days, gaining 7.84% over the last week.
5 Health Care Penny Stocks to Buy in 2012
One of the residual benefits of the cantankerous debate regarding the debt ceiling in Washington is the health care sector. The debate on raising the debt limit has demonstrated the remarkable gains in political clout of the tea party and fiscally conservative elements of the GOP. With that clout, expect current health care legislation to be repealed or changed entirely at some point in the near future.
Already, the health care sector has been humming along in 2011. Stocks in the group have been rallying as politicians’ attention shifted to other priorities. Free to operate without the fear of onerous regulations, investors have been bidding up health care stocks like UnitedHealth (NYSE:UNH) and WellPoint (NYSE:WLP).
The biggest gains are yet to come, especially if the current health care law is repealed. I expect outsized gains in the sector, and I am particularly enamored with health care penny stocks. The SEC defines a penny stock as being less than $5 per share. The penny stocks mentioned here are all real companies with promising futures despite low prices.
Catalyst Pharmaceutical is a biopharmaceutical company in search of drugs to treat neural system disorders. As one would expect, the company is losing money. The play here is to buy future success today. There really are only two outcomes: huge success or failure. Thus, this a higher-risk/high-reward health care penny stock.
The medical device-maker has signed impressive purchasing agreements that bode well for its future. The company, now trading for more than $1 per share, is listed on NASDAQ. That listing is likely to attract the attention of more buyers that otherwise would shun the company. A focus on chiropractic and alternative solutions to physical ailments holds much promise for this health care penny stock.
The company generated a profit in excess of $1 million on sales of $7.6 million. The sales number represented an improvement of 24% from the year prior. As quickly as the market bid up shares, the rug was pulled out as sellers emerged. Shares now trade below $2. Investors might have been spooked by the company’s admission that future buying might not be similar to the impressive quarter announced.
That said, Pro-Dex is working hard to diversify its customer base. To the extent they are successful, this stock will rally back to more than $3 per share – and then some.
Shares soared on the news of the bid to more than $2 per share, but the eventual rejection of the offer has resulted in shares drifting lower. You can buy the stock today for $1.70 per share. As acceptance of its prostate treatment gains momentum, look for TGX to soar higher.
The company is in the business of providing contract-based research and development in the biotechnology industry. The tiny $9 million market cap company stands to benefit from the increasing research activity in this critical area of health care. As more barriers to research are removed, this stock should climb higher. It certainly is worthy of a speculation at this low price.
Already, the health care sector has been humming along in 2011. Stocks in the group have been rallying as politicians’ attention shifted to other priorities. Free to operate without the fear of onerous regulations, investors have been bidding up health care stocks like UnitedHealth (NYSE:UNH) and WellPoint (NYSE:WLP).
The biggest gains are yet to come, especially if the current health care law is repealed. I expect outsized gains in the sector, and I am particularly enamored with health care penny stocks. The SEC defines a penny stock as being less than $5 per share. The penny stocks mentioned here are all real companies with promising futures despite low prices.
5 Health Care Penny Stocks to Buy in 2012 - Catalyst Pharmaceutical Partners
Catalyst Pharmaceutical Partners (NASDAQ:CPRX) is a tiny health care penny stock with a $35 million market cap. Despite the low price, the average volume of shares traded is at 129,000 per day. There is plenty of action in this stock, including a recent analyst recommendation of “outperform” from Wall Street firm Cowen.Catalyst Pharmaceutical is a biopharmaceutical company in search of drugs to treat neural system disorders. As one would expect, the company is losing money. The play here is to buy future success today. There really are only two outcomes: huge success or failure. Thus, this a higher-risk/high-reward health care penny stock.
5 Health Care Penny Stocks to Buy in 2012 -
Dynatronics
Low-priced health care penny stocks can generate significant returns. Dynatronics (NASDAQ:DYNT) is one of the best-performing under-$5 stocks in the market, with a gain of more than 100% this year.The medical device-maker has signed impressive purchasing agreements that bode well for its future. The company, now trading for more than $1 per share, is listed on NASDAQ. That listing is likely to attract the attention of more buyers that otherwise would shun the company. A focus on chiropractic and alternative solutions to physical ailments holds much promise for this health care penny stock.
5 Health Care Penny Stocks to Buy in 2012 -
Pro-Dex
Pro-Dex (NASDAQ:PDEX) is a medical device company specializing in rotary drives and motors for physician and dental practitioners. This tiny health care penny stock has a valuation of only $6 million, and as a result, shares are volatile. In May, shares soared to more than $3, thanks in part to an impressive earnings report.The company generated a profit in excess of $1 million on sales of $7.6 million. The sales number represented an improvement of 24% from the year prior. As quickly as the market bid up shares, the rug was pulled out as sellers emerged. Shares now trade below $2. Investors might have been spooked by the company’s admission that future buying might not be similar to the impressive quarter announced.
That said, Pro-Dex is working hard to diversify its customer base. To the extent they are successful, this stock will rally back to more than $3 per share – and then some.
5 Health Care Penny Stocks to Buy in 2012 -
Theragenics
If the name Theragenics (NYSE:TGX) sounds familiar, you likely heard of this stock via its heavily advertised prostate cancer treatment program. TheraSeed is an FDA-approved medical device helping to diversify this 30-year-old medical device company. Earlier this year, the $58 million market cap company received a takeover bid that would have valued Theragenics at $74 million.Shares soared on the news of the bid to more than $2 per share, but the eventual rejection of the offer has resulted in shares drifting lower. You can buy the stock today for $1.70 per share. As acceptance of its prostate treatment gains momentum, look for TGX to soar higher.
5 Health Care Penny Stocks to Buy in 2012 -
Bioanalytical Systems
It doesn’t take much to move a health care penny stock significantly higher. On Wednesday, shares of Bioanalytical Systems (NASDAQ:BASI) gained 5% on a 9 cent-per-share move in stock price. At the end of last year, BASI spiked to $3.98 per share, hitting a 52-week high. Shares have been sliding lower since and now trade for $1.88.The company is in the business of providing contract-based research and development in the biotechnology industry. The tiny $9 million market cap company stands to benefit from the increasing research activity in this critical area of health care. As more barriers to research are removed, this stock should climb higher. It certainly is worthy of a speculation at this low price.
Top Penny Stocks For 2012
There is no better place to find explosive growth than with low-priced penny stocks. I’m not talking about pink sheet stocks that are potentially nonexistent, or fraudulent names set to crash. I’m talking about real companies with real earnings — companies listed for more than one year on a major exchange like the AMEX, NYSE or Nasdaq, and that have a market cap in the ballpark of $100 million.
The returns can be even more powerful when you combine the power of technology stocks and penny stocks. Specifically, the software space is seeing lots of action, thanks to the mass acceptance of smartphones and personal computing devices.
These devices are quite powerful, but they still need programs to make them run. The best software companies are those that make users more productive. In this tough economy, those companies that help workers do more with less are poised to be the penny stocks that really move higher.
Top Penny Stocks For 2012: China Sky One Medical Inc. (CSKI)
China Sky One Medical, Inc., through its subsidiaries, engages in the development, manufacture, marketing, and sale of over-the-counter, branded nutritional supplements, and over-the-counter plant and herb-based pharmaceutical and medicinal products primarily in the People?s Republic of China. The company?s product line includes ointments, sprays, medicated skin patches, injections, capsules, suppositories, tablets, and granules. It offers compound camphor cream that is used for the treatment of various pathogens on the skin surface, such as mycete, trichopytic, staphylococcal bacteria aureus, bacillus coli, and candida albicans; Hemorrhoids ointment, which is made in soft ointment form and is effective in sterilizing and relieving hemorrhoid symptoms, including itching, distending pain, burning, and bleeding; Sumei slim patch, a natural treatment for weight loss; and pain relief patch used for various ailments, including fever, headache, heart dysentery, diarrhea, and stiffness and pain caused by hypertension. China Sky One also provides anti-hypertension patch that stimulates blood capillaries, improves circulation, and reduces blood pressure; QiXue asthma patch, which is designed for the treatment of chronic inflammation of the airways and lungs; Stomatitis spray used for the treatment of dental ulcers, pharyngitis, and faucitis; Naphazoline Hydrochloride eye drops for the temporary relief of eye redness associated with minor irritations; cardiac arrest early examination kit used for early stage diagnosis of myocardial infarction; and Naftopidil dispersible tablet designed to treat benign enlargement of the prostate among middle age males, as well as various wash fluids, tablets, liniments, syrups, capsules, granules, injections, aerosols, and oral liquids. The company sells its products through Chinese domestic pharmaceutical chains. China Sky One Medical, Inc. is headquartered in Harbin, the People?s Republic of China.
Top Penny Stocks For 2012: EarthLink Inc. (ELNK)
EarthLink, Inc. provides communications services to individual and business customers in the United States. It operates in two segments, Consumer Services and Business Services. The Consumer Services segment offers Internet access and related value-added services. It provides dial-up Internet and narrowband access, broadband access, and voice-over-Internet-protocol services, as well as value-added services that include products for protection, communication, and performance, such as security products, premium email only, home networking, email storage, and Internet call waiting. This segment offer its products and services primarily through its call centers, search engine marketing, affinity marketing partners, resellers, and marketing alliances. The Business Services segment offers integrated communications services, such as secure IP-based networks, virtual private networks, Internet access, local telephone and long distance services, enhanced services, access trunks, private line services, asynchronous transfer mode/frame relay services, and mobile data and voice services, as well as installation, managed network, remote access, and disaster recovery services. It also provides wholesale services comprising broadband transport services, including private line, Ethernet private line, and wavelength services; local communications and local dial tone communications services; live and automated operator, and directory assistance services; and dedicated Internet access services and direct connectivity. In addition, this segment leases server space and provides Web hosting services that enable customers to build and maintain an online presence, including domain names, storage, mailboxes, software tools to build Web sites, e-commerce applications, and 24/7 customer support. This segment offers its services through direct sales, and independent dealers and sales agents. The company was founded in 1994 and is headquartered in Atlanta, Georgia.
Advisors’ Opinion:
* Vatalyst2011-10-22Shares are trading at $6.50 at the time of writing, as against their 52-week trading range of $6.04 to $9.29. Earnings per share for the last year were $0.45, and it paid a dividend of $0.20, yielding 3.10%.
Earthlink has shown tremendous growth in its internet and telephonic connectivity markets lately. But is this growth soon to blow out? In a market that is dominated by the larger companies, At&T (T), Verizon (VZ), and even AOL (AOL), it is hard to see that these three will allow too much trampling on their markets by the far smaller Earthlink. Gross margins at At&T, Verizon, and Earthlink are similar at around 58%, and there is not much difference in the resultant operating margins, either (15.5%, 17.5%, and 18.5%, respectively). Dividends are twice covered by earnings at AT& T and Earthlink, and marginally covered by earnings at Verizon. If the sector develops into a price war, AT&T’s dividend of yield of 6%, and undemanding price to earnings ratio of 8.39 will be more attractive to investors, and easier to achieve. Switch from Earthlink into AT&T.
Top Penny Stocks For 2012: Deswell Industries Inc. (DSWL)
Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.
Top Penny Stocks For 2012: Federal Signal Corporation (FSS)
Federal Signal Corporation designs and manufactures a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers worldwide. The company operates in three segments: Safety and Security Systems, Fire Rescue, and Environmental Solutions. The Safety and Security Systems segment offers various systems for automated license plate recognition, campus and community alerting, emergency vehicles, first responder interoperable communications, industrial communications and command, municipal networked security, vehicle classification, parking revenue, and access control. This segment also provides products, such as lightbars and sirens, public warning sirens, and public safety software. The Fire Rescue segment offers articulated and telescopic aerial platforms for rescue, fire fighting, and maintenance purposes. This segment sells its products to municipal and industrial fire services, civil defense authorities, rental companies, electric utilities and industrial customers. The Environmental Solutions segment provides various self-propelled street cleaning vehicles, vacuum loader vehicles, municipal catch basin/sewer cleaning vacuum trucks, and water blasting equipment. The company was founded in 1901 and is based in Oak Brook, Illinois.
Advisors’ Opinion:
* Vita2011-9-11Federal Signal Corporation is a global manufacturer and supplier of safety, security and communication equipment; street sweepers and other environmental vehicles and equipment, and vehicle-mounted, aerial platforms for fire fighting, rescue, electric utility and industrial uses. Its EPS forecast for the current year is 0.29 and next year is 0.61. According to consensus estimates, its topline is expected to grow 8.2% current year and 10.66% next year. It is trading at a forward P/E of 10.67. Out of five analysts covering the company, three are positive and have buy recommendations and two have hold ratings.
The returns can be even more powerful when you combine the power of technology stocks and penny stocks. Specifically, the software space is seeing lots of action, thanks to the mass acceptance of smartphones and personal computing devices.
These devices are quite powerful, but they still need programs to make them run. The best software companies are those that make users more productive. In this tough economy, those companies that help workers do more with less are poised to be the penny stocks that really move higher.
Top Penny Stocks For 2012: China Sky One Medical Inc. (CSKI)
China Sky One Medical, Inc., through its subsidiaries, engages in the development, manufacture, marketing, and sale of over-the-counter, branded nutritional supplements, and over-the-counter plant and herb-based pharmaceutical and medicinal products primarily in the People?s Republic of China. The company?s product line includes ointments, sprays, medicated skin patches, injections, capsules, suppositories, tablets, and granules. It offers compound camphor cream that is used for the treatment of various pathogens on the skin surface, such as mycete, trichopytic, staphylococcal bacteria aureus, bacillus coli, and candida albicans; Hemorrhoids ointment, which is made in soft ointment form and is effective in sterilizing and relieving hemorrhoid symptoms, including itching, distending pain, burning, and bleeding; Sumei slim patch, a natural treatment for weight loss; and pain relief patch used for various ailments, including fever, headache, heart dysentery, diarrhea, and stiffness and pain caused by hypertension. China Sky One also provides anti-hypertension patch that stimulates blood capillaries, improves circulation, and reduces blood pressure; QiXue asthma patch, which is designed for the treatment of chronic inflammation of the airways and lungs; Stomatitis spray used for the treatment of dental ulcers, pharyngitis, and faucitis; Naphazoline Hydrochloride eye drops for the temporary relief of eye redness associated with minor irritations; cardiac arrest early examination kit used for early stage diagnosis of myocardial infarction; and Naftopidil dispersible tablet designed to treat benign enlargement of the prostate among middle age males, as well as various wash fluids, tablets, liniments, syrups, capsules, granules, injections, aerosols, and oral liquids. The company sells its products through Chinese domestic pharmaceutical chains. China Sky One Medical, Inc. is headquartered in Harbin, the People?s Republic of China.
Top Penny Stocks For 2012: EarthLink Inc. (ELNK)
EarthLink, Inc. provides communications services to individual and business customers in the United States. It operates in two segments, Consumer Services and Business Services. The Consumer Services segment offers Internet access and related value-added services. It provides dial-up Internet and narrowband access, broadband access, and voice-over-Internet-protocol services, as well as value-added services that include products for protection, communication, and performance, such as security products, premium email only, home networking, email storage, and Internet call waiting. This segment offer its products and services primarily through its call centers, search engine marketing, affinity marketing partners, resellers, and marketing alliances. The Business Services segment offers integrated communications services, such as secure IP-based networks, virtual private networks, Internet access, local telephone and long distance services, enhanced services, access trunks, private line services, asynchronous transfer mode/frame relay services, and mobile data and voice services, as well as installation, managed network, remote access, and disaster recovery services. It also provides wholesale services comprising broadband transport services, including private line, Ethernet private line, and wavelength services; local communications and local dial tone communications services; live and automated operator, and directory assistance services; and dedicated Internet access services and direct connectivity. In addition, this segment leases server space and provides Web hosting services that enable customers to build and maintain an online presence, including domain names, storage, mailboxes, software tools to build Web sites, e-commerce applications, and 24/7 customer support. This segment offers its services through direct sales, and independent dealers and sales agents. The company was founded in 1994 and is headquartered in Atlanta, Georgia.
Advisors’ Opinion:
* Vatalyst2011-10-22Shares are trading at $6.50 at the time of writing, as against their 52-week trading range of $6.04 to $9.29. Earnings per share for the last year were $0.45, and it paid a dividend of $0.20, yielding 3.10%.
Earthlink has shown tremendous growth in its internet and telephonic connectivity markets lately. But is this growth soon to blow out? In a market that is dominated by the larger companies, At&T (T), Verizon (VZ), and even AOL (AOL), it is hard to see that these three will allow too much trampling on their markets by the far smaller Earthlink. Gross margins at At&T, Verizon, and Earthlink are similar at around 58%, and there is not much difference in the resultant operating margins, either (15.5%, 17.5%, and 18.5%, respectively). Dividends are twice covered by earnings at AT& T and Earthlink, and marginally covered by earnings at Verizon. If the sector develops into a price war, AT&T’s dividend of yield of 6%, and undemanding price to earnings ratio of 8.39 will be more attractive to investors, and easier to achieve. Switch from Earthlink into AT&T.
Top Penny Stocks For 2012: Deswell Industries Inc. (DSWL)
Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.
Top Penny Stocks For 2012: Federal Signal Corporation (FSS)
Federal Signal Corporation designs and manufactures a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers worldwide. The company operates in three segments: Safety and Security Systems, Fire Rescue, and Environmental Solutions. The Safety and Security Systems segment offers various systems for automated license plate recognition, campus and community alerting, emergency vehicles, first responder interoperable communications, industrial communications and command, municipal networked security, vehicle classification, parking revenue, and access control. This segment also provides products, such as lightbars and sirens, public warning sirens, and public safety software. The Fire Rescue segment offers articulated and telescopic aerial platforms for rescue, fire fighting, and maintenance purposes. This segment sells its products to municipal and industrial fire services, civil defense authorities, rental companies, electric utilities and industrial customers. The Environmental Solutions segment provides various self-propelled street cleaning vehicles, vacuum loader vehicles, municipal catch basin/sewer cleaning vacuum trucks, and water blasting equipment. The company was founded in 1901 and is based in Oak Brook, Illinois.
Advisors’ Opinion:
* Vita2011-9-11Federal Signal Corporation is a global manufacturer and supplier of safety, security and communication equipment; street sweepers and other environmental vehicles and equipment, and vehicle-mounted, aerial platforms for fire fighting, rescue, electric utility and industrial uses. Its EPS forecast for the current year is 0.29 and next year is 0.61. According to consensus estimates, its topline is expected to grow 8.2% current year and 10.66% next year. It is trading at a forward P/E of 10.67. Out of five analysts covering the company, three are positive and have buy recommendations and two have hold ratings.
12 Small Cap High Yielding Dividend Stocks Under $10
Kurtis Hemmerling submits:
Most people think of giant value companies with reduced growth and high cash-flow as being the typical blue chip dividend paying stock. But tiny stocks can also deliver high yielding income payouts. The benefit of picking small cap companies with large dividends is the added exposure to capital gains in addition to the income strategy.
The small cap effect is highlighted in the Fama and French paper, Value Versus Growth: The International Evidence (1997). This team of researchers have provided empirical data that show smaller cap companies (both value and growth) as historically outperforming larger cap stocks.
Our stock scan will try to give income investors a healthy capital gain potential to compliment their dividends. Our criteria is as follows:
* Price under $10
* Small cap or below 2 billion market capitalization
* Dividend yield above 5%
* Price to Free Cash Flow under 30
* Price went up over the past 3 months
Most people think of giant value companies with reduced growth and high cash-flow as being the typical blue chip dividend paying stock. But tiny stocks can also deliver high yielding income payouts. The benefit of picking small cap companies with large dividends is the added exposure to capital gains in addition to the income strategy.
The small cap effect is highlighted in the Fama and French paper, Value Versus Growth: The International Evidence (1997). This team of researchers have provided empirical data that show smaller cap companies (both value and growth) as historically outperforming larger cap stocks.
Our stock scan will try to give income investors a healthy capital gain potential to compliment their dividends. Our criteria is as follows:
* Price under $10
* Small cap or below 2 billion market capitalization
* Dividend yield above 5%
* Price to Free Cash Flow under 30
* Price went up over the past 3 months
Subscribe to:
Posts (Atom)