Nov

12

Making Cents in Penny Stocks

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I found this article below on fool.com which I thought it was worth to read if you’d like to know more about penny stocks in Clean Energy industry.

Making Cents in Penny Stocks

The occasional shower of pennies from heaven might do our bank accounts some good, but we Fools can’t say the same for penny stocks. The world of penny stocks is often full of manipulation and deceit, making it harder for investors to separate its few good offerings from the multitude best ignored.

Still, many investors dabble at the low end of the stock-price spectrum. At Motley Fool CAPS, we award the “Pennies” title to investors who rate stocks trading in the single digits more than half the time. Believe it or not, you’ll find some of the best CAPS All-Stars among those members.

Pinching pennies
This week, we’ll look at some of the low-priced investments these All-Stars have praised. If some of the best investors regularly scanning this end of the market have singled out these companies, we might want to turn our umbrellas upside-down — or run for cover!

Here’s the latest list of low-priced stocks with All-Star support:

Company

Price*

CAPS Rating (out of 5 max)

CAPS Member

Member Rating

Clean Energy Fuels (Nasdaq: CLNE)

$6.24

****

goldminingXpert

99.99
Harmonic (Nasdaq: HLIT)

$6.68

****

vanamonde

99.94
US Airways (NYSE: LCC)

$9.94

*

Tankota

99.83
StealthGas (Nasdaq: GASS)

$7.41

****

Toprope101

99.64
Discovery Labs (Nasdaq: DSCO)

$1.77

**

zzlangerhans

99.26

*Price when the outperform call was made.

Your two cents’ worth
It certainly helps that one of the factors pressuring the airline industry — namely, oil prices — has been in full retreat recently. That’s given carriers like US Airways some breathing room. With capacity cuts eliminating excess seats in a down economy and Delta (NYSE: DAL) getting the go-ahead to buy Northwest Airlines, there’s a superficial notion that the industry may turn itself around.

CAPS All-Star rexlove thinks it’s a temporary situation as the recession continues to eat away at spending.

Airline stocks doing unusually good recently. Sure-oil prices are down-but now we have a recession going on. All business and personal travel has to be down big time.

Politics plays a large role in where investors stand on Clean Energy Fuels, the T. Boone Pickens company pushing natural-gas cars — half of the billionaire’s plan to wean this country off its foreign fuel dependence. Yet natural gas prices are declining and producers like Devon Energy (NYSE: DVN) have been feeling the effects. Nor did it help anyone that Californians defeated a proposition, almost fully paid for by Clean Energy Fuels, that would have offered rebates for the purchase of natural gas-burning vehicles.

CAPS member fmahnke sees Clean Energy Fuels as a good long-term investment.

Great long-term investment has finally dropped to reasonable level after the failure of CA [proposition] 10. Natural Gas Power vehicles could be a bargaining chip for current administration to pump cash into the BIG 3. Strong balance sheet. This would be a good idea even if [House Speaker Nancy] Pelosi wasn’t a …  large shareholder as the Natural Gas play on alternative energy is [the] lost logical path to reducing [foreign oil dependence].

Riding the bear is All-Star member georgialax, who says the company is solely relying on greater government involvement.

If you are betting on this company you are making a bet on “big government”. [Clean Energy Fuels] can’t turn a profit without massive government handouts, land grabs, and regulations. Look at the contracts that the company has gotten so far. By and large they are all government contracts. What does this mean? Well it means that if you are a business with a big heart and limitless funds you can invest in Natural Gas vehicles. Only government (which doesn’t have to worry about [profits]) can buy into something that has no economic return value. There has been no value for private companies to buy into the technology because it doesn’t increase financial returns. The public is in no mood for any new company government subsidies at a time that oil is plummeting and the new technologies are unproven.

You can read the full pitch against Clean Energy Fuels on its CAPS page.

Make some change
What do you think? Should we fill up the change jar with these penny stocks, or ignore ‘em like a discarded coin on the street? It pays to start your own research on these stocks on Motley Fool CAPS. Read a company’s financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made — all from a stock’s CAPS page.

Quote of the Day:
I look for businesses in which I think I can predict what they’re going to look like in ten to fifteen years time. Take Wrigley’s chewing gum. I don’t think the internet is going to change how people chew gum. – Warren Buffett

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Oct

24

Penny Stock Investing and Trading

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I found this article when I was doing my daily penny stock research. Thought I would post it since it’ll be usefull for those who are new in penny stock world.

Penny Stock Investing and Trading

If you ask anyone in the finance world what they think about investing or trading penny stocks, the answer that you will probably get will be: “Don’t do it. You will lose your money since 90% of penny stock companies are scams. penny stock companies just want to sell shares and are not interested in developing their businesses.” The truth is that investing or trading penny stocks is a very risky business. So here is the most important tip about penny stocks: Invest only money that you can afford to lose.

If penny stocks are so risky then, why do people invest in or trade them?
The answer is because you can make a lot of money in a short time if you know what you are doing.

If you are still reading and have decided that you want to trade penny stocks, you need the right tools and good advice to help you survive and even win some money.

Step # 1 – Finding the Right Penny Stock to Buy

To discover the right one stock, you will have to do some investigation, or Due Diligence. There are a lot of websites that will help you with your DD and you can find a list of useful ones at www.stocks-reporter.com.

The following points will guide you in learning important information about a company in which you are interested in investing:

1. Share structure: AS (Shares Authorized) and OS (Outstanding Stock and Float)
2. Transfer agent transparency
3. SEC filing
4. Financial track record
5. Competitive position in its industry
6. Business model
7. Earnings power
8. Valuation or the potential value of the company

For example, when looking into share structure what you want to see is that there is no dilution. A good sign is when the company has maximized the OS and is close to AS. Watching Level 2 will also give you good indication if there is any dilution from the company. A good strategy is to follow insiders who know the company better than anyone else.

Step # 2 – Deciding When to Buy

After finding the penny stock that you plan to buy, you have to find your entry point and how to execute it the right way. Following the trading in that particular stock for a few days together with chart analyzing will give you a lot of valuable information. At this point it is highly recommended for anyone to learn some basic chart reading or at least let others analyze the chart for you. You can ask for help on many of the popular message boards that discuss stock trading and chart analyzing. An important tip about how to execute the trade in a penny stock is: Be very patient and always try to buy at the BID price.

Step # 3 – When to Sell or The Exit Strategy

The exit strategy is something very personal to different traders or investors.
It is very important to implement your strategy immediately after executing the buy order. In most cases, a good idea would be to set a sell order of 50% of your position at around 20%-30% PPS spike. Another 10%-20% rise of PPS and then sell another 50% of your current position and let the rest ride for a while. In general, your exit strategy should be very flexible and change with news, momentum, and volume. 90% of the time, though, you should sell at the ASK so it won’t affect the run.

TIP: Remember always to take profits.

Source: http://www.bestsyndication.com

Quote of the Day:
The IPO market is never in equilibrium. It’s either too hot or too cold. Buy in the cold periods. – Jay Ritter

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Jul

19

Scottrade

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After thinking about it for some time, I’ve finally decided to close my E-trade account and switch to Scottrade. Why? Cheaper commission trade, of course. E-trade charges $13/trade, whereas Scottrade only charges $7/trade. YES, it’s only $7/trade. Gosh, why didn’t I switch to them sooner?!

I’m currently in the middle of looking into this one particular stock that I can wait to share with you guys. It’s traded less than $10/share and yesterday, they went up by $3.30. Pretty good, right?

Anyways, I should be done with my research in a couple of days; and as soon as I’m done, I’m going to write here as much as I know about this stock.

Quote of the Day:
Don’t learn the tricks of the trade. Learn the trade. – Anonymous

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Apr

20

Hot Stocks under $10

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Cheap stocks have an undeniable appeal because they offer investors the potential to score big returns.

Using MSN Money’s Deluxe Screener, columnist Harry Domash has identified nine companies whose shares are bargains now but have the potential to recover from the problems that sank their share prices in the first place.

Among the stocks that the screen turned up is RealNetworks (RNWK, news, msgs), the operator of the Rhapsody online music service. RealNetworks expects the biggest music companies will soon permit music to be sold online without copy-protection software. Today, music sold online comes with software that limits what users can do with the songs after they buy them. Songs purchased on iTunes, for instance, play only on Apple’s (AAPL, news, msgs) iPod music player.

The screen also identified Art Technology Group (ARTG, news, msgs), a provider of software and services that help about 600 companies do business online. The Cambridge, Mass., company last month announced a deal with apparel retailer Chico’s FAS (CHS, news, msgs), which plans to relaunch its Web storefronts for each of its brands using an Art Technology Group product suite.

Coeur D’Alene Mines (CDE, news, msgs) also made the cut. The company mines silver, gold, lead and zinc in the U.S., South America, Africa and Australia. Its plan to open a gold mine near Juneau, Alaska, this year sustained a setback last month when a federal appeals court indicated it would overturn a permit for the mine’s tailings dump.

Here is the complete list of stocks uncovered by the screen April 19.

Company Industry Previous day’s close
Art Technology Group (ARTG) Internet software and services $2.23
Coeur D’Alene Mines (CDE) Silver and gold $4.15
Netlist (NLST) Electronic equipment $4.34
Actuate (ACTU) Application software $5.73
TransAct Technologies (TACT) Computer peripherals $7.15
RealNetworks (RNWK) Internet software and services $7.66
STEC Inc. (STEC) Data storage $8.01
Website Pros (WSPI) Internet services and products $8.88
Silicon Image (SIMG) Semiconductors $9.11

The screen is based on the following parameters:

  • A previous day’s closing price between $2 and $9.95 a share
  • Average daily trading volume of at least 40,000 shares over the previous quarter, to weed out dead or rarely traded stocks
  • A return on invested capital of at least 10%, to isolate companies with profits sufficient to support growth or reward shareholders
  • A price-sales ratio of 8 or less
  • Year-over-year revenue growth of at least 12% in the past 12 months
  • Revenue growth in the previousquarter that’s at least 75% of the growth rate for the previous 12 months
  • Forecasted earnings-per-share growth of at least 15% over five years
  • At least 30% of outstanding shares held by institutional investors
  • A mean recommendation by analysts of “hold,” “buy,” or “strong buy.”
  • At least 30% of outstanding shares held by institutional investors
  • No negative earnings suprises in the recent past

Domash cautions investors against expecting to score easy gains on cheap stocks, many of which got that way because market players spied serious fundamental problems that probably won’t go away. Thus, many are likely to get even cheaper.As a starting point for additional research, however, the screen offers investment ideas that can isolate profitable companies in the cheap-stock universe. For more details on the screening criteria, click here.

Source: articles.moneycentral.msn.com

Quote of the Day:
When someone says ‘it’s not about money’, it’s about money. – H. L. Mencken

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Mar

29

H3 (Where Hip Hop Meets Wall Street)…Are they really worth it?

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H3Enterprises, Inc. (“H3”, “the Company”) has developed a powerful niche in three of the largest, fastest growing, and most profitable segments in the Entertainment Industry worldwide: Hip Hop Music, Video Gaming, and High Definition Flat Screen TV.

The Company (Symbol: HTRE) is led by Brian Peters, who has won top prize in Visa and Bank of America’s “Best New Business Concept 2004″. The company is also managed by Jackie Robinson, who landed a spot in Black Enterprise Magazine’s “Top 100 Business People” (#51). He has owned/operated 53 franchised Pizza Hut Restaurants.

Some of their product information:

  • HipHopSodaShop
    The HipHopSodaShop is a unique restaurant concept that celebrates the skyrocketing demand for everything Hip Hop, complete with a healthy quick service menu, merchandising, memorabilia, giant LCD screens, and a large area dedicated to competitive Video Gaming.
  • H3TV
    H3TV’s giant LCD Flat Screens will be featured throughout the HipHopSodaShops. The revolutionary screens will be utilized for music videos, live sporting events, audience participation “Open Mic Nites”, special sponsorships and promotions as well as cyber gaming action. H3TV is a multi-functional computerized television display designed to be the LCD flat screen of the “Hip Hop Generation.”
  • HipHopHeaven
    Hip Hop Heaven serves up the absolute best meats, seafood, and salads available anywhere in a relaxed, but very entertaining atmosphere. Like in all H3 establishments, the latest and greatest in Hip Hop music, media, merchandise, and memorabilia will be featured.

Honestly, the stock’s perfomance in the past 6 months looks like a roller coaster. Demands for the stocks look very unpredictable, and both the volume and the price aren’t showing any trends at all. Even though the company is managed by a group of people who are referred to as “group of champions,” but I personally have my doubts when it comes to trading this stock.

The stock is currently traded at 6 cents/share (which is very cheap). So if you’re interested, you should consider getting them right now since I don’t think its price/share is going down any further.

Source: h3inc.com

Quote of the Day:
When someone says ‘it’s not about money’, it’s about money. – H. L. Mencken

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