Tag Archives: penny stocks

Penny Stocks that offer dividends

There are many penny stocks that offer a good dividend yield with capital appreciation. The higher cash levels at companies, including penny stocks, will drive them to increase their dividend yield over the next decade. This combination of higher dividend yield and an economy that recovers will drive up the price of penny stocks over the next decade. Personally, I would rather put my money in growing penny stocks paying a higher dividend yield than a 10-year U.S. treasury bond paying only two percent with limited upside potential and a huge risk of capital losses.

A completely unique market in penny stocks that pays a dividend yield, outside of the banking and resource sector, is Deer Consumer Products, Inc. (NASDAQ/DEER). Deer makes and sells kitchen appliances. A Chinese design firm, it sells its products in China and overseas. This is an interesting play on the burgeoning Chinese domestic economy. Penny stocks that are in this space might offer significant upside capital appreciation, in addition to the dividend yield, if the Chinese domestic market continues to expand.

Deer also makes and sells products under the “Black & Decker” and “Betty Crocker Kitchen” brands, as well as other private label names. I do like it when penny stocks have multiple customers and are not heavily reliant on one big client. This allows some stability when it comes to earnings visibility and the predictability of the dividend yield. If the forward dividend yield is maintained as stated by the company, then the stock should pay out approximately 5.7%. Trading at 0.65 of book value with a 17.56% profit margin, these are decent fundamentals to begin further research in the stock.

Chart courtesy of www.StockCharts.com

The recent earnings release by the company showed that, for the year 2011, net income rose 31%. The company stated that higher prices and increased Chinese sales were a big part of the increase in income. Penny stocks that are increasing their sales and income are a good place to start, even if you are looking for a dividend yield. The stock did move up sharply following the earnings release, but it has since pulled back.

Deer had revenue of $226.7 million in 2011, compared to $175.8 million in 2010, up 29%. The firm had earnings of $39.8 million in 2011 ($1.18 per share), compared to $30.3 million ($0.90 per share) in the previous year. Approximately 68% of sales came from mainland China. The firm stated its expectations for 2012 of earning $1.37-$1.42 per share. The company expects this based off of $270 million to $290 million in revenue.

In a company press release, chairman and CEO Bill He said: “We believe China remains the world’s largest and fastest growing consumer retail market and has strong domestic demand for small household appliances.”

Penny stocks with exposure to China have been hurt recently, no doubt about it. Even firms that pay a good dividend yield, such as Deer, have been hurt. If we are to believe the CEO of the firm, there was no word of a decrease or suspension in the dividend yield. Obviously, no one can read minds or predict the future, and investing in penny stocks deals a lot with the trust in management.

I usually like investing in penny stocks with some momentum, as other investors signal their intentions in penny stocks with their money. If they like penny stocks, they buy them, and the price starts to form a base from which it moves up. Penny stocks continuing to decline does raise some worry, but if the fundamental results come in as the CEO states, then perhaps this might be a long-term stock worth looking further into. While I’m not advocating buying shares right now, I certainly would keep my eye on this stock.

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30 Survey Results That Sound False But That Are Actually True

You will be shocked at what some Americans actually believe.  For example, close to 90 percent of us believe that we are eating a healthy diet, and yet more than third of the population is officially obese.  65 percent of all Americans say that they are dissatisfied with the government, and yet nearly a third of us would be willing to submit to a “TSA body cavity search” in order to get on an airplane.  As you will see below, Americans are angrier and more frustrated with government and with their lives than ever before, but we also exhibit almost unbelievable levels of sloth and apathy.  Some of the numbers below are quite funny, and others are absolutely stunning.  But they all say something about who we have become as a nation.  The following are 30 survey results that sound false but that are actually true…

#1 According to a recent Rasmussen Reports survey, 52 percent of Americans “do not think the economy is fair to those willing to work hard”.

#2 70 percent of all Americans do not “feel engaged or inspired at their jobs”.

#3 According to another recent Rasmussen Reports survey, 59 percent of Americans believe that “less government involvement in the economy” would help reduce the size of the income gap in this country.  (And those 59 percents are actually correct.)

#4 20 percent of all government workers and 26 percent of all Obama supporters consider the Tea Party to be “the biggest terror threat” that America is facing.

#5 Approximately 30 percent of all American workers have $1,000 or less saved up for retirement.

#6 A worldwide survey conducted by the Worldwide Independent Network and Gallup found that 24 percent of people around the world consider the United States to be the biggest threat to peace.  Pakistan was in second place with just 8 percent.

#7 60 percent of Americans report feeling “angry or irritable”.  Two years ago that number was at 50 percent.

#8 36 percent of Americans admit that they have yelled at a customer service agent during the past year.

#9 29 percent of Americans believe that “cloud computing” involves an actual cloud.

#10 A survey of employers that currently pay minimum wage to at least some of their employees found that 38 percent of them would start laying off employees if the minimum wage was raised.

#11 One survey found that 56 percent of Americans believe that it is okay for the government to track “the telephone records of millions of Americans” in order to keep us safe.

#12 When George W. Bush was president, 61 percent of Democrats considered NSA surveillance to be “unacceptable”, but now that Obama is in the White House, only 34 percent of them consider it to be “unacceptable”.

#13 67 percent of Americans support the use of unmanned drones in “homeland security missions” inside the United States.

#14 One survey found that 51 percent of all Americans agree with this statement: “it is necessary to give up some civil liberties in order to make the country safe from terrorism.”

#15 Close to one-third of all Americans would be willing to submit to a “TSA body cavity search” in order to fly.

#16 65 percent of Americans are dissatisfied “with the U.S. system of government and its effectiveness”.  That is the highest level of dissatisfaction that Gallup has ever recorded.

 

#17 Only 8 percent of Americans believe that Congress is doing a “good” or “excellent” job.

 

#18 70 percent of Americans do not have confidence that the federal government will “make progress on the important problems and issues facing the country in 2014”.

#19 According to a survey conducted by the National Geographic Society, only 37 percent of all Americans in the 18 to 24-year-old age range can find the nation of Iraq on a map.

#20 Close to 25 percent of all Americans do not know that the United States declared independence from Great Britain.

#21 Right now, 29 percent of all Americans under the age of 35 are living with their parents.

#22 According to one survey, 24 percent of all U.S. teens that have a sexually-transmitted disease say that they still have unprotected sex.

#23 Approximately one out of every five teenage girls in the United States actually wants to be a teenage mother.

#24 The percentage of Americans that “believe there are signs that aliens have visited Earth” is actually higher than the percentage of Americans that believe that Jesus Christ is the Son of God.

#25 According to one recent survey, only 35 percent of all Americans say that they are better off financially than they were a year ago.

#26 It is hard to believe, but 56 percent of all Americans are considered to have “subprime credit” at this point.

#27 89.7 percent of all Americans believe that they are eating a healthy diet.  Meanwhile, approximately 36 percent of all Americans are obese.

#28 44 percent of all Americans do not have a first-aid kit in their homes.

 

#29 48 percent of all Americans do not have any emergency supplies stored up at all.

 

#30 53 percent of all Americans do not even have a 3 day supply of nonperishable food and water in their homes.  What will they do when a major crisis or emergency strikes?  Do they actually believe that the government will swoop in to save them if something happens?

90% of people feel at trading penny stocks.

So what do you think about these survey results?  Is there anything that you would add to the list?  Please feel free to share what you think by posting a comment below…

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penny stocks- Rules for investing

Penny stocks are small companies stocks traded on stock exchange at very low price. Though penny, these stocks are risky too due to many reasons like low market capitalization, more prone to scams, chances of getting de- listed from the stock exchange and its low trading volumes  ensures high volatility in the stock price movement.

Although these are risky stocks, they remain to be liked by the investors and traders for both long and short term investment. These stocks tend to move irrespective of the stock market and investor/trader believes in stock’s individual growth story. Wherein big company shares or blue chip stocks move according to market and give nominal returns; the penny stocks have the ability to give multiple returns and that too in very short term to an investor, you can read rule of investment at http://matthew-lew.com/penny-stocks-rules-investing

This potential of generating high returns and certain other advantages makes an investor feel attracted towards investing into these small company penny stocks.

Below are some of the notable advantages trading into these penny stocks, these are:

  1. Higher profit Potential: As discussed, the biggest advantage for an investor to trade into penny stocks is its ability to provide higher profit compared to blue chip stocks. The penny stocks are small company stocks whose business is small and have good growth potential. A positive business growth can make stock price double or even triple also.Many penny stocks from past have become today’s blue chip stock and that is the power of penny stocks.
  1. Higher Profits in Short Term: It becomes more advantageous for an investor when huge profits are made and that too in very short term of investment and penny stocks are best example to this.These small companies have tremendous growth story compared to big companies. A business growth seen or even projected for future is enough for these penny stocks to go rocket to may even get double or triple in just a matter of few months.
  1. Quality Penny Stocks outperform Blue Chips: Over the decades, it has been seen that quality penny stocks outperform the blue chips. This is for a very simple reason that the penny stock’s small companies are small but growing and have potential to become a big company, but whereas blue chip’s big companies are matured and can only give nominal returns in business.
  1. Easy to Buy: The penny stocks are very easy to buy and sell as these are very common shares and are easily available in the market for general public. It’s low price ensure an investor to buy in huge quantity and also enables him to diversify his portfolio into other penny stocks without considering much about the investment cost.
  2. Capped Downward Risk & Unlimited Profits: An Investor or trader will feel much happy ad comfortable if he knows his maximum downward risk. Investment in penny stocks ensures investor about the risk as his downward risk is capped. A stock if get beaten down can maximum become zero but not negative and have no limit on upside.A penny stock trading at $3, caps a maximum loss of $3 per share to an investor but benefits with no limits on upside. It ensures limited risk and unlimited profits. Micro cap stocks are volatile, but still give profits to many people.
  1. Best penny Stocks are mostly Undervalued: If we analyze the blue chip stocks, most of the cases the current stock price will be trading more than its fair value or trading in multiples to its PE. But the best penny stocks trades at even less than its fair value or PE. This happen for just a reason that they lack investor interest and knowledge among of small investor. If analyzed, these undervalued penny stocks are future blue chips and gems for investors.
  1. No Long Term Investment: These penny stocks are volatile and tend to get multiply in just matter of few days or months. Short term growth ensures no longer term investment commitment for an investor into these stocks.
  1. Small Investment: Trading or investing in penny stocks doesn’t burden investor with huge funds requirement as in case of buying the blue chip stocks. Penny stocks are small priced stocks which require very less investment. Naturally, if the stock price is less, larger number of shares can be purchased and that too with small investment.
  1. Sweetest penny Stocks Fly under Radar: There is seldom any news seen on televisions or an analyst report on these penny stocks. These sweetest penny stocks fly under radar and go unnoticed to masses. A best pick of penny stock with good and quality analyses ensures buying at a low price and ultimately higher returns.

There are many paid research companies who have been recommending some quality penny stocks and have consistent history of picking the winners.

Penny Stocks – Rules for Investing

Penny stocks are the low priced stocks listed in the stock exchange. Unlike to blue chip stocks, they are small company stocks with lots of risk appetite for the traders and investors but alongside huge returns for them. As they are different in nature than the blue chip, they differ in their investing strategies too.

Here are some rules for traders and investors for trading into penny stocks. These are:

  1. Never invest more than what you can lose: Though the penny stocks have potential to provide huge profits but is coupled with huge risk too, as they are highly volatile and low traded stocks. These stocks can get delisted even and ruin whole investment. So, investors are advised to never invest more than what he can afford to lose.
  2. Track Everything Closely: Being unpopular stocks, the information is not easily available on news channels and nor there is any analyst report available. Your investment into these scary penny stocks needs cautious approach. Investor must track everything about financials, company’s business, promoter’s stake in company and its business guidance etc.
  3. Analyze Trading Volumes: Investor is
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8point3 Energy Partners (NASDAQ:CAFD)

8point3 Energy Partners (NASDAQ:CAFD) cafd stock

8point3 Energy Partners is a Worth Watching Stock

8point3 Energy Partners (NASDAQ:CAFD) initiated a take after on stock offering after it declared its second from last quarter comes about a week ago. As measured with Cash Available For Distribution, or CAFD, and profits the Company exhibited to the market that it is executing admirably on its YieldCo procedure. (If you don’t mind take note of that the famous business acronym and the stock ticker image are indistinguishable and perusers should be aware of the setting in which the term is being utilized.)

The Company likewise declared increment in profit to $0.2406 a share – an expansion of 3.5% over Q2 levels.

On the drawback, the Company seems to have paid an above market rate for the latest drop-down of the Henrietta extend from SunPower (NASDAQ:SPWR). An installment of $134M for $10.9M CAFD demonstrates an arrival of around 8% when 8Point3 stock is yielding around 6.5% yield. Certainly, 8Point3 returns can be expanded by utilizing at a venture level or corporate level. While conceivably fundamentally accretive with great obligation terms, we trust this arrangement is more about sparing the support’s bacon than about conveying quality to 8Point3 shareholders. 8Point3 could have absolutely discovered less costly activities far from its backers.

Lamentably, the hidden irreconcilable situation is a known and unveiled confinement of the Sponsor/YieldCo model and we can anticipate that 8Point3 will continue making problematic buys to the detriment of its shareholders.

While this may seem like a vile ploy on the backers’ part to endeavor open shareholders, we trust this is a plan of action confinement that can be, and ought to be, altered by operational changes at the support/YieldCo level.

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6 Ways to Evade Penny Stock Scams

penny stock scams

6 Ways to Evade Penny Stock Scams

In spite of fixed exposure and reporting prerequisites for organizations recorded on the Over-the-Counter (OTC) Bulletin Board as of late, penny stock tricks keep on trapping unwary traders. In the event that you need to abstain from losing your well-deserved cash to such tricks, take after these standards.

1. Conduct Extensive Due Diligence

When all is said in done, financial specialists don’t invest enough energy examining a stock before purchasing. While this is a danger when purchasing a blue-chip stock on the Nasdaq or the New York Stock Exchange, it is out and out neglectful to do with penny stocks. The level of due steadiness required to uncover every one of the realities and separate reality from the buildup is much higher with penny stocks than with blue-chip stocks.

Like most speculators, you may feel that you have to act rapidly to get in on a stock before it begins rising and gets excessively costly, however spending a couple of hours looking into a penny stock before purchasing is time well spent. Regardless of the fact that the stock value ascends amid your examination, the extra dollars you spend in purchasing the stock at a higher cost will be more than counterbalanced by the potential misfortunes.

At the very least, your due diligence ought to stretch out to checking administration’s past record and achievements, the organization’s money related articulations, and U.S. Securities and Exchange Commission (SEC) sites to check if the organization is present in its filings and that there are no administrative activities against it.
You ought to likewise do a general online hunt to uncover whatever else—positive or negative—on the organization. You might be astonished at the quantity of warnings that harvest up around your pummel dunk penny stock. Your chances of being taken in by a trick will be altogether diminished in the event that you direct broad due industriousness before putting resources into a penny stock.

As technology has evolved, unscrupulous penny stock promoters have become more creative in their marketing efforts. Stay away from social media sites and bulletin boards that focus on penny stocks. Finally, never ever respond to an e-mailed stock marketing pitch. If despite these precautions, you still receive a hot tip from another source, politely decline the opportunity even if it appears tempting.

2. Figure out how to Spot Hype and Misinformation

Do not get fooled by bullish newsletter reports that pretext as unbiased research. If the newsletter writer is being paid by a promoter to write up a specific company, what are the chances that the ensuing report is going to be objective and highlight the risks of investing in the stock? Similarly, news releases that serve no purpose other than to boost the penny stock should be ignored. In the penny stock world, there’s no such thing as being too cynical.

3. Improved as an Informed Investor

Penny stocks, particularly those that exchange beneath a buck, have an absolute appeal. But instead than committing the beginner error of just taking a gander at the stock value, check the share trading system’s capitalization too. This may give extra bits of knowledge into the stock’s valuation. Concentrating on valuation and portfolio strategies will help you improve as a financial specialist and pay profits over the long haul.

4. Pump and Dump Scam

This extortion happens constantly. Promoters find enthusiasm for a hardly known or obscure stock. Unpracticed financial specialists purchase up the shares, pumping the cost. Once the stock has achieved a specific swelled value, the awful folks offer or dump, the stock at an immense benefit. Financial specialists are left with a rock and a hard place. These pump-and-dump plans are regularly appropriated through free penny stock pamphlets, where the distributor is paid to list these unpromising and advertised up stocks. On the off chance that you get one of these bulletins, read the fine print on its site. You may see that the organizations or promoters are paying the creator of the bulletin to highlight them.

5. Short-and-Distort

This is the inverse of the pump-and-dump. Con artists utilize short-offer to make a benefit. Shorting works when the financial specialist obtains offers and quickly offers them in the open business sector at a high cost, trusting the organization stock falls so he can later gather up sold shares at a lower cost. He then returns these shares to the loan specialist and nets a benefit. Penny stock con artists short-offer a stock and ensure the stock falls by spreading false and harming bits of gossip about the organization. Speculators hold a losing stock, while short-merchants profit through their short-offering trap.

6. The Guru Scam

You see these online tricks constantly, and individuals are always tricked into agreeing to them. Advertisements more often than not demonstrate to you how the “master” got to be rich through an exceptional “mystery” and obtained the materialistic achievement. In the event that somebody names himself a master or guarantees to make you rich, waste that email or envelope. There is no “one-size-fits-all” way to wealth, and surely not in the share trading system.

The Bottom Line

Penny stock tricks still breed, yet you can evade them by leading broad due constancy, avoiding the standard showcasing traps, figuring out how to distinguish buildup and deception and improving as an educated speculator. Despite tightened disclosure and reporting requirements for companies listed in recent years, penny stock scams continue to trap unwary investors. If you want to avoid losing your hard-earned money to such scams, follow these six rules.

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