Monday,
ugust 22, 2016
The 3 Best Penny Stocks to Watch in the Tech
Sector
In Today's Issue:
The 3 Best Penny
Stocks to Watch in the Tech Sector
Why Microsoft Stock
Will Surprise on the Upside
If This Happens, Palo
lto Stock Could Soar
Insurance Return Checks: Your Second Source of Income
Thousands of
mericans regularly collect Insurance Return
Checks.
Like Lisa, a lawyer. Her Insurance Return Checks are
bringing her an extra $37,376.64 every year. That's an average of $3,114.72 a
month. Martin, an investment officer, brings in an average of $6,177.60 a
month.
Melvin, an ex-captain for the U.S.
rmy, gets $1,712.98 a
month from his Insurance Return Checks. Elizabeth, who worked in
communications, gets $20,388.48 a year; that's $1,699.04 a month.
Millions of dollars have been paid out since the
first Insurance Return Checks were issued...
To learn more about Insurance Return Checks and to
find out how to set up your own millionaire retirement plan with them starting
today,
The 3 Best Penny Stocks to Watch in the Tech
Sector
~ by Gaurav S. Iyer, IFC
No one pays attention
to the guy trading tech penny stocks—that is, until he multiplies $10,000 of
his savings into more than $300,000. That's not an exaggeration or
dramatization; it actually happened to a 16-year-old investor named Connor
Bruggemann.
While in his junior year of
high school, Bruggemann started buying and selling technology penny stocks.
He's been hooked ever since. Using the right mix of research, patience, and
tolerance for risk, he made more than 30% profit in less than 18 months.
Every investor fantasizes about those kinds of returns, but Bruggemann
actually made it happen by investing in top penny stocks in the tech sector.
Penny stocks are the bargain bin of the stock market, a place completely
ignored by Wall Street titans.
The entire category of penny stocks suffers from an image
problem. Most people think they are either scams or hollow investments that
will collapse under the slightest pressure. Here's the thing: they're not
entirely wrong.
Dear reader, I can tell you with absolute certainty that
some tech penny stocks are absolute garbage. There's no question that they
belong to the trash pile of history, but that doesn't mean all tech penny stock are worthless.
patient investor
can make huge returns by simply taking the trouble to sort out the wheat from
the chaff.
It's a diamond-in-the-rough kind of investing.
That being said, technology penny stocks are some of the
best opportunities that retail investors have to score triple-digit gains.
Pension funds have a mandate to stay away from tech penny stocks, which leaves
room for average investors to scour the market for stocks below $5.00. These
stocks have the power to mint overnight millionaires.
But sorting through all that data can be time-consuming.
That's why I've compiled a list of the top penny stocks in the tech sector. The
list isn't exhaustive, but each of these stocks passes the smell test. They're
also cheap enough for regular investors to afford.
1. Plug Power Inc.
We all know that renewable energy is entering its
renaissance, but who really wants to shell out hundreds of dollars for just one
share of Tesla Motors Inc (NASDAQ:TSLA)?
The truth is that big blocks of TSL
shares might be affordable to
institutional investors, but retail investors would likely be better off with
tech penny stocks like Plug Power Inc. (NASDAQ:PLUG).
Plug Power is currently trading at $1.69 per share. The
company, which sells advanced batteries for forklifts, bills itself as the
"architects of modern fuel cell technology." It also boasts long-term
relationships with Wal-Mart, Sysco, Proctor & Gamble, and Mercedes Benz. These
partnerships have helped Plug Power deploy 6,500 "GenDrive" power cells.
The company is sitting on technology that genuinely has the
power to disrupt how factories operate. Its GenDrive fuel cells are better on
every level. For instance, refilling the GenDrive hydrogen only takes two
minutes, compared to 15 minutes for replacing a battery. Those 13 minutes don't
mean much over a single shift, but they add up to 156 hours of lost
productivity per year.
That's just one example.
nother is that existing batteries
need massive charging rooms, which eat into the commercial space of a business.
Plug Power allows those charging rooms to be replaced by compact refuelling
stations. Like I said, Plug Power has a genuinely disruptive technology on
their hands, which is what makes PLUG stock an incredible tech penny stock.
2. Bazaarvoice.com Inc
Switching gears completely, let's take a closer look at a
technology penny stock that caters to online shoppers: Bazaarvoice Inc (NASDAQ:BV). This company trades
at $4.23 while having a market capitalization of $347.23 million.
Originally, Bazaarvoice.com was simply a review web site,
but it has since evolved into something more complex. The company recognized
that people hate advertising, so it built a platform to help brands grow
through word of mouth. It's a very simple principle: people like to talk about
what they buy, so give them space to review their purchases.
Crowd-sourced review boards strengthen brands, leading to
higher sales and fewer returns. Instead of spending huge amounts of money on
marketing, these brands simply use grassroots support to extend their reach.
Bazaarvoice.com helps them execute this plan by building platforms, apps, and
networks. It develops the infrastructure.
With its growing revenues and shrinking losses, this little
tech penny stock is well on its way to profitability. Once it reaches a
critical mass of revenue, there's no telling how high BV stock could soar.
3. Gilat Satellite Networks Ltd.
Gilat Satellite Networks Ltd. (NASDAQ:GILT) completes my list of
the best tech penny stocks to watch, but it isn't remotely similar to the first
two stocks. This company helps transmit broadband Internet via satellites and
terrestrial receivers that it manufactures. It has shipped over a million
products to more than 90 countries, meaning the company already has a global
reach in its emerging field. Satellite-distributed Internet is growing rapidly.
GILT stock is trading at $4.59, up 32% from the start of the
year. Some critics have been puzzled by the stock's increase, especially in
light of the company's lower-than-expected profits last year. But I think I
know why GILT stock surged.
Companies like Facebook Inc, Iridium Communications Inc, and Alphabet Inc have been developing a network
of satellites that would envelope Earth in broadband Internet. Facebook wants
to achieve it with high-flying drones; Iridium with a constellation of
satellites; and
lphabet with a system of Wi-Fi-emitting balloons.
The visibility of these companies has rekindled enthusiasm
for satellite-driven Internet, which could spark a new round of contracts for
Gilat. The added revenue would help bolster this technology penny stock in the
years to come, driving it way past the $10.00, $15.00, or even $20.00 mark.
In other words, the hype around satellites as a distribution
point for Internet is an opportunity for Gilat, but that doesn't mean the
company can sit back and relax. It has to be incredibly proactive in pursuing
new technology, even if it means merging with another communications firm like
Iridium. The entire telecom world is on the brink of untold change, and Gilat
should act now to keep its shareholders on the winning side of history.
Not everyone can be Connor Bruggemann, the whiz kid who made
more than 30% gains trading technology penny stocks. But there is a lot of
money to be made by digging through these cheaply trading securities. You never
know what you may find.
For instance, the three tech penny stocks I listed above are
all promising equities. They hold immense potential in their respective
industries, and better still, they trade at an affordable price. Whether it's
these stocks in particular, or others not listed in this article, I think
retail investors should consider tech penny stocks.
There definitely are some diamonds in the rough, and
you don't want to miss out on the gains they have to offer. Happy hunting!
Insurance Return Checks: Your Second Source of Income
Thousands of
mericans regularly collect Insurance Return
Checks.
Like Lisa, a lawyer. Her Insurance Return Checks are
bringing her an extra $37,376.64 every year. That's an average of $3,114.72 a
month. Martin, an investment officer, brings in an average of $6,177.60 a
month.
Melvin, an ex-captain for the U.S.
rmy, gets $1,712.98 a
month from his Insurance Return Checks. Elizabeth, who worked in
communications, gets $20,388.48 a year; that's $1,699.04 a month.
Millions of dollars have been paid out since the
first Insurance Return Checks were issued...
To learn more about Insurance Return Checks and to
find out how to set up your own millionaire retirement plan with them starting
today,
Why Microsoft Stock Will Surprise on
the Upside
~ by George Leong, B.Comm.
For loyal shareholders of Microsoft
Corporation (NASDAQ:MSFT) who struggled through the lean
years under former CEO Steve Ballmer, the recent breakout by Microsoft stock is
a deserving win. Microsoft is no longer the aging elephant, but rather an agile
gazelle. Microsoft is now all about growth in the next technologies.
You can thank Microsoft CEO Satya Nadella for making the
company relevant again. The new Microsoft is all about the cloud, social media,
gaming, and innovative apps for wireless and tablets.
MSFT stock looks bullish on the chart after
establishing a new 52-week high of $58.50 on
ugust 15.
The chart shows a bullish upside trading gap by Microsoft at
the opening from $54.00 to $56.00. Upside gaps are viewed as bullish signs
pointing to additional upside moves down the road.
bullish "golden cross" just materialized with the
50-day moving average (MA), crossing above the 200-day M
on decent volume.
Chart courtesy of StockCharts.com
The breakout of MSFT was driven by strong relative strength
and a rising moving average convergence divergence (MACD). The MACD for MSFT
stock has been in an upward trend since early May. Be careful, however, as the
MACD appears to indicate some sideways trading. The last time the MACD flattened
out was in June, when MSFT traded down to $48.00.
We could see some hesitancy in the near term if MSFT stock
fails to break above strong technical resistance at the physiological $60.00
level. Should Microsoft fail at that time to break $60.00, we could see a
downward move toward $54.00, which was the level prior to the trading gap by
MSFT.
s a trader, there are numerous strategies you can employ. I
like using options as a leveraged and risk-managed trade.
I'm not suggesting that you do the same, but there are ways
to use options. For example, if you feel that Microsoft can break higher, you
can use "call options." I like in-the-money calls, as they give me a lower
break-even level for the stock to achieve. If you are really bullish on
Microsoft, you can play via out-of-the-money calls.
For a more conservative, controlled MSFT call option trade,
you can use "call spreads." This strategy limits the upside gains, but it also
costs less to initiate.
Now, if you believe that Microsoft will relapse toward $54.00,
you can sell "put options" with a strike at $55.00, depending on how much you
want to risk. For instance, selling a $55.00 put on MSFT means you can buy the
stock on a dip to $55.00.
The bottom line is that there are numerous ways to
play Microsoft stock, whether shares go up or down. In options, you are only
limited by your creativity.
If This Happens, Palo
lto Stock Could Soar
~ by Patrick Brik, BAS
Markets are making
new all-time highs on what seems like a daily basis. Some find it difficult to
purchase investments that have run already, preferring the mantra of buying low
and selling high, versus buying high and selling higher. It is understandable;
most investors are risk-averse. Palo
lto Networks Inc (NYSE:PANW)
stock fits the criteria of the "buying low" mantra. PANW stock presents an example
of an opportunity to get in on an investment as
it transitions from a bearish
trend to a bullish one.
The trend has been to the
downside since July 2015 when shares peaked at a price of $200.55. In February
2016, the share price hit a low of $111.09.
"Fibonacci retracement" numbers (highlighted in green on the
chart) are a very popular tool used by many technical traders. This tool is
used to identify counter-trend price objectives. In theory, when a stock pulls
back from a primary trend, shares will retrace approximately 50-62% of the
primary move. This zone usually offers support, as traders will be eyeing this
area as one to enter long positions or cover short positions.
The blue box on the chart is what traders refer to as
"trading into the box." When shares fall into the box, it signals that traders
should cover on their short positions and start building a long position. PANW
stock played right into the hands of traders. The share price was unable to
close below the 50% retracement marker. The tails on the monthly candlesticks
can be interpreted as a lot of buying support. This level has now been
established as support.
The following chart shows the significance of the
following sell-off in PANW stock.
Chart courtesy of StockCharts.com
The following chart illustrates the trend that
dominated the price action after PANW stock peaked.
Chart courtesy of StockCharts.com
The downtrend that developed is clear as day, and is created
by connecting the peaks of the price chart.
downtrend is defined by price as
the trend moves lower. Lower peaks are confirmed by lower troughs. This trend
can easily be identified as price moves from the upper left to the lower right.
This trend was broken on
ugust 16, 2016, when the share
price was able to close above the trend line. This is extremely significant, as
it is suggesting that the trend has now reversed.
Support has been established, and a break of a trend line is
signalling a trend reversal. Is this enough information to suggest a challenge
of the all-time high?
The following chart illustrates a level of resistance
that needs to be overtaken.
Chart courtesy of StockCharts.com
PANW stock needs to close above the 200-day moving average
to confirm the trend reversal. This moving average is the final piece of the
puzzle.
The 200-day moving average is the dividing line between
stocks trading in a bull market versus stocks trading in a bear market. When the
share price is above the moving average, it is bullish; when the share price is
below the moving average, it is bearish.
It is not hard to see the significance of this moving
average. PANW stock broke above the moving average in November 2013, at around
$50.00, and then proceeded to trade higher. Shares were finally able to break
below the average on a sustained basis in January 2016, when the price fell
below $170.00. This moving average acts as a trading bias, as well as support
and resistance.
PANW stock represents an investment that is in the
process of transitioning from a bearish trend to a bullish one. Multiple
indicators have already transitioned from bearish to bullish. The 200-day
moving average is the last obstacle that needs to be overtaken before a new
bull market can be declared.
|
| | | |
Profit Confidential is only sent to those who subscribed to it and is not intended to be sent to those who do not want to receive it. This e-mail was sent to
because you opted in to this service. If you want to stop receiving Profit Confidential e-mails, simply .
Copyright © 2016; Lombardi Publishing Corporation.
ll rights
reserved. No part of this e-newsletter may be used or reproduced
in any manner or means, including print, electronic, mechanical,
or by any information storage and retrieval system whatsoever,
without written permission from the copyright holder.
Our Editorial Policy: Our writers are forbidden to own any stock they write about.
ll our editors execute a document to this effect.
Dear Reader: There is no magic formula to
getting rich.
Success in investment vehicles with the best prospects for
price appreciation can only be achieved through proper and
rigorous research and analysis. The opinions in this e-newsletter
are just that, opinions of the authors. We are 100% independent
in that we are not affiliated with any bank or brokerage house.
Information contained herein, while believed to be correct, is
not guaranteed as accurate. Warning: Investing often involves
high risks and you can lose a lot of money. Please do not invest
with money you cannot afford to lose.
Nothing herein should be considered personalized
investment
advice. Before you make any investment, check with your
investment professional (advisor). We urge our readers to review
the financial statements and prospectus of any company they are
interested in. We are not responsible for any damages or losses
arising from the use of any information herein. We are a publishing
company offering opinion and commentary of our editors and
analysts. Past performance is not a guarantee of future results.
Lombardi Publishing Corporation, Financial Publications Division, 350 5th
venue, 59th Floor,New York, NY 10118
News,
nalysis, and Information Services Since 1986.
One Million Customers in 141 Countries.
