should always be made based on the facts and investors should never
take on undue risk with their investments. That's why even when
buying penny stocks, traders should consider setting some minimum
standards to ensure they are not getting taken for a ride. Simply
put, insist on the company being listed on a major exchange instead
of the pink sheets, and a company that has shown decent
fundamentals and share price appreciation in recent months. Stocks
Sirius XM Radio Inc.
), for instance, which may be a bargain but have a proven track
I use the many of the same of standards I apply to blue chips to
picking penny stocks - or more specifically, equities that trade
for only a few dollars a share. Stocks that actually trade for a
penny apiece are largely gambles with your money and not real
investments based on the facts.
If you want a legitimate investment (though admittedly a
high-risk play), consider these four consumer-oriented penny stocks
flying high now that spending is slowly on the mend.
Dreams Inc. (
First on the list of penny stocks to buy is
) which manufactures, distributes and sells sports licensed
products, memorabilia and acrylic display cases. In the last year.
DRJ has skyrocketed +59%, compared to a gain of +17% for the Dow
Jones in the same time. Things are also bright on the earnings
front, as analysts project EPS of 14 cents this quarter after the
stock posted EPS eight cents this quarter last year. DRJ is an
affordable stock at under $2.50 a share and could see big growth in
its sports-focused business as consumers start collecting souvenirs
once more now that their budgets aren't so tight.
Stock Dividend Advice
Kingold Jewelry Inc. (
Next on the list is
Kingold Jewelry Inc.
), which designs, manufactures and sells gold jewelry in China.
Despite posting moderate losses lately, KGJI has potential on the
horizon and recently closed on a public offering of common stock
for $23 million, or $3.19 per share. Since news of the public
offering, this stock has posted a modest gain of +2%. Don't be
scared away by recent losses, KGJI has potential to bring you big
10 Best Stocks for 2011
Crown Media Holdings Inc. (
Crown Media Holdings Inc.
) owns and operates the following pay television channels: Hallmark
Channel, the Hallmark Movie Channel and the Hallmark Movie Channel
HD. In the last year, this penny stock has posted an impressive
gain of +65%, compared to much smaller gains by the broader
markets. Additionally, in its last income statement, CRWN posted a
net profit margin of +10%. While the digital revolution may be
driving some customers away from cable TV, Hallmark is seeing
decent web traffic to its online offerings and is getting its
channels included in more packages on more cable providers. This
penny stock has shown that its potential to post solid gains in the
Buy bank of America after Bad Earnings
Sirius XM Radio Inc. (
Rounding out the list of top consumer penny stocks to buy now is
Sirius XM Radio Inc.
) which broadcasts music, sports, news, talk, entertainment,
traffic and weather channels via satellite to any location in the
United States - for a subscription fee, of course. Over the past 12
months, this penny stock has posted an incredible gain of +128%,
compared to much smaller gains by the broader market. It is also
important to note that SIRI posted a net profit margin of +9% in
its last income statement and has tied up the loose ends on its
deal with Howard Stern to give him another five years on SIRI
As of this writing, Louis Navellier did not own a position in
any of the stocks named here.