buying penny stocks during the holiday season
Post on 20-Feb-2017
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Penny Stock Research
Buying Penny Stocks During The Holiday
Season
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Hi, My name is Aaron and I‘m with Penny Stock Research, today were
reviewing our recently published article…
Buying Penny Stocks During The Holiday Season
You may be fooled by the unseasonably warm weather we’ve been experiencing
around the country, but it is in fact November. In less than three weeks,
Thanksgiving will occur whether it’s 80 degrees or 30 degrees.
While many think of Thanksgiving as the start of the month-long holiday season, it
also serves another purpose. It’s the Friday after Thanksgiving (or even that
very night) where holiday shopping shifts into full gear.
At this point, consumers began to eagerly snap up holiday gifts and take advantage of whatever big deals are
going on. This is true both at brick and mortal stores and online as well.
The holiday shopping season is also closely tracked by investors. Many
companies are heavily impacted by sales during the fourth quarter.
In some cases, fourth quarter revenues comprise 50% or more of a company’s
total sales for the year.
So what does this have to with buying penny stocks?
As you may expect, there are numerous penny stock companies with ties to retail.
Not every retail chain is a major corporation. Smaller, yet still public,
retail chains do exist. One such company is Joe’s Jeans $JOEZ. Here’s the chart:
JOEZ is down 9% so far for the year, but you can see it’s turned up over the last
couple months. This could be a prelude to holiday sales expectations. Currently,
the stock is trading sideways around $0.30.
Investors are likely waiting to see how holiday business is shaping up before
buying further. The share price is above the important 50-day moving average
line, which will serves as stiff resistance to a drop.
Is $JOES worth buying?
Joe’s Jeans develops apparel products under the Hudson name in the US. The company has 10 full-priced retail stores
and 11 outlet stores. So, it definitely qualifies as a small retail chain.
Despite being small, the company generated $181 million in revenues over the last year. However, the business is
also nowhere near being profitable, losing $44 million over the same period.
The company also has a lot of debt and not a lot of cash. Basically, if you want to focus on sales (which is reasonable for a small company) then $JOEZ could worth buying. If you want to focus on the rest of the fundamentals, well, not so much.
Here’s the thing…$JOEZ is just one example of how you
can play the retail shopping season using penny stocks. It’s a great example because it’s a pure retail play that should
benefit from holiday shopping.
Other companies may not be as directly tied into the retail sector as an apparel
company like Joe’s Jeans. But, anything retail related could make a reasonable
play given the right price. Shipping companies are a good example.
As always, finding the right penny stock company is about doing your research
and having a plan. $JOEZ is in interesting call because the research
gives mixed results.
However, if you have a plan – and a good reason for buying – it could be a good
retail stock to buy for a very cheap price.
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