Hot Penny Stocks – End of Year Wrap-up

Out With The Old, In With The New…

Well, we’re at the end of 2011, and about to embark on a new adventure called 2012.  While many market commentators are talking about the past year, and what could have been, I want to do something different…

I want to talk about the future.

I truly believe 2012 is shaping up to be a great year… and one that could seriously propel your portfolio higher.

Why?

Well there are a number of reasons.  First off is economic data.  It’s not really getting better… but more importantly it’s certainly not getting worse.  Consider unemployment numbers.

While almost 9% of the US population is out of work right now, and another 6% or 8% is under employed, the numbers aren’t getting worse.  Back during the Great Depression it was estimated unemployment hit 20% – 25%.  Thankfully we’ve avoided that catastrophe.

Now, another important driver for higher stock prices in 2012 is housing.

I don’t know if you’ve seen the numbers, but housing starts, housing permits, and even housing sales are up.  Granted they’re up from pathetically low numbers… but again we have stability or improvement… things are NOT getting worse.

We also pass an important milestone in housing this year… the 4 year mark.

Remember the housing implosion started in 2008.  Now here we are 4 years later and all those families who sold their homes in a short sale are once again able to buy a house!

Now this won’t create a flood of new buyers, but some people will start to work their way back into the market.  And again that’s great news for housing.

Once we see the housing industry pick up… and 2012 could be the year… we should see a lot of other industries start to employ more people.  More employment means more purchasing power… that means more economic growth… and that’s great news for stocks of all shapes and sizes.

Of course, I’m a bit biased when I say small cap stocks will outperform the markets over the next few years.  But I believe properly chosen stocks… smaller in size… will be able to quickly react to economic improvement, and grow quickly.

So be on the lookout for great small stocks in 2012.

As always, we’ll be bringing you great investment ideas in our free Radar Reports every week.  If you’re also interested in getting more in depth research, I encourage you to try a subscription to “Zenect Wealth”.  It’s our premium research product where we do a bit more in depth analysis and look much more closely at the companies.  To learn more about everything that comes with a subscription to Zenect Wealth, click here.

We’re going to release our next recommendation on New Year’s day!  So sign up quickly to get in on this first pick of 2012!

I hope everyone has a wonderful new year, and we’ll see you in 2012!

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Hot Penny Stocks – ValueVision Media (VVTV)

The Santa Claus rally seems to have taken hold.  Why the improvement?

Maybe it’s progress on the European situation, or renewed faith in the economic future of the US.  Or maybe it’s good holiday feelings brought on by all the increased consumer spending.

Whatever the reason, here’s an electronic retailer with a unique sales strategy for you to put on your radar.

 

QUICK FACTS

Ticker                                      VVTV

Industry                                   Catalog & Mail Order Houses

Recent Price                           $1.92

Market Cap                              $93.2 m

Shares Outstanding                48.6 m

Average Volume                      336,571

Dividend Yield                          N/A

Website                                   http://www.shopnbc.com

 

COMPANY DESCRIPTION

ValueVision Media (VVTV) is in a special niche all its own. The company is half broadcaster half retailer. ValueVision has adopted the name ShopNBC for their 24-hour network and website.

The company has an exclusive trademark agreement with NBC Universal. The current contract allows VVTV to use the name through May 2012.

They use a standard shopping network type of setup. A host and sometimes a guest displays and talks about a product. There’s scrolling information and a number for customers to call and order.

The company sells a variety of market brands plus their own private product lines.           .

 

FINANCIALS

VVTV’s most recent quarterly numbers were released on December 8, 2011.

The company reported revenue of $135.2 million in the quarter. Up from last year’s third quarter revenue of $132.3 million. This is an increase of 2.2%.  ValueVision also reported a net loss of $6.4 million… a decrease year-over-year from a net loss of $5.8 million.

As of October 29, 2011, the company reported $27.7 million in cash and long-term debt of $25 million.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     0.15 x

Return on Assets                            -1.7 %

Insider ownership                             25.9 %

Short Ratio                                       3.3 x

Current Ratio                                    1.7 x

Total Debt To Equity                          23 x

 

RECENT EVENTS

The company has added a number of well-known brands in Q4. They include Calvin Klein, Hartmann luggage, and Brooks Brothers.

All of these big name brands get their own hour long debut show and event, including lots of press ahead of time.

VVTV also held its first 24-hour holiday cooking event in October 2011. It included some special value sales and a long list of celebrity chefs as well as 20 new items and three brand launches.

 

MANAGEMENT TEAM

Keith R Stewart – CEO

William J McGrath – CFO

G. Robert Ayd – President

Jean-Guillaume Sabatier – Senior VP Product Planning


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

VVTV’ 52-week low was $1.64 and the 52-week high was $8.73.  Right now the stock is trading at $1.92.  The 50-day moving average is near $1.99 a share and the 200-day moving average is at $4.36.  The company has a market cap of $93.2 million and 48.6 million shares outstanding.

 

 

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Hot Penny Stocks – K-Swiss Inc. (KSWS)

Markets have had an impressive couple of weeks. The Dow was at 12,196 at the close on Wednesday. That’s up from a healthy 12,045 a week ago.

Remember – two weeks ago the Dow closed at 11,257. That’s an increase of almost 1,000 points in half a month!

As a result there’s a lot of food for thought out there on the equities. So take a timeout from all that news. We’ve got another company for your radar.

 

QUICK FACTS

Ticker                                     KSWS

Industry                                  Textile – Apparel Footwear & Accessories

Recent Price                          $2.75

Market Cap                             $97.9 m

Shares Outstanding               35.6 m

Average Volume                     215,371

Dividend Yield                         N/A

Website                                  http://www.kswiss.com

 

COMPANY DESCRIPTION

K-Swiss (KSWS) is a sports equipment company. They primarily design, develop and market footwear, apparel and accessories.

On top of their K-Swiss brand are a couple of specialty names. Like Palladium, a brand of footwear for users going to exotic rough locales.

They also have Form Athletics, an extensive line of martial arts equipment.

The company uses a sales force of representatives and sales executives. K-Swiss primarily sells gear to sporting goods stores.

 

FINANCIALS

K-Swiss’ third quarter numbers were released on November 3, 2011.

The company reported revenue of $80.5 million in the third quarter. Up from last year’s third quarter revenue of $61.5 million. This is an increase of 30.8%.  KSWS also reported a net loss of $15.4 million… an improvement year-over-year from a loss of $28.3 million.

As of September 30, 2011, the company reported $37.4 million in cash and long-term debt of $155,000.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     0.36 x

Return on Assets                            -13.7%

Insider ownership                             1 %

Short Ratio                                        5.6 x

Current Ratio                                    4.1 x

Total Debt To Equity                          8.1 x

 

RECENT EVENTS

Most of the news coming out of K-Swiss is about their sponsored athletes and the occasional announcement regarding their SEC filings.

Their most recent news release is about the Marines Ironman 70.3 World Championship. Three of their sponsored athletes finished in the top 5 of that race. Wearing K-Swiss gear of course.

Around the same time in September they also announced a new ad campaign. The campaign includes well-known trainer Jillian Michaels and comedian Kaitlin Olson.

The campaign was carried out in partnership with Lady Footlocker.

 

MANAGEMENT TEAM

Steven Nichols – CEO

George Powlick – CFO

Edward Flora – COO

David Nichols – Executive VP


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

KSWS’ 52-week low was $2.56 and the 52-week high was $13.04.  Right now the stock is trading at $2.75.  The 50-day moving average is near $3.47 a share and the 200-day moving average is at $6.72.  The company has a market cap of $98.3 million and 35.6 million shares outstanding.

 

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Hot Penny Stocks – Hansen Medical, Inc. (HNSN)

This is historically a big week for the market. In happier times November itself is generally a strong month. And while the month as a whole has been weak, these last few days have been really strong!

Improved sales during Black Friday have given the Dow and S&P a boost. On Friday the Dow closed at 11,231. Yesterday we closed a smidge over 12,000!  Crazy, right?!

Hopefully you got your fill of deals on Black Friday and Cyber Monday. But if you’re still looking to buy on the cheap you might want to keep this next stock on your radar.

 

QUICK FACTS

Ticker                                      HNSN

Industry                                   Medical Appliances & Equipment

Recent Price                          $2.38

Market Cap                             $129.1 m

Shares Outstanding               55.2 m

Average Volume                     566,300

Dividend Yield                         N/A

Website                                  http://www.hansenmedical.com/

 

COMPANY DESCRIPTION

Hansen Medical (HNSN) designs, manufactures and markets cutting edge robotic tools for implanting and manipulating catheters. These are the tools and catheters used for those minimal incision operations. Their devices are designed to be safe, noninvasive and accurate.

Their flagship product is called the Sensei X System and for good reason. It sounds like the master of all catheter tools. It has 3D imaging, pinpoint controls, and tactile feedback. The technology is so sensitive it can measure pressure being applied to fragile heart tissue.

In the U.S. Hansen has a dedicated regional sales force. In Europe the company utilizes distributors as well as a regional sales force.

 

FINANCIALS

Hansen Medical’s third quarter numbers were released on November 7, 2011.

The company reported revenue of $5.4 million in the third quarter, up from last year’s third quarter revenue of $3.5 million. This is an increase of 54.3%.  HNSN also reported a net loss of $10.1 million… an improvement year-over-year from a loss of $12.1 million.

As of September 30, 2011, the company reported $2.8 million in cash and long-term debt of $3.6 million.

 

KEY METRICS ANALYSIS

Trailing P/E                                        N/A

Price / Sales                                      6.6 x

Return on Assets                             -44.3%

Insider ownership                              13.5%

Short Ratio                                        14.6 x

Current Ratio                                     2.2 x

Total Debt To Equity                          12 x

 

RECENT EVENTS

Hansen’s more advanced model, the Magellan, has been making the conference rounds. In November it appeared at the 38th annual VEITH symposium. The vascular surgeon’s conference is an important showroom for this new device.

Bruce Barclay, Hansen’s CEO, sang its praises in a corresponding press release. The new model has improved flexibility, distal trip control, and an added sheath. The device is already approved and available in Europe. In the U.S. the FDA is still performing a 510(k).

The 510(k) is a standard in-depth engineering analysis necessary to receive regulatory approval.

 

MANAGEMENT TEAM

Bruce J Barclay – CEO

Arthur S. Hsieh, J.D., Ph.D. – VP of Legal Affairs

Peter J. Mariani – CFO

Michael T. MacKinnon – VP U.S. Commercial Operations

 

STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

HNSN’s 52-week low was $1.24 and the 52-week high was $5.28.  Right now the stock is trading at $2.38.  The 50-day moving average is near $2.72 a share and the 200-day moving average is at $3.27.  The company has a market cap of $129 million and 55.2 million shares outstanding.

 

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