Blog : Raising Price Opinions
May 15th, 2012
We've just raised sell price opinions on our February 1st penny stock pick. After some strong upward momentum, and further review and contact with the company, our outlook has improved further. This is one of my favorites of the penny stocks we've selected, and the fact that they are doing good for others is just bonus.
After moving from $1.15 to as high as their year high of $1.75 in 3.5 months, they have demonstrated the kind of upside we would expect from a company of their caliber. Of course, with any penny stock that has moved so far, so fast, you can expect some profit-takers to take the opportunity to cash out. Their selling will push share prices lower, in the short term. This is especially true in times of stock market weakness, which we've been seeing lately.
Today, shares have fallen (as of the time of this writing) by 9% (or 15 cents). This is not at all a cause for concern, especially since just about every stock on the markets has been falling lately. Instead, we look at this as a major buying opportunity for investors who had thus far missed the boat.
While even at $1.55, this penny stock is still up 35% over our profile price. We are now expecting shares to hit $2.45... and as those levels re approached, we may even aim our sell opinion prices even higher.
If there was just one penny stock that I could own for the very long term, this one would definitely be on my list of candidates. Even with the short term weakness (not surprising, not alarming), this penny stock's trend is decidedly upward, and pretty rapidly too. Look for this penny stock's shares to bounce back from this short term sell off, and resume their upward momentum.
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The Dow Jones Industrial Average was at 12,800 three months ago. It's been a choppy ride, but until now it had held on to that level at least. The last few days, however, has seen the DJIA dip all the way into the 12,700 range, which could signal further sell-offs ahead. Right now, it's the combination of EU weakness (Greece, Spain, etc...) and the current J.P. Morgan multi-billion dollar debacle which is really weighing on shares.
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Also, make sure to check out Penny Stocks Network, if you are a newer investor. It's a great place for less experienced traders to browse, while they are learning the ropes.