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Blog : Grammys Outshined by Penny Stock
February 6th, 2010
The following penny stocks blog entry was guest-written by John Whitefoot, Senior Editor to Peter Leeds.
Award season is upon is. What more can be said about this comatose time of year? Every week a new ceremony is pumped into our homes...some you may have even heard of. This past Sunday, the 52nd Annual Grammy Awards were broadcast with the audience cheering on Lady GaGa, Pink, and Beyonce. Enough said.
Interestingly, as one critic noted, this year's telecast showed how the recording industry "is moving beyond albums, and even songs." Music has, she said, become enhanced with visual and dramatic elements." She claimed it was, "to form more complex statements." I'm not so sure.
In the end, it all came down to numbers. The five nominees for album of the year, the industry's top award, sold more than 13 million albums. Like the stock market, the juggernauts, took the limelight. Whether they'll be remembered or not in years to come is another matter. With music, it's best to just live in the moment.
Having said that, there have been, and continue to be, numerous bands that do not fit a repetitive, hit-making "Warholian" mold. This is unfortunate. As there are a lot of excellent bands that do not sell 5 million albums; lest we forget the brilliance of Guadalcanal Diary, The Posies and The Apples in Stereo.
Again, whether it's the music industry or the stock market, Taylor Swift or a large cap stock, if you spend all your time looking at what everyone else is, you'll miss the opportunity to discover something new and original.
Fortunately, awards season also corresponds with earnings season. It's the time of year when you can see how your large cap juggernaut or penny stock performed. Like their larger peers, many penny stock companies are finding it difficult to gain traction.
More broadly, many penny stock companies have struggled to produce revenue growth over last year in line with expectations so far in this earnings season. Worries over the economic recovery's sustainability weighed on investor sentiment dragging down underperforming penny stocks.
As luck would have it, and thanks to some proactive restructuring, there are a large number of penny stock companies that have been taking full advantage of the slow building economic rebound.
American Technology Corporation (ATCO - NASDAQ) is a penny stock company that specializes in sound technologies and acoustic products. The company has over $5 million in cash and no long-term debt. ATCO also just reported record first quarter revenue and earnings.
On February 3, ATCO announced that first quarter revenue jumped 114% year-over-year to a record $5.3 million. The company also swung to first quarter profitability of $1.8 million, or $0.06 per share.
"With the solid technology and product foundation we have implemented, we believe these results are a harbinger of continued business growth over the next several years," stated Tom Brown, President and CEO.
"While our quarterly results will remain uneven, this fiscal year we anticipate a third consecutive year of record revenue growth and our first profitable fiscal year."
Unlike Lady GaGa and Elton John, your favorite penny stock may not be flashy and come with twirling sparklers but it may be more enriching.