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The Penny Stock Limbo

September 5, 2007

The Penny Stock Limbo
by John Whitefoot for Peter Leeds Inc.

NEW YORK, NY (RUSHPRNEWS) September 5, 2007- The kids are off to the malls looking for back-to-school deals and investors are out bargain hunting at the late summer sale on Wall Street.  Stocks rebounded before Labor Day weekend as investors, still uneasy about the credit-crunch and its effect on the economy, scooped up bargains after Tuesday’s big tumble.

Adding a silver lining to the cascading rally was positive news from technology companies, rising oil prices and word from Federal Reserve Chairman Ben Bernanke that the central bank was “prepared to act as needed” to prevent the recent market distress from spreading…further.

Wednesday's rebound shows that perhaps investors are becoming more confident the Fed will lower interest rates and that financial institutions will be able to overcome their exposure to distressed mortgages and loans.

“Everyone’s waiting for the dust to settle there,” said one market strategist. “We’re on a little bit better footing, but we’re in a healing process that takes time.”

But not too much time. Investors are beginning to see that many of the markets recent losses were as a result of an emotional sell-off and not based entirely on sound fundamentals. This may become more evident next week as the summer holidays come to a close and investors return to the trenches in full force.

For astute penny stock investors, the recent market jitters have seen a number of stocks dip into the penny stock range. iPAS Inc., for example, is a financially solid company with a huge cash position and no long-term debt. The company recently reported encouraging second quarter results and announced a new agreement.

While not a recommendation to buy, iPAS is a great example of the kind of companies that are out there right now trading at discounted prices.

On the other hand, a number of penny stocks rode the recent credit crunch fears right out of the penny stock range. ADDvantage Technologies Group, Inc. released their third quarter results in the heat of the credit crunch woes. The company announced that third quarter revenues climbed 33% year-over-year while net income soared 82%. Year-to-date revenues were up 20% and net income increased 43%.

I’ve been watching ADDvantage Technologies Group, Inc. since early March, and it appears as though the markets just can’t overlook good fundamentals.

And when it comes to the stock market, the best way to make money is to bank on companies with solid operations and strong fundamentals. That may sound obvious, but clearly it isn’t.

Whether a penny stock’s share price is up or down, you need to follow your own advice. How low will they go? That I don't know. Will things get worse before they get better? Many still think so.

What I do know however is that there are a lot of good opportunities in the market right now and penny stock investors just need to step up to the plate. Or go stand at the back of the class, and there's no way you can make money from there.

About Peter Leeds:
Peter Leeds, CEO of peterleeds.com is also a successful book author. Leeds is widely known in the industry as the Penny Stocks Pro, a reputation built on giving clear and informed financial guidance based on years of investing in penny stocks, a passion that started at the young age of fourteen when he invested and lost the hard-earned sum of $3,800.

From this modest beginning to today’s own financial success, Leeds learned by mistake and developed LEEDS ANALYSIS, a proprietary system of analysis which enables him to pick winners in the penny stock market and make suggestions in his newsletter.

Leeds has helped thousands of others achieve their dreams of greater wealth by subscribing to the peterleeds.com newsletter. He is often called upon by major news media to serve as a financial analyst .

Media Contact:
To request an interview with Peter Leeds, contact his publicist Anne Howard at 310-295-9578, or at anne@annehowardpublicist.com or visit the Web site at www.peterleeds.com
-END-

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