Miami Vice: Good Copsâ€¦Bad Penny Stock Investors
According to Google Trends, Florida comes third in states that search for penny stocks. And three of the top five locals are located in Florida: Jacksonville, Tampa and Orlando.Â
By John Whitefoot, on behalf of Peter Leeds, Inc., the Penny Stock Pro
Miami, FL (rushprnews) July 19, 2007 -A friend of mine recently purchased the first two seasons of “Miami Vice” on DVD and invited me over to watch a few episodes.
Naturally I jumped at the opportunity. After spending umpteen hours in front of the TV it became abundantly clear that Crockett and Tubbs were certainly adept at fighting, corralling criminals and having the ocean wind blow through their hair and stubble.
Unfortunately, I didnâ€™t take anything away from the episodes that I could use in real life. As a penny stock investor, I found their brash, impulsive work ethic to be a little out of synch with mine.
Yes Crockett and Tubbs are in a dangerous, risky line of businessâ€¦but so am I. If you donâ€™t believe me, just ask any small, medium, or large cap investor what they think of penny stocks.
After the initial scowl and howl, theyâ€™ll tell you exactly why penny stocks are the surest way to lose money, and why their preferred avenue of investingâ€¦is not.
And the truth is penny stocks are risky; but no riskier than their large cap peers. Yes large cap stocks can have greater liquidity, more cash, and product diversityâ€¦but you still have to devote a significant amount of time researching both kinds of companies. Assuming your goal is to make money.
Think bigger is better? Iâ€™m willing to bet that there are a lot of investors out there who lost a serious amount of money on some ubiquitous large cap companies over the last few years. Iâ€™ll even bet they watched the ensuing court cases.
The point is you certainly wouldnâ€™t invest in a Fortune 500 company without doing research. Just because theyâ€™re BIG doesnâ€™t mean they’re in great shape. And just because a company is small, doesnâ€™t mean they’ll stay small; if anything penny stocks have more room to grow.
Whether you want to find an undervalued penny stock or blue chip behemothâ€¦you need to do lots of research. And then do some more. In doing so, youâ€™ll understand what’s driving the business and figure out how to profit from it.
Also, penny stock investors donâ€™t look at their portfolio the same way other investors do. The vast majority of penny stock investors donâ€™t hang onto penny stocks for very long. Itâ€™s more of a short to medium term opportunity. At least it is if you invest wisely.
Strangely, most investors donâ€™t do a lot of research. They let others do it for them, or they react to press releases…or water cooler gossip. In doing so, they chase up over valued, hyped stocks. Trust meâ€¦itâ€™s a lot easier to be a proactive penny stock investor than it is a reactive penny stock investor.
And when it comes to investing, there are few places in the Unites States more enamored with penny stocks than Miamiâ€¦well Florida. According to Google Trends, Florida comes third in states that search for penny stocks. And three of the top five locals are located in Florida: Jacksonville, Tampa and Orlando.
And there are a lot of great investing opportunities for penny stock investors in Floridaâ€¦or at least companies that have operations in Florida. A few years back I became aware of Home Solutions of America, Inc. (HSOA) a company that specializes in restoring and rebuilding homes and businesses that have been damaged due to fire, weather or other natural disasters.
At the time, HSOA was trading for under $2.00 a share; a year later, it broke through $14.00 per share. Remember, you donâ€™t hold true penny stocks for very long. If as a share holder you arenâ€™t happy with a 600% returnâ€¦then thereâ€™s little hope for you.
More recently, there’s Boca Raton based Sunair Services Corporation (SNR). SNR is a streamlined company that has repositioned itself as a pure-play pest control and lawn care services company. In Florida, pest control is a huge multi-billion-dollar-a-year industry, or as one insider noted, â€œâ€¦basically twice the orange crop.â€
What makes SNR an attractive penny stock? SNR recently reported solid second quarter results and has been expanding its services through a number of strategic acquisitions. It has sound operations and a strong foothold in Florida.
Yes, Florida is home to a large number penny stock investors and great undervalued penny stocks. They’re in your own back yard; all you have to do is uncover them.
Now, if I was trying to find an undervalued penny stock, I think Iâ€™d forgo the reckless abandon of Miami Viceâ€™s Crockett and Tubbsâ€¦and look to the ponderous patience of one Horatio Caine.
To book an interview with Peter Leeds, kindly contact Anne Howard at email@example.com , or call her at 310-295-9578 .
Peter Leeds, the Penny Stock Pro