Buying Penny Stocks In Resilient Companies

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Penny Stock Research
Buying Penny Stocks In Resilient Companies
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• Hi, My name is Aaron and Im with Penny Stock
  Research, today were reviewing our recently
  published article

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• Buying Penny Stocks In Resilient Companies

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• Im little groggy as I write this. I was up late
  last night watching the Royals win their first
  baseball championship in 30 years. To do it, the
  victorious team from Kansas City had to get
  through the upstart New York Mets.

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• Whats really interesting about this World Series
  is that if you didnt watch, youd have no idea
  how close the matchup really was. Yes, the
  Royals won the series 4 games to 1 but just
  about every game came down to the wire.

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• For instance, the Royals had to come from behind
  in every single game they won. Twice, they won
  in extra innings. Three times, they didnt tie
  or take the lead until after the 8th inning.

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• Thats about as close as you can get without
  going the full seven games. It was a fairly
  evenly matched series, and the Royals were just
  able to find ways to win the close games.

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• So what does this have to with buying penny
  stocks?

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• If theres one word to describe the 2015 World
  Champion Royals, its resilient.
• No matter how bad the odds looked, or how far
  behind they were in on the scoreboard, this
  Royals team did not quit.

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• They stayed resilient under every circumstance.
  And guess what? Resiliency is a great quality to
  have when buying penny stocks as well. Take a
  look at this chart of American DG Energy ADGE

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• Without knowing anything about this company, you
  can see one thing right away the stock has been
  resilient.

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• Like most other stocks, the share price plummeted
  during the August correction. After the big
  drop, the price looked like it was going to
  breach 0.30 at several points.

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• But, it always held. ADGE shares hung in there
  despite the selling pressure. And finally,
  investors patience paid off. The stock spiked
  in October and has returned to early 2015 levels.

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• Its currently trading well above the 50-day
  moving average.

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• What makes ADGE so resilient?

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• This is where your own research and due diligence
  come into play. The Royals did there due
  diligence on the Mets and knew exactly when to
  take greater risks and when to be more
  conservative.

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• This behind the scenes research is one of the
  reasons the team remained so resilient.

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• Heres the thing If you were to do your homework
  on ADGE, youd see the company has a lot of
  positive going for it.

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• First off, the company develops on-site energy
  systems which produce electricity, hot water,
  heat, and cooling at customers facilities in the
  US and UK. Basically,

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• the company makes long-term contractual deals to
  supply individual customer sites with energy.

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• Its a good business model because the generators
  are run by natural gas a super cheap, abundantly
  available commodity. Certainly, thats a good
  strategy to help keep costs low.

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• Next, with a little digging you could see the
  companys current ratio is 2.7x. Thats well
  above the industry average ratio of just 0.8x.

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• In other words, management is doing a great job
  of keeping the companys balance sheet as healthy
  as possible. Moreover, management has been
  aggressive at buying back shares.

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• Thats relatively rare for a company this size.
  In essence, ADGE doesnt behave the like a penny
  stock, even if its priced like one. Thats a
  big part of why the stock has been resilient in
  the face of selling.

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• And just like the 2015 Championship Royals, if
  you invest enough time and energy in a resilient
  business, its bound to pay off at some point
  down the road.

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