How To Find The Best Penny Stocks To Watch: Part II (1)

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Penny Stock Research
How To Find The Best Penny Stocks To Watch Part
II
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• Welcome to Penny Stock Research. Every day we
  bring you the unbiased truth about Penny Stocks.
  For more information on penny stocks please visit
  our website
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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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• How To Find The Best Penny Stocks To Watch Part
  II

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• Want some more penny stock tips so you can make
  the most of your watch list? Focus on a category,
  one business sector. For instance, weve been
  providing some valuable information

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• lately for penny stock investors interested in
  getting in on the ground floor of the legal
  marijuana business. Heres your list of cannabis
  stocks to research.

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• In a minute, Ill introduce you to a tech penny
  stock that you might find interesting. One of the
  good things about turning yourself into an expert
  in a category is that you have a way of comparing
  penny stocks.

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• Youll get a feel for industry trends and
  patterns. And you wont be spread so thin trying
  to keep up with too many penny stocks. The focus
  will pay off... youll have time to take a look
  at an income statement and a balance sheet.

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• You can see how individual penny stocks, the best
  penny stocks perform when it comes to financial
  indicators such as profit margins, how much money
  they invest in their own growth, and what
  business strategies they follow.

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• One of the discoveries youll make is that the
  prices of penny stocks in the same industry tend
  to move in the same direction. This happens a
  lot.

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• Youll see the stock price of a strong company
  pushed down alongside the stock price of a weak
  company. (And vice versa.) Does a rising tide
  lift all boats when it comes to penny stocks?

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• Its not unusual for this to happen. But dont
  forget that financial results come into play as
  well. Thats why you see so much movement around
  the time of quarterly earnings reports.

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• One category of penny stocks Ive been avoiding
  lately...
• Penny stocks in the energy business. Its just
  too tough to tell whos going to survive the
  downturn in crude oil prices. The risks are
  extreme.

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• But one category of penny stocks Ive been
  interested in lately... Technology. Lets take a
  closer look at a couple of tech penny stocks to
  get a feel for how some of these small, under the
  radar

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• stocks perform, and what these companies are
  doing to try and become tomorrows Intel INTC or
  Apple AAPL .

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• 2 Hot Tech Penny Stocks

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• One of the tech penny stocks well look at is in
  the Wi-Fi business and the other builds equipment
  for companies that manufacture tech
  components.Amtech Systems Inc. ASYS sells
  production equipment.

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• If youre in the business of manufacturing solar
  panels or semiconductors, you go to a company
  like Amtech for your equipment. Theres always
  been an appeal to companies like this... its the
  time-honored

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• approach of making money by selling buckets and
  tools to the gold prospectors instead of actually
  prospecting for gold. As long as somebodys
  manufacturing computer

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• chips or solar panels, theres an opportunity for
  a company like Amtech.
• Is Amtech a good tech penny stock?
• For starters, its not making money, never a good
  sign.

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• But at least losses are trending down. If things
  keep moving in this direction, it might not be
  long before Amtech is turning a profit. Youll
  see revenues have been bouncing around. There
  are significant swings quarter to quarter.

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• When you go through the income statements for
  tech penny stocks like Amtech, take a look at the
  line item for Selling General and
  Administrative.

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• Lots of expenses can be buried in here, and there
  may be expenses that as a shareholder, youre not
  too happy to see.

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• Fancy office furniture, fat salaries and bonuses,
  luxury hotel rooms and lavish restuarnts for
  business trips... this is the line item on the
  budget where these extravagances usually show up.

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• And when you look at the Selling General and
  Administrative expenses for Amtech you see
  theyre high.For instance In the quarter that
  ended June 30th, 2015, the company delivered
  total revenue of 40.0 million.

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• The Cost of Revenue brought this down to 10.1
  million. And then came the big 10 million bite
  of Selling General and Administrative expenses.

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• Modest Research and Development costs ate up the
  rest, so what could have been a tidy profit
  turned into a 1.6 million loss for the quarter.

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• A tech penny stock can talk all it wants about
  repeat orders, gross margins, the size of its
  backlog, and new investments. If it cant control
  its expenses, or choses not to control its
  expenses, move on.

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• It would have been better to see Amtech losing
  1.6 million for the quarter because of a 10
  million investment in research and development.
  That could have been understandable.

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• Take a look at other tech penny stock income
  statements and youll see all sorts of ways
  companies manage to lose money. Ipass Inc. IPAS
  is in the commercial Wi-Fi business.

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• It operates over 20 million hotspots in airports,
  hotels, airplanes, and public areas in more than
  120 countries and territories. It hasnt always
  been a penny stock. 11 years ago it traded for
  18.

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• Ipass lost its way and never made the transition
  from dial-up internet service to broadband and
  Wi-Fi. The stock plunged and its never
  recovered...

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• This is what happens when a company cant make
  money. When expectations are high and the
  performance isnt there, you wind up with a tech
  penny stock on your watch list that looks like
  this.

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• Is Ipass worth checking out? CEO Gary Griffiths
  is saying all the right things... "Change has
  been realized across all elements of the company,
  from a new board of directors, a new sales model,
  a new expense structure,

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• and a new product roadmap. Moreover, we have a
  new and significantly smaller executive team that
  has done more than simply reduce expenses. Our
  streamlined operating structure has made us more

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• nimble and decisive, moving closer to the culture
  of the startup we should and will be. Sounds
  good. But the proof will be in the pudding. This
  is why a watch list is a great way to be ready to
  pounce on good opportunities.

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• And how you can make good decisions by steering
  clear of Pump And Dump scams. Youre all set,
  ready to fine tune your penny stocks watch list
  and turn it into a highly profitable investing
  tool.
• Any questions?

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• Send us an email or leave us a comment on the
  website.
• Better yet, if you own any of these stocks or
  are planning to buy shoot me an email and let me
  know why!

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