The stock market in the United States weighed in with a spectacular showing early this year, with the Dow Jones Industrial Average up nearly 10.8% as of the week which ended March 15,2013. for more info please visit http://www.pennystocks.net/

1. Penny Stock Industry Report:
Hot Penny Stocks Earn 30% in Bull Market
By Ed Zwirn
The stock market in the United States weighed in with a Of these NASDAQ penny stocks, 358, or 61.9%, saw their share
spectacular showing early this year, with the Dow Jones Industrial prices rise, seven (1.2%) were unchanged and the remaining
Average up nearly 10.8% as of the week which ended March 15, 213 penny stocks lost money. There were some spectacular
2013. This benchmark index, which consists of 30 higher-priced winners in this sample, with 161 stocks, or 27.8%, gaining more
stocks, started out the year with a bull session, gaining over 300 that 100% on an annualized basis during the period (meaning
points in its first session on Jan. 2 as investors rushed in to buy that you would have more than doubled your money if you
stocks with the advent of the new year. achieved the same results over a full year). There were also some
spectacular losers involved, with 50 (8.6%) losing over 100% on
And the broader market, including penny stocks, has participated an annualized basis. There was also mediocrity: 30 of the penny
in this gain. The 2,451 stocks in the NASDAQ Composite Index stocks charted moved less than an annualized 5% in either
saw a rise of 7.22% in the first 10 weeks of 2013. direction.
To track the overall performance of penny stocks during this NASDAQ Penny Stock Performance
period, we took a sample of 578 NASDAQ-listed stocks priced
under $5, constituting 23.6% of the index, that had traded both
on Dec. 31, 2012 and March 18, 2013 and found that these stocks
Losers
gained an overall 5.75% during the period. To put it another
way, if you had bought one share of each of these 578 stocks
Unchanged
at Dec. 31 closing prices and sold them at the March 18 close,
you would have spent $1376.67 and wound up with $1455.78.
This may not seem all that impressive, but bear in mind that this Winners
works out to an annualized rate of return of about 30%. Not 36.9%
bad for a portfolio for which you had to do no research.
61.9%
NASDAQ Composite
Others
1.2%
Penny Stocks
23.6% There are a few caveats here: In an attempt to chart the progress
of the often spotty market for penny stocks, we excluded
all stocks that had no trades on either the starting or ending
76.4% date of the period, meaning that this performance benchmark
excludes all penny stocks that may have either gone belly up or
made their debut in the interim. Also, the figures include only
NASDAQ-listed penny stocks, so their results may differ greatly
from shares in other trading venues.
But we hope that these numbers can help serve you as a useful
benchmark in gauging the effectiveness of your penny stock
Penny Stocks
trading strategies. Of course, as all the standard disclaimers say,
past performance is no indication of the future, but, as we will
NASDAQ Composite see, with effective screening, you can make much more money
+7.22% Index performance
on penny stocks than you would have with this “monkey aiming
at a dartboard” approach.
+5.75% THE ECONOMY
The period under review saw evidence of the U.S economy
making overall, if uneven, progress. Of the headline figures,
0 1 2 3 4 5 6 7 8 the overall economy, as measured by Gross Domestic Product,
was announced on Feb. 28 to have risen 0.1% in Q4 2012, down
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from a rise of 3.1% in Q3. This progress, such as it was, was at the same rate for an entire year, you would have doubled your
accompanied by little or no inflation. In January, the Bureau of money.
Labor Statistics announced that the Consumer Price Index had
remained absolutely steady in December. In January, the CPI also LEEDS ANALYSIS STOCKS*
remained flat, while in February, prices rose 0.7%.
Unemployment rate announcements saw steady but anemic Losers
progress from the 7.8% November rate announced in December
to the 7.7% February rate announced in March. This is of course Winners
insufficient progress to indicate a roaring economic recovery,
but bear in mind that the unemployment rate peaked at 10% in
October 2009 and has been falling ever since and the February
2013 rate is the best score seen since the 6.8% recorded for
35.5%
November 2009. 64.5%
Real estate was also a strong component of the U.S. economic
recovery. In January alone, housing prices rose at the fastest pace
since the housing bubble burst in the summer of 2006, with the
Standard & Poor’s/Case-Shiller 20-city price index having climbed
8.6% in the prior 12 months, up from a 6.8% 12-month rise the
previous month. Prices for homes were found to have risen in all
20 cities.
WINNER BREAKDOWN
The policy of the U.S. Federal Reserve has also had a key impact Double your money in one year 50%
on stocks so far this year. Despite rumors to the contrary, Ben Other winners 50%
Bernanke and company have made it consistently clear that,
even as the federal government itself attempts to ratchet down
spending, the central bank will continue to pump $85 billion *Feb. 3, 2011 to Dec. 5,2012
a month into the economy via mortgage and Treasury bond
purchases. Of course, these results are not meant as any
measure of Leeds Analysis performance
In March announcements, the Fed, which had originally said it during the period. For one thing, they
would start to dump these bonds at around this point in time, represent only a portion of the stocks
backtracked by saying it would probably keep buying them recommended during the period, since
and hold them until they mature, meaning that this stimulus many of our picks trade elsewhere
measure, which has been in effect since June 2011, will continue than the NASDAQ. For another, they
for the foreseeable future. When you consider that this program, are not reflective of any changes
which pumps $1.02 trillion a year into the economy, comes in in company fundamentals which
addition to the stimulus provided by the Fed’s commitment to have occurred. If you are a Leeds
lower interest rates, you have an idea of why the market in Analysis subscriber, you can find
fact shrugged off the so-called sequestration by which federal out more about these winning and
spending was reduced by $85 billion a year starting in March. losing penny stocks and track them in
relation to our current recommendations,
LEEDS ANALYSIS which very well may have changed since
In an attempt to measure the gain seen by stocks on which some they made our list.
research has been done, we took a look at the 31 NASDAQ listed
stocks recommended by Leeds Analysis from Feb. 3, 2011 to But, as the numbers show, penny stocks
Dec 5, 2012. These stocks, which represent about 5.5% of our tend to track the broader market, albeit
NASDAQ penny stock database, were found to outperform. with a lag, as investors’ perceptions of the
wealth they hold change not only due to
If you had invested in each of these stocks over the 10-week stock market fluctuations, but also real
period, you would have seen your average share price climb estate price value changes. The more spare
8.12%, or 42.24% annualized. Of these 31 stocks, 20 gained in pennies investors have (or at least feel they
value, a success rate of 64.5%. Half of these winners reaped gains have) under their couch cushions, the better
of more than 100% at an annualized rate of return, meaning for all stocks, whether you are trading blue
that if you invested in of these shares and your results continued chips or penny stocks.
mpensation
100%
Co
No
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