Making Cents in Penny Stocks
By Rich Duprey | More Articles
March 30, 2012 | Comments (3)
Low-priced stocks are often low-priced for a reason: They have significant problems to overcome. Yet those that have fixed their problems may be ready to take off to the next level.
At Motley Fool CAPS, a "penny stock" is any stock trading under $10, and you'll find some of the best CAPS All-Stars regularly seeking out winning investments there. We identify them with a penny icon. This week we'll look at two low-priced investments the CAPS community has marked for future success by bestowing four- and five-star ratings on them. We just might want to turn our umbrellas upside-down to catch them!
These two companies may be low-priced, but that isn't necessarily enough to suggest they'll have an easier time recording big gains. We have to check and see what their catalysts for growth may be before diving into the shallow end of the stock pool.
Pinching pennies
The major telecoms are opening their purse strings again and planning to spend about 13% more in 2012 than they did last year. Sprint (NYSE: S ) plans on around $6 billion in capital expenditures this year to build out its Network Vision and add capacity for the iPhone -- somewhat less than Verizon's $8.6 billion and AT&T's $10.4 billion, but more than what analysts thought it would shell out. It's also considerably ahead of the $2.8 billion it spent last year.
While that leaves some analysts cautious about Sprint's precarious financial situation, it's good news for Alcatel-Lucent, one of the primary vendors for the telecom's new network. Using Alcatel's new lightRadio Wi-Fi gear, Sprint will be able to enable customers to seamlessly switch between cellular and Wi-Fi. Key is the equipment's new small footprint, which allows it to unobtrusively mount on the side of a building, pole, or rooftop and expand a carrier's network capacity in that area.
With its new technology and fledgling expansion, I'd have to agree with CAPS member Ronsevet that Alcatel is undervalued at this point.
By Rich Duprey | More Articles
March 30, 2012 | Comments (3)
Low-priced stocks are often low-priced for a reason: They have significant problems to overcome. Yet those that have fixed their problems may be ready to take off to the next level.
At Motley Fool CAPS, a "penny stock" is any stock trading under $10, and you'll find some of the best CAPS All-Stars regularly seeking out winning investments there. We identify them with a penny icon. This week we'll look at two low-priced investments the CAPS community has marked for future success by bestowing four- and five-star ratings on them. We just might want to turn our umbrellas upside-down to catch them!
Company
Recent Price
CAPS Rating (out of 5)
1-Year Return
Est.
5-Year EPS Growth
5-Year EPS Growth
Return on Capital
Alcatel-Lucent (NYSE: ALU ) $4.69 **** (44%) 15% 28% North American Palladium (AMEX: PAL ) $3.65 **** (39%) 8% 12.6% Source: S&P Capital IQ; Yahoo! Finance.These two companies may be low-priced, but that isn't necessarily enough to suggest they'll have an easier time recording big gains. We have to check and see what their catalysts for growth may be before diving into the shallow end of the stock pool.
Pinching pennies
The major telecoms are opening their purse strings again and planning to spend about 13% more in 2012 than they did last year. Sprint (NYSE: S ) plans on around $6 billion in capital expenditures this year to build out its Network Vision and add capacity for the iPhone -- somewhat less than Verizon's $8.6 billion and AT&T's $10.4 billion, but more than what analysts thought it would shell out. It's also considerably ahead of the $2.8 billion it spent last year.
While that leaves some analysts cautious about Sprint's precarious financial situation, it's good news for Alcatel-Lucent, one of the primary vendors for the telecom's new network. Using Alcatel's new lightRadio Wi-Fi gear, Sprint will be able to enable customers to seamlessly switch between cellular and Wi-Fi. Key is the equipment's new small footprint, which allows it to unobtrusively mount on the side of a building, pole, or rooftop and expand a carrier's network capacity in that area.
With its new technology and fledgling expansion, I'd have to agree with CAPS member Ronsevet that Alcatel is undervalued at this point.
Incredibly under priced, just finished their first profitable year [since 2005], amazing cutting edge technology just starting their way in the markets, only a matter of time before they boom, and that's without even bringing up their 4G deployment contracts world wide.
Tell us on the Alcatel-Lucent CAPS page or in the comments section below if you agree it's got the right technology, and then add it to your watchlist to see if it can make the connection without dropping the call.
I saw a article from Motley Fool yesterday that said the same thing..
The major telecoms are opening their purse strings again and planning to spend about 13% more in 2012 than they did last year. Sprint (NYSE: S ) plans on around $6 billion in capital expenditures this year to build out its Network Vision and add capacity for the iPhone -- somewhat less than Verizon's $8.6 billion and AT&T's $10.4 billion, but more than what analysts thought it would shell out. It's also considerably ahead of the $2.8 billion it spent last year.
Guys tread lightly on this stock...gonna be a rough day
Sandisk came out and said the market is weak....and lowered Guidence....so its affecting chip makers
http://news.investors.com/article/6...-warns-weak-sales-stock-falls.htm?src=HPLNews
Its already down .10 in premarket...I have adjusted a stop price to $2.12 just in case.
This is just my opinion....and wont be near a computer for a while today....I dont want to get slaughtered on this ....so do what u need to do
Sandisk came out and said the market is weak....and lowered Guidence....so its affecting chip makers
http://news.investors.com/article/6...-warns-weak-sales-stock-falls.htm?src=HPLNews
Its already down .10 in premarket...I have adjusted a stop price to $2.12 just in case.
This is just my opinion....and wont be near a computer for a while today....I dont want to get slaughtered on this ....so do what u need to do
