We’ve talked about Penny Stocks before in this space. However, with the prevailing trade tensions, and with so many geo-political happenings on the horizon (Iran, Turkey, Saudi Vs. Canada, Russia-gate), we thought we should take a look at some Penny Stocks that might potentially not be impacted by these events.
The stocks we’ve chosen (for the most part), have decent fundamentals too, and are themselves diversified in terms of their market – globally rather than concentrated in one particular geography.
Our three picks represent divergent industries/sectors, and therefore, if pulled into an otherwise broadly diversified portfolio, could offer some torque to your returns.
Galaxy Gaming Inc (GLXZ)
If you are into casino gaming, then Las Vegas, Nevada-based GLXZ is where you want to be – at least right now. The company designs, develops, acquires, markets and licenses its proprietary casino games and related gaming/gambling/betting technologies to a broad segment of clientele, including from North and Central America, Europe, the Caribbean, The British Isles and Africa.
One cool thing about GLXZ is that, unlike many of its competitors, it does not restrict its licenses simply to bricks-and-mortars gaming facilities. Its clients can be found on land, on cruise ships and even online in cyberspace.
For the “fundamentalists” amongst you Penny Stock traders, GLXZ is a profitable operation, with a TTM Operating Margin of 19.01%. It also boasts of an effective Return on Assets (TTM) of 10.29%, and posted Quarterly Revenue Growth (Y/Y) of 24%.
ARC Document Solutions Inc (ARC)
Document management is fast becoming a huge challenge for corporations globally, and that’s the niche that ARC services. The California-based Industrial/tech/Business services company offers document management solutions to a world-wide clientele.Like our other Penny Stock pick, ARC’s services are fairly diversified too. It offers an on-site flavor of its services, wherein it installs its printing/imaging equipment on client premises, and then operates, optimizes and manages those devices. For clients that have their own in-house imaging and printing solutions, ARC offers a managed-services version of their expertise, where ARC experts will oversee the optimization and management of the entire process. And finally, the company operates 175 off-site printing/imaging facilities that clients can rely upon to provide emergency backup or work-overflow assistance.
In terms of its fundamentals, the company has a decent Operating Margin of 3.7%, and posted a healthy TTM Revenue/Share of $8.74. The company posted Quarterly Revenue Growth (Y/Y) of 1.90%. Over the next 5-years, ARC is expected to grow into its earnings, as represented by a 5-year PEG Ratio of 2.29.
PV Nano Cell Ltd (PVNNF)
Israel-based PVNNF is in a very unique niche – it develops, manufactures and markets conductive inks for a wide range of applications. Application of PVNNF’s ink ranges from use in 3D printers to photovoltaic applications, as well as printing of circuit boards, touchscreens and a vast array of electronic and mobile devices.
If you want a company with a diversified marketplace, then PVNNF may interest you. It services clients in Israel, Holland, Germany, Austria, France, the USA, and a number of other international destinations.
At our point of analysis, PVNNF (-0.23) has a negative Beta. This usually indicates a stock that is negatively correlated to the market. The stock will move up when markets are down, and vice versa. So, if you are looking for a bet inverse to the market volatility, this stock might be just for you! With a Beta of 2.17, ARC however does appear to be a bit volatile, susceptible of movement in tandem with the overall market. With a Beta of 0.82, GLXZ seems to be flowing (more/less) in tandem with the market.
Remember, Penny Stocks aren’t supposed to be buy-and-hold type investments. Most people trade them using short-term strategies, buying low and selling high. So, if you held these three picks over the past 15 days or so, how would you have fared?
Well, the Price Move Charts above paint a pretty picture of all three picks, although PVNNF seems to be on a real tear now. The trajectory of all three stocks’ price seems to be upward, with all of them well above their 52-day lows, seemingly inching towards their 52-day highs. A portfolio comprising of just these three picks over a 15-day period would have netted you a neat total return of 71.63% – an average return of 23.88%.
Penny Stocks are an interesting investment but these MUST BUY Stocks are set to soar
Get this recently published report 4 Best Blockchain Stock To Invest In Right Now or Volatility Must Buy Stocks report absolutely free.
Author does not have investment in stock discussed in this article.