Posted on 14 January 2012.
The search goes on for the best sub penny stocks. By their very nature, these stocks are rather transitive. Sub penny stocks quickly blossom and grow, or wither and die. In between the two worlds is a sort of purgatory where they simply exist but never go anywhere. Adding to the difficulty of picking a winner is the realization that there is virtually no objective coverage to use for guidance. Almost all information available on any sub penny stock is written by someone with an interest in pushing its prospects.
The tailwind factor is one thing that can occasionally move a somnolent sub penny stock. A huge boom in biotechnology, for example, may see a little of the action trickle down to the super speculative players at this level. The stock will either sink back down as the boom dies, or use its moment of reflected glory to pull itself up into a going concern rather than continue on as a zombie shell company. The moment of movement for even the best sub penny stocks will be brief but it can be seized upon. With that in mind, here are a couple of tailwind candidates to keep an eye on.
• Due to the recent surge in precious metals, many small mining stocks are getting a second look. South Africa’s Centurion Gold Holdings Inc (CGHI) is bound to attract a few glances on account of it being in the middle of the greatest gold producing region on the planet.
• Ecologix Resource Group Inc (EXRG) of Beverly Hills, California has an upscale headquarters address coupled with an upscale cause. The company manages a tropical hardwood forest in Africa for sustainable output as its primary business, while pursuing development of other green technologies such as production of ethanol and biodiesel.
These and many other small boomlet stocks are like the desert Agave, or Century Plant, that allegedly only blooms once in a century. When they do suddenly flower, they need to be instantly seized upon before their moment passes. The key to finding value in the best sub penny stocks is speed.
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