Posted on 26 August 2012.
Penny stocks trading is on the rise in direct proportion to the stall currently happening in the bond and major stock markets. Investors still have money that needs to be put to work in order to fight off the inflation monster. One percent returns on bonds may offer some degree of capital protection, but it does so only at the cost of a slow bleeding as inflation rates of three percent or higher take bites out of the capital pool. At least a portion of every portfolio needs to be put to work in some asset class that will yield gains sufficient to keep an investor’s stake growing.
The increasing use of non-lethal force is a big issue in both law enforcement and personal protection. Given the growth of this concept in the industry, there is really only one name to consider TASR. Taser International produces those little electronic shock units that immobilize even the biggest and most violently aggressive person. The company name is so closely associated with the product that it is difficult, if not impossible, to think of a competitor’s name.
Another nice profit opportunity might lie in Smith and Wesson Holding Company (SWHC). The firearms manufacturer currently trades at the very top end of penny stock territory but has suffered a bit of a publicity drop on account of recent shooting incidents. However, these incidents generally lead to increased sales in the near term, so an investor can look for a nice future quarterly report coming up.
Social instability is bound to increase the prospects of both of these little-known companies. That represents the perfect opportunity for an investor interested in penny stocks trading to buy at an apparent low point and take advantage of the coming rise in sales.
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