Hot Penny Stocks of 2013


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Market Performance YTD 2013

hot penny stocks

2013 has been a great year for the stock market overall, and it seems the great recession is drifting further away in the rear-view mirror. So far all three (3) major U.S. Indexes are up year to date (YTD).
• Dow Jones +11.6% YTD
• S&P 500 +9.84% YTD
• NASDAQ +9.35% YTD

For penny stock investors the news is even better. Small cap indexes such as the Russell 2000 and S&P Small Cap 600 are showing even greater increases (YTD) in 2013.
• Russell 2000 Index +11.91% YTD
• S&P Small Cap 600 +15.52% YTD

Hot Penny Stocks

For this post we will be analyzing four (4) of the hottest penny stocks for 2013. All American Sportpark, Inc., Cleantech Transit, Inc., Sanborn Resources, Ltd., and Zurvita Holdings, Inc. have seen huge price gains so far during 2013 and I’m going to look closely at each to see if they can keep up this trend.

AASP LogoAll American Sportpark Inc. (AASP)

All American Sportpark Inc. (AASP), is up +1,445.45% YTD for 2013 and it is one of the lowest YTD gainers we are analyzing today. Founded in 1984, AASP operates Callaway Golf Center in Las Vegas Nevada. The company sits on 42 acres of land has a 9 hole golf course and 113 range stations. Facilities include a Callaway Golf Fitting Center, Saint Andrews Golf Shop, and Upper Deck Grille & Sports Lounge.

Notable Financial Statistics

For the quarter ending March 30, 2013
• Net Income: (901,000)
• Current Assets: 273,000
• Long-term Assets: 933,000
• Current Liabilities: 11,447,000
• Long-term Liabilities: 12,230,000
• Cash Flow From Operating Activities: (63,000)

The finances of AASP look very bleak, so I took a peek at their March 31, 2013 10 Q to figure how (if any) they are able to pay their current liabilities. The company is able to generate a positive cash flow and and secure capital through additional debt financing. In the first quarter AASP struck a deal with TaylorMade/adidas Golf Company (TMaG) to create a new facility and new brand name in order to obtain an influx of cash over the next five years. AASP received $200,000 from TMaG in early April.

AASP relies heavily on related party debt transactions. Without this source of funding their would be a material, adverse effect on their operations. Without the ability to defer payables AASP would have extremely limited cash resources without the return to profitability. As long as AASP complies with the terms and conditions of their agreement with TMaG, AASP will receive future funding on March 26, 2014 and March 26, 2015.

Hot Penny Stock or Bust?

Pick: BUST – Looking at the chart below AASP has taken off since their 10 Q was published by Edgars on May 23, 2013. There are two reasons why the companies stock has skyrocketed over the past month. Their ability to secure funding from TMaG and the decrease in net loss from the prior 3 quarters. Still this company is extremely dependent on their relationship with TMaG and their ability to comply with the terms and conditions in the agreement between the two companies. I fully expect this company to cool off for the rest of the year. Its current price is near the top of its 52 week high and well above its 200 day simple moving average. Currently trading at $1.70.

Hot Penny Stock All American Sportpark Inc

Cleantech Transit, Inc. (CLNO)

CLNO Logo

Cleantech Transit, Inc. (CLNO) is surely a hot penny stock for 2013. The company has increased +14,900.00% YTD. Founded in 2006, CLNO (Las Vegas, Nevada) has shifted its focus several times. Starting out in mining the company was unable to find any profitable gold and silver mines. In 2010, CLNO shifted its focus to green energy when it acquired a 40% interest in Ortigalita Power Company, LLC. After being unable to secure enough funding to make the powerplant profitable the company chose to write-off its investment in Ortigalita Power Company. CLNO is now focusing renewable energy.

Key Financial Statistics

For the quarter ending April 29, 2013
• Net Income: (260,000)
• Revenue: 0
• Current Assets: 1,000
• Current Liabilities: 176,000
• Change in Cash & Cash Equivalents: (0)

The most striking statistic about CLNO is its inability to produce revenue since it was founded in 2006. The company has tried several different ways (in several industries) to generate revenue and has come up short with each attempt. The company has a new CEO Billy Barnwell and on June 21, 2013 the company acquired an 81% interest in Discovery Carbon Environmental Securities Corporation. Through its new acquisition CLNO expects to generate significantly higher revenue through its new line of products and services.
Well, any revenue is better than 0, right?

Hot Penny Stock or Bust?

Pick: Hot Penny Stock – Looking at the chart below we can see that CLNO really started to take off on June 3, 2013 when it was announced that the company would be acquiring Discovery Carbon Environmental Securities Corporation. The company is taking on significantly larger revenues and is part of the World Environmental Commodities Market Place. Even with their current success, I admit I’d like to know a little more about Discovery Carbon Environmental Securities Corporation before purchasing the stock myself. I definitely think this is a stock to take a serious look at. Currently trading at $0.30.

Hot Penny Stock Cleantech Transit, Inc

Sanborn Resources, Ltd. (SANB)

Sanborn Resources, Ltd. is one of the hottest penny stocks of 2013 with a +85,566.67% YTD gain on its share price. Founded in 2011, (West Palm Beach, Florida) SANB focuses on mining and minerals in Peru.

Key Financial Statistics

For the quarter ending March 30, 2013
• Net Income: (58,000)
• Revenue: 0
• Current Assets: 50,000
• Current Liabilities: 174,000
• Change in Cash & Cash Equivalents: 19,000

On April 3, 2013 the company acquired Rae Wallace Peru S.A.C. for $700,000. Rae Wallace is the owner of certain mineral properties and mineral rights located in Peru. Some of the properties are subject to third party royalty rights for the sale of any mineral produced by such properties. While the company has yet to report a revenue they are getting very close and will begin mining soon.

Hot Penny Stock or Bust

Pick: Hot Penny Stock – Looking at the chart below we can see that SANB jumped on April 15, 2013 upon news of its acquisition of Rae Wallace Peru S.A.C. With its new acquisition of Rae Wallace Peru S.A.C. SANB should be able to produce steady profits in the resource rich country of Peru. While it has taken on substantial liabilities to purchase the Rae Wallace the mine does look promising for SANB. One thing to be careful here is the trading volume is extremely low which indicates a larger spread between the Bid/Ask price. In this case I expect trading volume to pick up and the spread to narrow upon the companies next financial report. Once we understand how much revenue and net income the company can generate from its new rights to mine in Peru. Currently trading at $0.26.

Hot Penny Stock Sanborn Resources, Ltd

Zurvita LogoZurvita Holdings, Inc. (ZRVT)

Zurvita Holdings, Inc. (ZRVT), is another hot penny stock for 2013 gaining +681.25 YTD. ZRTV (Houston, Texas) focuses on beverages and its biggest product is Zeal, a natural nutrition drink line for blocking carbohydrate absorption, cleansing, fat burning and appetite suppressant. The company also engages in ZLinked technology which is online advertising solutions for small and medium based businesses.

Key Financial Statistics

For the quarter ending Jan. 30, 2013
• Net Income: (784,000)
• Revenue: 7,274,000
• Current Assets: 1,704,000
• Current Liabilities: 3,206,000
• Change in Cash & Cash Equivalents: (59,000)

For the past few quarters ZRTV has been growing revenue at an average of 49.6% while only increasing its expenses by an average of 47.6%. This quarter the company incurred a huge jump in selling and administrative costs as it has steadily been expanding its operations.

Hot Penny Stock or Bust?

Pick: Hot Penny Stock – Looking at the chart below ZRVT reach a high of $0.69 on May 7, 2013 before falling sharply to $0.15 on May 22, 2013. Since May 23, 2013 the company has been trending higher and closed on June 28, 2013 at $0.35. With ZRVT’s consistently increasing revenue and their amazing ability to market themselves online (which is very good for such a small company) I can only see this company continuing the trend with their next quarterly filing. They have also invested a great deal in their selling and marketing efforts which means they are really pushing hard to increase their revenues sharply this quarter.

Hot penny stock Zurvita Holdings, Inc

 

Hot Penny Stocks Wrap-Up

Well, there you have it. One bust and three hot penny stock picks! With this year shaping up to be a great one for both major markets and small cap indexes it seems that you should avoid All American Sportpark, Inc. and pursue investing in Cleantech Transit, Inc., Sanborn Resources, Ltd., and Zurvita Holdings, Inc. While no one can predict the future, these three picks look the most promising based on their recent trends.

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