Two interesting "penny" stocks trading in the $1 - $2 range
I used to trade only penny stocks because of the leverage involved and the potential which was there.
As my capital grew through trading these and the market rocketed higher it made more sense to focus on stocks trading in higher ranges as it was easier to make $10K a week buying on margin than trying to buy and then liquidate 70,000 share of a penny stock.
But I still come back to pennies from time to time as I believe they offer huge opportunities and gains over a longer term.
Ok, two penny stocks which look interesting to me:
DIPL (Diplomat Corp): Nasdaq: $1.65 has earnings of .07, is launching an internet site on Yahoo and at the end of January to sell among other things, baby clothing.
Latest release:
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Diplomat Announces Launch of Online Shopping with Catalog City
STONY POINT, N.Y.--(BUSINESS WIRE)--Dec. 30, 1998--Diplomat Direct Marketing Corporation (NASDAQ: DIPL - news; the ''Company'') announced
today that it signed an agreement with Catalog City (http://www.catalogcity.com) to host online, fully interactive versions of its Lew Magram and Brownstone Studio
catalogs. Catalog City has an agreement with Yahoo! Inc., a global Internet media company which provides millions of consumers with links to Catalog City's
branded online stores, to include Lew Magram and Brownstone through the Yahoo! Shopping website (http://Shopping.Yahoo.com).
Jonathan Rosenberg, President and CEO, said, ''Online shopping is another important step forward in our aggressive e-commerce strategy. Our goal is to extend
brand awareness of our Lew Magram and Brownstone Studio catalogs and provide consumers with even more opportunities to shop at their convenience. Catalog
City was a logical choice for us, as it is one of the largest online catalog providers on the web.
The agreement with Catalog City calls for the Lew Magram and Brownstone catalogs to debut by the end of January 1999.
The above announcement follows the company's release dated October 27 that the company signed a letter of intent with Enterprise Productivity Systems (EPS), a
Delaware corporation based in Napa, Calif., entering into an electronic commerce business relationship for the development of ''Commerce Direct''. The
e-commerce medium will represent a syndication of fashion apparel catalogs, utilizing the next generation of interactive TV set top boxes.
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Why I like DIPL:
1.) Soon to be internet commerce stock (and we know how quickly they rise)
2.) In past nine months revs grew from $5 mil to $57 mil without help of internet commerce (in other words, they don't NEED the internet to make revs and profit)
3.) Low OS and Float, 11.1 mil OS, 3.1 float
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I will highlight the next penny stock in my next message.
-DavidCG |
