Friday, November 6, 2009

Three Stocks Under $1 (Penny Stocks)

Listed below are three stocks whose prices are under $1, which may be consider as penny stocks or small cap/micro cap stocks. Many penny stock lists can be obtained through various lists if you would like to find more penny stocks consider clicking on some links on the right hand side of this blog.

ITEX Corporation (ITEX) Payment services

Current Price $0.75

52 week range 0.35-0.79

Market Cap 13.1 million

ITEX Corporation creates a network of business and an ITEX currency. Members use ITEX dollars to buy services from other ITEX members. Quote from website “Do you run ads? Do you send brochures or other marketing material? Need to hire a consultant, accountant or an attorney? Do you need office equipment serviced? With ITEX, you can acquire all of these services with ITEX dollars.”

ITEX helps connect business with customers and could be a good way for a small business owner to grow their business

ITEX has attractive P/B and P/S of 1 and 0.8 respectively, compared to its’ 5 year average P/B and P/S of 1.7 and 0.9.

ITEX has sustained low stable growth over the past 10 years but will they become a successful company?

Genta Incorporated (GETA) Healthcare

Current price 0.21

52 week range 0.09-0.22

Market cap 27.95 million

Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. Genta is committed to identifying, developing and commercializing innovative new products to treat patients with cancer and to address the unmet medical needs of those afflicted with this disease.

Genta has P/S of 1.2 vs. its’ 5 year average of 24

GETA has had down years in revenue since 2005, they reported 26.6 million but have yet to cross over $1 million since that year. If they would in fact discover a new drug or better develop their current products they could be explosive. Since they have had down years and are in the negatives for earnings they will need to do something soon before they run out of capital.

Tengasco Inc. (TGC) Energy

Current price 0.52

52 week range 0.35 – 0.80

Market cap 59.36 million

Tengasco, Inc. is engaged in the business of exploring for and producing oil and natural gas in Kansas and Tennessee. The Company leases producing and non-producing properties with a view toward exploration and development and owns pipeline and other infrastructure facilities used to provide transportation services. In addition to expanding its existing operations, Tengasco is constantly evaluation expansion possibilities. The company’s vision is to use its resources, potential and creative thinking to grow its contribution to the overall effort to find solutions to America’s energy needs.

P/B 1.1 vs. 5 year average 1.2

P/S 2.7 vs. 5 year average 3.0

TGC had its’ best year in 10 years for revenue in 2008 but these results were dampened by heightened expenses leaving the company with 0.2 million net income vs. 2007 net income of $3.5M

For 2009 the company is currently in the red with (7.6) Net income TTM.

Please note that investing in penny stocks is very risky because of the volatility and variation in stock prices and consider all risks before investing.

1 comment:

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