Wednesday, December 23, 2009

Penny Stocks INSM, NTII, ITI

More 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 stocks can be obtained through various lists if you would like to find more penny stocks consider clicking on relative links provided by Google on the right hand side of this blog or right above this paragraph.

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One Year Comparison of INSM, ITI and NTII

Insemed Inc. (INSM)
Current price: $0.76
52 week range: $0.40-2.57

Insmed Incorporated develops and commercializes medicine for the treatment of metabolic diseases and endocrine disorders with unmet medical needs. The company approaches the correction of metabolic defects in the human body by replacing key regulatory molecules in a physiologically relevant fashion. Furthest down the Insmed pipeline is rhIGF-I/rhIGFBP-3 an FDA approved orphan drug being tested for the treatment of growth hormone insensitivity syndrome and type 1 and type 2 diabetes (Morningstar).

INSM has had a string of unprofitable years for the past ten years but looks to break this streak this year as the company has TTM net income of $112.1 million due to improved efficiencies by lowering costs.

Future Outlook
The company reported earnings in November with a decline in revenue year over year but an increase in earnings due to cost cutting measures in their R&D segment. This could potentially signal the company is scaling back their efforts for future growth. INSM may believe the products they have currently will suffice their future goals for growth, or it could signal they are running out of opportunities to pursue. INSM stated that are continuing a strategic review of alternatives with their financial advisor RBC Capital Markets and have reviewed many high-quality opportunities.

Iteris Inc. (ITI)
Current price: $1.44
52 week range: $0.95 – 1.75

Iteris, formerly known as Iteris Holdings, is a leading provider of outdoor machine vision systems and sensors that optimize the flow of traffic and enhance driver safety. The company provides video sensor systems, transportation management, and traveler information systems and other engineering and consulting services to the intelligent transportation systems industry (Morningstar).

After revenue decline from 2000 to 2004 Iteris has had positive revenue growth from 2004 on. The company has been profitable for its bottom line since 2006. I really like what Iteris does as a company and I could see their products becoming more popular. It would be nice to know if they will benefit at all from the infrastructure spending, I believe they will. I will keep a close eye on this stock and keep everyone updated.

Neurobiological Technologies NTII
Current price: $0.11
52 week range: $0.05-1.05

This company is the perfect example of the many risks involved with investing in a penny stock. At first glance it appears to be a very speculative investment but at the same time one that could be very profitable. But after looking into the company I noticed they are in the process of total liquidation and dissolution due to the failed approval of one of their more promising drug tests. If penny stock companies are gambling on one or two unproven products, it is a very risky investment that should be taken with extreme caution. If the investment is made, only a small portion of your portfolio should include the investment. (Always seek professional advice from someone who is licensed to sell securities.)

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  1. I follow some penny stocks I would like your comment on: AGEN, CVM, RSSYF, NPHC, CERP. Thanks.

  2. I looked into all these stocks financial statements and pretty much all of them are bleeding cash. CERP was one of the few stocks that was making more revenue than cost of goods sold. This puts me in a difficult position because I would then need to study the business models of each to determine which company would have the most likely chance to succeed.

    I am not a health care expert by any means so it would be hard to conclude which investment would be speculation and which would have a chance of succeeding. If you want to go penny stocks I would suggest picking a company that is profitable unless you are very familiar with their sector and have a good idea where they are going.

    Thanks for the suggestions if you find any more penny stocks and I am comfortable with them I will gladly write a blog about them.

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