Tuesday, April 27, 2010

IRSN, BNX, SHZ Three High Risk Penny Stocks

The saying goes higher risk higher return so I am listing three penny stocks I found that are as risky as any I have ever come across. These stocks have fallen on hard times and lost confidence from investors but if their managers can turn their companies around stock returns could be through the roof.

If you would like to find more penny stock articles or websites click on the links provided by Google at the bottom of this report.

Irvine Sensors (IRSN)
Current price: 0.34
52 week range: 0.23 - 0.95

Irvine Sensors Corporation, headquartered in Costa Mesa, California, is a vision systems company enabled by technology for three-dimensional packaging of electronics and manufacturing of electro-optical products. We design, develop, manufacture and sell vision systems, higher-level products incorporating such systems and miniaturized electronic products for defense, security and commercial applications (Irvine Sensors).

Future Outlook
Irvine is a micro cap penny stock with a few products currently in Military field trials. One of these products is their unmanned miniature aircraft called the TOWHAWK. If one of these products is determined field ready it would open up a huge market for Irvine to pursue. The company is at an inflection point crossing into positive territory for earnings. I saw in some news the possibility of a delisting but could not find any information whether or not NASDAQ will give the company more time. Keep in mind this company could be headed for the pink sheets. I have more concerns with this stock than optimism. I highly recommend doing your own due diligence.

Banks.com (BNX)
Current price: 0.57
52 week range:
BANKS.com, Inc. is a leading Financial Services portal containing a unique breadth and depth of products and services. Our mission is to bring our users and subscribers the most relevant financial information on the web. BANKS.com provides access to thousands of pages of current financial content, including: articles, stock quotes, audio, video, blogs and much more (Banks.com).

Through 2006 and most of 2007 BNX was trading well above $2 per share. But with the financial crisis came a huge drop in revenue and earnings leaving BNX at its current price of 0.57. Looking at their balance sheet the company's current ratio is only 0.63 which means they may have trouble covering current liabilities. The year to date return is over 130%. With the volatility in this stock it might be attractive for day traders looking for risky high reward stocks.

China Shen Zhou Mining and Resources Inc. (SHZ)
Current price: 1.05
52 week range:0.42 - 2.43

SHZ is engaged in mining, processing and distributing of fluorite ore, copper, zinc, lead and other mineral products. The Company’s business is conducted through its China-based subsidiaries. It operates mines in the Inner Mongolia Autonomous Region and Xinjiang Uygur Autonomous Region (Reuters).
In 2008 SHZ stock price spiked above 7.31 only to decline sharply to .25 in 2009 due to financial concerns of shareholders. SHZ reported revenue in 2007 of $14.4 million and then $7.1 million in 2008. This stock holds a lot of risk as its current ratio and quick ratio are at alarming levels. The sharp decline in revenue and earnings is attributed to a weak commodities market and SHZ's managers are optimistic for 2010 as they foresee rising commodity prices and upward price pressure. If commodity prices do not correct as soon as anticipated SHZ could have some real problems. If commodity prices reach 2007 levels SHZ could return to strong profitability and from its current price shareholders could see strong returns.

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