Today’s top 3 penny stocks
Today's Financial News - Posted October 8, 2009
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We’ve identified three penny stocks that have hundred-dollar bill potential in the long term. But you need to get in on them now to reap the big gains later…
By Laura Cadden, TodaysFinancialNews.com
Baltimore (TFN): First, a warning…
Penny stocks can just draw you in. There so cheap, so unassuming.
Just a small investment can get you so many shares that you feel like investment royalty. Until that is, one tiny little news article sends the share price plummeting.
And that’s the thing about penny stocks, a drop of 10 cents can happen in minutes, equaling perhaps a 30% loss on your investment.
The flip side of that volatility is that you can bank fast 30% gains on just a rumor.
Now, that’s not the way we like to do business here at TFN. We base our investment recommendations on what we believe to be companies with solid potential.
That said, we’re not averse to taking 30% gains whenever the chance arises!
Below are 3 stocks that fit our criteria for excellent long-term investments. We believe each to have the potential to bring investors that get in today gains of 30% or more in the next year.
Top Penny Stock #1: Marshall Edwards, Inc. (NASDAQ:MSHL)
Share price as of 10/07/2009: $0.75
Market Cap as of 10/07/2009: $55.10 million
http://marshalledwardsinc.com
Biotech Marshall Edwards Inc. (MEI) is a fully owned subsidiary of the Australian company Novogen Ltd.
The company was formed to develop cancer therapies based on a new family of chemicals known as multiple signal transduction regulators.
Phenoxodiol
MEI’s top candidate based on this technology is phenoxodiol. It inhibits anti-apoptotic proteins triggering a reaction that causes cancer cell death.
The drug is currently in a multi-national Phase III trial call OVATURE (for ovarian tumor response). They are testing the effectiveness for women suffering from recurrent ovarian cancer taking the drug orally in combination with carboplatin. Preliminary results are expected by mid-2011.
Each year, approximately 140,000 deaths worldwide are attributed to ovarian cancer.
The drug is also in a PhaseI1/IIa trial to see its safety, tolerability and efficacy in combination with docetaxol versus docetaxol alone in patients with recurrent epithelial ovarian, fallopian tube and primary peritoneal cancer.
For the treatment of castrate and non-castrate prostate cancer, the drug is in a Phase II trial.
NV-128
Recently, MEI signed a licensing agreement with Novogen to take charge of oncology compound NV-128.
In pre-clinical studies, NV-128 promoted cell death in cancers that had proven resistant to other drug therapies. It does this by inhibiting the mTOR pathway that appears to transmit the signals that enhance tumor growth.
The 52-week high for MEI’s share price was $3.31.
This stock could prove a big winner in the long-term… and you can’t beat the price.
I recommend you purchase shares of Marshall Edwards, Inc. (NASDAQ:MSHL) under $0.90.
Top Penny Stock #2: Green Technology: ZAP (OTC:ZAAP)
Share price as of 10/07/2009: $0.30
Market Cap as of 10/07/2009: $30.80 million
http://www.zapworld.com/
Green technology company ZAP manufactures electric vehicles. All kinds of electric vehicles: trucks, vans, scooters, ATVs and, of course, cars.
The ZAP website is a fun read (they call their ATV the ZAP Dude). You can apparently even order a vehicle via their shopping cart function. Check it out here: http://www.zapworld.com/
My favorite is their Vespa-modeled electronic scooter called Zapino. (Though I note it costs more than the Italian gas-fueled version.)
And this is no fly-by-night operation. The company’s been around for 15 years. You’ve likely seen pictures of their 3-wheeled cars.
So why am I interested now you may well ask?
Green expectations
The green initiatives pushed by the Obama Administration are creating the perfect opening for ZAP. In fact, the government has announced it intends to spend $300 million specifically on energy-efficient federal vehicles.
The U.S. military placed a trial order for the company’s Zaptruck XL back in June and in September, they reordered more vehicles and 220-volt charging stations.
In August, the FAA issued a contract for seven of their trucks. It’s not a huge amount, but it’s a foot in the door.
ZAP is also hoping to carve out a slice of the $2.4 billion outlay in the stimulus designated for the production of next generation plug-in hybrid electric vehicles and its battery components.
The company is ramping up production with the increased government – and corporate – interest in 100% electric vehicles.
Global ambitions
In September, ZAP announced French technology executive Georges Penalver has been brought in to chair its advisory board. The company formed the board of experts to help its recent expansion into the Asian and European markets.
Another new notable board member is veteran Wall Street financial wiz, William A. Shea, Jr.
That’s some high-powered expertise.
And with its price to sales ratio under 5, ZAP’s stock is fairly valued.
I recommend you pick up shares of ZAP (OTC:ZAAP) at or under $0.50 per share.
Our third pick is slightly higher-priced…
Top Penny Stock #3: Kerex Biopharmaceuticals, Inc. (NASDAQ:KERX)
Share price as of 10/07/2009: $2.19
Market Cap as of 10/07/2009: $104.77 million
http://www.keryx.com
Kerex Biopharmaceuticals develops and markets treatments for renal disease and cancer.
Two of the company’s drugs are about to begin Phase III trials…
Zenerex
Zenerex is an oral treatment that’s iron-based. It operates by binding phosphate and forming non-absorbable complexes.
A Phase III trial is pending for the treatment of hyperphosphatemia. This condition occurs in patients with end-stage renal disease on dialysis and is typically associated with other related conditions as well as the progression of renal failure.
In the U.S. alone, there are about 485, 000 people with end-stage renal disease and the number is expected to climb by 60% in the next 10 years.
Perifosine (KRX-0401)
Perifosine is also an oral treatment. It fights cancer by inhibiting signaling pathways that induce cell growth.
A Phase II trial has begun for Leukemia and Lymphoma and a Phase III trial is in the works under a Special Protocol Assessment from the FDA for the treatment of patients with multiple myeloma.
This company could be gold for investors that get in now.
I recommend you buy shares of Biopharma: Kerex Biopharmaceuticals, Inc. (NASDAQ:KERX) under $2.80.
Next Article: HSC gainer #65: Sell Hecla Mining Co. (HL) for gains of 50-120%
12 Responses to “Today’s top 3 penny stocks”
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October 8th, 2009 at 8:55 am
I have to say MSHL is a great pick, I bought shares in the parent company NVGN and will be holding till the phase III results are released. The Independent review board have already recommended the trial continue AFTER reviewing efficacy data, so we know there is some result! A safe drug and also has SPA from the FDA… watch this space (results released 2010 not 2011) and as early as Dec09/Jan10. Good luck.
October 8th, 2009 at 11:43 am
Thank you all at TFN for the great info. you provide,
especially on the Penny Stocks. Very limited resources
to spend, but have always been optimistic and think
if you don’t try or buy you can’t win.
So, I REALLY APPRECIATE the extra goodies you
throw in “free” in your NewsLetters.
One day I may hit a good-one and then buy the more
expensive reports. In the meantime I am learning quite
a bit and trying to buy a little when I can.
THANKS AGAIN TFN Staff.
October 9th, 2009 at 10:09 am
The Vespino was made by Vespa and has been replaced by the Vespa S which utilizes a similar body styling. It is a gas scooter, not an electric scooter.
ZAP imports a Chinese electric scooter called the “Zapino” which they sell on their website http://www.zapworld.
Unless, ZAP has paid you to promote their company, I strongly suggest you do some thorough DD on this penny stock before recommending it on your site.
A good source of information about the history and background can be found here:
http://www.wired.com/cars/futuretransport/magazine/16-04/ff_zapped
I speak from personal experience as an investor who both bought and sold ZAP for the past 5 years. I have also done extensive DD on this company and I wouldn’t touch it right now even if they put President Obama on the BoD.
Happy Investing!
October 9th, 2009 at 11:34 am
Can someone please explain in a TFNewsletter
what a proxy stock is and how it works.
Thanks again for great Newsletters.
I read:
Small-Cap Investor
The Daily Profit
Todays Financial News
I find them all informative and usefull
as a beginner.
Thanks again TFN Staff
October 12th, 2009 at 6:44 am
Very Nice Roundup Here! Also ZAAP has been on my stock watch list for quite some time and this is great news. We need all the US-manufactured green vehicles we can get. I know they’ve made a lot of municipal deals so I wouldn’t be surprised if I start seeing city vehicles go ZAP very soon, and the sooner the better.
October 12th, 2009 at 9:14 am
Hello Ms. Cachita,
I appreciate your correction… we had mistyped the Zapino as Vespino.
Thank you for the link, though I note that the article is a year old. I’ve based my recommendation on recent developments.
Regarding your comment “Unless ZAP has paid you to promote their company”: We recommend stocks that we feel could bring our readers value as an investment.
At TFN, we never accept payment by any company to promote their stock. Further, we do not personally invest in any stock we recommend, nor personally short any stock we are bearish on.
Hard to get more objective than that. And that is what our reputation is based on.
Of course, we thoroughly expect subscribers — and even members of our paid investment services — to do their own research and if decide the investment is right for them.
Hope that clarifies things for you.
Laura Cadden
TFN
October 12th, 2009 at 9:30 am
Hello LearningLots: Thank you very much for the kind words – we really appreciate them! Regarding the “proxy” stocks, you can read more about them here: http://www.todaysfinancialnews.com/international-investing/3-tiny-stocks-stand-to-inherit-a-330-billion-industry-9709.html
Best,
Laura Cadden
October 20th, 2009 at 12:30 pm
Intrested in buying.
November 1st, 2009 at 3:47 pm
After reviewing many of the advisory services, I am confident that the Hot Stock Confidential is the best one for me. Your stated gains are impressive and the quarterly price is something people like myself that are basically starting on a shoestring(under $500,with only a laptop and internet to my name) can afford.
I hope to be joining the HSC team very soon.
Thank you
Sincerely Marlin
November 5th, 2009 at 6:22 am
explain fair value , please. thanks
November 5th, 2009 at 6:55 am
Hello Gary: In this case, I’m assuming your talking about the statement that Zap seems fairly valued. A company with a low price to sales ratio is generally considered a better investment. Laura Cadden
November 6th, 2009 at 9:38 am
Good tip on ZAAP. I’ve also done my own research and find little reason to be as wary as some of the critics seem to be preaching. I’ve done my own research and can’t but get the impression that some are working in an active effort to lower the stock’s value, and for the life of me I can’t figure out why.