Micro Cap Stock Worth a Look
As we all know there is a ton of uncertainty in the global markets right now. While Goldman Sachs recently came out with a neutral outlook on Europe, they cut growth estimates in China. Other firms may follow suit as well. Are these recent estimate downgrades just part of the bottoming process, or is more bad news out there? I think that we will see a lot of uncertainty until mid-term elections when we get some balance back in our government and put an end to what some are calling and “anti-capitalist regime.”
What we do know is that large amounts of speculative money was invested in China and in Chinese stocks. These investors were looking for massive gains too. Recent losses overseas may cause the “hot” money to be a little less aggressive. As we all know it is easier to find hot penny stocks in a bull market. But this recent bottom cause penny stock traders to take a look at Chinese companies like Amico Games (OTCBB: AMCG) or NF Energy Savings (OTCBB:NFEC) which are at or near year lows? Will penny stock value buyers take a look at a domestic micro cap stock? There is a saying “That nobody rings a bell when the market bottoms”. However, history has shown us that it’s usually not wise to be a hero in the stock market. The fact that the market slows in the summer makes finding hot penny stocks even tougher.
While it’s safe to say that rising Asian markets are good for the U.S markets, it doesn’t mean good values don’t still exist. So get a list of your favorite quality penny stocks together that have value and are trading off of their high. I am considering buying a basket of these fallen names to spread risk. Keep in mind the goal is to be right, not to be first.