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Ongoing Commentary from Peter Leeds

Below are some examples of comments we made for the benefit of Peter Leeds Penny Stock Insider subscribers. Our insights into the penny stock markets are meant to work in compliment with our Hot List penny stock picks. Members were given access to the trading advantages provided below, as well as other daily commentary.

Penny Stock Comments by Peter Leeds

Penny Stock Trading Advantage #2 - The economic slowdown is all but over, paving the way for a broad-based recovery. While we expect nearly all sectors on all markets to benefit from the healing process, we have listed what we feel will be some industries to watch in the coming months, and coming years.

We are currently looking for the best of breed companies in the following industries:

** Biotechnology penny stock - At Peter Leeds, we anticipate that the big winners may be corporations who develop new methods of delivering drugs and medicine, as well as advanced systems of monitoring and diagnosing patients, rather than those that are hoping to come up with a 'miracle cure' for any specific disease.

** Business Services penny stock - Businesses that are using new technological innovations to rapidly serve and grow their corporate client list may out perform many other sectors. We are putting a special emphasis on finding companies that charge recurring fees, and are able to add to their clientele while keeping the ones they have already acquired. The combination of guaranteed revenues and potential revenues provides both penny stock price security and speculative potential.

** Robotics penny stock - At Peter Leeds, we feel many robotics companies will spend millions in the coming years only to bankrupt themselves, but a select few will prevail and can then enjoy an almost limitless, untapped market. Those will be the corporations with a significant competitive advantage (ie- located in China to benefit from currency exchange, patented assembly method, use of lighter less-expensive metals, etc...). While most robotics corporations will have shares trading over our $2.00 coverage range, there will be a birth of robotics industry suppliers, who may rake in the earnings by providing parts, technology, and programs.

Penny Stock Trading Advantage #3 - The media is shifting its 'War on Terrorism' focus towards Iraq. This is often used as a method of softening public opinion to such a military action, and can frequently be followed up by real events. Whether or not the media is acting prophetically in this situation, we feel that it may only be a matter of time until tensions turn into actual aggression against the oil-rich nation.

Any such activity will have the potential to raise uncertainty around oil production, not only from Iraq but from the entire Middle East as well. Add to this the fact that many Mid-East nations will support Iraq politically this time around unlike the previous encounters, and the situation may spread beyond the levels to which it has grown in the past.

The instability in the region, or indeed any tension whatsoever, will have an impact on oil prices. Subsequently, this will impact oil production and exploration corporations, and those involved in the business of providing products and services to the sector.

We also believe that the tensions in Israel and Palestine have boiled over, and will add to the instability in the region.

OPEC has previously set a goal of keeping the price of crude closer to $22 - $28 dollars a barrel, and will enforce their whim through production cut-backs if the above mentioned political uncertainty does not first do the job for them.

In any case, we feel that oil production penny stocks at all levels are representing tremendous value at the current time, and that an increase in oil prices will spark even further upside for the sector.

Penny Stock Advantage #4 - The markets have been able to sustain their recent gains quite well, and although some profit taking has pulled the indexes down in some sessions, there is definitely an upward trend. This shows that not only is the rise sustainable, but that we should expect further upside on a week by week basis.

We expect the economy to be lead into the recovery by consumer products, followed only thereafter by an increase in business to business spending. Improved economic activity will also cause increases in the prices of fuels like gasoline.

An interesting thing about commodities is like they behave inversely to products which benefit from economies of scale. For example, the more people that buy BlackBerry Pagers, the cheaper the device will become per unit. However, the more people that use gas, the more expensive it becomes, due to a limited supply.

Coupled with the tensions in the Middle East, and the stance of OPEC to stand pat at this week's meeting, expect the price of gasoline to rise in the next month. As we have previously mentioned, this will benefit oil exploration and production companies (which already are boasting very attractive valuations), and the corporations that service them.

This week's Hot List penny stock pick has massive upside potential, although its financial position is a little weaker than we usually look for. It is a nice speculative contrast to the fundamentally powerful companies we featured over the past two weeks, and is a good way to balance out a portfolio that needs to ramp up its risk/reward ratio.

The Price of Gas - Last week we predicted that you would be seeing higher prices for gasoline and we could not have been more right. Investors always seem to underestimate OPEC, but they have been clear and true to their word (to control production to keep the price of crude between $22 and $28 per barrel) time and time again. Oil is near a six month high, and has risen sharply from $22 to over $25 in a matter of a few weeks.

While some analysts on the street are claiming that oil stocks are overbought right now, and are priced too expensively based on fundamental valuations, we just want to state for the record that we are in absolute disagreement. We feel that current prices for most oil production and services stocks are low, and we expect further upside from the industry, especially once oil hits $27 per barrel. We are currently watching a few oil production and exploration penny stocks, and may feature them in coming weeks if the situation is right.

Penny Stock Trading Advantage #5 - While the major markets seem to be trading with a little uncertainty this week, we expect the overall economic recovery, combined with the return of the bull market, to give strength and gains back to the street. As stocks trend higher and investors remember what it is like to turn profits, overall bullish momentum will increase. We expect that the current bull run, which in our opinion started at the end of September for the NASDAQ, to last approximately three to five years.

The further into the bull run we advance, the greater the pull towards speculative investments like penny stocks. As traders begin to see profits they are more likely to migrate towards higher risk, higher reward equities. As well, the very nature of many investors is to attempt to outdo previous profits from their last stock, and thus they are more inclined to look for those shares that present more potential.

As has been evidenced several times over in the last fifty years, we expect the general trend towards penny stocks to increase in popularity on a month by month basis, and that those investors who had gotten involved early will benefit from all the fresh money that flows into the industry after them. It is a good idea to be involved now, and to have a long-term outlook (not for specific stocks necessarily, but instead for the entire penny stock equity market), so that you are positioned to take the most advantage from increased interest. While traders can always make or lose money with penny stocks, the odds tip greatly in their favor at certain cycles of the bull market.

Penny Stock Trading Advantage #6 - As we have detailed earlier, and in today's Hot List penny stock pick, we expect crude oil prices to rise towards $28 per barrel. This takes into account four major factors that we expect to drive the price:

** The current uncertainty around the Israel-Palestine situation.

** The growing tensions between the U.S. and Iraq, Iran, and other Middle Eastern oil-producing nations.

** The policy and recent decisions of OPEC, restricting supply within their $22 to $28 window. More important than the actual stance that OPEC takes is the fact that the OPEC nations, along with several key non-OPEC nations such as Mexico and Russia, are sticking to their production policies, and are cooperating more effectively than ever before.

** A recovery of the global economy, giving rise to higher oil usage and demand.

We expect the higher oil costs to lift the exploration and production industry stocks.

In addition, we feel that there may be some consolidation in the oil sector, as it is now more economical and efficient for larger players in the industry to take over smaller producers with proven reserves, rather than to go out and explore for new oil sources themselves.

Almost on que with our predictions, the conflict in the Middle East has boiled over (although it just seems to be getting started). In addition, Iraq and Iran have made a few moves (ie- upping the suicide bomber payments to families of martyrs) that have really increased Mid East tensions. Oil prices have followed suit.

This adds value to our Hot List penny stock pick released yesterday, as the stock is highly leveraged in crude oil production. As long as we will all be paying so much at the pumps, we may as well be profiting from the higher oil prices in our portfolios to help offset the expenses.