Buy Penny Stocks

Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust

2009-08-18T03:49:00.004-04:00

In a few days, Trust Agents by Chris Brogan will (finally) be out. This is a long-awaited and pushed back book on using social media to enhance the image of your company. Brogan is somewhat of an expert in this new field. I'm sure he is game for using Twitter, MySpace, Facebook, Reddit, etc. to create a buzz around a new product or company.

In fact, it comes out August 24th. Brogan has been trying to pump up some businesses to buy 200 plus copies of the book in exchange for an exclusive visit by him in person. I do not know if anyone has bit on that offer. Why is he doing this? I'm not sure. My best guess is to create a further buzz, or to ride it up the Amazon bestseller lists, or something of the sort. So far it appears to be working as Trust Agents is already a very popular book despite not having been released yet. (Disregard this if it is Aug 24 or beyond already.)

As we move into the 21st century, and even beyond the "old" Web 2.0 notion, it will become more and more important for businesses of all sizes to exercise as much control over their online reputations as possible. That is the whole point of Trust Agents, and it teaches how to do this effectively through the use of case studies among other teaching methods.

Order it here:

The full name of the book is "Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust".

Solar Penny Stocks

2009-04-25T10:02:00.008-04:00

Let me take you through a thought-experiment as we try to determine the over-all viability of solar penny stocks as an investment vehicle:

Imagine an alien civilization, living on a planet far, far away from Earth. They are a peaceful but very advanced species, living under a foreign sun. How are their homes powered? What is the main source of their power? It’s the sun! Another sun. Or it’s the waves of their oceans, or their wind. But one thing is for sure: as a civilization evolves, it will learn to harness its solar energy: a source of power that won’t run out as long as the planet is habitable at all.

It’s with this in mind, that I feel comfortable buying solar penny stocks, knowing that as money and innovation are invested into the solar energy sector, it will become more and more a supplier of our power.

So, with further ado, here are my takes on a few solar penny stocks:

Evergreen Solar Inc. (ESLR)

This solar penny stock is off 82% from its June ’08 high. So is it a cheap buy, a profit maker? No, I don’t think so. Avoid this penny stock because things don’t look good: Evergreen Solar recently approved another $100 million of shareholder dilution, indicating basically that they are in trouble.

Verdict: Stay away from Evergreen Solar; it’s far from the best.

LDK Solar Co., Ltd. (LDK)

The LDK Solar Company’s stock is down 85% since late August of last year. Another thing to keep in mind is that this is a Chinese solar company. LDK is estimated to have 250% annual compound growth through 2011, and the solar penny stock is trading at less than six times its trailing twelve months earnings.

Verdict: Buy LDK Solar Co.

Canadian Solar Inc. (CSIQ)

I am proud to be featuring our first Canadian penny stock here on this blog. Everyone knows Canada is about as smart as it gets when it comes to the new energy field. I watched Obama meet with the Canadian Prime Minister on the news earlier this year, and I was very impressed with both the realism and the knowledge about green energy projected by the PM.

Oh woops, it looks like this is actually a Chinese company. Hmm… Those Chinese sure are cunning. I wonder if McDonald’s could increase its revenue in China if it renamed itself McChina’s? What about Kentucky Fried China? Or Kentucky Fried Cat?..

Anyway, our last solar penny stock is down almost 90% since June 2008. Let’s try to see what the future holds, and if this stock is a bargain at these levels.

CSIQ is more of your typical penny stock if you want to trade it. It seems to be more subject to strange penny aspects like volatile “day-trading”. Furthermore, Canadian Solar hasn’t made an annual profit since 2005, when it made $3.8 million. I don’t know about you but I’m not about to pay a market cap of $206 million for this solar penny stock, no matter how much I believe in the overall prospects for its industry.

Verdict: Do not buy LDK Solar.

Let’s go make some money on Obama’s clean energy obsession, just like we made money investing in penny stem cell stock after the President lifted the ban, and as always we will continue to probe into the arena of solar penny stocks looking to make you a buck or a few.

Stem Cell Penny Stocks

2009-04-06T16:00:00.006-04:00

2009 could be the year to buy stem cell penny stocks. Many of these research companies have been beaten down more than the stock market as a whole, even in this dreadful recession. But as everyone knows, one of the first things President Obama did after his inauguration was to lift the ban on stem cell research.

Will this move lead investors to buy stem cell penny stocks? It’s too early to tell. And the stock market is often not as predictable as, say:

Lifted ban = Stock goes up

Nevertheless, we’ll take a look at two of the most popular stem cell penny stocks in which you could invest in 2009.

Stem cell stock to buy #1: StemCells, Inc. (NASDAQ:STEM)

Market cap (as of 4/6/09): $161 million

On March 26, 2009, StemCells entered into an agreement to purchase a building in Sunnyvale, California, for $5.65 million, leading some investors to speculate that STEM views its prospects as rosy, and is ready to expand its business in a major way.

I stated in my last, more general, post on stem cell penny stocks that some potential long-term winners would be the companies who pushed their research to the max during the eight years that President Bush had outlawed stem cell research. STEM is one of these companies. It was able to use money from California’s Proposition 71 to do research over the past several years. Prop 71 established California’s Constitutional right to conduct stem cell research, and funnels $3 billion over ten years into stem cell research, especially of the human embryonic type. It was passed into law by voters in November of 2004.

STEM is currently trading at $1.69, almost half its 52 week high of $3.07.

Stem cell stock to buy #2: Geron Corporation (NASDAQ:GERN)

Market cap (as of 4/6/09): $438 million

Another thing I mentioned in my last post to look for in penny stem cell stocks was this: Is the company focusing its research on cancer treatments and cures? Cancer and heart disease are so insidious in the wealthy nations who could be customers of companies like StemCells, Inc. and Geron Corporation. And as investors, we need to buy stock in companies which can set their prices high and successfully sell at these high prices. In other words, we need buyers with money who in turn need us.

Here are some snippets of information from Geron’s product page: “[We are] developing first-in-class biopharmaceuticals for the treatment of cancer… heart failure and diabetes… We are also the world leader in the development of human embryonic stem cell-based therapeutics.”

Geron has also recently obtained the FDA’s first-ever approval for a human clinical trial of a human embryonic stem cell therapy.

GERN is currently trading at $4.95, right between its one-year range of $1.95 to $8.50.

If this is information that people truly want, I will continue to bring forth my research on investment opportunities in stem cell penny stocks. Until then… Happy buying!

Online Stock Trading

2009-04-05T00:28:00.003-04:00

This is a short post to give a shout to Online Stock Trading over across the Big Pond in the U.K. The site is a vast, vast resource of British and U.S. focused stock info. I don't know if there is much about buying penny stocks there, but there is more than enough posts to form a dozen mutual funds off the plethora of stock ideas.

I have just started to plumb the depths of Online Stock Trading. My favorite post features a Daniel Hannan video from a couple weeks ago where he famously went off on the Prime Minister Gordon Brown for his liberal spending (much as we've been seeing the Republicans do to the Democrats over here since Obama rolled out his frightening budget). Online Stock Trading's Hannan post is entitled "The Brown Stuff - a Video". Hilarious and awesome. Enjoy.

Here is the video, minus Online Stock Trading's hilarious commentary.

Policies

2009-04-02T16:43:00.002-04:00

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Mad Money Recap: Halftime Wednesday, March 25, 2009

2009-03-25T18:02:00.010-04:00

Part I: Don't Sell Dimaggio Short on Game 57 (Buy, Buy, Buy)

As is often the case, Jim Cramer's starting today's Mad Money off with a bit o' education. He notes how the market top on August 11, 2008, was followed to the day by the collapse of Lehman Brothers on September 11, 2008.

Then Cramer went on to analogize the Dow's performace since its bottom earlier this month (it is waaay up, as you probably know) to an All-Star Team or Joe Dimaggio. He is making a not-so-solid analogy to Dimaggio's 56 game hit-streak, saying, "Tomorrow is Day 57 and I want you to buy stocks."

Dimaggio went hitless during Game 57 -- hopefully the stock market will keep knockin' 'em out of the park. And that is Cramer's basic point, consistency aside, he believes this market rally is going to keep on keepin' on.

Cramer went on to say he recently bought some General Mills because "it just got too low.. But they better not have another disappointing quarter!"

A caller who works at a General Motors (GM) plant asked Cramer if he thought Obama's Cap and Trade program would hurt his job. Cramer basically said he thinks Obama's going to give that idea up quick in order to get his budget passed so.. don't worry about it.

Finally, Mad Money pointed us to Panera (I think at the request of a caller) and Jim definitely affirmed that he thinks "Panera has the best balance sheet in the business." He also noted that he had correctly called the previous bottom in restaurants.

Part II: Cramer Touts Chevron (CVX)

After the first Mad Money commercial break Cramer came back for a little more Stock Market 101 and started touting his perennial favorite: oil stocks. He quickly honed in on his current favorite: Chevron (CVX). He went on to say that Chevron has the best fundamentals of all the oil stocks. (He owns it for Action Alerts Plus). Oil stocks are trading at a big discount considering we are back up at $50 oil now. And as we all know, Cramer has in this recession become a big fan of dividends, so he noted a couple times that this stock (CVX) has a long tradition of boosting its dividends.

Then Cramer used his Mad Money pulpit to go off about all the media pundits (and mutual fund managers) who tell you "you're too dumb to manage your own money." He thinks you can manage your own money successfully, if you have "the time and inclination" to do so.

A caller called in and asked Jim about whether it is good to buy preferred stock. Jim replied that while this may be a good tax play for some individuals, and conservative investors tend to like preferred stock, for "you and me, who want to make some money, the common stock is better."

Finally the last thing that happened before the Mad Money half-time commercial break was that another caller called in and asked Cramer what he thought of International Bancshares (IBOC), which has apparently had its stock price lowered by temporary short-sellers, according to someone at the bank. Is this is a good value play? Jim wouldn't answer, saying he used to know about IBOC but he just doesn't know about them in this new recessionary/financial environment. He "will opine later".

That's it for the Mad Money Halftime recap for Wednesday, March 25, 2009.

Start Investing, Man (just like Warren Buffett)

2009-03-24T21:49:00.008-04:00

This post is an effort to boil investing down to its essence in an effort to get the new investor to start investing, with The Great Warren Buffet as our model. If you are a "green" investor you are in the right place. Investing may appear complex, and it certainly can be on its outer-ring of absurdity as has been evidenced recently by the AIG / investment bank / sub-prime mortgage blow-up, but for you and me we need never delve into that degree of complexity.

When I say investing, I mean investing in the stock market. When you buy stock you are buying into the greatest-appreciating asset in the history of man. And it builds like a snowball, which is why Buffett, the world's richest man, can say that he's never done anything but buy into other people's talents and skills through the stock market.

This snowball effect of investing relates to what a stock actually is; it is partial ownership in a corporation. But unlike bonds, which pay out coupons periodically to their owner, the owner of a stock benefits from the company he owns taking its earnings and plowing them back into his company in order to spur greater earnings, instead of paying all that money back out to him. Be the owner, not the worker: start investing.

Now, let me tell you, I have learned from the best of them: The Great Warren Buffett. I have studied much of his words and others' words on him. I have read multiple books by and about him:

Lessons for Corporate America
The Warren Buffett Way
The Warren Buffett Portfolio
Buffettology
The Intelligent Investor (the book Warren recommends above all others, and the one he credits for much of his success)
Buffett: The Making of an American Capitalist (a stellar biography)

I recommend all of these books heartily, just be sure to bring a little brain-power (not a ton) and a passion to make big, solid money over the long-term. One of the amazing things about Warren Buffett is that he has always been quite frank about how he does what he does. He is not hiding his investing secrets from us. They are laid out year after year in Berkshire Hathaway's annual reports, freely available online. Or you can just go to Youtube and watch any of countless interviews of Buffett archived there. I'd also recommend keeping up with all of his appearances on CNBC if possible, because then you get to see exactly what Buffett's opinion is on the current investing climate. He is very insightful but speaks very understandably. He is sort of the antithesis of a credit default swap in all its un-understandable complexity.

So, this is my quick, garbled plea to the soon-to-be investor: Read Buffett, study Buffett, understand Buffett, then start investing.

Stem Cell Stocks for a Penny

2009-03-24T19:23:00.003-04:00

Since President Obama lifted the ban on stem cells, I have been researching stem cell stocks to buy.

There are many free reports out there (on the Internet) which are chock-full of good ideas about which research company stocks are in the best position to benefit from the change in American policy. I have read several, and one in particular, which I got through signing up for a free report, which are the basis for what I have learned about investing in stem cell stocks.

Remember people: medicine is big business.

Many stem cell stocks can be bought for pennies on the dollar now, because of current stock market conditions and also, I believe, the political nature of the topic. Whenever politics gets involved in the free market it tends to induce in the investing public a dis-ease with trying to make money off in an industry which could be wiped off the map the next time a Christian moralist is elected President of the U.S.A.

Basically, if you’re going to buy stem cell stocks I would suggest thinking first about what are the major ailments in industrialized/wealthy societies? Heart disease and cancer come to mind. Then, read some online reports and look for cheap stocks that do research in that area: cardiovascular disease and all widespread forms of cancer. These companies should have the biggest potential for an upside.

Now, I am not a doctor of course, so a lot of the medical jargon I read in these reports simply makes no sense to me. What I look for when I am looking at any stock, including stem cell stocks, is:

1. Is this company unique? Can it outperform and outlast competitors? Is it selling something that people will continue to want or need for at least the next five years?

2. Is the stock cheap? Once you find a stem cell researcher / developer who you really believe in, then you must ask if it is selling at a good price. Luckily, now in early 2009, a lot of these stocks are quite cheap.

3. While stem cell research was banned by the Bush White House, was this company doing everything it could legally do to prepare itself to be able to cure diseases and make money as soon as the ban was lifted? Beware of newly-formed stem cell companies, and focus like Warren Buffett does on old companies who have established themselves and shown that they are not just in this industry to make a quick buck and then abandon ship without regard to the long-term prospects of their investors’ stock.

Especially when looking to invest in stem cell penny stocks, I very much encourage you to read every report you can find on the Internet about this fast-growing industry.

Media Influence on Recession

2009-03-21T18:45:00.004-04:00

To my surprise, my previous article about the media's influence on the recession has gotten a fair amount of search traffic. My site is supposed to be about buying penny stocks, but recently I have been writing more about media events and their relation to the economy. Anyway, I thought I'd expand on my previous writing.

While searching Google for "media influence recession" I found this post on a football-related forum. Here are some snippets from the guy's post:

"I was in Cleveland this past weekend with my daughter at one of her volleyball events.

"In the lobby of the hotel there were parents from all over the mid-west having some drinks in the lobby. One guy from Ohio said that all the recession talk [is] hurting his business (he is in the RV business) all the talk on the news about things slowing down kills his business.

"Then when I got home and talked to a few people today they said the same thing. When they hear all the doom and gloom on TV..they tighten up the purse a bit."

The important part of this guy's testimony is the end, when several different people tell him that the media's reporting on things is the initiator of their "purse-tightening". Obviously, the reality of their day-today lives (their jobs, their local economy) had not given them cues to spend less. The sufficient cues came only through the media's near-constant barrage of scare stories narrowly focusing on and multiplying the U.S. collective consciousness of the recession and its over-arching importance.

Also, notice how the RV salesman from Ohio pins the blame on "all the recession talk". I think he is correct.

Everyday, I turn on the cable news and I reflect on the influence of the media not only on the recession, but on Congress and its lawmaking, what the President can and can't do, and even the media's influence on the electing of the President. In fact, can you even imagine a President Obama decoupled from this recession? The two things rose together. Before that, there was only Obama the Guy Who Had Taken an Anti-war Position Fairly Early On and Was Beating Hillary Clinton Based On This. And just to indulge this subtracting things from Obama a little more, what is he minus the recession and minus the anti-war and Primary wins? A smooth black guy, well-educated, speaks powerfully if generally, looks healthy, seems friendly. God, I have gone off again!

In conclusion, the media influence on the recession is the unreported culprit, and even the President himself can't call them out because they have the real power and humans love to watch public stonings.

2 Penny Stocks to Buy

2009-03-15T23:33:00.005-04:00

In the bowels of this recession, there are penny stocks to buy for your portfolio. Below are 2 ideas with a little commentary pertaining to what I believe is some worthwhile information regarding these penny stocks.

Remember: you must always do your own research or consult a professional before buying stock, and especially before you buy penny stocks. Anyway, without further ado:

1. Daily Journal Corporation (NASDAQ: DJCO)

I stumbled upon this penny stock to buy somewhat serendipitously. I think I had done a value screen for micro-cap issues on Google Finance’s Screener, and while looking at DJCO, I noticed a familiar name listed as the Chairman of the Board: good ol’ Charlie Munger of Berkshire Hathaway fame, Warren Buffett’s partner.

Daily Journal is a legal journal/newspaper in California. If you think newspapers are losing their ability to be profitable, then why did DJCO have by far it’s most profitable year last year ended September 2008?

This is a true penny stock in its illiquid behavior. Just take a look at the chart:

Note that DJCO has held off the recession to some degree, down only 23% over the past year.

I view this company as less risky than the following one, but I suppose it is always risky to buy penny stocks. You know Munger would not be Chairman of a shoddy company. His very presence makes it a better stock to buy.

2. Rick’s Cabaret (NASDAQ: RICK)

If I could only buy one penny stock RICK would be it. When I first spotted this stock it was selling around $4.50 and maybe 5 times earnings. It is now at $2.92, 3.8 times its earnings.

Rick’s is a penny company, market cap of $27 million, which owns and operates strip clubs through the U.S. It has recently shown itself to not be as immune to the recession as some people think “vice” stocks are, but still this is a penny stock to buy before the economy turns up in my humble opinion.

Rick’s is probably the riskier of the two penny stocks to buy here; with also more upside potential. It was trading around $35 not so long ago and has aggressively acquired clubs in its investment for the future.

I have written more extensively on RICK.

Before you go buy penny stocks remember...

Always, be careful when dealing with any stock, including these two. These appear to be good prospects but there are better penny stocks to buy I’m sure, and if you know of them let me know and I will write them up in the future if I like their prospects.

Buy Stocks: An In Depth Site

2009-03-15T07:06:00.000-04:00

For those of you looking for a more educational and less op-ed take on the stock market, I'd suggest you mosey on over to Buy Stocks which covers all aspects of buying stocks -- including but not limited to how to buy stocks online, buy penny stocks, and much more informational depth. You can find out about the OTCBB, discount brokers, learn how to buy stocks if you don't know. It looks to become a serious site covering anything anyone would want to know about the financial markets. Enjoy.

Jon Stewart vs. Jim Cramer: Shame on the Daily Show

2009-03-14T02:51:00.000-04:00

Just wanted to drop a quick note here about the recent Cramer vs. Stewart controversy. I have not seen the whole interview from Thursday's Daily Show...

But from what I've seen I've quickly become turned off to Jon Stewart who I had liked for a long time. He just looked like a stern, superior parent, sort of like Congress has been looking lately.

And I realized a couple things:

John Stewart was projecting the entire source/cause of the whole financial crisis onto Jim Cramer. He said such nonsense like, "You and your cronies at CNBC knew what these banks were doing and you pumped all the rest of us up despite that -- to buy, buy, buy." Yes, Jon, CNBC is part of a conspiracy to use their secret knowledge to demolish the wealth of "average Americans" and to smash the price of their own parent company, General Electric, as well as its long-heralded AAA credit rating.
Jon Stewart is not a regular viewer of Jim Cramer's "Mad Money". I have been a pretty regular viewer over the last year, and as a regular viewer I understand: (a) That Cramer does not possess psychic God-like powers to foresee the market's future moves (I think there's even a disclaimer at the beginning of every episode of "Mad Money" stating something similar), and any investor proceeds ultimately on his own responsibility, something Lefties don't think the dumb, poor masses they claim to respect can handle, and (b) Jim Cramer is a genuinely good-hearted person who is actually believe-it-or-not trying to do the best he can to teach those who know less and to give them some of his ideas, and finally (c) Cramer more than most any current or former Street "insider" has aligned himself with the working class and has been a huge vocal critic of many people and policies who actually did cause the mortgage meltdown, credit crisis, whatever you want to call it. I think any regular viewer of Mad Money would agree with me on this point.

So I would ask John Stewart, "Are the middle-class you're trying to stand up for really throwing their life's savings whatever which-way Cramer suggests on any given day, and if so does that mean that TV personalities should not be allowed to talk about their stock ideas on air? Is the obvious disclaimer and the even more obviousness of doing your own homework before investing too much for us dumb middle-classes? Must we resort to censorship? If not, then what the hell are you saying?

"Please spare me your high-pompousness talking about things that you don't know about and defaming someone who had the balls to come on your show knowing full well what he was facing -- a true, true rarity in the "drive-by" media now-a-days."

Finally, let us reflect on this:

Has Jon Stewart ever walked willingly into

such a fire as Cramer did Thursday night?

Is the Media Driving the Recession/Depression?

2009-02-11T20:53:00.001-05:00

Over the last couple days, I have been seeing more and more clearly that the media is driving the recession we're in. While I'll admit that there had to be some fundamental major screw-up to begin with in order for the media, mostly TV, to unconsciously start influencing the story, you can go back as far as at least February or March to see how this recession is getting its major source of juice from television.

It is well-known that all Wall Street does anymore is watch CNBC for its coverage of congressional hearings, amazing TV spectacles, where senators and congressmen and even the President, who need the votes of the masses in order to stay employed, grill bank execs and government employees like Geitner and Bernanke who they have appointed, and try to make a sideways TV appeal to their constituents for votes next time around, in their own self-interest, the dark-side of democracy, and these Wall Street investors, the money holders, sell off because these congressional spectacles are lunacy. This is the mechanism by which the media influences the recession, like a vicious cycle that will only be broken in fact when we the people overcome a critical mass and go back to watching American Idol instead of the news.

But on an even more regular basis than the congressional "hearings", populist TV-host idiots are prospering more than at anytime in the memorable past, non-thinkers like Lou Dobbs, Sean Hannity, most anyone else on Fox News (which is the most entertaining news channel now that we're post-election), even most of the people on CNBC have realized that touting the downturn and "making enemies and hanging people" is the way to get viewers (and as a side effect, then influence them, ultimately influencing the recession for the worse, and thus making their viewers' lives worse for watching them -- what a reward -- who really is the bad guys here?).

Negativity is selling and negativity is pumping out 24 hours a day through the most volatile and influential medium/s in our lives. In the media, 98% of stories focus on the 15% of bad stories and make them appear to be 100% of the reality. Bankers, borrowers, law-makers all screwed up big time; but no one has caused more pain and continues to do so more and more than Lou Dobbs, CNBC (ironically enough), Hannity, your local news know-nothings, etc. Do you agree that the media is driving the recession?

Microsoft: Layoffs, Schmayoffs

2009-01-23T07:07:00.000-05:00

This Microsoft story of yesterday is a good example of people over-panicking. It is supposedly "Miscrosoft's first layoffs ever".

Every stock is becoming a penny stock and it's pretty much to the point where you could throw a dart at a dartboard of all the companies there are and just invest half your money into whatever it hits. The market is over-bargained. Anyway, I thought I would post this "serious" AP story on MSFT's layoffs announcement as an example of subtly how fearful the market is.

I am not necessarily advocating buying Microsoft; just pointing out that there exists nothing but fearful stories negatively slanted anymore.

Jeff Immelt Describes the Radical New Future of Socialized Banking

2009-01-22T00:06:00.001-05:00

"The government, not just in the U.S., but around the world, is gonna be a partner with the financial sector. You better get used to it." - Jeff Immelt, CEO, General Electric, the quintessential American company

CAUTION: You will have to watch a 30-second commercial before you get to the clip; that's how Hulu works I guess. But the Immelt interview is a good, long one: 15 minutes 25 seconds.

I caught this on TV a couple mornings ago and was thrilled to be able to find it after much searching on Hulu.com. I was absolutely stunned to hear Jeff Immelt saying that the banks and the governments are now gonna be "partners".

He goes on to make good points about how we can build high-end highly-engineered products here in the U.S. for a good profit; and how we should invest in energy and infrastructure, a common theme lately with deep, deep roots, which has been touched on quite well over at the Stock market for beginners guide. Even in these crazy/socializable times it is important to always apply the basics of investing and stock buying to your analysis.

I highly suggest watching this clip to get a fairly candid look into the CEO of GE's mind.

By the way, just for context, this aired early in the morning of January 19, 2009, the day before Obama's inauguration.

RICK Rick's Cabaret

2009-01-21T02:16:00.000-05:00

If I had $4.00 to spare, I would buy one share of Rick's Cabaret International (NASDAQ:RICK), one of only two conglomerators of strip clubs nationwide. Unfortunately I don't have a spare penny, let alone 400 of them.

I have been watching this company the last 2 months, just salivating; "If I only had some money to invest." Of course, just about every stock looks like a good investment nowadays, except for the banks. (On a side note, I saw the CEO of GE on TV yesterday morning saying plainly that, "All the banks are gonna be nationalized. Get ready, that's how it's gonna be, and that's how it should be now." Paraphrasing a bit.)

Rick's has grown revenues from 14.5M in 2005, to 23.7M, to 30.9M in 2007, to 57.7M in 2008.

Net income at same time: -$0.09/share, $0.40, $0.50, $0.91.

Amazing numbers that may take a bit of a hit from the recession, but should basically keep on growing, in this non-professional's view.

What else do I like about RICK?

Only one other company is in their business: VCGH.

These are technically not true penny stocks but do share many characteristics. If you want to buy penny stocks then we are talking about the OTCBB not the NASDAQ. In my opinion though RICK does act a bit like a penny stock.

There's really no limit to how many clubs they can own. And no one has ever done this before. They could majorly profit from reforming a fragmented industry, like the owner of Blockbuster, what's his name, did most notably with Waste Management and the trash removal industry. In other words, strip clubs have never had serious owners/investors/managers before. Not on this level.

Finally, they are a super high-growth company selling at 4.3 times earnings!

My only real note of caution is if the management is corrupt or irresponsible in some fundamental way. Obviously this is a seedy industry with a long track record of sketchiness.

Rick's is currently valued at $37.4 million. I think that qualifies as a penny stock worth buying.