Penny Stocks To Buy In Commodities

About This Presentation
Title:

Penny Stocks To Buy In Commodities

Description:

Commodities have been hit really hard this year, but some commodities penny stocks are worth looking at. – PowerPoint PPT presentation

Number of Views:2

less

Transcript and Presenter's Notes

Title: Penny Stocks To Buy In Commodities


1
Penny Stock Research
Penny Stocks To Buy In Commodities
2
  • Welcome to Penny Stock Research. Every day we
    bring you the unbiased truth about Penny Stocks.
    For more information on penny stocks please visit
    our website
  • PennyStockResearch.com

3
  • Get Your Free Report On Penny Stocks!
  • Well tell you about this
  • Special Offer
  • at the end of the video!

4
  • Hi, My name is Aaron and Im with Penny Stock
    Research, today were reviewing our recently
    published article

5
  • Penny Stocks To Buy In Commodities

6
  • Investors are finally starting to realize just
    how bad commodities have been for the past year
    or so. Certainly anyone investing in commodities
    has been aware of this

7
  • but now mainstream investors are getting clued in
    to just how bad its been. And its not just oil,
    just about every commodity has taken a beating
    recently.

8
  • For instance, iPath Bloomberg Commodity ETF (DJP)
    is down 18 year-to-date and 29 from this time a
    year ago. DJP is an equally weighted commodity
    index ETF, so its a pretty

9
  • good indicator of whats been going on overall.
    Heres the chart

10
(No Transcript)
11
  • Its obvious from the chart just how bad its
    been over the last year. But, just to give you a
    few more data points, check these out Crude oil
    is down 54 over the last year. Heating oil is
    down 45. Coffee is down 41.

12
  • Natural gas is down 36. Sugar is down 29.
    Copper is down 26. Even gold, the popular
    safe-haven investment, is down 7 over the past
    year. So you can see, commodities have basically
    taken a bath across the board.

13
  • Does this mean you should avoid commodity penny
    stocks as well?
  • Not necessarily.

14
  • So what are the right commodity penny stocks to
    buy?

15
  • Commodity companies are well represented in the
    ranks of penny stocks, so there are plenty to
    choose from. However, I think the key is to
    avoid highly speculative companies, particular
    those related to gold and oil.

16
  • Heres the deal You see, one of the main reasons
    for the fall in commodities is oversupply. Its
    particularly true of oil due to all the
    fracking-generated supply. The worlds oil
    storage tanks are basically overflowing.

17
  • As such, its going to be very difficult to
    justify spending money on a speculative oil
    investment when so few operations are profitable
    as it is. This glut could take years to sort out.

18
  • Regarding gold, with global central banks no
    longer stocking up on the precious metal, demand
    is nowhere what it used to be. Here again is a
    situation that likely wont change anytime in the
    near future.

19
  • So then, which penny stocks to buy?

20
  • Commodities cant stay in the dumps forever,
    despite the oversupply situation. But, as I
    explained above, some commodities are likely
    going to have a longer road to climb. Those are
    the ones to avoid.

21
  • In the meantime, theres always going to be
    demand for things like corn and cocoa. Plus,
    these commodities can actually see immediate
    supply hits due to inclement weather.

22
  • As such, Id be looking at commodity companies
    related to agricultural and soft products as much
    as possible.
  • There are typically a fair amount of
    agricultural-related penny stocks out there.

23
  • There may be equipment or chemicals businesses in
    the ag industry, to name a few possibilities.
    These are the better long-term commodity bets.

24
  • If youre interested in mining companies, Id
    stick to base metals companies rather than
    precious metal ones. Theres a built-in demand
    for base metals, such as copper, which provide
    enough intrinsic

25
  • value to metals to make downturns less likely to
    be as severe. The key here is to avoid the most
    speculative companies. Try to stick with
    established companies which are only down to

26
  • penny stock levels due to the commodity selloff
    and not due to the company itself. Keep in mind,
    no asset class is going to be down forever.

27
  • Eventually, commodities will rebound. And,
    youll be in good shape if you own the best in
    class commodity penny stocks.

28
  • Want More from Penny Stock Research?
  • Follow us on Social Media

29
  • Want more FREE information on Penny Stocks?
  • PennyStockResearch.com

Get Your FREE Report Now
30
READ THIS FREE REPORT!
Penny Stocks Exposed
Three Huge Mistakes That Can Cost You All Your
Money!
Click Here
Write a Comment
User Comments (0)