Title: Penny Stocks To Buy In Commodities
1Penny Stock Research
Penny Stocks To Buy In Commodities
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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.
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