Two Timely Actionable Stock Picks - Sept. 15, 2011
I have chosen two stocks based on current socioeconomic trends and their potential to give certain businesses growth potential in the near future. The first, Lynas Corporation Ltd., a mining stock, is a play on the international rare earths market. The second, Phototron Holdings Inc., is a play on the rapidly expanding hydroponics industry based on the current trend of the legalization of medical marijuana.
Lynas Corporation Ltd.
Lynas Corporation Ltd is an established and well-managed company that has an existing mining operation in Australia. They are currently broadening their horizons by opening a new mine in Malaysia. China produces almost 95% of the worlds rare earth materials and has used that fact to its political advantage by restricting availability of exports and controlling prices. A company that can supply rare earth minerals when China chooses to impose restrictions stands to profit enormously.
Lynas is poised to become a major player in the world market when their mine operations in Malaysia begin production this year. Currently there are stories in the press regarding protests by the local population who are worried about pollution, specifically thorium and uranium, which may be released into the environment, food supply, and water table. This bad news in the media has caused the price of the stock to drop considerably to its current low levels. Continuing news of protests should drive the stock price even lower creating a great buying opportunity.
In April of 2011 the stock price for lynas Corporation Ltd. was as high as 2.56 AUD per share. The strategy here is to continue to watch the price fall as protests against the refinery mount. When the news is at it’s worst and the talking heads on tv state that the protests may shut the mine down, the price of the stock will be at its lowest. The trend were following is that large powerful transnational corporations routinely extract the mineral wealth of a smaller countries despite the local population’s resistance.
Corporations like Lynas Corporation Ltd. succeed by routinely co-opting the protesters with money, jobs, or violence.
Based on this information, our strategy is to monitor the news and buy when things seem worst for the company. When things look bleakest for the company the price should fall to below 1 AUD. This is our target buying price. The strategy is to hold the stock until after the mine begins production. When China inevitably uses its power to control this market the stock price will shoot up. The target sale price will be >$5 AUD. Based on past trends and current news analysis you should be able to buy within the month and sell within the year.
Phototron Holdings Inc.
Phototron Holdings Inc. is a play on the rapidly growing hydroponics industry due to the expanding number of states legalizing medical marijuana.
Phototron Holdings Inc. is one of the oldest companies in the hydroponics industry. They have a solid product line which limits the downside risk because there is a steady demand for the core product line. Their core product line includes a small and complete hydroponic unit that anyone can use with ease. Phototron Holdings Inc. is rather innovative and expanding their product line through utilizing state of the art LED technology. The reason this is an attractive stock to play in the short term is because it’s a penny stock with a currently low valuation. A small move in the price reflects into a large percentage gain.
The current stock price is 0.13 USD and has had a 52 week high of 1.10 USD. On August 3, 2011 it was announced that Phototron had hired Trilogy Capital Partners to lead its financial communications and investor relations initiatives. Weeks later, a Business Week article dated Sept 7, 2011 announced that Phototron has experienced a 78% monthly sales increase under their new business model. Also, a Business Week article dated Aug. 31, 2011 announced that Phototron is now providing a consumer finance program for the Phototron Indoor Grow System. Considering these announcements and the news regarding the growing popularity and legalization of medical marijuana, this is an exemplary opportunity for huge profits.
The strategy is to buy now at the current low price and hold as the legalization of medical marijuana rockets the value of the stock, then sell on future good news of the company.
Lynas Corporation Ltd.
Lynas Corporation Ltd is an established and well-managed company that has an existing mining operation in Australia. They are currently broadening their horizons by opening a new mine in Malaysia. China produces almost 95% of the worlds rare earth materials and has used that fact to its political advantage by restricting availability of exports and controlling prices. A company that can supply rare earth minerals when China chooses to impose restrictions stands to profit enormously.
Lynas is poised to become a major player in the world market when their mine operations in Malaysia begin production this year. Currently there are stories in the press regarding protests by the local population who are worried about pollution, specifically thorium and uranium, which may be released into the environment, food supply, and water table. This bad news in the media has caused the price of the stock to drop considerably to its current low levels. Continuing news of protests should drive the stock price even lower creating a great buying opportunity.
In April of 2011 the stock price for lynas Corporation Ltd. was as high as 2.56 AUD per share. The strategy here is to continue to watch the price fall as protests against the refinery mount. When the news is at it’s worst and the talking heads on tv state that the protests may shut the mine down, the price of the stock will be at its lowest. The trend were following is that large powerful transnational corporations routinely extract the mineral wealth of a smaller countries despite the local population’s resistance.
Corporations like Lynas Corporation Ltd. succeed by routinely co-opting the protesters with money, jobs, or violence.
Based on this information, our strategy is to monitor the news and buy when things seem worst for the company. When things look bleakest for the company the price should fall to below 1 AUD. This is our target buying price. The strategy is to hold the stock until after the mine begins production. When China inevitably uses its power to control this market the stock price will shoot up. The target sale price will be >$5 AUD. Based on past trends and current news analysis you should be able to buy within the month and sell within the year.
Phototron Holdings Inc.
Phototron Holdings Inc. is a play on the rapidly growing hydroponics industry due to the expanding number of states legalizing medical marijuana.
Phototron Holdings Inc. is one of the oldest companies in the hydroponics industry. They have a solid product line which limits the downside risk because there is a steady demand for the core product line. Their core product line includes a small and complete hydroponic unit that anyone can use with ease. Phototron Holdings Inc. is rather innovative and expanding their product line through utilizing state of the art LED technology. The reason this is an attractive stock to play in the short term is because it’s a penny stock with a currently low valuation. A small move in the price reflects into a large percentage gain.
The current stock price is 0.13 USD and has had a 52 week high of 1.10 USD. On August 3, 2011 it was announced that Phototron had hired Trilogy Capital Partners to lead its financial communications and investor relations initiatives. Weeks later, a Business Week article dated Sept 7, 2011 announced that Phototron has experienced a 78% monthly sales increase under their new business model. Also, a Business Week article dated Aug. 31, 2011 announced that Phototron is now providing a consumer finance program for the Phototron Indoor Grow System. Considering these announcements and the news regarding the growing popularity and legalization of medical marijuana, this is an exemplary opportunity for huge profits.
The strategy is to buy now at the current low price and hold as the legalization of medical marijuana rockets the value of the stock, then sell on future good news of the company.