Normally I do not like to follow penny stocks (stocks under $5). They are hard to get financial information on and aren't followed by the brokerage firms. There are bottom feeding vultures that like to short penny stocks then bombard the Internet with negative info so the stock tanks then they close their positions before the issue recovers.Sirius XM Radio (SIRI) is an exception. It came up on my Barchartscreener when I was looking for stocks trading over 100K shares and hitting frequent new highs. The momentum and sales and earnings projection are worth watching.
- 96% Barchart technical buy signal
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 15 new highs and up 25.57% in the last month
- Relative Strength Index is 72.39% and climbing
- Trades around 2.21 with a 50 day moving average of 1.84
- Although this is a penny stock (under $5) it is followed by 10 Wall Street brokerages
- Brokerage analysts have released 4 strong buy, 4 buy and 4 hold recommendations for aggressive investors
- Sales are expected to increase by 8.10% this year and 10.60% next year
- Earnings projections are very aggressive with estimates of an increase of 200.00% this year, 66.70% next year and over 30.00% annually for the next 5 years.
- Many of these projection are tied to the increase in new car sales that have this radio as a standard offering
- One of the most widely followed penny stocks on Motley Fool with 5,856 readers giving an opinion
- CAPS members vote 4,161 to 960 that the stock will beat the market
- The more experienced All Stars vote 533 to 202 for the same result
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.