Supercharge Your Portfolio With Penny Stocks

| April 9, 2012 | 0 Comments

When was the last time you made ten times your money on a single stock trade?  Heck, can you remember the last time you quadrupled or even tripled your money on a stock?

Most ordinary investors will have a hard time coming up with an answer to these simple questions.

That’s because most people invest in large cap stocks.  And most stocks of large companies increase in value very slowly over long periods of time.

Sure, you can find a few large cap stocks that have soared over the years.  But for every Apple (AAPL) or Google (GOOG), you’ll find many more large cap stocks that have flat lined or even lost value over the past decade.

Take a look at ten-year charts of Hewlett Packard (HPQ), Proctor & Gamble (PG), AT&T (T), and Pfizer (PFE) if you need examples.

Now, don’t get me wrong…

I’m not saying you shouldn’t own large cap stocks.

On the contrary, I think everyone should have a few large caps stocks in their portfolio.  The good ones offer steady, long-term growth potential. And a number of them pay juicy dividends.

My point is simply this…

By trading a few penny stocks now and then, you can supercharge your portfolio’s returns.

Here’s a perfect example…

Back in November 2010, I recommended tiny Radiant Logistics (RLGT) to subscribers of my penny stock trading service, The Penny Speculator.  At the time, RLGT had a market cap of just under $18 million and was trading for just $0.60 per share.

Radiant was an up and coming provider of transportation and logistics services.  They offer both domestic and international freight forwarding and door-to-door delivery services by air, ocean, and ground.

What I really liked about the company was that it wasn’t tied down by major asset purchases.

They didn’t own huge fleets of aircraft, ships, trucks, or railroad cars. Instead, the company had partnerships with transportation providers located strategically around the globe.  RLGT contracted with these companies to offer their customers favorable rates, guaranteed capacity, and priority handling.

In other words, I believed Radiant’s streamlined business model would allow the company to grow rapidly.

And grow rapidly it did.

Check out the company’s numbers for the past 12 months.  Sales increased by an impressive 38.9% to over $257 million.  And net income soared by a whopping 45.6% to nearly $2.5 million.

Stellar growth any way you slice it!

But the most amazing growth happened in the area most important to investors.  Of course, I’m talking about the share price.

As you can see, RLGT skyrocketed in value right after I recommended it. In fact, the stock surged from 60 cents in late November 2010 to a high of $2.55 per share by mid-July 2011.

That’s a hefty 325% gain in just seven months!

And the best part is, my subscribers booked huge profits along the way.

During the initial surge higher, I recommended selling half the position for a gain of 188%.  This partial sale strategy allowed subscribers to take some quick profits off the table and still participate in any further upside.

And it’s a good thing we held onto some shares…

By doing so, we were able to capture even greater profits on this amazing trade.  How much greater?  At the end of March 2012, I recommended selling the remaining shares for a jaw-dropping gain of 280%.

All in all, my subscribers were able to triple their money on this trade!

No question about it, penny stocks offer the opportunity to rake in huge profits over short periods of time.

Now, the point of this little tale isn’t to brag about my stock picking prowess.  I just wanted to show you how ordinary investors like yourself are profiting by trading penny stocks.

As you can see, there’s no reason why you too can’t supercharge your investment returns with penny stocks.  If you do your homework, you can find the hidden gems capable of producing gains that can change your life.

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Category: Penny Stocks

About the Author ()

Robert Morris is the editor of Penny Stock All-Stars, an investment advisory focused on discovering small-cap and micro-cap stocks that are destined to become the market’s next Blue Chips. The Wall Street veteran and small-cap stock specialist is also a regular contributor to Penny Stock Research. Every week, Robert shares his thoughts with our readers on a variety of penny stock-related topics. In addition to Penny Stock Research, Robert also writes frequently for two other free financial e-letters, ETF Trading Research and the Dynamic Wealth Report. He’s also the editor of two highly successful and popular investment advisories, Biotech SuperTrader and China Stock Insider.

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