Buying Penny Stocks During The Holiday Season, Part 3

| December 1, 2015

holiday shoppingBuying Penny Stocks During The Holiday Season, Part 3

Just like that, Thanksgiving is over and we’re back to work/school for the final couple weeks before the holidays.   I’m not sure what it is, but it really feels like this year is moving faster than ever.  Very soon, we’ll be ushering in 2016.

We’ve also had Black Friday come and go, as well as Cyber Monday.  That means the peak of holiday shopping season has arrived.

Now, if you’re paying attention to the news, you’re probably hearing the usual doom and gloom:  Where are the shoppers?  It’s the worst Black Friday in years! And all the other nonsense about how bad things are.

Don’t let it fool you.

So should you still be buying retail penny stocks around the holidays?

I’ll get back to that in just a minute.  First, take a look at this chart:

chart of $IWM performance over the last year

The iShares Russell 2000 $IWM is one of the most popular ETFs out there. It tracks the Russell 2000, which is the best proxy for small cap stocks.  It’s a good way to see how small and micro cap stocks are doing overall.

As you can see, the Russell 2000 is doing quite well recently.  After testing the 50-day moving average, it reversed and has gone quite a bit higher.  However, the ETF/index has yet to reach pre-correction levels.

Still, it’s pretty clear to see that investors aren’t freaking out about this year’s retail season.  On the contrary, it looks like small cap buyers are optimistic.

So should we worry about retail?

There are a few important trends to consider before buying in to the doom and gloom retail reports.  First off, the best deals can be found online.  Cyber Monday is a much bigger deal than Black Friday these days.

While there are plenty of people who like going to brick and mortar stores, there are also numerous shoppers who prefer to avoid the madness.  Not to mention, if you can get a better deal from the comfort of your own home, why not?

What’s more, Black Friday – and even Cyber Monday – aren’t confined to single days anymore.  Thursday night has become bigger than Friday for physical shopping.  And, the deals often extend through the weekend.  Many online deals extend into the month of December as well.

In other words, don’t worry about what you’re reading about Black Friday or short lines or whatever.  Online sales have been brisk.

Let’s also remember many more people have been holding down jobs for longer this year.  And, consumer debt is in much better shape than previous years.  People have money, and they will spend it.

If you see retail penny stocks you like (and priced favorably), don’t let the news scare you.  Companies are still going to make their money this holiday season.  And, several retail penny stocks have the potential to be good buys this year.

Good investing…

Brian Kent

Note:  If you’re interested in learning more about Brian Kent’s Penny Stock All-Stars premium service… and learning about the stocks we’re trading for profit… you can get the inside scoop on penny stocks here.


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Category: Penny Stock Tips

About the Author ()

Brian Kent is the Editor for He also pens 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.