New Penny Stocks To Watch Right Now
Here’s A New Pen
ny Stock To Keep Your Eye On…
You know the drill… every day you’ve got to find new penny stocks to research.
If you don’t… you’ll run out of good ideas… and start casting about aimlessly for investment ideas… and that just leads to trouble.
I’m always looking for new ideas.
And I recently stumbled across a small company with a low stock price.
The stock had been hammered – as you’ll see in the chart in a moment. The industry is hated. Yet, a savvy billionaire investor – none other than George Soros, owns a ton of the stock.
I had to add this new penny stock to my research list.
Taking A Deeper Look At This New Penny Stock
I had to look deeper.
What peaked my interest first was the stock chart.
Just look at this mess for Energy XXI $EXXI…
As you can see, $EXXI had been kicked in the teeth.
The stock fell from $22 to just over $2 a share!
As oil prices fell in the second half of 2014, the stock price plummeted into the penny stock range. And in the last 30 days, $EXXI is poking its head above the $4 mark.
But just because a stock is down on its luck doesn’t mean you should buy it.
We have to dig a bit more.
What Does This New Penny Stock Do?
Energy XXI has a simple business model… they acquire oil and gas properties and put them into production. Their motto is “Acquire, Exploit, Deliver”.
I love it!
They operate just off the coast of Louisiana, and they operate 5 of the top 15 oil fields on the Gulf of Mexico shelf.
So, they produce oil and sell it.
Since oil prices have plummeted to recent record lows, it explains the drop in the stock price.
I reviewed the most recent investor presentation on their website. What’s most interesting is they spend almost the whole presentation talking about changes to their business.
Management of $EXXI highlights how they’re reducing costs, targeting their drilling, making the business more efficient, planning for the future, and divesting non-core assets.
It’s everything you want to hear from a struggling company.
But here’s where the story gets exciting… despite being at record lows, the company just announced a $1.45 BILLION financing.
That’s right, they just went out and borrowed $1.45 billion from investors. Clearly these bond holders have faith in the company… and how the management team is reacting to the price downturn.
What’s it mean for shareholders?
Billionaires and New Penny Stocks
Now this is where the story gets interesting…
As I dug into the research on $EXXI, I discovered Billionaire Investor George Soros owned a big chunk of the company. And according to my sources, last quarter he added to his position!
If that’s not a vote of confidence, I don’t know what is!
So, what do we do now?
Should you rush out and buy this new penny stock because Soros owns it?
NO! Of course not.
You’ve got to start your diligence. Look at the company financials, review the industry, get a grip on oil prices… see how management is reacting to the oil price crisis…
After you’ve done your research… only then can you make an educated decision.
But however you slice it, this new penny stock to look at is looking strong!
Good trading…
Brian Kent
Note: Brian Kent has been trading the markets for more than two decades and now writes and edits for PennyStockResearch.com. You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://pennystockresearch.com/free-reports/.
Category: Penny Stocks to Watch
