Penny Stocks On The Move: Seven Arts Pictures (SAPX)
Hitting the jackpot is a term you might occasionally associate with stock picking. Its the sort of expression you hear when a stock suddenly skyrockets to extreme highs.
The phrase also seems to imply the investor holding the jackpot stock is lucky.
But you dont have to be lucky to hit the jackpot you just have to pick the right stocks.
Certain penny stocks have great jackpot potential. An oil exploration company drilling for a well a gold miner digging for the mother lode or a movie production company.
Want an example?
Look no further than this weeks penny stock on the move, Seven Arts Pictures (SAPX).
SAPX develops, finances, produces, and licenses theatrical motion pictures for the big screen, DVDs, and television. The company is small, with revenues of around $5 million a year and a market cap under $10 million.
And most likely, you havent heard of any of Seven Arts movies.
But thats about to change
You see, SAPX recently entered a joint venture with Prodigy Pictures to produce and distribute the sci-fi thriller motion picture Neuromancer.
So whats the big deal?
Neuromancer is a wildly popular novel written by William Gibson. Its listed on Time Magazines 100 best novels since 1923. And its sold a remarkable 6.5 million copies.
Needless to say, this book has a huge fan base and the upcoming silver screen version is already generating a ton of buzz.
Moreover, even though Seven Arts is a small company, theyre not going small on the Neuromancer production. SAPX and Prodigy plan to raise $60 million for the film.
It turns out, it wasnt just fans who are excited about the movie. Investors couldnt get their hands on enough of SAPX shares. Clearly, they feel Neuromancer has blockbuster potential.
Check this out
Just ten weeks ago, on May 11th, SAPX was trading at $0.30 a share. This week, the shares hit a high of $5.75. Thats an unbelievable 1,800% gain!
Whats more, the stock skyrocketed over 250% in just the last two days! Do you think people are excited about this movie?
The shares have pulled back a bit since the initial surge, but its still a huge winner for anyone who owned the stock prior to this week.
Look, its not easy to predict when a penny stock is going to become a jackpot pick. But investors are going to have to take some risks if they want to find a huge winner like SAPX.
The key is adding penny stocks to your portfolio with the potential for a huge payday. That could mean oil exploration companies or small movie producers. You never know when the next Neuromancer is going to be announced. But more importantly, youll never have the opportunity to hit the jackpot if you dont take some chances in your portfolio.
Yours in profit,
Gordon Lewis
Category: Penny Stocks On The Move
