You MUST Watch These Foreign Tech Penny Stocks
These Foreign Tech Penny Stocks Could Be Hot!
Every good penny stock trader watches the market closely. You pay attention to what’s going on in the economy, in the market, and in the companies you own.
Knowing what industries are hot is just one small step to trading successfully.
Funny thing is, many traders don’t know how to identify hot industries in the market.
You can wait to read about hot market sectors from guys like me… or you can do a simple screen and figure it out yourself.
There’s a simple way to finding hot industry sectors… and I’m going to show you how I do it in just a few steps.
Finding The Hot Sector In The Market
As you know, the easy way to track the market is to simply watch the S&P 500 index. It’s widely used as the overall measure of the market. Simple. Easy.
Now you may not know this, but S&P has broken down the S&P into big industry buckets… and they have built ETFs around the different industry groups.
- $XLY – Consumer Discretionary
- $XLP – Consumer Staples
- $XLE – Energy
- $XLF – Financials
- $XLV – Health Care
- $XLI – Industrials
- $XLB – Materials
- $XLK – Technology
- $XLU – Utilities
Now you’ll notice these are very broad buckets… or industries. This doesn’t drill down into detail, but this gives you a good idea of where to focus your attention.
The simple way to see performance is to hop on over to your favorite charting software and compare performance.
I did it with the $XLK, the technology sector. Take a look at this chart…
As you can see, since early 2014, the technology part of the industry has outperformed the overall market by more than 73%.
Where the overall market is up 14.5%, the technology sector is up a staggering 22.8%!
That tells me technology is the area to be looking at right now.
Your next step is to simply drill down in the technology industry and find subsectors that are driving this performance.
How To Make Money From Your New Knowledge
While it’s no guarantee, sticking with hot stocks in hot industry sectors can help you outperform the overall market.
So, knowing the technology industry is hot, I wanted to look for undiscovered tech penny stocks. (Because I love penny stocks!)
What I found was interesting.
I pulled a screen of penny stocks that were trading under $5 and in the technology sector. There were so many, I knew I had to filter the list. So I took an unusual step…
I focused on international companies.
Many great businesses are founded and operate overseas… and there’s no reason we shouldn’t try to profit from them. And many investors are afraid of looking beyond the borders… many investors don’t diversify overseas… let’s change that!
Now there were 49 stocks that popped up on my screen… far too many to look at realistically. So I decided to let profits be my guide.
If you’ve read anything I write, you know that for me, profits are important for the companies I invest in.
So, I looked at what companies had positive P/E ratios. That narrowed the list down to 16!
To cut even more out, I sorted the list by volume. The top 7 companies traded anywhere between 18,000 and 236,000 shares a day.
So here’s that list…
The 7 Foreign Tech Penny Stocks To Keep An Eye On
These are 7 foreign stocks that should benefit from the higher trends in the technology market!
- $RENN – Renren
- $AUO – Au Optronics
- $STV – China Digital TV
- $PERI – Perion Network
- $WILN – Wi-Lan
- $GIGM – GigaMedia
- $CAMT – Camtek
The breakdown is simple – 2 are from China, 2 are from Taiwan, 2 from Israel, and 1 from Canada. And the focus areas for these companies is all across the board… from Software to Semiconductors.
Take a look, you might find the next top performer in this group!
Do you own any of these stocks? If so, let me know in the comments section of the website.
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.
Category: Penny Stock List
