Blog : A Farewell to Q2

by Ed Zwirn on June 28th, 2013

As this is my last penny stock blog this month, it is also my last opportunity to remind you to get in on the action. Entries for the Peter Leeds Penny Bank contest are due the end of June. All you need to do is guess how many pennies are in Peter's penny bank, and you can win $500, a 12-month subscription to the Peter Leeds Penny Stock newsletter (with daily updates and weekly picks that can make you much more than $500) and two autographed copies of books by Peter.

Peter and the team tell me that they have already received a heavy response to this contest, but are waiting for those last minute entries before they go through the laborious judging process. Click here to get in on the fun!

Getting back to more serious business, the second quarter of 2013 treated penny stock investors to a roller-coaster ride, with the Dow Jones Industrial Average testing new highs but winding up not far from where it started. As of this writing, the DJIA stands at 14,998.80, up nearly 2.9% from March 28's 14,578.54.

Taking a longer view, the DJIA, and the volatile stock market along with it, is up around 14.4% on the year, a bit of a comedown from the YTD gains captured as of various points in Q2, but impressive all the same when one considers the headwinds being faced by the market, which has whipsawed based on everything from the latest tweaks in Federal Reserve policy to the outlook for the Chinese banking system.

This performance has been even more impressive for penny stocks over the period. The Russell 2000 index, which includes many penny stocks under $5, is ahead as of this writing by about 3.2% for the quarter, and 15.7% so far this year.

So there you have it: I suppose there is nothing new about penny stocks being the land of both outsized opportunity and outsized risks. On the other hand, you could have done worse for yourself than loading up on penny stocks, even at random, as the Russell 2000 numbers show.

A more discerning and well researched approach can only improve on this result. By choosing from what they consider the top 5% of the penny stock universe, Peter and his team can maximize your chance to beat the system. But don't count your pennies before they are out of the jar. You can count them slowly afterwards from the vacation spot of your choosing while waiting for the waitress to bring your drinks!