Buying on Unrealistic Expectations

The Penny Sleuth Features: Penny Stocks, Options and High-Growth Opportunities! Buying on Unrealistic Expectations By Greg Guenthner February 16, 2011 Dear Penny Sleuther, The major averages have signaled that the bull market remains in full swing. Every recent scare has amounted to nothing more than a minor correction, and even the technically overheated market of late January was able to right itself and gain strength. However, scattered among the rising share prices have been some huge disappointments. Looking back on first quarter earnings, it has become readily apparent that some stocks that were once market leaders have become victims of unrealistic expectations from an overly-excited investing public. But instead of running away from these names with the herd, I recommend you take a second look a several of these names that could continue higher in spite of a rough first quarter... 6 Penny Stocks to Own Right Now… Greg Guenthner, editor of Penny Stock Fortunes is giving away SIX penny stock recommendations to all new subscribers! But you must hurry because these plays could explode at any time. Click here to watch the presentation now. Take blue chip carmaker Ford Motor Co. (NYSE: F). While the other members of the Big Three were completely decimated during the financial crisis, Ford continued to improve its business — all while famously not asking for bailout money from Uncle Sam. The company returned to profitability in 2009, and as a result, shares more than doubled between late 2009 and January 2011. But the carmaker’s picture-perfect rise was cut down in late January. Ford posted its largest annual earnings in a decade, yet fell short of analysts’ expectations when it came to its fourth quarter numbers. While the company reasoned that it was the added expense of prepping to launch the new Explorer and Focus models, investors took the wide miss as a sell signal. Shares tanked. In only 24 hours, Ford stock dropped from the $18.80s to $16, which is about where shares remain today. The fall was simply the result of overzealous investors wanting perfect financial results that just weren’t there. Ford’s business is far from troubled. In fact, the stock looks well undervalued right now. Of course, the investor that bought at $17 or $18 has been set back a bit — but I wouldn’t expect these buyers to be underwater by the end of the year. Exposed! How Wall Street’s Breaking the Rules... Wall Street is secretly breaking the rules, and making a mint! Now you can too — it’s 100% legal — and could have already bagged you $123,850! Skeptical? Curious? Then simply click here right now to find out more. Turning to smaller stocks, we saw a very similar situation yesterday when Sirius XM Radio (NASDAQ: SIRI) announced earnings before the bell. Before its earnings announcement, Sirius XM shares had rallied more than 70% over the past six months. But Sirius XM also fell victim to missing the number, reporting a loss of 2 cents per share, compared to breakeven earnings a year earlier. Shares tanked premarket, and remained weak all day. By 4 p.m., the stock had lost more than 7%. Much like Ford, all is not lost for Sirius XM. The company beat its own growth targets, tallying 20.2 million subscribers (that’s a 8% rise since last year). Sirius XM also boasted a nearly 9% rise in revenue and paid off another large chunk of its once-crippling debt. The bottom line is neither of the two stocks mentioned above was irreparably damaged by their respective setbacks. In fact, bullish arguments can easily be made for both names. Furthermore, each of these stocks are trading at important support points, so it isn’t far fetched to say that Ford and Sirius XM could both be trending higher in the coming months. Sincerely, Greg Guenthner Why Researchers, CEOs, Writers, and Thinkers Are Bubbling with Excitement Revealed: The full power and promise of science’s next decade could give your family FIVE generations of HUGE wealth. Expert researcher breaks his silence with epic new wealth report — right here… Buying on Unrealistic Expectations is featured at Penny Sleuth. The Secret $200 Retirement Blueprint Investing in Penny Stocks What Is Technical Trading Follow the Penny Sleuth on Twitter, here. Become a Facebook Fan of The Penny Sleuth, here. The Penny Sleuth, a free e-letter, offers independent news and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to KNUMASSCN@gmail.com because you or someone using your e-mail address subscribed to this service. 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