The market is poised for another intense bear market rally. So I scoured the penny stock panorama for 5 mega-poppers: those stocks that can easily pull a 3-bagger in a very short time. And, those that have a history of blowing up in sympathy with broad market short-squeezed-fueled exuberance.
1. Beazer Homes USA (BZH): This one has been punked down along with the homebuilders. Big short-squeeze potential. The homebuilders run up big as a pack, just as they have fallen as a pack. Beazer has been beaten down to a Wednesday February 25, 2009 close of 56 cents. This one can easily jump to $1.70, where it was at only a short while ago.
2. Russ Berrie & Co. (RUS): During the close of 2008's bear market rally, this stock exploded from $1.11 to the $4.50 range in a couple of weeks (and tripled in 3 days). Russ Berrie also happens to be a very solid company. They make infant and juvenile products.
3. Las Vegas Sands (LVS): Yes, Vegas is dead (will the last conventioneer out of Wynn-town, please turn out the lights). But, LVS is just one of those stocks that loves to run if given the rigbt broad market pop conditions. It closed today at $2.16. It was in the mid $6's only 4-5 weeks ago. Enough said.
4. Libbey Inc. (LBY): Libbey is somewhat on the rocks, given the recent market meltdown part 2- but its popper potential is valid. This one's an easy double, but it could triple with a little momentum. It likes to jump on a dime.
5. Bank Of America (BAC): I expect this Little Big Man Bankaroo to be the next true runner in the financials- an easy double decker. Thank Countrywide and Merrill for the ride. Yet, if the bear market rally has claws, BAC could head back to its December 2008- $15 range- in style.
(Disclosure: Author holds no positions in any of the stocks mentioned in this article. He's too busy trying to get the Uptick Rule restored and Mark-To-Market modified)
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