Blog : Event. Opportunity. Event. Opportunity.

by Peter Leeds on December 1st, 2015

The December Rally we mentioned to expect is rolling along nicely  (See Worst May Be Over for Stocks).  The markets have climbed over the last 2 weeks, and even today are popping higher (so far).

The rally won't end here, but rather will see index and stock prices reach a little higher, while the average trading volumes will come in lighter than usual.  

The combination of uncertainty from numerous events and the Holidays will conspire to keep most retail investors distracted.  Some of these include, but are not limited to:

• potential interest rate hike
• global terrorism
• sagging consumer confidence
• Presidential campaign
• war against ISIS
• slowdown in China
• low energy prices
• sagging commodity prices

In any situation, opportunities are created (See Opportunities in Stocks are Born in Blood).  Those opportunities can always be best turned to profit through volatile, undiscovered penny stocks.

For example, global terrorism turns toward chemical weapons, so a gas mask and protective suit penny stock like Alpha Pro Tech (APT) would soar (See our Samle Penny Stock Pick - APT).

Never mind terrorism, you should have seen what their share price did during the ebola scare.  Just take a look at this 2 year chart of APT.  Guess where ebola was the top news story - it was during that spike to $10.55 from $2.

This took APT out of penny stock territory, which is always great to watch for subscribers to Peter Leeds Stock Picks.  We were all over this one from the summer of 2014, and profiled them first to our penny stock pick members on July 23rd, 2014.  

That was also around the time I mentioned that, "you'll be hearing a lot more about ebola soon" on the Official Peter Leeds Facebook Discussion Page.  The growing disease was already starting to spread around Africa, but 99% of people here hadn't even heard about it yet.

APT was at $2.13 at the time, but spiked to $10.55 within 3 months!  $2,000 becomes $10,000 - the small investment would have netted you profits of over $2,666 on average per month!

This is just an example of the power of penny stocks.  Use your insights, and combine them with the small investments which will stand to benefit.  

Note: this is all incredibly simplified for our purposes here.  The idea is a much more involved, but hopefully you can see how proper thought processes lead to penny stock opportunities.

Event:  If terrorists blow up a charter jet, people may fly less.  

Opportunity:  Short airline stocks, and buy bus and recreational vehicle penny stocks.  Look into oil and gold penny stocks if the events may add to the risk-premium in the underlying commodities.

Event:  Biotech stocks collapse.

Opportunity:  Wait for the bubble to finish popping, then buy highly undervalued biotech penny stocks.

Event: Democrats win the Presidency.

Opportunity:  Stem cell penny stocks will find a more friendly policies for example, and should do well.  In fact, whichever party leads the nation matters to many penny stocks, since the politicians bring their policies and ambitions with them.  This affects energy, defense, technology, and science penny stocks, for better or worse, based on which party is in power.

Event:  Nation commits to a flat tax.

Opportunity: Avoid accountant services, look into the tiny software company building a new "flat tax" app to make the transition easier.  If you were to buy shares of this software business, your investment might do really well.  

Obviously there are many other considerations which involve some additional analysis, but thinking in this manner may be a great approach to getting plenty of leads for potential investment.  Or let us use our specialized knowledge and do the work for you!