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GSI- Penny Stocks To Watch

A.J. Watkinson December 12, 2013 Penny Stocks to Watch No Comments
GSI- Penny Stocks To Watch

Some sectors have done much better than others in 2013.  But some are as we say, in the toilet!

Enter steel stocks…

As basic materials in general have been the worst performing sector posting just a 2.0% gain year-to-date… and steel stocks have played a major role in this anemic performance.

On the other hand, conglomerates have put up a 47% YTD gain!  I’d say basic materials are clearly underperforming this year.

Now, we’re looking at a trend over the past few years that the worst performing sectors tend to be some of the best performing the following year.  If that’s the case, I’d say picking up some shares in basic materials companies may be good for the portfolio.

With that in mind, I suggest we look at steel penny stocks, and I’ve found one that seems to be turning the corner.

General Steel Holdings (GSI) looks like a candidate set to see a better 2014…

General Steel Holdings engages in the manufacture and sale of steel products in the People’s Republic of China. It offers hot-rolled carbon and silicon steel sheets for use in light agricultural vehicles, double spiral-weld pipes for use in the energy sector to transport oil and steam, and reinforced bars/high-speed wires for infrastructure and construction applications.

The company sells its products primarily to distributors. General Steel Holdings, Inc. is headquartered in Beijing, China.

In the third quarter, financial result highlights show improvements in some areas of business.

Here are some highlights:

  • Gross profit was $8.2 million, or 1.3% of revenue, compared with a gross loss of $(13.6) million, or negative (1.9%) of revenue in the third quarter of 2012.
  • Net operating cash inflow was $75.5 million, compared with $9.5 million in the third quarter of 2012.
  • In the first nine months, sales volume increased by 0.9% year-over-year to approximately 3.95 million metric tons, compared with 3.91 million metric tons in the same period of 2012.

Some, not all things are looking up at GSI.  And share prices are trading pretty low for a penny stock at $1.02 (as of today’s publishing).

If you’re looking for a real penny stock play in this year’s underperforming sector, take a look at shares of General Steel Holdings for a shot at some upside in 2014!

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About The Author

A.J cut his teeth while working for more than 12 years on the corporate side of the financial services industry in the suburbs of New York City. In addition, A.J. has successfully traded stocks, options and currencies as an independent trader since the late 90's. Eventually A.J. moved out of the "rat race", landing in North Scottsdale, Arizona. During the past few years, he's worked as the editor of a number of high profile financial newsletters. In this role, he's run trading services for penny stocks, options, currencies, ETFs, and FOREX. While under his direction, each of these trading services had turned in positive performance... something very rare in the financial newsletter industry. In addition, he's been a regular contributor to a number of financial websites- writing under multiple pen names. A.J.'s current goal is to share his real world experiences and success (and failures) in the various financial markets to help others not only make money- but avoid losing it. It's this vision and passion that has led A.J. to launch pennystockreporting.com. Most of all, A.J. hopes to keep the little guy from getting caught up in the highly unscrupulous penny stock pump and dump scene.

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