Hot Penny Stocks are all about volume. Big Volume!
We’ll cover a couple of penny stocks that are moving right now on high volume… either up, or down. In addition, you’ll leave knowing why there’s such a big move.
And telling you what and why is barely worth your time. So we’ll give you our recommendation as to where the stock is headed next.
This week’s Hot Penny Stocks are: NetSol Technologies (NTWK), and Goldfield (GV)
NetSol Technologies (NTWK)
NetSol is a US-based, worldwide provider of IT services and enterprise solutions for leasing and finance, health care technology, insurance, and e-Procurement. The company delivers solutions and services that address the operational needs of its clients, enabling them to streamline operations and compete more effectively.
On Friday March 02, over 9.7 million shares of NTWK were traded. The 3 month average daily volume is only 432,238.
So why the surge in volume?
NetSol announced the pricing of a public offering of 14.5 million shares of its common stock. NTWK shares were offered at a price to the public of $0.40 per share, delivering gross proceeds of $5,800,000. The company plans on using this money for debt restructuring, as well as product development.
As a result, shares fell by $0.11 to trade at $0.39 on the news…
NetSol is definitely a gamble at this point. When a company dumps that many shares into the open market, current share holders get whacked. And that’s something you don’t want to see happen again. On the other hand, shares of NTWK may test its 52-week low of $0.35 and rebound higher. And with shares trading at fair valuation right now, it may be worth the risk.
Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry in the Southeast United States. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities.
Over 1.2 million shares of GV traded hands on March 02. That’s a huge jump from the 3 month average of just 66,241 shares.
So why the big volume?
Goldfield has been selected as prime contractor by South Texas Electric Cooperative, Inc. (“STEC”) to build the new Bakersfield to Big Hill 345kV Transmission Line. The project is a Competitive Renewable Energy Zone (CREZ) Project. The project is required to be completed by July 31, 2013.
Goldfield estimates that the revenue to be recognized over the life of the project is approximately $52 million.
Put GV on your buy list. This small company is growing revenue and earnings at a double digit pace. They’re also set to turn a profit in 2012. With share prices breaking out to new highs, now looks like the perfect time to buy.
Keeping you one step ahead,