The Little Penny Stock That Could. . .SWTX.OB
December 09, 2008
– Comments (4)
You won't find, anymore, swtx.ob on Fool.Com. But this penny stock trading today for 87 cents a share spiked to $1.87 back a few months ago...why? Because this is one the few penny stocks actually making a profit! They actually have a solid, positive, cash flow. They are actually making new research and development success with their energy saving window/glass film technology.
Southwall Technology is the penny stock that could make anyone a fortune if they keep up the success they are having into next year and beyond.
This company as recent as late 2006 was losing money and not profitable due to mostly their involvement with the DISPLAY sector. Why were they losing money in the Displays? Because they weren't doing LCDs.... They were doing film technology for Plasma displays and Plasmas aren't profitable business when everyone's buying LCDs.
That business was dumped.... and ever since dumping that, they have right-sized their company and are on a path to success. This is an international company having retail sellers of their XIR/Heat Mirror and other technologies throughout the world. They manufacture solar controlling films that block U/V Rays while keeping the Sun's light in. This simply saves air conditioning costs.
Pres. Elect Barack Obama knows nothing about Southwall's technology and I doubt Southwall gets a piece of the infrastructure spending pie. However, who knows? Maybe Southwall benefits indirectly somehow through the actions of the upcoming president?
I can think of lots of companys that have a possibility to do well and the broad based rally we have seen on stocks shows that Wall Streeters are treating virtually every stock as a beneficiary of Obama-Nomics. So, imagine if Southwall does get a boost at a time it is able to do well without it?
Just this year they announced gaining new distributers/sellers in China and India. This opens 2 of the worlds fastest growing economies to Southwall Technologies.
What about insider buying? There has been 1 instance of 1 director, Mary, buying 500 shares in Q2 of 2008. There has been NO selling of common stock to speak of from insiders.
I have a laundry list of penny stocks and all of them except Southwall have dropped through the floor....SWTX.OB (look it up) continues to spike at times and basically hover up 8% or more year to date.
It is difficult to find ANY STOCK in this market that has grown it's EPS in 2008..... Mainstays like Coca Cola, Pepsi, Hanson Natural, Tyson Foods, Oil Companys, Steel Companys, littany of companys have dropped over 30% year to date......
So... If you want to invest in a penny stock then you really can't find much better than a Penny Stock that actually has potential rather than increasing Debt. The Long term debt for Southwall is dropping each quarter and rests at .23... With a cash flow around a P/E of 2.4.
SWTX.OB trades at a P/E of 3.8. That's just 1.4 P/E above it's cash flow. This should be trading at least a 5-6 P/E. This stock is justified to be $1.40 where it was trading mostly in Q2.
EPS has grown from under 20 cents to now almost 23 cents a share.
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