Topics: Aim market, penny shares
Dear Reader,
There’s no question about it — penny shares can bring you some of the biggest gains from the stock market.
During one of the most impressive market rallies in recent years, small caps have made Blue Chips look dull.
A glance at the performance of the FTSE 100 versus the Alternative Investment Market (AIM) since the March shows you what I mean. The FTSE is up 49%. Any investor should be well happy with that. But then consider that AIM has shot up 75% in the same time.
Look a little harder at individual shares and the story is the same. Sure, many large cap companies have had a fantastic 2009 run. Barclays (LON:BARC), for example is up 155% since March. Legal & General (LON:LGEN) has shot 277% higher.
But again, these are hardly worth a second glance from hardcore penny share investors like Tom Bulford. Small caps like Gulf Keystone (LON:GKP),Phytopharm (LON:PYM) and Sabien Technology (LON:SNT) have rocketed 2,080%, 644% and 1,671% since March, allowing investors to make life-changing returns.
Now of course, those rewards come at a price. Small companies can also bring along quite a bit of risk. Often they are dealing with unproven technology… or searching for oil or gold. If things don’t work out, these companies can quickly fall from grace… and lose you money.
So it’s all about your risk tolerance. If you have capital that you can afford to lose in exchange for the chance to make BIG returns, penny shares are worth looking at.
And right now, Tom is keen on the security sector. It’s another sector he believes is ripe for penny share action.
Exploring the next great penny share boom sector
“Over the years a huge security industry has grown up,” Tom explains in his latest issue of Penny Sleuth .
First came burglar alarms, then security guards for big buildings, and then the proliferation of security cameras everywhere we look: “On lampposts, on motorway bridges, on street corners. What is it they say? That you are caught on camera an average of thirty times a day?” writes Tom.
And it’s even more noticeable when you try to cross boarders, Tom explains.
“Now it is almost impossible to proceed through the airport without being stripped naked. Out go all those bottles of liquid. Off come the shoes. And a camera sees right through our clothes to our flabby bodies beneath. There are scanners, cameras that lock on to anybody looking furtive, even sensors that can detect strange smells and substances.”
But there is a whole new branch of security – one that Tom believes could lead to some great gains for penny share investors…
How to legally make money from ‘cyber crime’ and terror threats
“If we are not afraid of being personally set upon, we are afraid that somebody will steal our identity. Cyber crime, it is called. There are people out there who would love to hack into my computer, find out all my bank details and spend all my money for me.
“In fact I have already been the victim of identity fraud. Somebody got hold of my credit card details and ran up a £1500 bill before anyone noticed. A colleague of mine has also just been hit by hackers… as has his girlfriend.
“So security is a big business. And there are plenty of ways to get involved, especially for us penny share fans.”
Tom cites a couple of recent success stories in this sector. There is NCC Group (ticker: NCC) which protects corporate IT systems. Then there’s a company involved with video surveillance technology called IndigoVision (ticker: IND).
But Tom’s favourite idea, and the one he’s just revealed to readers of his Red Hot Penny Shares is a more direct play on national border security.
“If I was a terrorist,” Tom says, “I reckon the last thing I would attempt would be to board a plane. I would be looking for another way.
“There is another avenue of attack. There is another point of massive vulnerability. Fortunately, security agencies all over the world are alive to this and are about to spend millions protecting us from this.”
Tom reveals this company in his latest issue of Red Hot Penny Shares. You’ll receive the full analysis when you take a no-obligation trial subscription.
Forecasts are not a reliable indicator of future results.
Good investing,
Frank Hemsley
For The Right Side
Editor’s note: Right now, you can obtain Red Hot Penny Shares for life, without subscribing. And as part of the same very special “give away” deal, you can also secure ALL of Fleet Street Publications’ research, without subscribing. But this offer is only open until 19th November.
Interested in how this works? Click here for details of this very limited, time-sensitive deal.
Your capital is at risk when you invest in shares, never risk more than you can afford to lose. Please seek independent financial advice if necessary. Fleet Street Publications Ltd. 0207 633 3600.
P.S. If you enjoyed this article you can find out more about our free email, The Right Side by clicking here.
