In a recent Penny Stock Detectives article, Sasha Cekerevac reports that the U.S. is going to produce record harvests in many crops this year and this has allowed a few penny stocks in the agricultural commodities sector the ability to generate strong sales. Cekerevac believes that there are few penny stocks that supply equipment for farmers because most of these firms are large. However, Arts-Way Manufacturing is one such success story.
"Arts-Way makes and distributes machinery for use on farms. This includes harvesters, plows, crop shredders, and so on," notes Cekerevac.
According to Penny Stock Detectives, looking at the latest quarter, which ended on February 29, 2012, the firm reported an increase of 35.3% in sales to $6.3 million, as compared to the same period in 2011. Operating income increased from a loss in the same quarter in 2011 of $659,000 to a profit of $362,000. Net income also increased substantially, from a loss in the same quarter of 2011 of $485,000 to a profit of $193,000.
Cekerevac says that he likes to make sure the technical analysis of the penny stock also has a bullish bias. Looking at the technical analysis of Arts-Way, he points out that the stock is currently in a consolidation phase. In technical analysis, this consolidation is a form of "resting" for the stock, as it gets its breath back and builds momentum for the next leg up. If this period of consolidation fails to gain strength, then the stock has the potential of breaking down, notes Cekerevac.
At this point, when technical analysis shows that penny stocks are stuck in the middle of their trading range, it's very difficult to make a highly probable call regarding the next move in price. No one can predict the future of penny stocks, of course, even with technical analysis. What we can do is to use technical analysis to indicate the next likely course of action, where the risk/reward is most favorable. At this point, while the fundamentals appear solid, the stock is stuck in the middle of the range and might stay here for a while.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10 and the stock market in general.
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Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This... which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/6/prweb9560834.htm