Unknown Stock #3: The Stock Wall Street Abandoned -But Is About To Rediscover
We all know the story. In the late 90s the internet craze hot the stock markets. Any company with a ‘.com’ at the end of its name saw its stock skyrocket on a daily basis. You had companies that just formed having billion-dollar valuations. ‘Internet’ millionaires were being created at an unprecedented rate.
But everyone forgot one minor thing.
None of these companies were making money nor did they having any prospect of doing so.
Once this fundamental law of capitalism was remembered, the shares of these internet companies came crashing down to Earth. Most went out of business, never to be heard from again.
But what about the ones that survived? What about the companies that actually offered a useful product? Was the proverbial baby thrown out with the bathwater?
For EasyLink Services (symbol:ESIC) we think this may be the case.
EasyLink Services is a company that facilitates the electronic exchange of documents between companies, departments, and customers. In a nutshell, they simplify the delivery of purchase orders, shipping notices, business reports, and faxes.
Going into how they do this is beyond the scope of this report. Just know that EasyLink deals with both supply chain messaging and on-demand messaging for hundreds of different companies in sectors as diverse as apparel, consumer goods, financial, grocery, media, pharmaceuticals, publishing, retail, and transportation.
Unlike many of its internet boom predecessors, ESIC actually makes money (a novel concept-I know). Their revenue is approaching $100 million a year. Their gross margin is an unbelievable 67.9%.
In addition, their quarterly revenue growth is well over 300% and their earnings growth is over 1,000%. This performance has allowed EasyLink to amass $27 million in cash (and garner both a low PE and price-to-sales number).
So yes, this company has a real business plan and is very, very profitable.
Some of you may be wondering why the stock is priced so low? After all, it was trading at over $100 per share during the dot com days.
That’s a good question. A stock that is growing this fast and making money should be valued much higher. We think this will indeed be the case as EasyLink continues to grow. At some point, investors and institutions will start snapping up shares of this promising company.
Make sure you get in before that happens!
How To Turn $300 Into $1.3 Million With Penny Stocks
Before concluding our report we wanted to do the math on how it would be possible to turn $300 into $1.3 million. Now before we run the numbers, you need to know that getting a return this high would be difficult, but not impossible. Most investors would be happy to get just a fraction of these gains.
Start Amount Return Gain Ending Amount
Stock #1 $300 852% $2,556 $2,856
Stock #2 $2,856 3,428% $97,903 $100,759
Stock #3 $100,759 1,256% $1,265,541 $1,366,300
So there you have it. To turn $300 into $1.3 million, you’d need 3 consecutive returns of 852%, 3,428% and 1,256%. Difficult to do, yes. Impossible, no.
One thing is certain however. If you’re going to attempt gains like this, you’ll need to do it with penny stocks. It’s very difficult to register gains of 1,000% to 4,000% with blue-chip stocks like General Electric and Microsoft. You’ve got to find penny stocks that turn into the next General Electric and Microsoft.
And you do that by finding high-quality companies with real products and real potential. They’re out there- it’s just a matter of finding them!
Sincerely,
Brian T Mikes, Dynamic Wealth Report
P.S. Our own penny stock expert Robert Morris has just put together a report on a little-known SEC regulation that can send penny stock prices through the roof. It may be the quickest and easiest way to turn $300 into $1.3 million that we’ve ever seen.
