PSB Portfolio Update November 2008

November 2008

Dear Subscribers,

Clearly the market’s been quite volatile over the last few weeks. We thought the presidential election would add some stability, but all it did was serve as a distraction. The “Obama Wins” rally lasted all of three days. Then the market started falling again.

The downtrend has been matched with continued volatility. The volatility by the way is off the charts, I’ve never seen anything like this in my investing career. These types of markets aren’t typically good for any type of stock . . . let alone most penny stocks. However, our portfolio has handled the market gyrations better than most.

We’re running close to a few stop loss levels… and we’ll let you know if we break any. But all-in-all the portfolio has held up well.

Our recent selection PRIMEDIA (PRM) has really shined despite the market.  As I write this we’ve got a a 50% gain in the stock already!

Some of our recent recommendations continue to generate lots of good news.  Here’s a quick update on two big announcements.

…PRIMEDIA (PRM)

PRIMEDIA (PRM) released earnings just as our last issue was going to press.  The company announced $76 million in revenue for the quarter, pushing the year-to-date numbers close to $230 million.  The company generated $12 million in net income for the quarter.  That’s a $0.20 EPS.

For the second quarter in a row, the Board of Directors decided to pay a dividend of $0.07 to shareholders.  Anyone who owns the stock on the 19th will receive the dividend on December 11th.  I continue to like the long-term potential of this stock.

…VAALCO Energy

Vaalco Energy (EGY) also announced earnings last week.  They posted revenue of $55 million for the quarter, and earnings of $22.3 million.  That’s an astounding $0.38 EPS for the quarter.  The company continues to explore for oil and despite the recent fall in oil prices, their future looks bright.

Those are two of the biggest news events in our portfolio.  Look for the December Penny Stock Breakouts issue heading your way soon! We’ve got a couple of great ideas we’re working on that I think you’ll like…

Category: PSB Portfolio Updates