Listed in: Best Penny Stocks, Penny Stock Lists, Turn-around Candidates

Let me explain these picks. When given a choice I have always found that it is better to find stocks that are unfairly beaten down to lower prices with a strong chance of recovery rather than to chase those that have recently set new 52 week highs. I am not a believer in chasing the shooting starts as – in most cases – the upside has played out. A shooting star is Facebook right now.  Those that saw the value prior to the latest earnings were playing it a bit smarter. No – these seven picks are not going to include FB.

sevenRegarding these seven penny stocks, I am putting this list in the order of how large the potential recovery is – assuming the stocks reach their 52 week high once again. We will start with a mining stock that is down 64% from it’s 52 week high, then move on to a security company that is down a fraction less than 46% from its 52 week high. After those, we have stocks down 29%, 28%, 16%, 13% and 8.5%. These are turn-around candidates. 

Picking turn-around stocks is not something you should ever do as a single pick.  Consider this list and the reasons behind it as suggestions. Look at the markets for their products or services, your experiences with the fundamental products of the companies or similar companies, and then look at the financials. FYI – I always start with the financials. Then I move on to the fundamentals. That is the best way to screen as it avoids picking up on your personal favorites. 

Let’s start with the first one of the seven.

UP NEXT: NUMBER SEVEN – A MINING STOCK THAT IS ALREADY MOVING IN THE RIGHT DIRECTION