A Penny Stock That Could Make You a Fortune

   

A Penny Stock That Could Make You a Fortune

The housing collapse has devastated many. Mortgages were given away like suckers to children at the doctor’s office. Excess building resulted in supply that could not be supported by demographics.

We went too far with the housing boom, but we can count on population growth to come back, especially as 78 million baby boomers retire in the coming years.

That being said, I’ve recently discovered a cheap housing stock that is poised to jump from about 50 cents per share to $5 — giving you a 10-to-1 return on your investment.

This Housing Penny Stock Is at the Forefront

Advanced Environmental Recycling Technologies (AERT) is a $20 million market cap company specializing in composite building materials primarily used in outdoor applications such as deck planks, balusters and handrails.

Its products, sold under the MoistureShield and Weyerhaeuser ChoiceDek brand names, are made from waste wood fiber and recycled polyethylene plastics. The company focuses mainly on the remodeling and renovation markets as opposed to new construction.

At the housing peak in mid-2006, AERT traded for close to $4 per share. Today, after shares bottomed below 20 cents per share, it can be bought for around 50 cents per share. During the second quarter, AERT managed to generate a small 3 cents per share profit. Even though sales were lower, cost cutting helped the bottom line.

I like the future prospects of AERT. Housing starts, sales and construction permits have all been positive over the last few months. In addition, the green aspects of its products bode well for a consumer concerned about carbon footprints and global warming. 

Yes, there is a high degree of risk with AERT, but there are huge gains to be had if the economy gains traction. Given the pent-up demand in the homebuilding and remodeling market, AERT is a worthy speculation.

What to Do Now

Buy shares of AERT up to 75 cents with a target of $5.00 per share.

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Article printed from InvestorPlace Media, http://investorplace.com/2009/09/penny-stocks-aert/.

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