Top Penny Companies For 2014

Although the stock market has been more volatile, the sell-off is also creating interesting new buying opportunities.

And I see one in a stock we��e traded profitably before: PennyMac Mortgage Investment Trust (PMT), a specialty finance company organized as a real estate investment trust (REIT).

As a REIT, PennyMac avoids the corporate income tax and must pay out at least 90% of its net cash flow to shareholders. In this case, the yield is a whopping 10.5%.

PennyMac�� mission is to keep borrowers in their homes and provide investors with attractive returns. The firm has an experienced team that brings a high level of analytic discipline to the process of investing in home loans.

Top Penny Companies For 2014: Archer-Daniels-Midland Company(ADM)

Archer Daniels Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products in the United States and internationally. It operates in three segments: Oilseeds Processing, Corn Processing, and Agricultural Services. The Oilseeds Processing segment engages in originating, merchandising, crushing, and processing oilseeds, such as soybeans, cottonseed, sunflower seeds, canola, rapeseed, peanuts, flaxseed, and palm into vegetable oils and protein meals. This segment also produces edible soy protein products, including soy flour, soy grits, soy protein concentrates, soy isoflavones, and soy isolates that are used in processed meats, baked foods, nutritional products, snacks, and dairy and meat analogs. The Corn Processing segment involves in corn wet milling and dry milling activities; and produces alcohol, amino acids, and other specialty food and animal feed ingredients, as well as ethyl alcohol. This segment also produces citr ic and lactic acids, lactates, sorbitol, xanthan gum, and glycols that are used in various food and industrial products, as well as astaxanthin, a product used in aquaculture to enhance flesh coloration. The Agricultural Services segment buys, stores, cleans, and transports agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, as well as resells these commodities as food and feed ingredients for the agricultural processing industry. This segment also processes and distributes edible beans, formula feeds, and animal health and nutrition products. In addition, the company engages in milling wheat, corn, and milo into flour, as well as produces bakery products and mixes, wheat starch, gluten, and cocoa products that are sold to the baking industry; and involves in financial activities related to private equity fund investments, and futures commission merchant activities. Archer Daniels Midland Company was founded in 1898 and is based in Decatur, Illinois.

Advisors' Opinion:

• [By Dan Caplinger]

  Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Archer Daniels Midland (NYSE: ADM  ) , and one big reason is that it's one of the few exclusive companies to make the list of Dividend Aristocrats. To become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

• [By Dividends4Life]

  Linked here is a detailed quantitative analysis of Archer Daniels Midland Company (ADM). Below are some highlights from the above linked analysis:

• [By Ben Levisohn]

  Despite the defensive tone to the market, however, defensive sectors underperformed. Consumer staples, for instance, were the worst performing sector this week, as Archer-Daniels-Midland (ADM) fell 2.6% to $36.28 and Kroger (KR) dropped 1.9% to $37.53.

• [By David Sterman]

  In fact, Buffett had been building a growing position in agricultural giant Archer Daniels Midland (NYSE: ADM), as I noted in this article.

  He subsequently closed that position with a nice profit, and he should now check out rival Bunge (NYSE: BG), which in my view, holds better value. (I'll have more to say about Bunge in a separate column in coming weeks). 

Top Penny Companies For 2014: LJ International Inc.(JADE)

LJ International Inc., together with its subsidiaries, engages in the design, manufacture, marketing, and sale of precious and color gemstones, and diamond jewelry. The company offers colored jewelry; and pieces set in yellow gold, white gold, or sterling silver, as well as adorned with colored stones, diamonds, pearls, and precious stones. Its product line includes earrings, necklaces, pendants, rings, and bracelets. The company distributes its products to fine jewelers, national jewelry chains, department stores, TV shopping channels, discount chain stores, and electronic and specialty retailers in North America and Western Europe. It also involves in the retail of jewelry products under the ENZO brand. As of December 31, 2010, the company operated 133 ENZO stores in the People's Republic of China, Hong Kong, and Macau. In addition, it owns commercial and residential properties in Hong Kong, which are held primarily for lease. The company was founded in 1987 and is based in Hung Hom, Hong Kong.

Hot Growth Companies To Own For 2014: Cash America International Inc.(CSH)

Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. This segment also involves in arranging loans for customers with independent third-party lenders through a credit services organization program; providing marketing and loan processing services for a third-party bank issued line of credit on certain stored-value debit cards that the bank issues; and purchasing a participation interest in certain line of credit receivables originated by the bank. The Check Cashing segment provides check cashing and other financial services, such as stored-value cards, money orders, and money transfers. This segment operates its check cashing locations under the Mr.Payroll name. As of December 31, 2009, it operated 676 pawn lending locations, including 667 company-owned units and 9 unconsolidated franchised units; 246 cash advance locations; and 120 unconsolidated franchised and 6 consolidated company-owned check cashing locations. The company was founded in 1984 and is headquartered in Fort Worth, Texas.

Advisors' Opinion:

• [By Ben Levisohn]

  Upgrades had a big impact on stocks today. Wendy’s (WEN), for instance, gained 4.5% to $8.62 after being upgraded to Buy at Argus, while Cash America (CSH) advanced 3.7% to $44.32 after being upgraded to Market Outperform from Market Perform at JMP Securities. Walgreen (WAG) proved the big winner in the S&P 500 after�Goldman Sachs called the stock a Conviction Buy.

• [By Monica Gerson]

  Cash America International (NYSE: CSH) is expected to report its Q3 earnings at $0.81 per share on revenue of $443.67 million.

  Mead Johnson Nutrition Company (NYSE: MJN) is estimated to report its Q3 earnings at $0.80 per share on revenue of $998.82 million.

• [By John Udovich]

  Despite�a slow global economy and continued high unemployment in many countries, small cap payday or pawn stocks Cash Store Financial Services Inc (NYSE: CSFS), DFC Global Corp (NASDAQ: DLLR) and Cash America International, Inc (NYSE: CSH) have not exactly been performing well since the start of the year. In fact, these three stocks are the worst performers in the payday or pawn loan sector, down 38.5%, down 14.4% and up 4.6%, respectively, since the start of the year.

Top Penny Companies For 2014: Allied Motion Technologies Inc.(AMOT)

Allied Motion Technologies Inc. designs, manufactures, and sells motors, electronic motion controls, and gearing and optical encoder products. It offers brushless and brush direct current (DC) motors, drives, and control electronics comprising servo motors, frameless motors, torque motors, and high speed brushless DC motors for semiconductor manufacturing, industrial automation, medical equipment, military, and aerospace markets. The company also provides high resolution encoders, precision high resolution servo motors, and integrated motor/encoder assemblies to the aerospace and defense, telecommunications, semiconductor, and scanning equipment manufacturing markets. In addition, it offers fractional horsepower permanent magnet DC and brushless DC motors for original equipment applications in various markets, such as trucks, buses, boats, RV's, off-road vehicles, health, fitness, medical, and industrial equipment; and fractional and integral horsepower geared motion solut ions to original equipment manufacturers (OEMs) in the commercial and industrial equipment, healthcare, recreation, and non-automotive transportation markets. Further, the company provides motion control technology comprising integrated power electronics, digital controls, and network communications for motor control and power conversion; reduction gearboxes for dialysis equipment, industrial ink jet printers, cash dispensers, bar code readers, laser scanning equipment, fuel injection systems, HVAC actuators, waste water treatment, dosing systems, textile manufacturing, document handling equipment, and studio television cameras; and drive electronics, software, and mechanical processes to OEM customers in industrial, commercial, and medical applications. It distributes its products through its sales force, independent sales representatives, agents, and distributors primarily in the United States, Canada, Europe, and Asia. The company was founded in 1962 and is headquartered in Englewood, Colorado.

Top Penny Companies For 2014: Community Bank Shares of Indiana Inc.(CBIN)

Community Bank Shares of Indiana, Inc. operates as a bank holding company for Your Community Bank (YCB) and The Scott County State Bank (SCSB) that provide personal and business banking services in Indiana and Kentucky. Its deposit products include non-interest and interest-bearing checking accounts, savings accounts, money market accounts, certificates of deposit, and individual retirement accounts. The company also offers various loan products comprising commercial business loans, commercial real estate loans, residential real estate loans, and construction loans, as well as consumer loans, such as home equity lines of credit, auto loans, home improvement loans, and loans secured by deposit accounts. In addition, it also offers non-deposit investment products, which include stocks, bonds, mutual funds, and annuities. The company, through its subsidiary, YCB, provides its services through operating a main office and 11 branch offices in Clark and Floyd Counties, Indiana; and 5 branch offices in Jefferson and Nelson Counties, Kentucky, as well as through its subsidiary, SCSB, operates main office and 3 branch offices in Scott County, Indiana. Community Bank Shares of Indiana, Inc. was founded in 1937 and is headquartered in New Albany, Indiana.

Top Penny Companies For 2014: (POSC)

Positron Corporation operates as a molecular imaging company providing nuclear medicine technologies and services that are used in the field of nuclear cardiology. The company, through its proprietary PET imaging systems and radiopharmaceutical solutions, enables healthcare providers to accurately diagnose disease, and improve patient outcomes while practicing cost effective medicine. Its proprietary product lines and services include the Attrius, a dedicated PET imaging system; PosiStar, a clinical, technical, and service customer care plan; and PosiRx, a system that automates the elution, preparation, and dispensing processes for radiopharmaceutical agents used in molecular imaging. The company was founded in 1983 and is headquartered in Fishers, Indiana.

Top Penny Companies For 2014: Summit State Bank(SSBI)

Summit State Bank operates as a community bank in Sonoma, Napa, San Francisco, and Marin Counties in California. It offers deposit accounts, such as transaction accounts, money market accounts, savings accounts, time deposit accounts, business checking accounts, time certificates of deposit, sweep accounts, and specialized deposit accounts, including professional, small business packaged, and tiered accounts for larger deposits, and Keogh and IRA accounts. The company also provides commercial and industrial lines of credit and term loans, credit lines to individuals, equipment loans, real estate and construction loans, small business loans, and business lines of credit; consumer loans, including auto loans, mortgage loans, home improvement loans, and home equity lines of credit; and loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs. In addition, it offers banking by appointment, on line and telephone banking services, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier services, safe deposit boxes, night depository facilities, notary services, travelers? checks, lockbox, and banking by mail. Further, the company, through its subsidiary, Alto Service Corporation, provides deed of trust services. It serves small-to medium-sized businesses, professionals and professional associations, entrepreneurs, high net worth families, foundations, estates, and individual consumers. The company operated five offices in Santa Rosa, Petaluma, Rohnert Park, and Healdsburg. Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.

Top Penny Companies For 2014: Fushi Copperweld Inc.(FSIN)

Fushi Copperweld, Inc., through its subsidiaries, develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum (CCA) and copper-clad steel (CCS). Its CCA and CCS conductors are used as a substitute for solid copper conductors in applications where specific electrical or physical attributes are necessary. The company markets its products under Copperweld and Fushi brand names. It primarily serves end-user applications in the telecommunication, electrical utility, and transportation markets. The company?s CCS products in the utility market are used in grounding applications, power cables, electrified railroad tracks, and tracer wires. It?s CCS and CCA wires in transportation market are used in original equipment and aftermarket applications for electrified rail applications, as well as in automobiles, trucks, motorcycles, commercial off road equipment, and trailers. The company sells its products through its direct sale s force, as well as through sales agents or distributors primarily in North America, Europe, North Africa, the Middle East, and the People?s Republic of China. Fushi Copperweld, Inc. is based in Beijing, the People?s Republic of China.