"HOT Penny Stock Recommendations"
by Stock Trader 101

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The other day I sent an email warning that for the first time in 2 months Doubling Penny Stocks would be releasing a new stock pick recommendation.

One of your main concerns, was how to best take advantage of stock picks, since they were being sent out less frequently in the current financial market.

My recommendation is that you concentrate your investing efforts on stocks that somehow take advantage of the current financial situation.

The US financial markets have started to crumble in the past 6 months. This panic is coming to a head now with the media coverage of the $700 billion government bailout. We saw the largest fall in the DOW since 9/11...

Though as always this torrent of bad news caused panic selling. The market vastly overreacted, and now has already started to rebound. In fact, on Friday, the DOW gained 122 points in a single day.

But the markets crumbling has another effect. Gold, often bought as a currency hedge, typically moves opposite to the dollar. With the crumbling US economy, gold has soared in recent weeks, having the largest ever one day price advance last week, a staggering 17% gain. And most experts are expecting Gold to hit $1000 an ounce for the first time, as the yellow metal continues to offer investors a safe haven from volatile financial markets and supply remains tight.

This type of strongly held sentiment, almost always becomes a self-fulfilling prophecy. But, as I told you the other day, I almost never recommend the buying of a commodity outright.

A better way to leverage your money is to invest in a stock which will benefit strongly from the higher commodity price...

Since the markets have currently been driven down, largely by unfounded panic selling. Many stocks are already undervalued.

And with the expected increase in the price of Gold, I expect gold stocks to soar for two reasons. Firstly they will experience greater profit margins and increased revenues due to a higher price of Gold. And secondly with all the media attention on Gold, these stocks will be watched by a far greater amount of investors.

And these two factors have made way for a remarkable opportunity since the markets have started to rebound after their drastic fall. And combining this market rebound with a strong Gold company I believe this could produce a double gain.

For these reasons, I believe just about any Gold mining or refining stock is a good bet at the moment... But for the last two months, I've been watching one particular Gold company, very closely. And there is one big reason, I believe this Gold company will do very well over the next few weeks.

But let me explain why...

Many mining companies over exaggerate the prospects of their properties. To be sure this company was not one of them, a local geologist hand panned the area, and took 6 samples back to the laboratory. The results showed in one sample, Gold was present to the amount 298 grams/tonne gold.

This level of Gold was higher even than the company themselves had sampled. It was at this point I started to become very interested in this small mining company!

But, before you get excited. Finding Gold is not the only thing required to be a successful mining company. If the gold proves expensive to excavate, or government controls in the area raise costs... Profit can be quickly swallowed. But luckily for me, having a good mining property is not where the surprises ended. This company also had a foolproof business plan:

This companies' business plan revolves around keeping costs extremely low. This is quite unheard of in the mining industry, where companies often invest millions before a profit is shown. And here's how they do it:

The companies' management team, is a group of 3 experts with a combined 49 years experience in the industry. They are extremely good at using their contacts and experience to find viable mining properties. Testing a property, for gold can be done cheaply and quickly... Yet once gold is found the property is worth exponentially higher than what it was bought.

This companies business revolves around spending time, and little money finding mining properties with gold. Once gold is found, this company will not excavate the mine. Instead, they will find a local company to partner with in a Joint Venture. The local company then finances all excavation of the mine, all refining of the gold, and all for a share of the profit.

This hands off approach to mining, allows this company to leverage their management's experience in finding viable mines... While keeping operating costs remarkably low, such that the company minimizes their chance of ever hitting financial trouble.

I believe this Gold company has great long term potential. But combine that with the fact that I believe almost any Gold company will do well in today's market... I am extremely excited to watch this stock trade over the coming weeks.

However; before I told you there was one big reason I believed this specific Gold company would soar over the coming weeks, earlier today a reputable investment research firm, whom analyzes and produces reports for almost every US security has predicted the following price movement for this penny stock.

Sep-28 (08) $0.65 (current price)
Oct-31 (08) $2.068
Dec-26 (08) $3.005

This investment research firm is regarded as one of the most accurate research companies and service some of Wall Street's leading research departments. Hedge funds, value investors, and day traders all place their trust in this independent research firm. And they have rated, this stock pick a "Buy", claiming they expect the stock to climb from $0.65 (current price) to over $2 by the end of next month and over $3 by Christmas.

This report is published and sold by Yahoo Finance. And is available to purchase, under "Research Reports" for this stock on Yahoo.

This independent report only backs up my belief that this company is everything I believed it to be. And I believe this stock to have great potential, and one of the few stocks that could make outstanding gains in this kind of market.

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