Penny Stocks: A Love Story

Dare I say, there are some people out there who, despite all the rave reviews, may actually skip seeing the latest (insert actors names here) romantic comedy. That's a shame too...for there have been some romantic gems that have stood the test of time...and are a historical snap shot.

For example, lest we forget the 1970 tear jerking classic Love Story with Ryan O'Neal and Ali MacGraw. Who could forget the star-crossed couple, Jenny Cavalleri in her penny loafers and Oliver Barrett IV in his wool sweater, walking across Harvard campus talking about their relationship.

Ultimately, Jenny is diagnosed as terminally ill when she is tested for pregnancy, and dies in Oliver's arms at the hospital. In one of the final scenes, before Oliver walks across a snowy Central Park, he quotes his late wife, "Love means never having to say you're sorry."

If only, you say, there was a tragic love story meant for the soft hearted CEO's on Wall Street. The kind of romantic movie that makes financial analysts reach for their monogrammed hankies. A cinematic triumph that makes the average penny stock investor stand up and shout, "Someone should do more than say they're sorry!"

The wait is almost over.

Michael Moore unveiled the title of his latest polemic. Capitalism: A Love Story, focuses on "the current global economic meltdown, controversial Wall Street bailouts, and corporate malfeasance."

Billed as a tale of forbidden love, the movie charts the unchaperoned romance that flourished on Wall Street, using the genre's hallmarks to examine the causes of the global economic recession.

"It will be the perfect date movie," he said. "It's got it all -- lust, passion, romance and 14,000 jobs being eliminated every day. It's a forbidden love, one that dare not speak its name. Heck, let's just say it: It's Capitalism."

According to Moore, the new film is about "the disastrous impact that corporate dominance and out-of-control profit motives have on the lives of Americans and citizens of the world. But this time the culprit is much bigger than General Motors, and the crime scene far wider than Flint, Michigan."

While many will peg the movie as a leftist rant, ultimately "Love Story" will be the kind of documentary that Moore shines at; it will leave audiences divided on their interest in and their response to its content.

Sure it will be an indictment on capitalism. Would you expect anything less from Moore? Conversely, do you really expect Bill O'Reilly or Ann Coulter to give you a listening ear or a soft sensitive shoulder to cry on? We all have rolls to play, and those three fill their shoes perfectly.

Having said that, not everyone or everything financial has followed the current recession in stride. There are a vast number of penny stocks that have been, fortunately, bucking the trend.

I know I mentioned this company recently, but Norsat International (NSATF - OTCBB) released exceptional second quarter and year-to-date results. Second quarter revenues were up 23%, earnings were up 100%. Revenue for the first half of the year climbed 43%; earnings for the first six months of 2009 were $1.1 million or $0.02 per share compared to net earnings of $0.1 million or $0.00 per share for the same period in 2008.

"I'm pleased with the second quarter results, which showed a 23% increase in revenues along with another quarter of profitability, despite the large foreign exchange loss caused by the rapid strengthening of the Canadian dollar relative to the United States dollar," said Dr. Amiee Chan, President and CEO.

In May, Accelrys, Inc. (ACCL - Nasdaq) announced that full year revenue increased 2% to $81.0 million. Net income slipped to $100,000, or breakeven per share; in 2008 ACCL reported net income of $1.3 million, or $0.05 per share.

"We are pleased with our year end results from both a financial and operational standpoint particularly in light of the worldwide recession," said Todd Johnson, Interim President and CEO. "We achieved profitability on both a GAAP and non-GAAP basis for the year and increased our cash balance by $5.4 million."

I'm sure Michael Moore isn't all that concerned about the world of penny stocks. Or maybe he is...or should be. After all, there are a lot of average Americans investing in penny stocks.

And, on October 2, when the movie comes out, chances are good that I'll be in line with a fellow penny stock investor. The CEO's of AIG, Chrysler, and Citigroup probably won't be. And we all know Bernard Madoff can't be.

Disclaimer: John Whitefoot does not hold positions in any of the penny stocks mentioned.