RHXI Alert: Financial Services and Penny Stocks
One of the lessons of the financial crisis that cannot be ignored from a penny stock investor’s perspective is that for far too long investing in the financial sector meant investing in a limited number of companies. There is not a wide selection of penny stock picks in this sector, so for many small cap investors trading in the financial services sector means owning shares of an investment bank or having to turn to a giant retail bank like Bank of America (NYSE: BAC) or JPMorgan Chase (NYSE: JPM). Those two names are among the most widely held large cap stocks in the U.S., but just because a lot of people own a stock doesn’t mean it’s a good stock to trade and invest in.
Another point worth noting is that penny stock investors should not define the entire financial services sector as just a bunch of banks and brokerage houses. One corner of the financial services universe that holds plenty of opportunity, but doesn’t garner a lot of headlines is payment processors many of which are penny stocks. Perhaps you’ve heard of companies like Global Payments (NYSE: GPN) and Heartland Payment Systems (NYSE: HPY). Those are two of the bigger players in the world of payment processing, but there is a Finnish company that might just have something to say about the future shape of the payment processing landscape, and it is available as a penny stock pick.
Rahaxi Inc. (OTCBB: RHXI) may be a small cap stock, but the company has the potential to reach large heights in 2010. Investors have taken note to some degree as the stock trades an average of over 1 million shares a day, an impressive total for a penny stock company of this size. But that isn’t the statistic to focus on. The Company said it processed 2.4 million payment transactions in October 2009 and 2.2 million transactions in November 2009, up from 1.8 million and 1.7 million, a year earlier, respectively.
Those are impressive gains to be sure and they could portend more positive catalysts are on the horizon for Rahaxi this year. As small cap investors hunt the market for penny stock picks with future potential, RHXI should remain on the penny stock watch list.
For additional information on Rahaxi, Inc. (OTCBB: RHXI) visit http://www.stockorange.com/rhxi
For hot penny stocks, daily small cap alerts, and stock market news alerts visit http://www.stockorange.com
