The Casual Investor
Investing tips for those who are not yet rich
Stock Pick 1/21/2008: BNX

Today's stock pick, in keeping with the rumor of a potential tech rise, is Banks.com (BNX).  This microcap has good values for its financial strength ratios, and its average price ratio is 6.565, with a price-to-sales of 0.93.  Banks.com recently acquired several online investment assets, and their price is currently at the low end of the charts.  Their website is www.irs.com, which as they clearly state is different from www.irs.gov.


A few things worry me about this stock.  One is, how is their website related to their business?  Two is, what exactly is their business?  Three is, what were the charts for this stock before it changed its name on 11/28/2007?  Four is, will the price fall below $1.00 and get the stock delisted?  Five is, will the acquisitions cause the stock price to rise?


A lot of things about this stock are worrisome.  However, it's a stock worth watching nonetheless.  Even though it has so many potential pitfalls, this stock is poised to gain value if it can overcome all of them.  Wait until it gets past one or two of its obstacles, and then consider buying.  It's probably okay to wait until the price goes up to at least $2.50 before getting in.

2008-01-22 02:03:44 GMT


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