Hershey And Twitter – Why We Give These Stocks A “Buy”

PennyStocks can be quite volatile. And some investors and traders find themselves bilked by the scams and schemes many of these companies run. It can be rather difficult to sort out the gobblety-gook that they call “news” and “PR.” With that said, many investors have been rushing to safer stocks, such as your well-known “Blue Chip” stocks that Warren Buffett so strongly advocates. Good companies, with strong earnings, valued below their book, and possessing a respectable dividend. Stock Market Monitors has a couple picks we would like to share with you to help you in picking some stocks for your portfolio.

Our first stock, albeit no dividend paid, is Twitter, stock symbol TWTR. If you invest, and you haven’t heard about TWTR, you’re likely misinformed, or living under a rock. TWTR has been gaining much attention lately since the recent CEO decided to step down paving way for fresh blood to take the reigns. In the interim, TWTR appointed a temporary CEO and a full-time panel to search for their next great leader. Problem is — how can the company monetize all those billions of eyes using its site.

Twitter is great. And if you’re reading this article — chances are you may even have a  Twitter account. But how much did you pay for it? Or how much do you contribute to Twitter’s bottom line? And that is precisely the problem. The stock’s price has seen a massive drop from over $50 to under $35 within a years time having just struck its 52-week low. TWTR came up big today — up over 4% at the moment above 36.10 a share. Plus, buzz about Google, Inc. (GOOG) or Facebook, Inc. (FB) possibly buying out TWTR is a real possibility. As Wall Street says, buy on the rumor sell on the news. And TWTR at $36/share is a steal in our book. Investors can easily hold for a 25-50% pop assuming positive news is released on the company. Keep an eye on this stock or simply add some to your portfolio and watch what happens.

Our other stock of interest at the moment is Hershey, Inc (HSY). Hershey came out today and announced that they are slashing their forecast on sales overseas slightly. Of course, the stock over-reacts as Wall St. typically does and the stock has seen a drop over 3.5% in todays session alone. Keep in mind the stock has a beta of just .24 over 5-years — which isn’t very active at all. Major analysts reiterate their “Hold” rating on the stock and price targets of anywhere in the $100 ballpark. At the moment, HSY is selling at $89.21 a bargain from its prior high of nearly $110 bucks a share. Given the intrinsic value of the stock, we see much upside potential for HSY. That’s not to say risk isn’t inherit in holding.

Obviously with this uncertain time, a number of things can happen. And HSY is a stock that tends to react to market environment. That being the case, buy at your own risk. However, for a long term hold in a major world company which pays a respectable dividend, scoop up some sweetness at these low levels while you can get the stock on sale. Do as Warren Buffett says, buy your stocks like you buy your groceries, on sale. Today is just the sale for HSY which is why investors and traders are seeing such a spike in the volume today as the stock has already traded 3.2 million shares as of 1:44 P.M., EST and sits on an average volume of 979k.

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