How Schick And Birch Made It Massive
You most likely went into penny stocks investment as a result of a good friend of yours crude oil live price on mcx hit it big time. Or a relative who lately doubled his property wouldn’t cease talking about penny stocks during your last reunion that you simply just had to test it out.
Are penny stocks a boon or a bane Whereas penny stocks have created immense wealth for many individuals, many have additionally misplaced it all. What’s the key to skyrocketing versus plummeting Let’s take a look at two success stories of penny stocks which have graduated to the large-boys market.
Schick Applied sciences
Schick Technologies (NASDAQ: SCHK) makes a speciality of manufacturing digital dental X-ray gear. A decade in the past, Schick was a struggling firm listed on crude oil live price on mcx the Pink Sheets. Digital radiography was at its infancy back then but confirmed plenty of promise.
It was thought-about a breakthrough in the medical and dental professions as a result of it enabled technicians to view the x-ray on computer displays in actual time, in contrast to typical x-ray movies that needed long hours of chemical baths to develop. Digital x-ray machines also don’t expose patients to high doses of radiation as standard radiography would.
Startup firms like Schick had reason to be fidgety. Will digital radiography eventually understand its potential when it was too much of an added expense to dentists Or will the dental insurance coverage industry settle for digital radiographs for claims processing The largest query is will Schick have the muscle to problem established trade giants similar to Kodak
While questions on the way forward for the company had been many, Schick had a strong marketing strategy and stable government management. Slightly than pumping the inventory, as many penny inventory corporations do, Schick centered on enhancing their product and enhancing productiveness.
When revenues decreased significantly in 2000, the corporate reduced its sales and research employees and applied tighter credit policies with non-supplier clients. These measures allowed Schick to scale back its debt from $5.6 million to $9000.
With unhealthy debt out the window, Schick slowly expanded to wireless digital sensors and fully built-in digital panoramic radiography devices. Higher merchandise enabled Schick to quietly set up reserves of $49 million and $60 million in working capital.
In 2005, Schick merged with Sirona Dental Programs. The next yr, Schick modified its ticker symbol to SIRO and turned a full-fledged member of the NASDAQ fraternity with a inventory price exceeding $forty.
Birch Mountain Enterprises
Birch Mountain is a Canadian firm that holds mineral rights to nearly 1 million acres of land containing tar sands. While pumping liquid oil is less expensive than converting tar sands to oil, the trend is beginning to alter with the current spike in crude oil prices.
Tar sand mining and extraction applied sciences have improved, considerably decreasing production costs. And because Birch Mountain has fresh, untapped aggregate reserves, it’s poised to be the only aggregate provider in the region when different quarries run dry in lower than 10 years.
Birch Mountain also has a unique advantage relating to quicklime, a crucial agent in changing tar sands to usable oil. Birch’s nearest competitor is located over 550 miles from the tar sand area, and the decreased transportation prices might save Birch’s customers $85 per ton.
While Birch Mountain started trading round twenty cents, it has enjoyed substantial beneficial properties, at one time experiencing a 4800% rise in three years! BMD has moved up to the AMEX from being a penny stocks company at the OTCBB. Birch Mountain, with its market capitalization of over half a billion dollars, has come a great distance from its humble origins as a previously unknown penny stocks firm.
Nir Dotan is a author and promoter of
Penny Stocks Most popular source for the most recent information and data on the most effective and brightest Penny Stocks Funding.