Today I’m going to Piggy back off Thursday’s post about penny stocks. As I mentioned earlier I personally have invested in penny stocks and I currently own 1 at the moment. The company I own is COSI Inc. (COSI)
Cosi is in the restaurant business. There top competitors consist of Panera Bread and Starbucks to name a few. Cosi is very similar to Panera Bread (which is one of my favorite places to eat), but offers a different taste and the atmosphere is pretty upbeat. Lunch time is extremely busy and you will tend to see a lot of business people partake in the Cosi experience. The clientele is different than Panera and that may be due to the higher prices of the food. Cosi is strategically located in high traffic areas and are found in larger populated cities.
The reason I purchased this stock is the first time I ate there I could see the potential. The food was great and the lunch time rush was outrageous. I remember back when Panera was just popping up all over Michigan I would watch Panera stock like a hawk. That was back in 2002 when PNRA was trading in the mid 20’s. At the time I was in my first few years of college and was broke as a joke so I was unable to benefit financially from Panera’s success. Sure enough Panera is successful to this day. After a little research I see that Panera was trading under $5 from 1995 until about 2000. On Friday Panera closed over $76 a share. A $1,000 invested at $5.00 a share would be worth over $14,000 today. Now that’s what I’m talking about! This is the reason I invest in so called penny stocks.
If Cosi can produce at least half the performance Panera Bread did over the year’s I will have an extraordinary gain in this stock. With 143 locations in 18 states Cosi has the potential to grow throughout the United States. Now that the economy is on the mend I see Cosi benefiting from increased spending in dining. The fact that this small company was able to weather the storm in a terrible economy speaks volumes. With the recent positive news of increased same store sales this may be a turning point for Cosi. Although still not profitable I still have confidence in this small company. With a market cap under 43 Million and a small amount of trading volume this stock is extremely volatile. If you’re going to buy a stock like this please be patient and realize this is a high risk investment. Never invest more than 20% of your portfolio in a speculative play.
Today wasn’t meant for a recommendation to buy Cosi. It’s just an example of a personal penny stock holding. I do however personally like the potential outlook in the long term. Today’s post was to endorse the idea of penny stocks. It’s the chance to hit it big. A long shot! A lottery ticket! Excitement! That’s what I get by owning Cosi. A chance that my small investment will pay off huge in the coming years. This is the wow factor of investing. A reason to continue the journey of financial freedom!
Thank You,
Clay-
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