Penny stocks anyone?

I've been researching RHWC for the last few days and this one is a strong speculative buy.

This is one of those stocks that can multiply your return. I am quite tired today and so I won't be writing a long piece on this. It just got into the most feared business of sub-prime mortgage lending but in Canada. When the market expects the worst in a business area is when you find great deals.

This is a penny stock at 11 cents. Returns will multiply quickly if they can pull it of. Canadian real estate has done very well over the last year and expected to continue to do well. Big Canadian banks are washing their hands of the sub-prime business after watching the US debacle. Sub-prime is a valid business model and this is the perfect way to benefit from it. Look at how you can avoid high risks by going through this analyst report.

http://www.beaconequityresearch.com/report/RHWC.pdf

The company is projecting a net income of 15 million for 2007 and expects profits in the third quarter. Hmm.. I think it's a difficult ask. Having said that, their Market cap is 9.6 mil. Surely, if it makes even a fourth of their expected income, the stock is way underpriced.

And you thought I'd never recommend a penny stock :)