Is This Penny Stock Safer Than Your Bank?

Some penny stock investors thrive on a weak economy. There are also those penny stock investors that eschew risk and prefer to park their money in so-called “safer investments.” For some, that means Treasury bonds and Certificates of Deposit (CDs).rnTreasuries are government-backed investments with a stated interest rate paid out semi-annually. The interest rate (normally) decreases with greater demand for the bonds and rises with lower demand. After the markets crashed in 2008, interest rates on 10-year Treasury bonds were the lowest in history, because economic conditions were deteriorating and investors needed low-risk investments.rnAnd by “low risk,” I do mean low risk: your return is almost non-existent. A one-year Treasury bond, today, yields 0.2%; a three-year bond yields 0.4%; a five-year yields 0.7%; and a seven-year Treasury will give you a 0.1% return. (Source: Bloomberg.com.)rnSome investors are also turning to CDs. Offered by banks and credit unions, CDs are insured and virtually risk-free. However, while your money might be safely parked in the bank, the returns are dismal. The national return averages for one-year, three-year, and five-year CDs are 0.7%, 0.9%; and 0.4%, respectively.rnIf you’re having difficulty forgetting the economic crash triggered by the big banks and want to realize a larger annual return, you may want to direct your attention to Artio Global Investors, Inc. (NYSE/ART).rnArtio Global offers equity and fixed-income strategies, including international equity, global equity, high-grade fixed income, high yield, and local emerging markets debt.rnBased in New York City, with offices in Los Angeles, Toronto, London, and Sydney, Artio Global has assets under management of $18.1 billion. The company has over $61.0 million in cash, levered free cash flow of $67.5 million, and total cash per share of $1.04.rnWhat makes this asset management penny stock more attractive than some government or bank offerings? Artio Global pays an annual dividend of 2.5%—that’s head and shoulders above the annual returns of both government-backed treasuries and bank-secured CDs.rnSome penny stock charts can be deceiving. While Artio Global’s share price slipped lower over the spring, it has stabilized since June. Further, it has found strong support near $3.00 and tested resistance near $3.40. Since June, every time this penny stock’s share price retraced to its support level, it rebounded higher within its trading range.rnWith strong fundamentals and a continuing 2.5% annual dividend, Artio Global has been darting around a nice tested range. Furthermore, insiders hold an impressive 49.0% of the company. With that much of a stake, the company’s executives and its board of directors have a vested interest in actually seeing the company rebound. As a result, even though Artio Global is sitting near its all-time low, it continues to have great upside potential.