Is LUXR a great Investment or just another Penny Stock?

All I've been hearing lately is get into "Flash Sales Site" stocks such as AMZN (Amazon) or LUXR (LuxeYard). AMZN is way too expensive, but it's a really great company. LUXR is a really cheap stock, but is it really a great company to invest in? If you haven't heard, LuxeYard is a new members-only site offering customers cheap deals on luxury home items. In fact, LuxeYard is so new that it launched in January, and get this, in April it hit 600,000 members. LuxeYard expects to reach the one million member mark by June. What does that say to me? They're doing something right. It took Facebook about 10 months to achieve 1 million users, while this small Flash Sales site might do it in half the time.

LUXR stock chart showing price, volume, MACD, stochastics and RSI.

LUXR is a penny stock at the price of $1.84 as of today's close. It hit a high of $2.32 on May 8th, that's over 100% and in such a short time. Looking at the chart above we can see that LUXR has hit the lower trend line that I drew in and it has hit the upper trend line perfectly for the passed month. When only paying attention to the lower trend line touch, I would expect the stock price to pop right back up. But when we focus on the other indicators, stochastics, RSI and MACD it tells a different story. With LUXRs recent rally, and its overbought status we can expect the price to come down even lower than what's plotted with the lower trend line; somewhere between $1.40 and $1.60. Don't get me wrong though, no one can predict future stock prices. I use my indicators in the chart to try and predict what's to come in the future; and it is tough to do with penny stocks.

Enough of the technical analysis talk, let's get into what LuxeYard is actually doing that could increase the price of this stock. First off, LuxeYard is acquiring companies left and right to add to its arsenal. Just yesterday LuxeYard acquired LeatherGroups.com, adding more merchandise to its database for sales. The CEO of LuxeYard created an acquisitions team, which can only mean they are eagerly trying to expand their company to make more money. Speaking of acquisitions, LUXR might just be a takeover target itself if it continues doing great things; which would blow this stock up!

So is LUXR a good stock to get in right now? I would say, it is a great opportunity to get into but there is some risk involved. I personally got into this stock yesterday and I am already down some, but I have a strong belief that LuxeYard can stay profitable and grow its business over time. Do your own research and you will be rewarded!

So what do you think, will LuxeYard make profits and drive stock prices up? Are you going to get in early while the stock is still cheap? Let me know in the comments section below.

 LVS stock analysis in my new blog post!