Can Amazon (AMZN) Boost Penny Stocks?

Big news this week in the tech industry… Kindle Fire is coming!

Online retail powerhouse Amazon.com (AMZN) just announced their new line of Kindle products.  In case you aren’t familiar with Kindle, it’s an e-reader, used for viewing books and other publications in digital form.

Kindle is already wildly popular.  In fact, Amazon recently said they sell more e-books than physical books.

At a conference this week, CEO Jeff Bezos unveiled a series of brand new Kindle products, in all shapes and forms.  But the real doozy of the bunch is Kindle Fire – Amazon’s new tablet device.  It’s the company’s answer to Apple’s (AAPL) iPad.

So what makes Kindle Fire so special?

The price.

The product is set to ship November 15^th for a mere $199.  That’s less than half the price of the iPad, which starts at $499.

What’s more, Kindle Fire utilizes Amazon’s robust cloud computing capabilities.  You see, you’ll be able to store all of your digital content on Amazon’s cloud… for free.  Essentially, it means Kindle Fire has unlimited memory.

And while the gadget is far cheaper than the iPad, it’s not a cheaply-made product.  It sports a dual-core processor and a screen with a better pixel ratio than the iPad.  Sounds impressive, right?

Here’s the thing…

I think Amazon can revolutionize the retail industry with Kindle Fire.

The iPad turned the tablet PC into a mainstream product.  But it will be Kindle Fire – and its far more affordable price – that will make tablet PCs as commonplace as smartphones.

Okay, so what does all of this have to do with penny stocks?

If Amazon is truly able to turn tablets into must-have items, there’s going to be plenty of opportunity for other businesses to enter the fray.  There are all kinds of complimentary products connected to the tablet PC market.

You can already find a number of companies selling apps and accessories for the iPad and other existing tablets on the market.

Several of these companies are penny stocks.

As Kindle Fire inundates the market, more and more of these penny stock companies could spring up.  They’ll all want a piece of this massive pie.

Here’s what you can do now…

Start scanning the technology and retail industries for penny stock companies who could benefit from the launch of Kindle Fire.  Apple may have been the trailblazer, but Amazon might very well be the one who paves the road.

Yours in profit,

Gordon Lewis

Tags: AAPL, Amazon, AMZN, iPad, Kindle Fire, tablet PC

Category: Investing in Penny Stocks, Penny Stock Tips