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If you live anywhere near Los Angeles, New York, Chicago — or any other metropolitan area, for that matter — chances are you’re pretty sick of traffic. But have no fear… This month’s latest penny stock could provide the ultimate traffic congestion cure and offer significant stock profits this year.

These days, traffic congestion in the United States has become a serious problem. The average American spends more than 100 hours commuting each year, according to the U.S. Census Bureau, a fact that’s particularly telling given that the same average American spends only 80 work hours on vacation.

Those hours add up in a big way. Ten years ago, Americans spent a total of 3.6 billion vehicle hours at idle — a number that’s been climbing steadily as congestion continues to rise. Now that wasted time sits at 4.2 billion hours. All of that waiting around lends the question: How much would you be willing to pay for a shorter commute?

The truth is that you’re already paying for the privilege of sitting in traffic. Between the billions of gallons of fuel and staggering hours of lost productivity, traffic congestion cost Americans $87.2 billion in 2007. In big cities, where bottlenecks and accidents are rampant, the Texas Transportation Institute currently estimates that the average driver ends up paying out an extra $1,084 every single year in lost productivity and fuel.

There are a number of reasons traffic congestion is getting so far out of control. For starters, a growing population is taxing an already full national highway system, and new infrastructure spending just can’t keep up. In the Texas Transportation Institute’s study, the organization determined that only 10% of urban areas were able to expand capacity at the same rate as traffic growth.

Another factor is the drivers. Tailgating and excessive lane changes have been shown in studies to worsen the problem of congestion — as do the accidents that can ensue from these habits — but it’s nearly impossible to police those behaviors on a large scale.

That’s where this month’s latest Penny Stock Fortunes play comes in. This small firm provides a bevy of products and services for the undersaturated traffic management market. The company operates in three distinct product lines that treat both causes of congestion: roadway sensors, vehicle sensors and transportation systems.

Tackling Traffic Congestion on All Fronts

One of the largest problems in the U.S. highway system is inefficiency. Our latest company’s transportation system segment works with government at all levels and private design companies to build more efficient roadways.

Part of this process involves the most important segment: roadway sensors. At some point, you have probably driven over an in-ground sensor at an intersection. This will tell the stoplight it’s time to turn green. This has done wonders for efficiency in cities.

Unfortunately, these types of sensors are susceptible to failure. After years of wear and tear, these sensors stop working the way they should. Our play is working with thousands of cities and businesses to implement its image-processing systems to replace these older less-efficient ones.

The company also puts cameras up at intersections. Its patented camera systems can detect vehicles, speeds and even occupancies. These systems are gaining popularity around the world, and they are proven to reduce accidents and even pollution from idling engines. And the firm estimates its products can reduce fuel consumption and pollution by 11% — not to mention the 12% they reduce average travel time.

Some vehicles offer a tiny detector that will make a beeping sound inside the car to warn the driver of an object (or person) in its path when it is backing up.

Our latest pick developed a similar technology for use on the highway. If you slip out of your lane, it can produce either a vibration (like a rumble strip’s) or a beeping sound. This vehicle sensor technology is already becoming popular among trucking companies.

But the technology doesn’t stop there. The company’s vehicle sensor segment reduces congestion by helping to avoid driver-fault accidents through forward collision, blind spot detection and lane departure warning systems that tell drivers when they’re being unsafe. These products take aim at the 3.6 million crashes each year that stem from rear-ending, lane changes and roadway departure.

Ultimately, we see considerable growth potential in this tiny stock’s traffic congestion cure. Penny Stock Fortunes readers got the full details on this stock earlier this week, but it’s not too late to make a move on this play. To learn how we use our CXS Money Multiplier system to scientifically select small-cap stocks — and to get the name of this company — click here…

Sincerely,
Jonas Elmerraji
Managing Editor, Penny Sleuth

March 18, 2010

Jonas Elmerraji

A big-four public accounting alum, Jonas Elmerraji brings his readers extensive expertise in small-cap stocks and broad market moves. Elmerraji’s interest in the market started with an investing course in elementary school – today he holds a degree in financial economics from UMBC and specializes in blending fundamental and technical analysis. Elmerraji has contributed to Forbes, TheStreet.com, and Investors Business Daily among others. He is managing editor of the Penny Momentum Trader, and a co-editor of Penny Stock Fortunes.

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