I monitor our chat room on a regular basis and see many penny stocks being talked about.  Some are great companies that are making a stop in penny land before they ascend to Nasdaq or better, some will be penny stocks forever and some are downright toxic.  The challenge for any penny investor is to determine which category their stock is in.  If you are a nimble trader, you can make money with any type of stock.

A stock that seems to be getting a great deal of attention on the web is EXPO HOLDINGS, INC. (EXPH). The general consensus is that it will go up…..however, there doesn’t seem to be too much confidence behind that consensus.  I think this should be a radar stock for tomorrow based upon the buzz and also the company itself.

EXPH’s focus is to become a holding company, to acquire and develop companies that sell products in the retail sector. One division, D & D Displays, is a manufacturer of display fixtures for retailers like Lowe’s and custom cabinetry for retail sales.  The second (from the EXPH website) is 1st Choice Closets.  I am not sure how this company fits in with their latest press release about a new website (easytoinstall.com) and a new line of products that will be unveiled next month.  In the absence of any concrete evidence, all I can say is that is appears that company management is making some good moves.  Whether they will pan out remains to be seen.

Here is the chart:

The chart appears to contradict itself in several ways. The MACD, while above the zero line, is below the signal line and showing bearishness.  However, the angle is decreasing as you can see from the histogram and if it turns could change to a bullish indicator quickly.  The Stochastics are indicating that EXPH is oversold and that might help the stock to rebound in the short term.  EXPH is trading above both its 50 and 200-day MA.  The small cap  stock is trading at the lower range of the Bollinger bands and could turn either way very quickly.

Bottom line: This stock may have a run in it.  Be careful if it gaps up at open.   This is not a good penny stock stock to chase.  I have read comparisons of EXPH to SPNG and that is laughable.  This is a not a financially strong company with a lousy capital structure like SPNG.  EXPH has only minimal revenues and no strong brand  and has to prove a lot before they can be considered a SPNG-like stock.

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