Archive for September, 2009

My stock screen pulled out an undiscovered gem and I want to share it with you. I screen for companies that are beaten down and I try to determine why they are down.  Some deserve to be and those I wouldn’t touch with the proverbial “ten-foot pole”.  Others are temporary victims of bad news, a bad quarter or waning investor interest.  THOSE companies  can come back and deliver great gains for my members….and, that is what I am looking for. I think I found another one for your radar list.

Today’s company is Titan Uranium, Incorporated (TUEFF.PK). My members had great success with my last penny stock uranium pick, URST.  I alerted my readers about URST at 21 cents and within three weeks it was trading at 42 cents (on its way to a high of 46 cents).  For those keeping score at home, that is over 100% gain.

TUEFF is not URST. I will not and cannot promise you that TUEFF will act the same way as URST.   It is a totally different company with different fact patterns, but Titan is compelling nonetheless. The company is a development-stage enterprise engaged solely in the exploration for uranium.

Titan has interests in both in the United States and Canadian uranium fields.  Their main field is the Athabasca Basin in Canada. It is known as the world’s  “number one uranium address”. The field accounts for over a 3rd of the global production.  Two other properties, Sand Hill Lake/Rook II and Thelon Basin projects appear very promising according to the company.

What is unique about Titan is that they have spread the risk around by enlisting some influential partners to fund exploration in several key uranium-producing fields in Canada.  Titan has added partners who buy a significant percentage of the expected output from a field by making a multi-year financing commitment to fund exploration.   These partners have committed over Cdn $22 MM to fund exploration projects through 2012.

The chart is telling me that the stock is beat down.  Clearly, the stochastics are indicating that TUEFF is oversold and the RSI is nearing the oversold level too.  The MACD is neutral at this point, but could turn quickly (in either direction…but, I think it will be up).  The stock has clearly tanked, and has pushed past support at 27 cents.  This stock should be watched for when it turns.

I believe that it will turn.  The company is very well run, well capitalized and is exploring for a very valuable metal: Uranium.  The stock is not flashy or sexy, but could return some great gains for traders.

If you are doing your own research on TUEFF, don’t bother going to pinksheets.com or Yahoo! Finance.  They are on the Toronto exchange under the ticker TUE.V (see above chart).  All of the information you will need for your DD is found on their website.  Click here for the link to their site.

Titan is an interesting play.  I called the company and talked to a highly placed company official.  Getting information from him was like pulling teeth.  In fact, I didn’t get anything out of him.  They are very tight-lipped about their company, but clearly have a goal and a plan.  I believe that traders should look at the short-term trade possibilities for TUEFF, but don’t neglect the long-term either.

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Aeropostale Inc. (ARO) is a mall-based, specialty retailer of casual apparel and accessories for young women and men. The Company designs, markets and sells its own Aeropostale® brand of merchandise principally targeting 14 to 17 year-old young women and men. ARO also offers casual clothing and accessories through its P.S. brand, which focuses on children between the ages of seven and 12. As of August 1, 2009, ARO operated 922 Aeropostale® stores in the U.S., Puerto Rico and Canada, and five P.S. from Aeropostale® stores. The Company’s international licensee also operated three Aeropostale® stores in the United Arab Emirates. In addition, ARO operates an e-commerce Web site, www.aeropostale.com. During the second half of fiscal 2009, ARO plans to open approximately nine additional P.S. from Aeropostale® stores in the U.S. continue

Siliconware Precision Industries Co. Ltd. (SPIL) is a provider of semiconductor assembly and test services. The Company offers a variety of solutions including design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in and drop ship. SPIL’s products include advanced lead-frame and substrate-based packages, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL provides its services and support to fabless design houses, integrated device manufacturers and wafer foundries. The Company has offices to support its customers in China, Japan, Germany and throughout the United States. SPIL also has six factories located in Taiwan and China. continue

After several days off, I am itching to get back in the markets.  As I was doing my screens this morning, I came across Nephros Inc. (NEPH.OB). The company is a small cap company in the medical device business and has a chart that I found interesting.

The company was a penny stock until it  had a huge run up starting in late May when it ran from 12.5 cents to $2.50 in mid-August! Since then, the stock has cooled off and dropped down to $1.38.  Looking at the chart, it looks to me that the profit takers have driven the price down and now might be a good opportunity to profit on the bounce that I believe is coming.

Why do I think their might be a bounce? NEPH appears to be a pretty solid company.  They have a solid balance sheet….cash in bank and no long-term debt.  They have revenues, but no profits yet.  With two main product lines, NEPH appears to have good potential.  Their main business is End Stage Renal Disease products in the area of filtration.  They also have patented (and received FDA approval on) a line of water filters that just recently received $2MM from the Office of Naval Research to expand development of their water microfilter for military use.

The stochastics indicate that the stock is oversold, but the MACD is still solidly bearish.  This stock may trend down for a few more days, but it appears to me to be ready for a bounce.  The news on the company has been very positive and I can see why investors bid this up from $12.5 cents to $2.50.  I don’t see this stock going back to penny stock status.  If NEPH can commercialize its water microfilter product, the “sky would be the limit”.

Radar list this one…check back daily and see if it is turning

Alpha Pro Tech Ltd. (APT) develops, manufactures and markets a line of high-value disposable protective apparel and infection control products. The Company also manufactures a line of building supply construction weatherization products. APT’s products are grouped into three business segments: The Disposable Protective Apparel segment, consisting of disposable protective apparel; the Building Supply segment, consisting of construction weatherization products, such as house wrap and synthetic roof underlayment; and the Infection Control segment, consisting of face masks, eye shields and medical bed pads, as well as a line of pet beds. The Company sells its products under the “Alpha Pro Tech” brand name and under a private label. The products are primarily used in clean-rooms, industrial safety manufacturing environments, health care facilities, and building and re-roofing sites. APT’s products are distributed primarily in the United States through a network consisting of purchasing groups, national distributors, local distributors, independent sales representatives and the Company’s own sales and marketing force. continue

LG Display Co. Ltd. (LPL) manufactures and supplies thin film transistor liquid crystal display (TFT-LCD) panels in a wide range of sizes and specifications primarily for use in televisions, laptop computers and desktop monitors. The Company also manufactures TFT-LCDs for handheld application products, such as mobile phone, and medium- and large- size panels for industrial and other applications, such as entertainment systems, portable navigation devices, e-paper, digital photo displays and medical diagnostic equipment. The Company also has a strategic partnership with Idemitsu Kosan Co. Ltd. (TYO: 5019) to develop organic light-emitting diode (OLED) displays. LPL currently operates eight fabrication facilities and five back-end assembly facilities in Korea, China and Poland. In 2008, the Company held 20.3% of the global market share for large-size display panels, based on its sales revenue. continue

J. Crew Group Inc. (JCG) is an apparel and accessories retailer. The Company promotes itself as embracing a high standard of style, craftsmanship, quality and customer service. JCG identifies its customer base as primarily affluent, college-educated and professional and fashion conscious women and men. The Company has two primary sales channels: stores, consisting of retail and factory stores; and direct, which consists of catalog sales and sales from the Company’s Web site www.jcrew.com. In addition, the Company retails a denim label called Madewell, which it sells through Madewell stores and through a toll free number accessed through www.madelwell1937.com. As of August 27, 2009, the Company operated 242 retail stores (including 216 J. Crew retail stores, nine Crewcuts stores and 17 Madewell stores), the J. Crew catalog business, jcrew.com and 78 factory outlet stores. continue

Cell Therapeutics Inc. (Nasdaq: CTIC) engages in developing, acquiring and commercializing treatments for cancer. The Company’s research, development, acquisition and in-licensing activities concentrate on identifying and developing new, less toxic, and more effective ways to treat cancer. All of CTIC’s current product candidates are under development. The Company’s development portfolio includes: Pixantrone, a phase III treatment for non-Hodgkin’s lymphoma; OPAXIO, a treatment for non-small cell lung, ovarian and other cancers; and Brostallicin, a phase II treatment for sarcoma. The Company has collaboration agreements with Novartis, PG-TXL Company, L.P., Nerviano Medical Sciences, and Translational Genomics Research Institute. continue

Ecototality sounds like the commando wing of Greenpeace or some radical environmental group. The name, to me, doesn’t really speak to what it does.   Ecotality, Inc. (ETLY) is another one of those penny stock “Green” companies that is going to save the world! Here is their corporate description:

ECOtality, Inc. (OTC BB: ETLY), headquartered in Scottsdale, Ariz., is a leader in clean electric transportation and storage technologies. Through innovation, acquisitions and strategic partnerships, ECOtality accelerates the market applicability of advanced electric technologies to replace carbon-based fuels.

Despite my kidding tone, I am actually impressed by what Ecototality has done.  They are a “real” company that does business in 4 separate divisions (at last count).  I won’t go into a full description of the company.  You can click here to go their corporate overview page which will give you an idea of the scope of what they do.  Their eTec division is the one that is garnering them the most attention (and cash!).

Two things make it a penny stock that I want to share with you:  Chart and News

Let’s look at the chart:

The stock was a high-flyer very recently and has taken a steep dive since the heady days of early August.  Good news and strong buzz drove the small cap stock from 12.5 cents to 46 cents in the matter of a few days.  Since then, ETLY has given all of that gain back.   The chart indicates that the selling pressure has driven the stock to an oversold position.  The sentiment was so high that the recent PR about an $8MM grant from the State of California didn’t lift the stock.  The MACD is still bearish, but the angle is decreasing, as the histogram indicates.  The penny  stock is at a good support level and if it holds here, it could turn up quickly.

I mentioned news.  Well, we have the recent PR about their CA award to build charging stations for electric vehicles in San Diego County.  The scope of the project and the partners that e-Tec (an Ecototality subsidiary) is working with is very impressive.  Further news has to do with the U.S. Department of Energy awarding the company approximately $99.8 million to undertake the largest deployment of electric vehicles (EVs) in history.  ETLY has even signed a separate agreement to create a grid and charging stations in China!

As a trader and a recovering CPA, I have seen my fair share of “green companies” come and go.  The promise of  green technologies cannot be overlooked, but it seems that too many companies slap that tag on their company and expect that good vibe to translate to their stock price.  ETLY is committed to being “Green”, but they also want to make money while they are saving the environment. That is good news for investors.

ETLY is a small-cap, penny stock company that might not be one for very long! Keep it on your radar and look for this promising penny stock to turn.

Magnum D’Or Resources Inc. (MDOR) engages in the recycling and sale of rubber tires into various products. The Company provides recycled rubber products, reconstituted rubber derivatives, and rubber powders to various distributors and manufacturers. The Company supplies these substrates to a variety of manufacturers and is also developing its own market for retail end use eco-friendly products. MDOR utilizes its licensed patented processes to disintegrate scrap tires, remove fibers and metal wire, and produce crumb rubber sorted into different mesh sizes to be recycled into various rubber products.  MDOR has one production facility in Magog, Quebec, Canada, a tire landfill in Hudson, Colorado, and is currently pursuing acquiring additional facilities. continue

BJ Services Company (BJS) provides pressure pumping and other oilfield services to the petroleum industry. BJS’ pressure pumping services consist of: well stimulation; cementing; sand control; coiled tubing; and downhole tools services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore. BJS’ other oil field services include: casing and tubular services; commissioning, leak detection and inspection services to refineries; pipelines and offshore platforms; and specialty chemical services. The Company serves customers in most of the major oil and natural gas producing regions of the United States, Canada, Latin America, Europe, Asia, Africa and the Middle East. continue

I do chart study constantly and try and pull out those penny stocks that I think might have some appreciation in them in the days to come.  Technical analysis is both an art and a science. The wild card factors are timing and magnitude.  The question I am constantly trying to answer is when will the move occur and how big will it be.

Use these charts as a jumping off place for your own study. I have had a good track record identifying small cap stocks that could run/fall (COTE – 100% gain, SPNG – 800%, URST – 75%, PSPI – 68%, etc….).  Each one of these penny stocks stocks delivered strong gains after I had shared them with my members.

SARO

SARO is showing a bullish candle and looks to be on the rebound after its latest drop.  MACD has turned above the signal line, but is still below the zero line (weak bullish signal).  Stock has formed a base here and it appears that the stock is under accumulation again.

CTIC

CTIC is like gum on my shoe.  I just can’t seem to get rid of it.  It has been a very volatile stock historically and has delivered some good gains for traders in the past.  It is currently on a downtrend that may last a few more days, but it has typically “bounced” off of patterns like this.  Read the news on this company (no one is in agreement on it).  The next support is $1.50.  It might bounce off that, but be careful if it pushes through temporarily.

ADLS

Another small Pharma play.  Despite some decent news lately the market has been selling ADLS.  It looks like the chart is turning and investors are coming back into the  stock.  Any more good news on their Anthrax drug will make this micro cap stock zoom. The MACD has turned slightly bullish, but there is not much strength to the bullish signal.  It has had a small oversold bounce and buyers appear to be coming back in.

COYN

Could this be the next BONU?  Coyn was introduced to traders when it was around 40 cents.  Persistent selling drove the stock down to 10 cents.  A small “pop” in late August drove the price up to 20 cents (I had alerted my members about COYN before this surge).  I think it is time to look at COYN again.  The technicals are turning in COYN’s favor….the MACD has turned up, volume has remained strong.

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication (We did receive compensation from COYN in its initial awareness program…we are not currently under contract with them) . The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Spirit AeroSystems Holdings Inc. (NYSE: SPR), through its subsidiaries, designs, manufactures and engineers commercial airplane assemblies and components.  SPR offers products and services in the areas of: fuselages, under-wing components, composites, wings, and spares and repairs. The Company earns revenues primarily through long-term supply agreements with original equipment manufacturers (OEMs) Boeing (NYSE: BA) and Airbus (Paris: EAD). SPR manufactures components for every Boeing commercial aircraft currently in production, including more than 70% of the airframe content for the Boeing 737. SPR is also the largest content supplier for the wing for the Airbus A320 family and a significant supplier for Airbus’ new A380.

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It seems that I am writing and blogging about SPNG about once a month.  This is my third blog on SPNG since May and we also did an in-depth research report on SPNG a few months back.  (Read #1 blog, #2 blog and research report here).

SPNG continues to be the darling of the chat rooms and the number ONE penny stock. Other small cap and penny stocks have come and gone (BEHL, HEB, BIEL, ATNO, etc…), but SPNG perseveres.  When I first wrote about SPNG back in April, I was impressed by the strides that they made turning a sponge into a cash flow machine!  I am still impressed!  SPNG has given its investors a feast of good news over the past few months.

The stock has made an impressive run-up over the last week running from 14 cents a week ago to close yesterday at $0.2130.  The chart still continues to be SPNG’s friend, but there are signs of cracks in SPNG.  Is the stock becoming overheated?  Is it going to fall like it did before when it fell from 28 cents? I think you can bet on it. Short sellers should be ready if the cracks get any larger.

Here is the chart:

Notice that the RSI and Stochastics are above upper limits and that indicates that the stock is overbought.  Notice also that the previous high ran in an overbought range for several weeks before falling.  Notice also that volume has picked up, too.  Further analysis that I did shows me that the Accum/Distribution has turned neutral and the stock 13-day MA has flattened too.  The MACD is still strongly bullish, but it has lost a little momentum.  SPNG may still run for a few more days showing some strength. (Note:  SPNG was down only slightly in after-hours trading)

That means to me that the penny stock is ready for a correction. One wild card (and something that I am surprised that the IR people put out)  was their latest press release.  They made a big deal about a report concerning short positions in SPNG.  Read it here. The report points out the 99% of short sellers in SPNG are “underwater” and the assumption they want everyone to have is that SPNG is not going down (and those short sellers are screwed). Their average cost is 16.3 cents which is not that far out of the money.  Are these short sellers going to get squeezed and start to buy in order to close out their positions?  If so, that could unleash a flood of buying that would further extend the stock.  I am not sure that is going to happen.

The piece of information that has been missing from SPNG’s press releases lately has been info on the recapitalization they announced some months back.  According to my sources, SPNG will accomplish that before the end of the year by qualifying for the NASDAQ or American exchanges. They could do it by merging with an existing company, doing their own reverse stock split…any number of ways.  With all of the eyeballs on SPNG, I am guessing that it will have a positive impact on the share price.

Now, however, I think that SPNG is setting itself up for a correction…just how big remains to be seen.

If it continues to advance then ride the momentum (trend is your friend!), but keep a tight stop on it. It is  still a worthy small cap stock and company.  Yes!  Is the market and traders making a big deal about a company that makes SPONGES?  Yes!  Does SPNG want to leave the penny stock world behind?  Yes, most definitely Yes!

I think they will be around long enough for us all to make lots of money on SPNG.  I know I have already…and plan to again.

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

BioNeutral Group Inc. (OTCBB: BONU) is a specialty chemical company engaged in commercializing chemistry-based technology that can neutralize harmful environmental contaminants, toxins and dangerous micro-organisms. BONU’s formulations include natural and common ingredients, which are combined in various ways to create unique chemical formulations. The Company’s products include BioNeutralizers and ChemoNeutralizers. BioNeutralizers, based on the proprietary Ygiene™ formulation, disinfect, decontaminate and sterilize.  BioNeutralizers have important applications for consumers, healthcare and the military. ChemoNeutralizers, based on the Ogiene™ formula, irreversibly bind chemical contaminants and toxin molecules and render them harmless. Applications of ChemoNeutralizers include industrial pollution, environmental contaminants, and protection against chemical weapons of mass destruction.

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