This has been one of the most successful newsletter picks in recent memory.  ALLEZOE MEDICAL HLDG (ALZM.OB) has been a rocket ever since it catapulted onto the microcap scene a few weeks ago.  I have been watching this one and, not trusting the pump, didn’t jump on the bandwagon.  I think that NOW is a good time to play the downside on ALZM.  It is a bit of a banana peal…so be careful with it.

Look at this chart!

From its launch, ALZM has only gone up.  I checked on www.thehotpennystocks.com and it is still the #1 newsletter pick.  The promoters of this one have been putting huge money on its promotion and it shows.  This stock is so new that none of the indicators will even print on the chart because there isn’t enough trading time to register.

Is there any steak behind the sizzle?

None that I can see. The company has no revenues, no cash and, other than a few PR’s, nothing much to recommend it.  Even its acquisition of Organ Transplant Systems comes with no meaningful information….is it revenue-producing?  If not, what is the reasonable expectation of when and how much?  etc… etc….

The challenge with this stock will be timing the drop.  I am looking at this stock (when it breaks) dropping well below a $1 in the future.  When?  I honestly can’t say.  The stock has defied all logical explanation to date.  It may continue to do so.  Look at the volume bars…all accumulation except one day.  Impressive! This is a radar stock only…imo.

Good luck and be careful with this one.

Jeffrey Dean

Editor’s Note – 3/30/11: Since I first alerted you to ALZM, lots of other people have jumped on the bandwagon (even the august penny stock personage of Tim Sykes).  ALZM broke yesterday and today, but the promoters are fighting it “tooth and nail”.  I am curious how long they can keep this POS going! Remember….I said this stock was a “banana peel”.  Be careful if you trade it.