Living under a cloud:  A story of a Chinese Small Cap

China Electric Motor, Inc. (CELM)

As a recovering CPA, I have watched with interest the ongoing saga of the Chinese Small Cap sector.  I have a good friend, Larry Isen of Emergingchinastocks.com, that may lose tons of money because he was backing China Media Express Holdings (CCME).  CCME is just the latest of the China stocks that have gotten slammed for accounting “irregularities”.  It’s is on a trading stop and has been for over a week.  No one knows when it will start trading again, but we know this means they were making the numbers up.  During my CPA career, I was involved in several “fraud audits”.  In those cases, we thought that something rotten was going on and it was our job to find it and document it.  What I found amazing is the lengths company officers will go to hide their lies, greed and avarice.

China Electric Motor, Inc. (CELM) is a company that I have been watching for awhile.  It has been the subject of many articles questioning the veracity of its financials during its current slide.  And, unless the company is caught “cooking the books”, it might be a time to look at CELM.

On its face, CELM is a great trade.  It has the typical Chinese clean and pristine balance sheet.  ($1.66/share in cash, no debt, liquidity ratios through the roof, growing/profitable sales) and the chart is depressed, but looks like it might be ready for a reversal.  Who wouldn’t like this stock? One worrying fact is that the company’s annual 10-K has not been released.  It is past due and I wonder if we will get any CCME-type surprises with its release.

What attracted me was the chart.

CELM’s chart

Here is what I see:

• The prolonged downtrend seems to be losing its momentum (the stock is up sharply today).
• The RSI and Stochastics are supporting each other in the contention this stock is seriously oversold.
• Bearish MACD momentum is declining and the MACD line is moving upwards.  It is still far from the zero line, but the indicators are looking positive.
• Support from this level is the recent low of $2.96

Here is what I am looking at:

Last Close:              $3.08
Short Term Sell:   $3.75
Long Term Sell:    $4.05+ (if it gets above the 50-day MA, test it to see if that acts as further support)
Stop Loss:              $2.96

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: No Positions

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Disclaimer

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.

LMCO and RMGX

GREEN is hot!  Everyone from Obama to the simple homeowner has the opportunity to go green in the current world we live in:  Wind, Solar, Biofuels….all offer an alternative to our current energy crisis.

What could be better than helping to save the environment while having a good chance of making money at the same time? Why blindly just give to environmental charities when you can be proactive by investing in companies whose products and services have a direct effect on the health of the environment for everyone?  The environment is a hot topic, as it should be, as we only have one and it needs to be treated with care.  Fortunately, there are a multitude of so-called “green” companies who endeavor to do good while making profits.  I have unearthed two of these little gems that I believe have much upside potential.

DPOLLUTION INTL INC  (BB:RMGX) This company manufactures and distributes patented fuel conditioning devices for improving combustion efficiency and lower pollution emissions of a gas or diesel engine. Formerly known as Dpollution Inc., the company changed its name to DPOLLUTION International Inc. in July, 2010.  At the end of last year, the company announced that its fuel reconditioning device has been proven to “crack” longer chain Hydrocarbons into shorter molecules.  This cracking allows the fuel to burn more efficiently and completely.   Basically, this product is supposed to make cars and other vehicles run cleaner.

Technically, price has dropped down to $0.24 after hitting resistance at 40 cents per share.  It has since found support in the 24 cent area where it appears to be building a base.  The other indicators are giving some support to the notion the stock could stage a turnaround.

Next on the list of companies doing good things for the environment is Li-ion Motors Corp (OB:LMCO), a development-stage technology company engaged in the design and engineering of emission-free automotive propulsion systems utilizing the lithium battery technology in the United States, Europe and the Middle East. The company sells electric, lithium powered and converted vehicles. Its product line includes cars, motor cycles, mopeds, and power sport vehicles. Formerly known as EV Innovations Inc., the company changed its name to Li-ion Motors Corp. in February 2010.  Basically its claim to fame is lithium batteries for electric transportation.

The company is making great strides in getting its product into the hands of corporations and consumers alike.  The BIG NEWS for the company was its impressive win in last year’s X-Prize competition.  Here is the headline:

LI-ION MOTORS CORP WINS $2.5M IN THE PROGRESSIVE INSURANCE AUTOMOTIVE X PRIZE COMPETITION

This is a huge validation of their technology and a base to build on.  The question is, “Can the company build on this”.  Don’t expect LMCO to challenge GM and Toyota for the lead in EV cars.  LMCO is undercapitalized and are very far away from achieving any kind of sustainable production.  However…they are in for the fight.

Technically, shares have dropped below the 200-day moving average at $1.02, but might find support at the 50-day MA line of $0.91  The indicators are going against the stock right now, so I would keep this on your radar right now.  It is a heavily promoted stock and has been known to make some big one and two-day moves.

Just like with any micro-cap company, be sure to use caution when investing.  Anything can and does happen with these little dynamos!

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: No Positions

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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 RMGX; nor have they received compensation of any kind RMGX.  LMCO was a compensated pick under several previous expired agreements.  It is not currently under any contract with Investor Soup. 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.

Emisphere Technologies, Inc. (EMIS.OB)

It is always a crap shoot when a trader trades pharma companies…..EVERY company has the next big drug, EVERY company is about to be swallowed up by Big Pharma for huge multiples, EVERY little pharma company is about to sign a out-licensing deal with Merck, Pfizer or other Big Pharma.  Unfortunately, most of those dreams never pan out.

Such is the case with Emisphere Technologies, Inc. (EMIS.OB). They have high hopes for their proprietary Eligen® Technology and are developing oral forms of injectable drugs or poorly absorbed compounds.

However, their “promise” appears to be wearing thin with investors.  I got a real kick reading the boards on this one.  It seems that management has been promising great things for too long with no results.

This stock is not about fundamentals, or potential or big news.  It’s about MOMENTUM.  EMIS has got it!

Take a look at the chart

Every meaningful indicator is pointing up…..how long the run will last is unknown.

• MACD is still below the zero line but has strong positive momentum
• Price has recovered from its 3-month low of $1.23 on 3-15-11
• Stochastics are increasing (but not overbought)
• RSI is doing the same
• On Balance Volume is recovering nicely

Momentum play, anyone?

EMIS suffers the disease of many small Pharma companies…..crappy balance sheet, no income and uncertain prospects.  They company has postponed the release of their 4th Q numbers so they can complete the audit.  I don’t know if I would stick around in the stock to find out how their last Q was.

Resistance is at $1.70, $1.80 and $1.95 with the 50 and 200-day MA’s at around $1.84.  Make sure you set your stops tight.

Here is what I am looking at for entry/exit points:

Last Close:              $1.59
Buy Opinion:          $1.55 – $1.65
Short Term Sell:   $1.95 (Watch and see if the MA’s will act as support on the way to $1.95)
Long Term Sell:     $2.50+

Good Luck and Great Trading,

Jeffrey Dean

Disclosure:  No positions

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

I love the old TV Series “Lost in Space”.  It had some terrible acting, over-the-top scenery chewing performance from Dr. Smith and terrible special effects.  Still, I loved it as a kid.

One of my favorite characters was “The Robot”.  He was the best actor of the bunch and his signature line, “Danger, Will Robinson” has turned into a classic.

Well…..if I had my own stock robot today, it would be saying (about the markets) “Danger!  Danger!”.

Stock futures are pointing to a big selloff due mainly, I expect, to the terrible news that continues to come out of Japan.

Add the news about CCME’s massive fraud and the China Stock sector will likely take a hit, too.

If you trade today, be very careful.  Today might be a good day to look at some shorts.

Good luck and good trading,

Jeffrey Dean, Editor

Advanced Analogic Technologies, Inc. (AATI)

Today will be a very tough day in the market.  With the situation in Japan and the plunging Nissei, it could mean some challenges to the rest of the exchanges around the world. (I don’t want to sound callous speaking about market conditions when my heart is breaking for the millions of Japanese people affected in this earthquake/tsunami….Japan, and her people, are in my prayers).

Today’s focus stock is Advanced Analogic Technologies, Inc. (AATI).  AATI is a stock that appeals to my CPA sensibilities.  It is a very healthy company, balance sheet-wise, but is struggling to make a profit.  With such a horde of cash (over $2.00/share), they will have some time to get it right.  However, if they get it right, I am not likely to be there. But, as a swing or position trade, AATI makes sense to me.

This stock looks it could make a short term move just based on the chart!.

To the Chart!

I loaded a lot more indicators and trend lines in this chart just because I wanted confirmation of what I am seeing.

I see a stock that has been hammered and has lost 20% of its value from the January high.  The trend is clearly bearish, but the confluence of indicators leads me to believe that AATI could rebound.  This stock could have further to fall, but I would watch for any momentum shifts.  That could be a prelude for a short-term move.  You will have to see if the company puts out any meaningful news to help prolong any recovery.

Here is what I am looking at for entry/exit points:

Last Close:              $3.82
Buy Opinion:          $3.70 – $3.88
Short Term Sell:    $4.40 (be happy with a 20% – 25% gain on this one)
Long Term Sell:     $4.99+ (I think this is a pipe dream given the way it has traded lately)

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: Neither Jeffrey Dean nor BlueWave Advisors, LLC hold positions in any securities mentioned in this article and has no plans to initiate any positions within the next 72 hours.

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

Synovus Financial Corp. (SNV)

Given the rate that banks continue to fail in 2011, bank picks have more risks than many sectors.  But….we small cap traders love risk.

One stock that I think could be a better risk is Synovus Financial Corp. (SNV). The bank has taken its lumps, along with the entire industry, but appears to have weathered the storm.  I blogged it back in November of 2009 when it was around $2.23.  Patient investors only had to 4 months for the stock to hit $3.85….a 72% gain

SNV could be primed to make another move…imo.

SNV is a super-regional bank holding company with approximately $30 billion in assets and is based in Columbus, Georgia. a diversified financial services and bank holding company, provides commercial and retail banking, financial management, insurance, and mortgage services in Georgia, Alabama, South Carolina, Florida, and Tennessee

To the Chart:

The first thing I notice with this chart is the Ascending Triangle pattern (as notated on the chart). The stock is trading between its 50 and 200-day MA’s with the 50-day on top.  The MACD, while still below the zero line, has made a cross and is showing bullish momentum.  The Stochastics are bouncing out of oversold conditions and it appears that some accumulation is going on.

Bottom Line:

Synovus is a crappy bank that has yet to make a profit during this turnaround.  When I spoke with company personnel in 2009 for my previous blog, the person I spoke with said they had hopes of turning a profit in 2010.  That DID NOT HAPPEN…however, the bank has done some great work cleaning up its balance sheet.  However with almost a BILLION dollars of Obama’s money under TARP, SVN is under pressure to pay that back.  They can either float another dilutive stock offering or put the bank up for sale.  I am rooting for the second option.

SNV has over $4.70 in cash per share, has paid down some debt and has taken massive writeoffs to get their capital coverage ratios in line with banking guidelines.  However, not everything is rosy with the bank.  Short interest continues to be very high with over 8% of shares short as of 2-15-11.  That number has come down, but is rather high.

SNV is not a stock to buy in your IRA, but its volatility makes it a nice stock to trade.

Here is what I am looking at for entry/exit points:
Last Close:              $2.55
Buy Opinion:          $2.50 and above (watch the chart and make sure the momentum is going your way)
Short Term Sell:   $2.90′s (Watch to see how much momentum the stock has when it approaches resistance at around $2.90)
Long Term Sell:     $3.50+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

WebMediaBrands Inc (WEBM)

I have yet to see the movie ‘Social Network’, but I have heard only good things about it.  The story of how Facebook (and other social media sites) have revolutionized how people interact in the cyber (and real) world is very compelling.  And, the story goes on.

Companies have been searching for ways to monetize this communication revolution and today’s focus stock has found that way: WebMediaBrands Inc (WEBM).

Here is the company description off of Yahoo! Finance:

WEBM, an Internet media company, provides content, education, trade shows, and online job board services for media and business professionals primarily in the United States. It operates mediabistro.com, which provides content, career, and educational resources about media markets and industry verticals comprising new media, TV news, advertising, public relations, publishing, design, mobile, and the semantic Web; Socialtimes.com and Allfacebook.com that offer content about the developments in social media, social networks, and social gaming; other content Websites consisting of Graphics.com, AdsoftheWorld.com, BrandsoftheWorld.com, SemanticWeb.com, and TVNewser.com; and e-commerce Websites, including FreelanceConnect.com and StockLogos.com.

Clearly they are placing all their bets on the online world.  Those bets seem to be paying off. Here is a bullet-point summary of some of the highlights for the compan:

• The company has yet to post an operating profit, although proceeds from the sale of one of its sites ($2 MM) did bring a net profit for the most recent quarter.
• The company has a surprisingly high percentage of both insider and institutional ownership – 43.06% insider and 39.50% instituional.
• The company (a/0 2-15) had short interest percentage of over 3%.  I am not too concerned because the selloff volume has been reasonable.
• The company is “nesting” with the news they purchased a building in Peoria, Illinois (my birthplace, by the way)
• Balance sheet is good….$11MM in cash with about $6MM in debt.  Decent ratios, too.

The Chart

WEBM has created a wide trading range between $1.80 and $1.30.  The stock has hit the $1.30 level and should be watched to see if it will bounce again.  The MACD, while below the zero line (a bearish signal), is essentially moving sideways.  In conjunction with the oversold stochastic signal, the stock could well bounce off of this level.  Their is resistance all along the path back to the recent highs ($1.52, $1.72 and $1.90).

Here is what I am looking at for entry/exit points:

Last Close:              $1.36
Buy Opinion:          $1.30 to $1.40
Short Term Sell:    $1.70
Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

Anadys Pharmaceuticals Inc. (ANDS)

A nice little chart is setting up for Anadys Pharmaceuticals Inc. (ANDS). The company has some very promising drugs ALL focused on Hepatitis C.  For those who don’t know (I didn’t), Hepatitis C is an infectious disease affecting the liver, caused by the hepatitis C virus (HCV).

The company has a clean balance sheet with no debt and several quarters worth of cash in the bank…..a nice place for a pharma to be.  No revenues as of yet and several drugs are in Phase II trials…..2011 is not going to be a revenue year for ANDS, but with good news and some solid results it could be a good year for the stock.  This link takes you to a recent PR with some good info about their drug pipeline.  The stock enjoys a great deal of institutional support and insiders, while owning collectively less than 10%, have been buyers over the past year.

GlobalData forecasts the global hepatitis C market to grow at 9.8% annually for the next seven years to reach $8.5 billion by 2016. This growth is primarily attributed to high unmet need in the market which is expected to be served by strong pipeline candidates. The growth will be further supported by the prevalence of the disease. GlobalData has concluded that the global hepatitis C market is underserved by the current product options and so there is significant scope for new entrants to capture value from underserved segments. Designing products with curative properties, high safety profiles and better patient compliance is one of key challenges for this market and could provide a significant market share for any company.  That is exactly what ANDS is working on!

A Look at the Chart

With the ascending triangle pattern firmly in place, it looks like ANDS could jump again.  It has put in a short base at current levels and absent any bad FDA news, I would expect this stock  to try and touch resistance again.  With any good news, perhaps the stock can break resistance at $1.55.  With a 52-week high of $3.24, I would love to see this stock make a run for that level.

Here is what I am looking at for entry/exit points

Last Close:              $1.22
Buy Opinion:          $1.20 – $1.30
Short Term Sell:   $1.55
Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

Disclosure: Neither Jeffrey Dean nor BlueWave Advisors, LLC hold positions in any securities mentioned in this article.

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

Cano Petroleum, Inc. (CFW)

I was doing a screen this morning on companies that had “Volume higher than 5 times 30-day Average”.  I came across lots of companies, but one stood out to me: Cano Petroleum, Inc. (CFW).

As you can see from the chart below, it has really taken off!  My guess is that it might be coming right back down…soon.

CFW is a money-losing, technically insolvent piece of crap company that is on a tear for “reasons unknown”.  At least, I can’t find any reasons for this surge.  If you take a look at their financials, you will be appalled.  They lose money each and every quarter.  Their last Q (12-21-10) shows 230K in the bank and short-term/current debt of over $69 MILLION.  Under the term ‘technically insolvent’ in the dictionary, is this company’s corporate logo! They claim impressive oil reserves, but this company won’t be around to exploit them….imo.

The company is up again today…whatever forces driving this stock are still at work.  But, I would look for this one to crack very soon.  Keep it on your trading radar and be ready to jump in and out.

Good Luck and Great Trading,

Jeffrey Dean

Editor’s Note 3-4-11 – CFW dropped yesterday, but has rallied today.  This is being manipulated bigtime.  I don’t know when it will fall, but fall it will.

Editor’s Note 4-5-11 – CFW managed to pump itself up to 85 cents on March 7th and then plunged to 47 cents (and now trades at 50 cents)

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

CryoPort Inc. (CYRX.OB)

One of my members introduced me to what, I believe, could be a great stock for your trading radar.  He knew of my interest in Biotech and he suggested I take a look at CryoPort Inc. (CYRX.OB). I liked what I saw.

It is not a biotech in the true sense of the word, but rather a company that supplies the industry with a valuable service:  the safe transportation of “high value temperature sensitive materials”.  Their site says they are: “The Global Frozen Shipping Solution for the Life Sciences Industry”.

What that means is they ship biological materials, such as vaccines, cell lines, and specimens, under frozen storage conditions. Their proprietary CryoPort Express™ solution is actually a dry vapor liquid nitrogen container (rather than the industry standard Dry Ice) and they claim to make the transport and logistics of sending biological materials easier and more reliable compared to traditional dry ice methods.  They are rolling out programs with FedEx and DHL worldwide to integrate their system completely into those larger networks.

Once they complete that, this stock could really see a liftoff.  The financial results to date are not impressive and this stock’s potential is all “on the come”.  I don’t see any landmines in their balance sheet.  They have $2.8 MM in cash with debt of over $4MM.  Beyond those two line items, there is not much there.

The question is “Can CRYX successfully emerge from the development stage and claim a large percentage of what the company believes is a $400MM + market?”.  With only 13MM shares in the float, any revenues (and contracts landed) could really rocket this stock.  The other big question is adoption.  Will the pharma companies, labs and contract manufacturers embrace this new technology?  The company actually looks like they might have something here.  Their site is chock-full of information about their “game changing” technology

The Chart

CYRX has been very volatile of late.  The current trading level is at a minor support level.  Trend is showing that the stock could break below the current level, but the MACD momentum is saying this stock could find support at these levels.  Volume has picked up with some nice spikes.  I would look for that volume trend to continue.

CYRX is a great radar stock imo.

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

….I just can’t get rid of GNBT.  Generex Biotechnolology Corp. (GNBT.OB) has been on my radar for several years and I have recommended it (or warned traders away) several times.  I got another email from a reader asking me to take another look at the stock.   I resisted at first, but decided to investigate.  What I found surprised me.

GNBT might actually be in a good place to take a look at again.

GNBT – The Company

The company is engaged in the research, development, and commercialization of drug delivery systems and technologies.  The drug that supposedly holds the greatest promise is Oral-lyn™ which is in Phase III clinical trials at several sites around the world.  Several other larger pharma companies have tried and failed to develop insulin sprays….GNBT appears to be succeeding.    The company is best known for developing a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs).  The Company’s proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company’s proprietary RapidMist™ device.

GNBT also has a suite of drugs centered around immunotherapeutic vaccines for the treatment of malignant, infectious, allergic, and autoimmune diseases.   More information can be found on the Generex website at www.generex.com.

GNBT – The Stock

You can see just how beat down GNBT is from the chart below.  GNBT has really harmed its shareholders by more than doubling its share count over the past few years by entering some toxic financings.  The market is better for GNBT and its past few financings haven’t been too onerous.  Still the share count has exploded from around 110MM in 2008 to a bloated 270MM today.  The rumbles about a reverse split seem to have quieted with the strengthening of the economy.

The chart looks good for GNBT.  The stock appears to have put in a base at current levels and the MACD and Stochastics are looking promising.  the MACD appears to be about to cross and the oversold stochastics could add some strength to any rally.  The stock is pretty liquid and any good news will help this stock to jump.

Do I trust GNBT?

GNBT has disappointed many traders over the past few years.  For a stock that has significantly underperformed over the past few years, I am somewhat surprised by the staunch support it receives on the boards and on other stock websites.  Clearly, they have some exciting drug potential.  The Amgen agreement could work out very nice for the company.  I still don’t trust it though.  IF you trade GNBT, be sure and put in a tight stop.  Any bad news could further weaken this stock.  However, I am looking for some recovery in the stock going forward.

Here is what I am looking at for entry/exit points

Last Close:              $0.238
Buy Opinion:          $0.22 – $0.25
Short Term Sell:   $0.35
Long Term Sell:     $0.75+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

Bionovo, Inc. (BNVI)

I love PHARMA stocks and have had good success with them over the past years.  I like their volatility and their upside gain potential.  They are highly speculative, but the payouts can be awesome!

Take a look at Bionovo, Inc. (BNVI). The stock took a hit from an intraday high of $1.40 in mid-January and is now trading around $0.85. This woman’s pharma company (products in pipeline for menopause and breast cancer) just raised over $30 Million on decent terms. No debt and now a strong cash position going forward. The buzz about their drugs is mostly positive with several drugs in Phase I/II.

This selloff could be a great opportunity for traders…like yourself. The chart is showing a stock that is severely oversold and is bearish. Is this the bottom or is there more downward pressure?   It looks to me that this might be a good base for a bounce play. If you play, set a tight stop in case of weakness. However, this is one that should be on your radar.

On another note:  I am getting lots of requests for more stock ideas…it seems people like them alot! I am going to start sending out alerts through Investor Soup again.  These will be short term, highly speculative and highly volatile picks, but they are very fun to trade.  I expect to put them out once a week on average.  If you want to trade higher priced stocks, then I suggest you sign up for my Small Cap Superstars newsletter on my other site, TopStockPicks.com.

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or ”penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

Evergreen Energy, Inc. (EEE)

EEE was a great short play…I called it perfectly and I hope that you took your profits while the opportunity was offered.

Here is the chart:

I still believe what I wrote about EEE in my previous post:

“The chart tells me much of what I need to know.   But in addition to an overextended chart…the company is losing buckets of money, has a lousy balance sheet (low cash compared to debt and lousy margins) and is not showing me any meaningful PR’s to explain this rise.

I am watching EEE to see when the next dip will be….I do believe that EEE is terribly overextended, but whatever the group backing this stock is willing to put money into it to prop it up.  Don’t take EEE off of your trading radar just yet….it still might be a great short.

Have a great day in the markets,

Jeffrey Dean

Evergreen Energy, Inc. (EEE)

Evergreen Energy is a very extended stock….I could see this one taking a very steep dive (and soon).

The chart tells me much of what I need to know.   But in addition to an overextended chart…the company is losing buckets of money, has a lousy balance sheet (low cash compared to debt and lousy margins) and is not showing me any meaningful PR’s to explain this rise.

Watch this one for more signs of weakness…watch for the MACD to turn and momentum to shift.  This could easily fall to the former resistance line chart above (and below).

Good luck and good trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

One of the headlines tucked away on page 2 of most newspapers was the notice that one old soldier, Dick Winter, died last week.  Dick Winter wasn’t just any “old soldier”.  He was the pivotal figure in Stephen Ambrose’s book and the wildly successful HBO miniseries, Band of Brothers. I recently watched the entire miniseries with my eleven year old son and was “blown away” by what I saw.  Dick Winter was the reluctant star.

Dick Winter commanded Easy Company of the 506th regiment of the 101st  Airborne Division who fought their way across Europe into Germany in World War II.

Like many in my generation, I too have a WWII story.  My father, Ken, served in WWII.  He was the navigator/radioman on a PBM Mariner seaplane that was flying coastal patrol duties over the Gulf of Mexico in WWII.

My Father was proud to serve.  He joined the Navy at age 17 even though he, being a Colorado farmer’s boy, had never seen the ocean.  He was given a stateside post and never got to find out how he would have handled combat.  He never fired a shot in anger…though he had been trained to do so.

Would my Dad have had the necessary bravery and moxie to survive on the front lines?  Would he have shrunk from danger or would he have faced it?  Would he have risen in the ranks as a leader of men?  Those men who served under Dick Winter never had to ask these questions about their leader.  They knew and saw in that humble man what can only be called greatness.  They would follow him anywhere….and did!

I am struck by the quote attributed to one of Winter’s soldiers, Floyd Talbert, who wrote to Winters from a hospital bed while convalescing from a battle wound, “You are loved and will never be forgotten by any soldier that served under you….I would follow you into hell“.

I know my Father would not have shrunk from his duty and would have faced danger head on.  That is the kind of man he is.  What I can’t answer is would my father have been one of the “lucky ones” to come home from the beaches of Normandy or the Sands of Iwo Jima?   Thousands upon thousands of the men of my father’s generation did not.  Dick Winter did and he serves as an example of what is good in men and what true leadership looks like.

My hat is off to you, Mr. Winter.

With love and respect to all who serve our country, past and present,

Jeffrey Dean

Photo courtesy of AP

WESTERN LITHIUM USA (WLCDF.PK)

Today’s blog is just a reminder of my superior stock picking acumen….jk. Actually, I am sharing with traders another one of my successes.  Western Lithium (WLCDF), one of my September 2010 picks, has had a nice run since I first picked it.  It first dropped like I had predicted (my members could have played the short for a modest 15% gain) and then it hit $1.30 in Mid-October and now it hit $1.60 this week.  A nice run for a nice company!

The interesting thing about WLCDF (as detailed in my previous blog…read it here) is that my original purpose of my blog was to expose it as just another lithium pump and dump (Like AMEL, LTUM and many others).  What I found was anything but shady.  I found an incredibly well-run company, with strong, industry-specific management, a strong balance sheet and a very impressive lithium property.  The most recent PR about their ongoing tests seems to confirm my belief.

What does the chart say?

Nice chart….good momentum could lead to even more gains.  If you are in it, make sure you take some of your profits off the table.  I don’t see a big collapse in the stock price due to the quality of the company and its management, but it is always good to be careful…especially when big profits are concerned.

Bottom Line

WLCDF still continues to be one of my picks for 2011.  As I mentioned in my earlier blog, the key management are veterans of Ivanhoe Mines (IVN.TO) which is trading north of $23 per share.  That is their goal.

Lithium battery technology continues to be “all the rage” and looks to be the dominant standard for the foreseeable future.  The “wrench in the works” is the R & D going on for battery technology that surpasses Lithium batteries.  I have read several pieces about the “fact” that Lithium is already on the way out.  So, my advice is not to fall in love with this Lithium stock but to ride for as long as it is profitable for you.  My subscribers who acted on my blog back in September are sitting in great shape.

Here is what I am looking at for entry/exit points

Last Close:              $1.60
Buy Opinion:          $1.50 – $1.75  Watch the stock closely at these levels….see if it establishes a base or gives back the gain.
Short Term Sell:   $2.25
Long Term Sell:     $4.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

I am constantly working in the small and micro cap stock space looking for my next big winner. I keep a long list of companies that I may “graduate” to one of my newsletter picks. These are companies that from either a technical or fundamental analysis standpoint interest me.

All of these stocks are under $5 in price….AKA penny stocks. I remain committed to the proposition that “Stocks under $5” offer the greatest gain potential for my readers and subscribers. History has shown that I am correct.

I would surprised if any of these stocks are being “followed” by any analysts, but in a few cases they are. However, I usually discount any analyst’s opinion in either the small, mid or large cap markets. I find it laughable when 10 analysts are following a company: 5 say “buy”, 2 say “hold” and the rest say “sell”. Who do you believe?

So let’s see what companies I am tracking that I believe have a REAL potential to significantly outperform the market.

Jade Art Group (JADA) – this was a stock that I profiled twice at Investor Soup (both times for good gains). JADA experienced a huge selloff in 2010, but I am picking it to rebound strongly in 2011. Strongly profitable with a good balance sheet….JADA could bounce strong.

New World Gold Corporation (NWGC) – This is a producing junior gold miner selling for around 20 cents. The company is poised to have a big 2011 and could really run. I own shares in this one (and may buy more) and am counting on a good year in 2011 for NWGC.

Adamis Pharmaceuticals (ADMP) – This is another stock that I am smitten with. The company is sitting on a number of pharma initiatives that, if any ONE is successful, could catapult this company into NASDAQ in short order. Trading for under a quarter, ADMP is a bargain by any measure I know. I own a ton of shares and expect good things from Adamis.

Autobytel (ABTL) – The financials are showing improvement, several new acquisitions could bring more growth (and profits) in 2011 and with a strong balance sheet, ABTL is worth waiting around for.

BioStar Pharmaceuticals (BSPM) – This is another of my winners for Investor Soup. I still am very bullish on it and the company can still be bought at what I consider to be a bargain. Profitable, great balance sheet and great management….the China Stock Market meltdown is a great buying opportunity for traders on BSPM.

Adeona Pharmaceuticals (AEN) – With a varied portfolio of drug candidates and a low price, AEN is one of my pharma picks for 2011. I first profiled it on Investor Soup at 79 cents, it jumped to $1.40 recently before falling back somewhat. The stock still looks like a bargain to me.

Longwei Petroleum (LPH) – A China gas play, LPH is a highly volatile stock. This is one that savvy traders could trade in and out of several times during 2011. Today, the chart is telling me that it is going to go on a run. However the China stock sector is not known for holding on to gains. Long-term this could be a great stock, but I see continued volatility in it.

Southwall Technologies (SWTX) – An apparent victim of the 2010 year-end tax selloff, SWTX looks to rebound strongly in 2011. Great company: growing revenues and profits, strong balance sheet and its core markets are growing once again.

Lotus Pharmaceuticals (LTUS) – Another China pharma play, LTUS has a very strong long-term outlook. The stock is recovering from a recent selloff and could be a strong stock for 2011.

Microvision (MVIS) – Is 2011 MVIS’ year? Could very well be! Strong balance sheet, great buzz, products hitting the market….could be the year MVIS turns the corner.

SuperGen (SUPG) – Bad FDA news in November didn’t cause a wobble in the stock price. A pharma company that is profitable with a strong balance sheet and a great drug pipeline…where do I sign up?

These are my Top 11 for 2011. Frankly, I could come up with another 11 for tomorrow’s list….there are that many great stocks to play.  But, I won’t.  My job is not to inundate my readers and subscribers with pick after pick.  There is only so much time (and capital) that a trader can commit to researching a stock.  I want to pick only the best for my subscribers.

I also reserve the right to take any one of these stocks and turn them into a full pick….they have that much potential. I own several of them and will probably invest in several others over the next few weeks and months.

The cynic might agree with Frank Hubbard who was quoted as saying:

“The safe way to double your money is to fold it over once and put it in your pocket.”

I don’t agree with Frank….ANY ONE of the stocks we profile on my sites have the potential to MORE than double. We don’t take flyers on stocks….we do our research and use our experience and knowledge to pick the stock that have the greatest potential to deliver the greatest gains.  So our subscribers can benefit.

So, let’s get to work...and, have some fun at the same time.

Good luck and Great trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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Disclaimer

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.

Adeona Pharmaceuticals, Inc. (AEN)

I have followed Adeona Pharmaceuticals, Inc. (AEN) since I first picked it on September 29th.  It is one of those pharma companies that had some great potential but seemed to have fallen out of favor with traders.  Well…it is not out of favor anymore.

My blog on Adeona came out when the stock was around $0.79 (read it here) and it just hit $1.40 intraday today.

Is the run over for Adeona? The chart is strongly bullish and it appears that it could run for several days and longer if the company comes out with some good news.  Based upon my entry price, readers of Investor Soup are looking at at gain of over 65% (based upon a est. closing price of $1.33).

I bring this up not just to brag, but to offer a validation of my method….my very successful method.

I do my research…I read financials, talk to company personnel, view the stock boards (with a huge grain of salt) and do extensive research.  AEN was a company that had a solid foundation financially, an interesting drug portfolio and I was very impressed with the CEO, Dr. James Kuo from our conversations.  The chart indicated to me the stock had found a bottom and, barring any catastrophic news, would likely climb from these levels.

I was right!

Here is what patience and a plan will do:

Stay tuned for the launch of my new site next week!

I can hardly wait.

I don’t have any buy/sell recommendations for AEN at present.  I want to see just how long this surge will last.

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

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.

All American Pet Company (AAPT)

While I am working on my other site, I continue to track stocks.  Today’s stock is one a subscriber sent me to look at.  I am a new dog owner in 2010 and the product line piqued my interest.  I did my research and now the company does, too.

I am putting All American Pet Company (AAPT) on my trading radar. I suggest you do the same.  It has enormous potential and an equal amount of risk.  The company is attempting to penetrate a multi-billion dollar pet food market in the U.S. with their line of super premium natural dry dog food and an assortment of dog treats and, suprisingly enough, breakfast foods for dogs.

History of AAPT

I have done my research reading PR’s, financials and talking to company personnel.  AAPT is a pink sheet company with a very checkered past.  It has been ready to make its big breakout once before only to have its planned 2007 product rollout scuttled by a lack of financing.  Founded in 2003, AAPT went public in 2007 supposedly in anticipation of their product rollout.  According to the company, they had lined up over 7,800 retail outlets to take their line of dog food but couldn’t meet demand because of a problem with financing.  Then the financial meltdown occurred and everything was pushed back.

The company stock has been headed in only one direction (down) over the past few years and deservedly so.  The company has made big announcements and not performed in the past…why should we believe them now?

The Future of AAPT

For AAPT, the future is NOW.  They recently announced a significant purchase order from Food Lion (a grocery chain in the Southeast and Mid-Atlantic States) to supply all 1300 locations.  According to the company, they are still approved vendors with such retailers as WalMart, CVS, Kroger, Circle K, McClains Distributing and other retail and wholesale outlets.  I expect to see more P.O’s signed with some of the retailers in the very near future.

They have also had a number of successful capital raises, the most recent being about 6 months ago for approx. $750,000.  It appears they will not make the same mistake they made back in 2007…being undercapitalized, I mean.

I tried to find out from the company just how lucrative the Food Lion relationship could be.  They assured me that the existing P.O. was not a trial P.O., but rather a full purchase order for all of Food Lion stores.  While I could not get them to tell me exact amounts, I got the impression that they expected significant re-orders under this P.O.  My estimate for such a large chain and given the price point of their product, this relationship alone could mean several million dollars in revenues for the company.

The company has a unique angle that I have not seen from other pet food companies.  AAPT has devised its own “power bar” for dogs.  They have had very positive feedback from retailers about their line of bars which are priced and displayed as an “impulse” item on the checkout stand.  They say this product has strong margins and could be a huge winner for the company.  They also have another hook in the form of “breakfast food for dogs”.  I will be interested to see how each of these items sells.

The Chart looks promising

AAPT has taken a beating over the past few years.  Historical information indicates the investors who came onboard in 2007 when the company went public came in around $0.50.  Since then, the stock has done nothing for them except go down.

That could be changing.  I am looking at volume returning to the stock, the stock hitting a 52-week low just a few days ago, technicals that could be showing a near-term rally…and much more.

Bottom Line

This is not a short-term technical play.  True, there might be some price movement over the next few weeks, but the real play is if this stock begins to issue some meaningful press releases:  new P.O.’s signed, new retailers and wholesale accounts added, revenues and profits booked, etc…

I believe that 2011 could be a VERY GOOD YEAR for AAPT.   At these price levels, the stock could easily double or triple on any good news.

This is also a penny stock with all of the uncertainties inherent in stocks of this type.  The company is fully-reporting and seems to have a good team in place (more on management in a future post).

Here is what I am looking at for entry/exit points
Last Close:              $0.023
Buy Opinion:          $0.02 – $0.03  (use your own good judgment here….if you miss it at these levels, watch it to see whether it holds the uptrend before getting in)
Short Term Sell:    $0.05 – $0.06
Long Term Sell:     $0.15 – $0.20+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

—————————————————————————————————————————————

Disclaimer

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.