General Commentary

2
Aug

Wind Works Power Corporation (WWPW)

This is the third time that I have previewed Wind Works Power Corporation (WWPW) in my blog or on an alert over the past two years.  Both times, it was a great stock for members!  Good gains and strong volume tend to make me like a stock.  I think the time is right to take another look at WWPW.

I have said this many times…”I like wind power”. I remember growing up in the San Francisco Bay Area and driving on the East Bay through Altamont Pass and seeing thousands of wind towers.  And, this was over 40 years ago!  Shows you how old I am.  That project was the forerunner of many of today’s wind projects and still operates today.

I have kept WWPW on my radar screen since that time and feel that the company has real potential in the long term.

Their PR’s tout an impressive array of projects in Canada, United States and around the globe.  Some of their latest news is of the purchase of a fully-permitted wind project in Germany.  One thing that has changed from my previous writeups on WWPW is they are going to build and operate their own windfarms (in addition to being a packager).

What that means is that WWPW will still do ”packaging”.  They will work on a project locking up the land, drawing plans for the project and putting utility power purchase agreements in place  With those attributes, those projects are VERY VALUABLE.  Currently, the company claims to have 80 Megawatts (MW) in Ontario, Canada, 270 MW lined up in the U.S. and now a small 4 MW project in Germany.

My annotated chart follows:.

sc-11

WWPW isn’t a “slam dunk” by any means. The company hasn’t, for all of its promise, converted any of their development projects in to revenue, profits or cash flow.  Their balance sheet is not strong and there is no guarantee the company will be able to raise any capital going forward.

You can do some of your own DD by viewing their website:  Click Here

Good luck and good trading

Jeffrey Dean

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

Last Close:              $0.35

Buy Opinion:          $0.30 - $0.45

Short Term Sell:   $0.75

Long Term Sell:     $1.00 to $1.50

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 trader 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.

Category : General Commentary | Blog Bookmark and Share
30
Jul

Biomagnetics Diagnostic Corporation (BMGP)

A few weeks ago in my blog, I made a call on Biomagnetics Diagnostic Corporation (BMGP).

Here is what I said:

“I am looking for BMGP to crash and burn in the very near future. This penny stock piece of junk is still on the rise and their is no guessing when it will top off, but be ready to ride it back down.

There are no entry points or exit points with this trade…watch it for signs it is cracking.  Get in…drive it to the ground and move on.”

AND I WAS RIGHT!
BMGP took an immediate dive starting that same day and didn’t stop until it had shed almost 40% of its value….in the matter of only 5 days.
Here is the chart that details my call:
sc3
I have been in penny stock investing for a long time and knew that BMGP (at the present time) was much more “sizzle than steak”.
Maybe these guys will actually deliver on what they are hyping.
Then again…..maybe not!
No play on this one for now….keep it on your radar.  It is going to move on news and hype (because that is all they have).
This one could be volatile moving forward which is what traders want.
Happy 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.

Category : General Commentary | Blog Bookmark and Share
21
Jul

JADE ART GROUP INC (JADA.OB)

I blogged JADA  a few months back and hit the nail on the head with my call.  The chart looked to me to be setting itself up for a move and I was right.  The stock delivered almost a 50% gain over a week’s time.

I was very pleased with myself and with JADE ART GROUP INC (JADA.OB).  I think the time is right to take another look at JADA.

Jade Art Group Inc. is a seller and distributor in China of raw jade, which has uses ranging from decorative construction material for both the commercial and residential markets to high-end jewelry.

The stock itself is currently trading at around $0.36 and its prices have swung from a 52-wk. low of $0.15 to a high of $1.09.  The stock itself is not having a good 2010 being down 45% for the year and 67% from its April 5th high of $1.09.

I am not seeing a near-term pop with JADA due to any technical analysis.  In fact, the momentum (and volume) has plateaued.  But, that does not mean that JADA is not a good trade.

The chart is showing that JADA is trading near the 2010 base of around 35 cents.  This is the base that the stock used in its April move and could with its next move.

sc2

I am willing to wait around to let JADA be rediscovered.  The company is in strong financial condition with a strong balance sheet and profitable operations.  In fact, as of March 31, 2010, Jade Art Group had cash and cash equivalents of $5.7 million, up from $147,392 as of December 31, 2009. Current assets and current liabilities as of March 31, 2010, were $11.7 million and $3.2 million, respectively, yielding working capital of $8.5 million.

JADA has made it known they are looking to diversify (vertically within the Jade business and beyond) and with strong financials and strong balance sheet, they could easily snap up another company.  All it is going to take for JADA to fly again is the next earning release, news of an acquisition, traders rediscovering it, etc….

The risks are small, but it is good to be aware of them.  JADA has only one source for its Jade (albeit on a 50-yr. exclusive contract) and a limited number of customers (under 10).  Any political upheavals, market glut, government intervention (it is China after all) could negatively impact the stock….I don’t see that happening however.

I think I will be right on JADA again!

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

Last Close:              $0.38

Buy Opinion:          $0.33 - 0.45

Short Term Sell:   $0.65

Long Term Sell:     $1.00+

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.

————————————————————————————————————————————–

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.

Category : General Commentary | Blog Bookmark and Share
20
Jul

Biomagnetics Diagnostic Corporation (BMGP)

I get emails all the time from members and traders.  I usually enjoy their emails and I have made several “friends” over the past year that I keep in touch with to talk stocks…and sometimes life.

I get emails periodically that pretend to be from an interested trader but are really only penny stock promoters.  I have heard there are promotion firms that can be hired (usually from India) that will post a company on every board or comment site across the web….another reason to NOT trust message boards.

The latest one I got was about Biomagnetics Diagnostic Corporation (BMGP).  I got this long email with a “gushing” summary of the company, links to charts and news and much more.  I said “what the heck” and took a look.

BMGP is in a rush to convince the world that they are the “real deal” with a flood of impressive -looking PR’s and a plethora of promotions.

From reading there info, you could believe that this stock could be a $1 stock very soon.  In fact, the company itself claims that $1 is their goal.    That is a HUGE warning sign right there.

Get traders fixated on the $1 price and forget about the fact that BMGP is not a real company yet.  They have a little cash in the bank ($300K), low debt and absolutely NO experience running all of these Chinese companies they are touting.

Let’s take a look at the chart!

sc1

BMGP even has its Investor relations person joining message boards promoting his own stock…..incredible.  The guy is coming across all “warm and fuzzy”,but I ain’t buying it.

The PR’s about their Chinese “acquisitions” are all Letters of Intent…They don’t own anything and the coin they will use to buy anything will be shares of stock.  With O/S of 64 Million shares at the end of last Q, how many hundreds of millions of shares will they have to use to purchase these companies?

I am looking for BMGP to crash and burn in the very near future. This penny stock piece of junk is still on the rise and their is no guessing when it will top off, but be ready to ride it back down.

There are no entry points or exit points with this trade…watch it for signs it is cracking.  Get in…drive it to the ground and move on.

BMGP will be the next pump and dump that Sykes starts foaming at the mouth about….trust me.

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 stockmarket, 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.

Category : General Commentary | Blog Bookmark and Share
19
Jul

Provectus Pharmaceuticals, Inc. (PVCT.OB)

Today’s penny stock pharma pick is Provectus Pharmaceuticals, Inc. (PVCT.OB).  It is another one of those pharma plays that has what I look for in a pharma company:

1.  Promising Drug Candidates

2.  Cash in the bank

3.  Manageable debt

4. Beaten down chart

PVCT, a development-stage pharmaceutical company, through its subsidiaries, engages in developing, licensing, and marketing over-the-counter (OTC) products, prescription drugs, and medical device systems in the fields of dermatology and oncology.  Provectus Pharmaceuticals has developed various intellectual properties and technologies in the areas of imaging, medical devices, and biotechnology. The company was founded in 2002 and is based in Knoxville, Tennessee.                                                                         source: Yahoo! Finance

PVCT has two major drug candidates; PV-10 which is a therapy for metastatic melanoma and other cancers and PH-10 which is a topical treatment for a wide range skin conditions (psoriasis, atopic dermatitis, actinic keratosis, and severe acne).  The company also is designing a suite of medical device systems include therapeutic and cosmetic lasers for cosmetic treatments, such as reduction of wrinkles and elimination of spider veins, and other cosmetic blemishes; and photoactivation of PH-10 other prescription drugs and non-surgical destruction of certain skin cancers

Rather than regurgitate/update how the company is doing, I will direct you  to their latest PR that updates shareholders on the company’s progress (sounds positive, by the way) - click here for link.

What is important to know is that PVCT has the financial wherewithal to make it through this next round of clinical trials.   The company has come out and said they have “ample cash” and with no debt, I think that PVCT might be a good position trade (several months probably).

Insiders own almost 17% of the company, but they haven’t attracted much institutional interest.  Their latest PR (linked above) intimates that could change.

Let’s take a peek at the chart:

pvct

According to the company, they are planning a major announcement in conjunction with their Australian trials at Melanoma 2010 Conference in Sydney, Australia, November 4-7, 2010.  Good news there could make this stock jump.  In fact, any news could make this stock jump.  My crystal ball is telling me to expect good news, but there are no guarantees.

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

Last Close:              $1.05

Buy Opinion:          $.90 - $1.15

Short Term Sell:   $1.45 (45% gain from $1 purchase price)

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 stockmarket, 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.

Category : General Commentary | Blog Bookmark and Share
15
Jul

BSD Medical Corporation (BSDM)

At $1.00, BSDM is trading near the bottom of its 52-week range.  The chart is telling me that BSDM might be ripe for a rally (or possibly a full trend reversal).

I look at this penny stock’s chart and see several things that lead me to believe that.  So, let’s start with the chart!

bsdm1

I look at a company whose stock has been in a decline for several months, is hitting a 52-week low with a bearish MACD and oversold stochastics…and I think this is a good deal?  I must be out of my mind.

I’m not…despite rumours to the contrary.  BSDM is a financially strong company (more on that later) that, based upon chart alone, could be ready to rally.  I am looking at recent chart candles and am seeing the setup for a rally.  Take yesterday’s “Doji” for instance.

Stockcharts.com says that Doji’s are “After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish. Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

I would expect to sellers to try and hit BSDM a few more times, but I think buyers will win the day.

BSDM also has a strong balance sheet going for it.  It has over $7 Million in cash, no debt and strong ratios.  The company can’t seem to turn the corner on profits recently, however.  The losses are not significant enough to cause any going concern issues.   This strong balance sheet gives BSDM time to “right the ship”.

I would not be surprised if BSDM didn’t get bought out.  I have nothing concrete about that….just a hunch.  Cash-rich, a smaller player in a larger market, mature products…etc, etc…

Have a great day in the market,

Jeffrey Dean, Editor

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

Last Close:              $1.00

Buy Opinion:          $0.90 - $1.05

Short Term Sell:    $1.50

Long Term Sell:     $2.00+

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 stockmarket, 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.

Category : General Commentary | Blog Bookmark and Share
14
Jul

Cyclacel Pharmaceuticals (NasdaqGM: CYCC)

CYCC is potentially a big winner for 2010.  Its line of oncology and hematology drugs have been much in the news lately and are expected to have even bigger news (Clinical trial-type news) before year-end.

The stock is off over 50% from its 2010 high as investor fervor has subsided from several promising announcments earlier in the year.

However, CYCC might be a good penny stock/small cap company to invest in a mid-to-longterm trade.

Cyclacel’s strategy is to build a diversified biopharmaceutical business focused in hematology and oncology based on a portfolio of commercial products and a development pipeline of novel drug candidates.  source: YahooFinance.com

The news has been mostly good:

  1. CYCC just received orphan drug designation for Sapacitabine in both AML and MDS.
  2. The company has been added to the Russell Microcap(R) Index.  That is important to remember because almost $4 TRILLION in funds are benchmarked to this index.  It is an annual index and CYCC will have to qualify next year, but given what I see that won’t be a problem.
  3. CYCC’s ongoing Phase Two clinical studies for its cancer drug candidate, Seliciclib (boy, what a name…that really rolls off the tongue!) have electrified traders and investors.

From a fundamental standpoint, CYCC is strong.  They have a decent balance sheet with no debt and they have shown an ability to raise capital whenever they need or want to.  Which is all the time! CYCC is burning through a tremendous amount of cash every quarter and needs to “feed from the public trough” constantly.  They have no meaningful revenues and must fund operations solely off of their balance sheet.  If they receive any negative news, that ability to raise cash could be compromised.

From a technical standpoint, it appears that CYCC has stabilized at between $1.50 and $2.00.  The stock is in a small uptrend, but the indicators are not confirming that trend in any significant fashion.

Having said that….the 7 month chart shows a great deal of volatility that can be played if you watch the stock closely.

cycc3

CYCC has a stable of drugs that have garnered mostly positive reviews.  Their ability to raise capital whenever they want to speaks to the confidence that institutional investors have in the company (despite being dilutive to current shareholders, it is “all good”).  In fact, over 20% of the company is held by institutions.  Insider ownership is only 5%, but I would expect a low number given how many rounds of financing CYCC goes through annually.

Bottom Line:  CYCC is a worthy candidate imo.  CYCC is on traders and investors radar screen and they are just looking for that next piece of good news to start a buying frenzy again.  CYCC will try and give them that good news before year end.

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

Last Close:              $1.65

Buy Opinion:          $1.50 to 1.75 (if the price drops below $1.50, wait and see if it recovers)

Short Term Sell:    around $2.50

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 under-served 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.

Category : General Commentary | Blog Bookmark and Share
13
Jul

China Precision Steel, Inc. (NasdaqCM: CPSL)

Today’s screen brought China Precision Steel, Inc. (NasdaqCM: CPSL) to my attention.  I admit that I like Chinese penny stocks because of the size of the market they are selling into and their gain history.  We in the West seem to think there is some “mystery” to Chinese stocks and we talk in hushed and reverent tones about them.

The fact is Chinese stocks are no different than any other stock and all we need to do is to apply fundamental and technical analysis to them to know if they are good trades.  No one can control news or investor sentiment however.  One thing that has held down the Chinese sector stocks is concerns over debt issues with the U.S. and other countries and concerns about Chinese Federal money policy going forward.

Those concerns shouldn’t keep you from looking at today’s stock: CPSL.

CPSL, a steel processing company, engages in the manufacture and sale of high precision cold-rolled steel products in the People’s Republic of China.  The company produces and sells precision ultra-thin and high strength cold-rolled steel products with thicknesses ranging from 7.5 mm to 0.03 mm. It also provides heat treatment and cutting of medium and high carbon hot-rolled steel strips. The company’s precision products are primarily used in the manufacture of automobile parts and components, steel roofing, plane friction discs, appliances, food packaging materials, saw blades, textile needles, and microelectronics. It sells its products primarily in the People’s Republic of China, Thailand, Nigeria, and Ethiopia.                                                                                        source: YahooFinance.com

I have read a great deal about the company and here is what I am perceiving.  They are on a growth mode with the addition of two new steel plants in 2010 and are expanding their export market efforts. Mainland China continues to be their#1 market, but this extra capacity will allow them to expand outside China’s borders.

The latest Quarter’s (3/31) financial results had nothing but good news.  Quarter over Quarter revenues increased 293.4%, company sold a record amount of steel, net profit of $2 million vs. a $3.5 million loss last year, etc, etc..

The balance sheet is good, but not great.  Cash of over $13 million, a manageable debt load with decent debt coverage and a strong operating cash flow.  The balance sheet is very clean, actually.

Insiders own almost 42% of the company with about 7% in institutional hands.   No sales or purchases have been reported lately.

Since their fiscal year end is June 30th, I would expect a run up in the shares to the announcement of earnings.  It appears that CPSL will be solidly "in the black", but earnings announcements are dangerous times to be in a stock.  Make sure that you bracket this trade properly in case the earnings "surprise" is negative.

The Annotated Chart:
cpsl

Bottom Line:  CPSL
is a company that is headed in the right direction.  They have weathered a downturn in their business; they have come out of that stronger imo; they are ramping up production; opening up new markets, etc...

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

Last Close:              $1.34

Buy Opinion:          $1.30 - $1.45

Short Term Sell:    $1.75 - $1.90

Long Term Sell:     $2.50 - $3.00+

Good Luck and Great Trading,
Jeffrey Dean

About InvestorSoup
InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocksmicro-cap stockshot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or penny stockmarket, 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.
 
Category : General Commentary | Blog Bookmark and Share
12
Jul

There are several reasons that I am blogging Ladenburg Thalman Financial Services, Inc. (LTS): One is chart and the other is news.

For those who don’t know, LTS has been around since 1879 and is traded on the AMEX.  LTS engages in investment banking, equity research, institutional sales and trading, independent brokerage and advisory services and asset management services through its principal subsidiaries, Ladenburg Thalmann & Co. Inc., Investacorp, Inc. and Triad Advisors, Inc.  LTS has seen some very hard times recently with the economic downturn, but is narrowing losses and shoring up its balance sheet.  I am sure they are not pleased to be a penny stock, but they are not the only old line firm made to “eat crow” in the current economy.

The news is LTS has been added to the Russell 3000 index which has raised the profile of the company enormously.  It doesn’t hurt that inclusion in the 3000 index also automatically includes LTS in the Russell 2000.  That fact could have a huge impact on the volume for the stock as portfolios based upon the Russell Indexes are rebalanced.

The chart is what interested me….I think it will interest you, too.

lts1

If recent history holds true, then we could see a price spike with LTS again.  The oversold stochastics could give some impetus to a spike imo.

LTS does not make the CPA side of my personality happy.  They have high debt based upon their current assets and ratios are not as good as I would like to see.  They are seeing good revenue growth and losses are narrowing.  This is not a fundamental play….it is a news and chart play.

I will be interested to see if the increase of buying due to the inclusion in the Russell indexes spurs a rally in the stock….the chart looks like it the stock could be ready to pop again.  The bearish MACD looks like it could be turning (but since it is a trailing indicator, I can’t be 100% sure)

A short term play….LTS has never been a high flier.

Good luck and Great trading,

Jeffrey Dean, Editor


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.

Category : General Commentary | Blog Bookmark and Share
9
Jul

I found a penny stock that is wildly profitable, has cash-in-the-bank, no debt and is serving the large and growing Chinese market.  It has a depressed stock chart that is showing signs of bouncing off a bottom (although I never call bottoms).  It is a stock that is worth looking at for a swing or position trade (maybe a long term hold….but that is not my call).

As the title indicates, I am blogging today about China Electric Motor, Inc. (NasdaqGM: CELM). The company sells micro-motor products through its subsidiary Shenzhen YuePengCheng Motor Co., Ltd mainly in the Chinese market.

It is a company that has had a very volatile 2010, trading as high as $9.88 and as low as $4.44.  In fact, CELM is still trading near the bottom of that range…and I believe merits a look by the serious trader.

The Chart is speaking to me:

CELM tested its low for a second time in a short period which can be a sign that this move might have some strength to it.

I would watch to see if CELM can establish an uptrend.  The play is a short term one….not a day trade, but rather a swing or position trade.  The chart clearly shows that all rallies have been short ones (a couple trading days at most).  Unless the stock establishes a clear uptrend, I would keep tight stops on it and take profits on any dips.

Volume has tailed off recently.  The company needs an effective promotion or some news to drive more volume into the stock.

See my annotated chart below:

CELM, Penny Stock

A Strong Balance Sheet

As a former CPA, I read balance sheets and income statements like anyone else reads the newspaper.  CELM’s financials are a good read.  I can tell you that CELM’s balance sheet is surprisingly strong.   As of the March 31st Q end, they had $1.16 in cash per share, no debt, $33MM in the bank……most companies would kill for that balance sheet.

From the income statement side of the ledger, sales are increasing and so are margins.

When I see a balance sheet like this, I get comfort from the fact that no matter what “bumps in the road” that the company encounters it has the financial wherewithal to survive them.

This hoard of cash also gives rise to the idea that CELM might be in the market for some acquisitions.  Nothing in their public info states that….just a hunch on my part.

Bottom Line

CELM is a strong trading idea

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

Last Close:              $4.78

Buy Opinion:          $4.50 - $4.90

Short Term Sell:    $5.40

Long Term Sell:     $6.00+

Good Luck and Great Trading,

Jeffrey Dean

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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.

Category : General Commentary | Blog Bookmark and Share

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