You would have to live on the moon not to see and be impressed by Zanett, Inc. (ZANE)

A $0.31 cent stock YESTERDAY, ZANE issued some great news about landing a huge number of new contracts (Read it here) and it took off.  It reached a HIGH of $2.50 before closing at $2.09. That is impressive by any measure.

The caution here is this is a company whose average daily volume was 16K shares and it has traded 7.9MM shares today!…on a public float of only 3.3MM shares.

Here is the chart:

Wow and Wow! This ship will crash to Earth at some point, but not yet.  Anybody doing a Tim Sykes and shorting the stock today is in a world of hurt.  Watch the trailing indicators (MACD, RSI and Stochastics) to see when the right time to short is.  Be careful, this could be a multi-day runner.  The first day of something THIS BIG with real news and HUGE investor interest could mean that this hangs around here…or even advances.

ZANE has made some people fortunes today.  Let’s see if we can make a fortune on the way down, too.

Good luck and good trading,

Jeffrey Dean

Editor

First a personal update:  Friday’s blog was kind of “doom and gloom” when I was stuck in the middle of a power outage (second year in a row for NH).  Even thought I got power back relatively quickly, I am still shopping online for an emergency generator.  Family is fine, house is safe and my section of NH is no longer a third-world country.  It is amazing how we take important things (like power) for granted.

Now…on to stocks.

My scans today produced NightHawk Radiology Holdings, Inc. (NHWK). Nighthawk is at the end of a prolonged decline in its stock price IMO.  This might be a good time to put it on the radar.  If it recovers from its February swoon and embarks on a climb like last year, you will like me very, very much.

Here is what I am talking about (1 yr. chart for NHWK)

NHWK is actually a very impressive company.  They have a dominant market position in their industry.  They provide services to radiology groups and hospitals throughout the United States.  NHWK provides a complete suite of solutions to doctors and hospitals, including professional services, business services, and its advanced, proprietary clinical workflow technology.  The company claims to provide round-the-clock services for for approximately 1,560 sites or 27% of all hospitals in the United States.   That is pretty impressive!

What is also impressive is that they make money.  Revenues of $162 million in ‘09, but a loss in 2009 due to a $68.7MM  goodwill impairment charge (so, I wouldn’t hold it against them).  L-T debt of $77MM, but great liquidity ratios.  Plenty of cash in the bank ($32.29MM) and over $1.37 in cash per share.

Here is the 3 month chart so traders can see in greater detail what is going on.

Here is my final analysis.  The table below is a chart of NHWK’s highs and lows during the last year.  Lots of volatility and nice bounces off lows to post highs again.  A trader could make a great profit of trading these swings.

Do you see why I say that this is a great radar stock?

I will be watching it myself.

Good luck and good trading,

Jeffrey Dean

Editor

I am sitting in Panera working on my computer because my home is in the dark.   My part of New Hampshire got hammered by a wind and rain storm of epic proportions last night.  I spent a fun evening bailing out my basement and was winning the battle until I lost power (Wet/Dry Vacs don’t work without power).

At 11:45 p.m., I finally gave up.  My kids were sleeping snug in their beds and I just threw another blanket on them and went to bed myself.

When I woke up this morning, my property looked like a war zone.  Branches were strewn everywhere and a number of trees were down.  The wind was so intense it  even tore parts of my siding off.  It even tore the caps off of the railings on my front porch.

The good news in all this is that my family is safe.  We will get power back and life will return to normal.  Or, maybe not.

I am very concerned about the world that I live in.  I feel that American society and world society is balanced on a knife’s edge.  Economic forces beyond my understanding control my life.  If another AIG, ENRON, Merrill Lynch, etc. hits the skids what will happen too my world?  I make a very good living in the stock market.  What happened if this depression deepens and is extended.  What if there is a financial meltdown?  I am too far down the financial totem pole for anyone in Washington, D.C. to care.

Last year, New Hampshire was hit by an record ice storm.  We lost power for 5 days then and  our house temperatures inside were below freezing.  I was not prepared for this disaster, but kind friends took us in and we made it through o.k.  But, for several days last year, large parts of NH was a “third world country”.

I have started researching subsistence living since  I am responsible for my family.  I have 4 wonderful kids and a beautiful wife.  They need me to have the answers to questions that are not comfortable to ask.  Can I care for my family if some cataclysm hits? (natural or man made)  What happens if we have a Haiti-type disaster.  Total anarchy had sprung up in that country by the third day after the quake.  Why should the U.S. be any different?

As you can tell, my head is spinning.  I will follow up on this…count on it!

God Bless,

Jeffrey Dean

American Sierra Gold Corporation (AMNP) was all over the boards just a few months back.  An exciting new issue with two strong gold properties in Nevada and Mexico, it seemed to have no limits as to how far it could go.  However, like all promoted stocks the promotion eventually stopped, traders took profits and the stock “came back to earth”.

AMNP is at an interesting place right now.  The stock chart seems to indicate that the stock has stabilized from looking at the MACD, RSI and its price action recently.  Having said that, it made a similar base at around 47 cents in late January, but then pushed through that to now trade around 38 cents.  Is this the bottom?…I hope so!

Let’s take a look at why AMNP captured traders’ imaginations in ‘09. AMNP has two projects that seem to have great potential.  Its Urique project in the Sierra Madre Mountains of Mexico is their home run.  It is contiguous to NYSE listed company Gold Corp’s (GG) El Sauzal mine which is very profitable.  To the end of 2008, that mine had produced 1,072,000 ounces of gold and Goldcorp has reported proven and probable reserves of 470,000 ounces left on the property.  the Urique Project, encompassing 71,334 acres, has the potential to be as prolific as the El Sauzal mine according to the company.  However, the earliest revenue from that mine is expected to be 2012.

Its Discovery Day project in Nevada is small in comparison to the Urique project, but is projected to be revenue generating much, much sooner.  In fact, estimates I have read claim that the mine will produce significant revenues for AMNP by the end of the 2010 fiscal year (7-31-10).  Recent press releases touted the fact that the mine has been reopened and they are working towards production in the near term.

AMNP has what every mining and exploration company needs: Financing. The company announced, with great fanfare, an equity-based financing agreement with Tobermory Holding Ltd., a European institutional investor.  According to the latest Q available, AMNP has made two draws against that agreement totalling $800,000.  The initial commitment is for $6MM with up to an additional $10.5MM of financing available.  Of course, AMNP must hit certain milestones, but the fact that they have the financing is huge.  I will read their latest Q (whenever it is issued) to see just how the company is progressing.

AMNP’s Chart…with my annotations

AMNP has got some real potential IMO.  However….remember that for every surge in price, traders who are stuck in  losing position will sell into any strength.  There are a lot of angry traders out there….from reading the boards.  If the company decides to promote their stock again, that could make this thing fly.  Don’t forget to factor in the price of gold into your equation.  Now that the hype and hysteria have died down, AMNP actually looks like a good company with some exciting prospects.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; AMNP was previously subject to a now terminated promotion agreement. 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 did a blog on Atlantic Wind and Solar, Inc. (AWSL) a few months back and am bringing it back to my members again (link to previous blog).  I think that AWSL might be a good trade for the near term and the long term.

To review:  AWSL is primarily a solar company that has taken advantage of the Ontario Government’s Feed-In-Tariff program to corner the market on rooftop solar installations in that province.  They have other projects outside of that jurisdiction, but the first projects that will make money for AWSL will be in Ontario.  I would encourage readers to view AWSL’s site.  Here is what I wrote in my previous blog:

“By partnering with corporations, associations, land and business owners, AWSL will install, service, manage solar and wind installations that can range from a single rooftop to a full parks.  They are touting relationships that they are working on that will drive them to profitability and a pre-eminent position in the industry in a short time.”

AWSL has been a hot topic on the boards and Penny Stock Chaser has been flogging it unmercifully.  AWSL was even on Tim Sykes radar for awhile and that is the company’s own fault.  They have decided to go the stock promotion route quite vigorously.  But, it is said in this business that small cap stocks don’t move without promotion…and, I believe it, too.

Let’s strip away the hype and take a look at AWSL.  Here is what I have learned from numerous sources:  PR, talks with their IR people, boards, 3rd-party articles:

• AWSL is for real;
• AWSL has partnered with major real estate developers in Ontario province like Cushman Wakefield and Remington Properties to lock up rooftops and other properties;
• They have secured a large number of contracts with the local utilities under power purchase agreements;
• They are working on several large debt financings that will capitalize the company in a big way;
• They are making noises about getting uplisted to larger exchanges (that is always a good thing for stocks)

Here is the chart so you can see what I am talking about:

• AWSL is trading in a range of between $2.50 and $2.75
• MACD is bearish, but is strengthening
• Volume has tailed off, but history shows that it can take off at any time
• Stochastics are neutral and could turn positive with more buying action

I own shares in AWSL and I bought in at around $3.75.  I guess I believed what I was writing.  The stock dividend brought my basis down to the level where I am in the black again.  However, I would like to see all of this potential become realized and I will watch with interest what effect the future news has on the stock.  I know that the shorters are betting that AWSL is all hype and will “fold like a cheap suit”.  I don’t agree.

I will actually end this blog with what I ended the last one:

“My conclusion is that traders should radar list AWSL.  If you trade it, make sure you have a tight trailing stop on it.  Take the gains as they present themselves.  If the stock goes up appreciably, you can relax the trailing stop so you don’t get “stopped out” on any dips (and there will be some IMO).  If this stock gets hot, it could be a $10.00 stock based upon the buzz about it…..Don’t trust buzz though.  I would like to see AWSL start booking deals, signing contracts, getting necessary financing, become a reporting company, etc…, but until then I still remain a fan.”

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

Disclosure: Long AWSL

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