Adamis Pharmaceuticals Corp. (ADMP.OB)

There is an old saying that I love: “It ain’t bragging if you can back it up”.  While the ADMP people aren’t saying they are going to be a ten-bagger, I am.   And, I think they will back it up for me.

I haven’t been this excited about a pharma company for quite some time.  Adamis Pharmaceuticals Corp. (ADMP.OB) currently is a beaten-down pharma stock that isn’t generating much positive buzz.  Their reverse merger with Cellegy in 2009 (to go public) generated a lot of bad blood and their recent unsuccessful attempt to merge with La Jolla Pharmaceuticals left many traders wondering if the company was going to be able to survive.  The boards are, by and large, down on ADMP.  The negative comments I am hearing center around their lack of financing, poor results for their highly touted Epinephrene syringe initiative and disbelief in the company’s current strategic direction.  In fact, there is still a great deal of short activity surrounding ADMP.  Yesterday’s FINRA report shows that out of 150,500 shares traded….33,000 were shorts.

To my mind NOW is a great time to have ADMP on your trading radar.

I have known about ADMP for quite some time.  I actually did a blog the company in August of 2009 when the stock was at $0.24.  I titled my blog “When it goes, it will go big“.  Well, it did go big…for awhile.  Shortly after I blogged it, ADMP went on a run to $0.45 (a gain of over 87% in less than two weeks). I got many emails from traders thanking me for that call.  Since then, the stock has been very volatile trading in a range between $0.55 and $0.15 and is currently is trading right around the $0.25 mark.

It is time to take a close look at ADMP again.

ADMP calls itself a commercial-stage specialty pharmaceutical company.  click here for website.  The site needs updating, but it will give you more information about the company.

Before I wrote this blog, I did extensive research on the company, reading financials and talking with both the IR firm and several officers of the company.  All have extraordinary confidence in the company.   On its face it might be hard to share their optimism, but I drilled into the company and found out some things that make me very high on the stock.

Financing will come

All of my conversations with the company and its IR firm started and ended with the question…..”What about financing”.   While the company would not give me any details on current financing efforts, I got the impression that something was imminent.  The company is highly motivated to raise the capital since one of the conditions of their recent acquisition of their prostate cancer drug candidates was a minimum equity raise of $2MM.  I am inferring here, but I couldn’t see a company licensing its technology to ADMP (especially since they have blockbuster drug potential) without real confidence that the financing could be accomplished.

Once this initial financing is accomplished, the company believes this will be the last financing it will ever have to do because of the following.

The “Steak and Sizzle” Growth Strategy

I had a very extensive conversation with Dr. Dennis Carlo, CEO and President.  I came away very impressed with Dr. Carlo (more on him later).

Dr. Carlo used an analogy for ADMP’s growth strategy calling it the “Steak and Sizzle” plan.   What he means by that is that the “meat” of the company is their Epinephrene syringe product that can conceivably generate many millions of dollars for the company NOW.  The product has been approved by all of the major medical supply distributors (Amerisource Bergen, Cardinal Health, McKesson, etc…), major drug chains and a number of insurance companies.   It is priced significantly below the current competition’s products and the company is aiming at capturing 10% to 20% of a $200MM market…which could mean millions to the company annually.  However, the success of this strategy is heavily dependent on achieving financing which hopefully they will accomplish soon.

The company has lined up manufacturers….all it needs is the capital to produce production quantities for distributors to stock and reps to sell.  Dr. Carlo’s actually is convinced that the Epinephrene sales could make the company profitable in its first year AND fund the trials for its other drug candidates.

Part of his “steak” strategy are two other products:

1. Nasal Steroid for the treatment of Allergic Rhinitis – The company is very high on this product (Beclomethasone HFA aerosolized nasal steroid….to be exact) that would gain the company entrance into a $3 Billion market.  The product is not expected to be ready for launch until 2012, but the company has high hopes for it.  They also have two other extensions of Beclomethasone for Asthma and COPD expected to be released in 2013.
2. A topical contraceptive for women  (C31G) – Hidden away in their SEC documents is a product that has passed Phase III testing with the FDA and might represent income (either from sale or licensing) for the company.  This product is a wildcard because the company has made no announcements of what they plan to do with it or the financial impact of the product.  This was a technology that came with the Cellegy reverse merger.  I will be looking for some news on this one in the near future.

The “sizzle” are a suite of products that were recently licensed from Colby Pharmaceuticals Corporation (read the full release here) that cover three small molecule compounds for the possible treatment of prostate cancer (PCa) called CPC 100, CPC 200 and CPC 300.  These three drugs are initially targeted at prostate cancer, but have application to many other types of cancer.

All are reasonably early stage (phase 1 and 2), but have already shown great promise.  According to the company, over $18 million has been spent developing the drugs to this point.

In 2006 and 2007, CPC-100 and CPC-200, respectively, received the National Cancer Institute’s multi-year, multi-million dollar RAPID (Rapid Access to Preventative Intervention Development) Award. Each year, this award is given by the NCI Division of Cancer Prevention, under the RAPID Program, to the most promising new preventative/ therapeutic anti-cancer drugs.

These drugs are very promising, but are years (and many FDA trials) away from being ready for market.  However, the payoff could be enormous for the company.  The National Institute of Health states prostate cancer is the most common cancer in America, affecting 1 in 6 men.  Prostate cancer accounted for nearly one quarter of all new cancer diagnoses of all new male cancer diagnoses. Worldwide, about 395,000 men are diagnosed with prostate cancer each year and the incidence is on the increase.  The NIH estimates that prostate cancer therapeutics in the U.S., Europe and Japan will cost $ 7.3 billion in 2011.

The point man for ADMP

Dr. Dennis Carlo is a very impressive man, as I mentioned earlier.  Here is his bio from the website (edited by me for brevity):

Dr. Carlo is a co-founder of Adamis Pharmaceuticals Corporation and……and has extensive biotech research and development experience ……  He served as Vice President of Research and Development and Therapeutic Manufacturing at Hybritech Inc., which was acquired by Eli Lilly & Co in 1985. After the sale to Lilly, Dr. Carlo, along with Dr. Jonas Salk, James Glavin and Kevin Kimberland, founded The Immune Response Corporation, a public company, where he served in various capacities from Chief Scientific Officer, COO and President and Chief Executive Officer. He served as president of Telos Pharmaceuticals, a private biotechnology company, prior to founding ADMP.  Dr. Carlo has extensive experience in the development of vaccines and biologics. He has a Ph.D. in Immunology and Medical Microbiology from Ohio State University. He is named on 23 patents and has authored over 225 articles and abstracts in the field of Immunology.

Being the skeptic that I am, I also took a trip through Google trying to find any “dirt” on the good Dr.  I found none! He appears to be just as advertised: A seasoned, accomplished pharma/immunology expert that is passionate about his company.

Their Dendreon (DNDN) fascination

When I talk to people at ADMP, they always bring up Dendreon, Inc. (DNDN) as a model for the kind of company they could become.  (emphasis on “could”)  They believe their prostate cancer drug candidates have the potential to be more effective against a wider range of cancers than even DNDN.  The amazing story of DNDN was that the stock skyrocketed even before the technology was proven.  According to my conversations with the company….DNDN only delays the inevitable (i.e.  The patient will live longer, but still die).  ADMP’s drug candidates could represent a cure for certain cancers.  Everything is couched in “maybe” or “possibly”, but I get the very real feeling that Dr. Carlo believes that he has a cure for certain cancers.

The Chart

While ADMP is not a short-term play to me, I am including a chart just so you can see the volatility inherent in the stock.  The stock has made some strong moves over the past year…and could again.  And, with the high short positions being taken, any short squeezes could really rocket the stock.

The Bottom Line

ADMP is, to me, a short-term and a long-term play.  I am buying some and plan on holding it for a minimum of several months.  I am not against however selling into any spikes, recovering my original investment and “playing with the house’s money” to quote the old gambling adage.  I think that ADMP has great long-term potential. Dr. Carlo pointed out to me that while CEO at Immune Response Corporation, he took the stock from $0.50 to $60.00.  It is unknown if ADMP can make the same kind of jump, but I like the fact that Dr. Carlo has “been there, done that” with another public company.

The company still has a long way to go.  If and when the company is able to secure financing, they will still have to execute on their “Steak and Sizzle” business plan.  The chart will continue to be weighted down with shorters who will do everything in their power to drive the shares down further.

Despite the potential of a DNDN-type stock price move, the other option for the company is to be acquired.  Johnson and Johnson (J & J) set the bar for the acquisition of companies with prostate cancer drug candidates with its US$1.0bn acquisition of Cougar Biotechnology in 2007. The acquisition, which was valued at US$43 per share, saw J&J acquire candidate drugs focused on prostate and breast cancers. This hefty valuation was in the face of the fact that Cougar was still in phase 1 trials for most of their drugs.  The market is not as frothy as it was in 2007, but the point is that larger companies are always willing to pay well for technologies they don’t have…and want!

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

Last Close:              $0.26

Buy Opinion:          $0.22 to $0.30  (with a stop loss at $0.17)

Short Term Sell:    $0.50 to $0.75

Long Term Sell:     $1.50+

Good Luck and Great Trading,

Jeffrey Dean

Disclosure:  Long ADMP

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 (Stocks under $5), 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.

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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.

JADE ART GROUP INC (JADA.OB)

This is a quick update on a stock that I have covered frequently over the past few months:  Jade Art Group, Inc. (JADA)

It looks like JADA could be in play today!

Yesterday, the stock saw a massive selloff based upon uninformed traders who saw that JADA’s revenues dropped by 50% over the previous quarter.  The selloff was completely reasonable given the news of the drop.  However, the press release issued by the company was interesting in the way it was presented.  The press release only talked about how the current 2nd Q was such an improvement over the previous year’s Q:

• Revenues were up 42% over the previous Q
• Gross profit was $1.9 million, compared to $1.1 million in the second quarter of 2009.
• Net income in the second quarter of 2010 was $1.1 million, an increase of nearly 200% compared to net income of $0.4 million in the second quarter of 2009.
• Basic and fully diluted earnings per share in the second quarter of 2010 were up $0.01 from $0.00 in the second quarter of 2009.

BUT (and that is a big but)….Revenues dropped over 50% from the previous fiscal quarter.  It appears, from looking at historical financials, that their business is cyclical.  Most traders seem not to be aware of that.

Here is the chart:

Yesterday’s big selloff is a great buying opportunity imo!  This is a great company that is steadily increasing EPS…margins are good, cash in increasing.  Cyclical companies get punished for putting out numbers like these for the second Q, but savvy investors take advantage.

The knife might fall further for today, but I believe that you will see JADA make a strong recovery soon.  Watch it closely for any turn.

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

Last Close:              $0.34

Buy Opinion:          $0.30 – $0.37

Short Term Sell:   $0.45

Long Term Sell:     $0.70

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 (Stocks under $5), 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.

Santeon Group, Inc. (UBCI.OB)

I don’t cover sub-penny stocks very often, but one came across my radar that I want to share with you.: Santeon Group, Inc. (UBCI.OB)

Most sub-penny’s started out as penny’s or better, but sink down into the depths of the sub-penny market…most never to re-appear.  UBCI is reversing the process.

This is one of those plays where a new company has been put into an old shell.  This one is called Santeon Group.  The old shell, UBroadcast, Inc., was reversed into only in June of this year.

The company still has the old UBroadcast ticker (and derives some incremental income from that business), but the star of the show is Santeon Group.   Santeon has been in business for over 10 years providing business process management software for the healthcare industry. (click here for website)

In it’s last fiscal year, Santeon only booked $3.6 MM in sales…not that impressive for a 10-yr. old company.  However, Santeon is betting the farm of growth.  Their PR’s make all sorts of references to strong revenue gains in 2011 and 2012.   Santeon is supposedly debt-free and cash flow positive.  I will look with interest upon the next 10-Q to see just how strong Santeon is.

Since then there has been a steady flood of press releases about the progress that Santeon Group is making in building sales posting sales with some very recognizable names in industry: BP, O2, IBM, Microsoft, etc…

The company is also growing by addition with the purchase of two other software companies, Vu Media and X2A Consulting, LLC.  None of these additions are headline stuff, but the company has laid out a strong plan for acquisitions that could help the company grow quickly.

Let’s take a look at the chart

I get the impression from looking at the chart that UBCI is just “idling” at current levels and that it won’t be a sub-penny for very long.  The chart gives me the impression that it is near the bottom of the range for UBCI and that the next move will be up.  You can play UBCI for the short-term move or if the news it puts out is strong enough, then hold for the long term.

Bottom Line: UBCI is a sub-penny play that might be worth looking in to.  Buying 20,000 shares would cost you the equivalent of a decent dinner for two, but the upside is a great deal better than a night out.

From my research on the company, I get a strong feeling they will deliver on what they are promising.  I expect they will be issuing a steady stream of PR’s about clients landed, revenue growth, new acquisitions, etc.   I just hope they have some substantive news that traders are actually interested in.

The “fly in the ointment” is that somewhere down the road, UBCI will have to do a reverse split.  As with most penny and sub-penny stocks, stock is better than cash.  Every vendor gets paid in stock, officers are paid in stock, acquisitions are done in stock….all that stock has left UBCI with a bloated capital structure that will demand a reverse split before a year has passed.

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

Last Close:              $$0.008

Buy Opinion:          $0.005 – $0.008

Short Term Sell:   $0.015 – $0.025

Long Term Sell:     $0.1 and above

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 (Stocks under $5), 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.

AISYSTEMS, INC. (ASYI)

I get calls from Investor Relations people all the time.  They all want me to know about their client, company X, that will be the next best….whatever.  They are all earnest and mean well, but I don’t always trust them.

One IR guy that I do trust brought me AI Systems, Inc. (ASYI).

He arranged for me to talk with the President of the company, Stephen Johnston, several times.  Despite Mr. Johnston’s understandable reticence to give me anything meaty, his passion for and confidence in his company came through clearly.   I shouldn’t get too excited because I have been lied to by many IR guys and company personnel.  But, I don’t think Mr. Johnston is lying.

I also think that ASYI is a company that traders should put on their radar.  It is a longer-term prospect given its chart and current situation (no rev’s, no customers and little cash).

Sounds like a deal you can’t pass up?  Right?

ASYI is a specialty software company that is targeted to the Airline Industry.  They are offering a suite of software services that “Can change the airline industry as we know it“.  Those words came out of Mr. Johnston’s mouth and I am quoting them.  Let’s look at what is behind his bravado.

Currently, airlines plan their overall schedules (route, crew, fleet and maintenance) in a process that closely resembles a Rube Goldberg machine.  For the largest airlines, it takes literally hundreds of personnel many weeks to create an overall schedule for the airline.  And, it takes weeks and weeks to create…all at enormous cost to the airline.

According to ASYI’s latest press release, “The end-to-end process (of creating the master schedule) is extremely time consuming, inflexible and often hinders an airline’s ability to achieve and sustain profitability. Utilizing current technologies to create an airline business plan and schedule has become a highly complex, expensive and often error prone process typically taking weeks to months to complete.”

If there are any deviations in the schedule (Weather, Flight Delays, Broken Planes, Icelandic Volcanoes), then the process must start again.   The Icelandic Volcano of 2010 is a perfect example of what I mean…ASYI believes their software could have saved the airlines MILLION$ during this crisis alone.  ABC News reported (read it here) that airlines lost billions ($200MM per day) while the volcano had air travel shut down.  According to Mr. Johnston, what airlines lacked was a way to quickly, efficiently and effectively change their schedules.  There was NO WAY given the current way that schedules are  constructed for airlines to change quickly.

That is what ASYI is counting on.  They have created several pieces of software (jetEngine Business Planning Software (BPS) and jetEngine O/S) that could change forever the way that airlines manage their business.

The BPS software has been released and is currently on the market.  However, no sales have been reported yet as the company is “working with several major airlines” who have expressed interest in both the BPS and O/S software.  According to the company, the biggest impediment to full adoption is the airlines’ decentralized decision making structure and the cost of the software.  The BPS software will cost airlines $1MM annually (which is a big number to swallow) and the O/S software is double that.  The O/S (due out in 2011) will also include a $0.40 per passenger fee.

However, ASYI is counting on a cost/benefit analysis that clearly shows how much money airlines will MAKE using their software.  Mr. Johnston told me of a collaborative study that was done with a major domestic airline.  The airline gave ASYI all of their schedule data for a previous year and the company then ran those numbers through their program.  According to Mr. Johnston, the use of ASYI’s software would have resulted in an increase in EBITDA of $300 MILLION dollars.

The benefits to ASYI are clear: The passenger fee alone could mean millions upon millions to ASYI since the major airlines routinely fly 100 MILLION passengers annually.  In addition, it is important to note that there are well over 1,000 passenger airlines who are potential customers for ASYI’s software and at a million dollars per installation that could mean big dollars for the company.

Sounds great, but what’s the catch?

The catch is getting someone to buy the software.  ASYI has been around for several years and seemingly had it made a few years back with the signing of a $35 Million dollar contract with AeroMexico.  They were going to be the test bed for the new software.  It looked like everything was going to turn out well for ASYI.  Then the global recession hit the airline industry hard (AeroMexico too) and ASYI lost a great deal of momentum as well as the perfect test bed for their product.

The company has adopted a bunker mentality…dumping payroll (firing their CFO and COO recently) and keeping operations “lean and mean”.

The chart isn’t much help

With a bloated capital structure (over 90 Million shares in the float), I am curious how the company will generate trader interest.  They have done some promotion in the past, but that didn’t seem to lift the stock for very long.  I have a feeling that it will be news that drives this stock.  If they are able to start closing some customers in the near term, they might be able to reach their goal of being cash flow positive by 3Q 2011.

Bottom Line:

If I had a “Top Stocks for the New Millennium” list, I would put ASYI on it.  It is not a great stock to trade now (and that is management’s fault for large part), but the stock is all about the future.  I would like to see management and their investment bankers work the price down and tighten up the bid/ask spread.  Very few traders want to buy a software company with a market cap of $66MM that has no clients, no revenues and little cash in the bank.

HOWEVER, I am going to watch ASYI because I think it has real “home-run potential” .  I will watch with interest to see if the company can truly “revolutionize the airline industry”.

I will keep you posted.

Here is what I am looking at for entry/exit points (There is a little bit of fantasy about these numbers since ASYI doesn’t trade predictably yet)

Last Close:              $0.49

Buy Opinion:          $0.20 – $0.30

Short Term Sell:    $0.75

Long Term Sell:     $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 (Stocks under $5), 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; Investor Soup covered this company under an expired promotion contract in June 2010. 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.

Global Cash Access Holdings, Inc. (GCA)

A few weeks back, I came across Global Cash Access Holdings, Inc. (GCA) on one of my trips around the web, researched it, liked it….and then discarded it.  The stock was in a serious tailspin and I never like “falling-knife” stocks.  We all know those don’t usually end well.

But, it appears that the stock may have put in a bottom and the indicators are giving some credence to a rally.  It is a stock that given a longer time horizon might make for a good trade.  The stock is strong financially and after the hysteria about losing a big customer subsides, GCA could come back strong.

GCA (website) is a leading provider of cash access products and related services to over 1,100 casinos and other gaming properties in the United States, Europe, Canada, the Caribbean, Central America and Asia. GCA’s products and services provide gaming patrons access to cash through a variety of methods, including ATM cash withdrawals, point-of-sale debit card transactions, credit card cash advances, check verification and warranty services, and Western Union money transfers.

Why do I hate GCA? The few times I have been to a casino and needed extra cash, the exorbitant fees that companies like GCA charge tick me off.  I know they have to “make a buck”, but am too cheap to want to pay those fees.   However, that doesn’t stop them from making huge bucks from those fees to millions of willing customers.

The Fundamentals

GCA has strong fundamentals and that gives me confidence they have the ability to weather this downturn in their stock.  While L-T debt is high ($249MM), cash position and receivables are strong.  The company has good ratios and debt coverage is strong.  Cash flow continues to be strong.

The company is strongly profitable (although losing Harrah’s Casino at 14% of their overall business will hurt going forward).  Sales have plateaued during these tough economic times…which in some ways is a coup for the company.  They have maintained strong sales, margins and profitability during some difficult economic times.

The Chart

The Wild Card

Earnings are scheduled to be released Wednesday, August 4th.  I have read the analyst’s estimates and there appears to be no trepidation on the part of analysts.  We will see once earnings are released.  I have made the mistake of buying in anticipation of earnings and I don’t want you to make the same mistake.  We will see what happens once earnings are released.

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

Last Close:              $4.35

Buy Opinion:          $4.00-4.75

Short Term Sell:   $6.00

Long Term Sell:     $8.00 and above

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.

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.”

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.

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.

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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.

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!

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 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.

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.

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.

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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.

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:

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 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.

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.

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.

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:

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

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.

Lofty sounding title, however I am not trying to put on airs.  As I sat down to write my blog, the title just “popped” into my head.  I think it fits.

Insmed Incorporated (INSM) is a study in contrasts.

On one hand, it is a company going the wrong way.  The stock is a penny stock that is trading for around 70 cents and has been on a steady price decline from its high of $1.32 in mid-March.   Any attempt to rally the stock has met with defeat due to persistent selling.  This “bloodletting” has resulted in INSM receiving a NASDAQ delisting letter.  They have until December to cure so I wouldn’t abandon the INSM ship on the account of that just yet.

The drug portfolio is another negative with INSM.  Their major remaining drug program (Iplex) has been put on hold for several reasons…indifferent results on several studies and the lack of proper production facilities.  They sold their manufacturing plant to Merck in 2009 as part of the sale of their follow-on biologics program.  Although the $125MM they netted in that sale has helped cushion the blow.

The stock could also take a hit when the Russell 2000 rebalances its portfolio…..INSM is due to be dropped and that could have further negative impact on the share price.

On the other hand, INSM is a company that has a great deal going for it.  As a recovering CPA, I love strong balance sheets and this company has one of the strongest ones I have seen for a small pharma company.  Thanks to Merck and the Biologics deal, INSM has a war chest of over $120MM in cash (and no debt). In fact, the stock is selling for less than cash. There is over 93 cents/share in cash when the stock is trading for only 70 cents!

INSM has got options…ones that most companies would kill for.  INSM has stopped their active drug programs, is conserving cash, but is shopping for replacement technologies and therapeutic drug candidates.  With the capital markets still recovering, who is to say that INSM can’t pick up some promising company with drug candidates that are in Phase III trials. Let’s dream, shall we?

Management could decide to sell the company and retire to a beach in Fiji.  That is not likely given the low insider ownership percentage.

There are still risks with INSM.  They could make a bad purchase, but chances are the stock (and the company) will get a huge near term lift from the announcement of any acquisition.  Since my crystal ball is in the shop, I have no idea when that might be.   However,  INSM possesses a huge safety net with their balance sheet and the fact that they can use shares as cash in any acquisition.  It might be dilutive for stockholders, but could make great long-term sense for the company.

INSM is a company that bears watching.

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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Investor Soup

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.

ENTR, SMOD, NMTI, HELI, CWLZ, HCP, CVA, PESI, BANR, WAG

IFUS, GBGD, SSPT, CHFY, MNLU, BHWX, YESD, PEPR, SNRY, SNWT

These are a list of Penny stocks in the news today.  I will make comments on stocks where appropriate and add charts if it will help you with your trading understanding of a particular stock.

Don’t forget to sign up for my HOT penny stock alerts.  You will receive periodic emails about some of the most exciting penny stocks going.  As a matter of fact, the first item below (IFUS) was one of my alerts just this week.  My subscribers could be up over 60% if they had played that one when I first alerted them to it.

Impact Fusion Int’l. Inc. (PINK: IFUS) is up 17.95% to $0.0230 on above-average volume of 13.36 million shares. The company has announced a partnership with the National Autism Association to market its Intact Digest product. (PINK:IFUS), (IFUS)

I like this little company.  They have a big hill to climb breaking into this multi-BILLION $ industry, but they seem to be going about it the right way.

Still only 3 cents, this stock could get hot and make a great deal of money for traders.  Keep it on your trading radar.

Chart looks good, too.

Global Gold Corp. (OTC: GBGD) is up 80.00% to $0.0900. Caldera Resources and Global Gold have announced that they have received the final TSX-V approval to proceed with their joint venture agreement. (OTC:GBGD), (GBGD)

Gain is deceiving due to a huge bullish gap on open.  Actual gains were really small for this thinly-traded gold stock.  I would look for the shorters to camp on this one…if they could find any shares.

Shot Spirits Corp. (PINK: SSPT) is up 75.00% to $0.0021 on news of expanded partnership with American Express. (PINK:SSPT), (SSPT)

SSPT is in play.  It could have some strong trading action left in it.  The AMEX news is huge and a quick peek at Yahoo! Finance shows that they know how to play the PR game.

Their is very little info on the company in the form of SEC filings…I guess you will just have to believe all of their PR’s.  Good luck with that!

China Forestry Inc. (OTC: CHFY) is up 50.00% to $0.0300. The company has announced that it has acquired all the equity interest of a Chinese Yew plantation company. The report said that paclitaxel extracted from yew is acknowledged as an anticancer medicine. (OTC:CHFY), (CHFY)
Mainland Resources Inc. (NDA) (OTC: MNLU) is up 18.06% to $0.850. (OTC:MNLU), (MNLU)
Black Hawk Exploration Inc. (OTC: BHWX) is up 23.29% to $0.450. The company has announced that it is releasing a summary report with recommendations for Dun Glen Project. (OTC:BHWX), (BHWX)
YesDTC Holdings Inc. (OTC: YESD) is down 9.73% to $0.0900 on above-average volume. CEO Joseph Noel has recently updated shareholders on the company’s progress. (OTC:YESD), (YESD)

Pepper Rock Resources Corp. (OTC: PEPR) is up 25.00% to $0.0500. (OTC:PEPR), (PEPR)

Solar Energy Initiatives Inc. (OTC: SNRY) is up 20.83% to $0.145. The company has reported record results for the quarter ended April 30, 2010, with revenue increasing by 58% year-over-year to $732,199. (OTC:SNRY), (SNRY)

Nice company with profitable, growing operations.  The solar business is tough with very few companies making it.  SNRY might be one of those who do.

San West Inc. (OTC: SNWT) is up 2.50% to $0.0410. The company has announced that it has already exceeded its revenue guidance for the Q2 of 2010. (OTC:SNWT), (SNWT)

Another nice penny play.  SNWT is extremely volatile and can be a good trade both long and short.  It is a small company but they do a good job of promoting their business and traders are very aware of it.

Could be a good one to keep on  your radar.

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.

Investor Soup

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors. BlueWave Advisors has been previously compensated a total of one hundred and thirty seven thousand two hundred and twelve dollars and fifty cents from Seacoast Advisors (a non-controlling third party shareholder) for SNWT advertising and promotional services that have expired. BWA is currently being compensated twenty thousand dollars from Seacoast Advisors (a non-controlling third party shareholder) for SNWT advertising and promotion. BlueWave Advisors has been compensated seventy five thousand dollars from Green Horseshoe Holdings – non controlling 3rd party shareholder for IFUS advertising and promotion. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

ELCR, SNRY, LBAS, SBRH, VODG, SNWT, LYJN, NRTI, AGRT, MFGD

ITIG, DTRO, TECO, BLAP, MFGD, VTSS, SRRL, EVXA, POSC, LRAL

Penny Stocks in the news!  These are just a few of the ones that made headlines recently.

China Nepstar Chain Drugstore Ltd. (NPD)

Good morning!

It seems lately that China Nepstar Chain Drugstore Ltd. (NPD) had an anchor around its neck.  The stock has been on a persistent decline for well over a month fueled by some disappointing financial news.  It is a NYSE stock that seems intent on becoming a penny stock

NPD has been its own worst enemy posting disappointing results for the first Q on expansion costs, increased expenses and a management shakeup, etc…

BUT, this is a company that has $1.58 in cash,  great debt and liquidity ratios and has the clout of having over 2,500 stores in its Mainland China drugstore empire .

Eventually buyers get exhausted….and, that may be what has happened with NPD.

Here is the chart for NPD!

The question you have to ask yourself “Is this rally real?”.  It might be….or it might fall back.  If the stock falls back to $3.00 again and THEN climbs, popular consensus is that is when to really jump in.  That is confirmation of the trend being broken and a great buying signal.

I would watch NPD.  The stock is down now, but it won’t be forever.  I expect bigger and better things from NPD….maybe soon.

Good luck and GREAT trading,

Jeffrey Dean, Senior Editor

 
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