On the Road to Off-Road Profits!

Good Morning!

I think it’s time to say hello again (for those of you who’ve been with me awhile) to one of our past winners…

San West, Inc. (SNWT)

SNWT is a retailer of premier off-road recreational vehicles in Southern California and the Western United States as well as a leading supplier in the off-road recreational vehicle arena through aftermarket parts, accessories and its highly successful vehicle repair and maintenance center. continue

One of the places that I find stocks to blog about is on Google Finance.  On the first page is a listing of the stocks that are “in the news”.  These are the stocks that are getting the most searches or maybe are a leader in volume, price change or some other measure.  One penny stock that caught my eye was:

Newport Digital Technologies, Inc.  (NPDT)

NPDT is primarily a chart play at this stage of its development.  The company has yet to generate revenues, but from the PR’s it sure sounds like they are the  next Microsoft (jk).   I can’t tell exactly what they make, but they are a technology company allied with incubators in Taiwan and are creating products to match their competencies in WIMAX, RFID, Digital Signage, VOIP  and Security and Surveillance.  Personally, I would like to see more PR’s touting sales, sales commitments, contracts, etc….

But, as a chart play, it might make sense.

I actually like the technology behind what NPDT is offering.  It recently announced that A WIMAX/RFID Alpha site is being brought online with a medical complex in Newport Beach, CA.  I will watch with interest to see how that goes and if it can be a springboard to other projects.  In the RFID arena, their goal is to replace bar codes and bar coding.

Here are some sites for your own due diligence:

Yahoo! Finance link

Company website

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; 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.

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

Cord Blood America was one of my best picks for 2009 (not my best, but close).  I had correctly called its September move (as the chart below will indicate).  I think that it might be time to take another look at Cord Blood America, Inc. (CBAI). Here is a link to my earlier blog.

Truthfully, it has been flogged unmercifully in the penny stock press.  It has been hailed as everything from the next Genentech to the next Spongetech.  I think the truth is somewhere in the middle.

CBAI is a stock built on hype.  It really hasn’t proven that its business model can actually work.  My wife and I have 4 kids and after each birth we were given the opportunity to harvest cord blood.  We declined each time…too expensive, the value to our children wasn’t clear in our mind, logistics of storing and accessing it….a whole host of reasons.

Having said all this, I think that CBAI might actually make it….at least long enough for traders to make some money. I have been reading the press releases and the company is taking great pains to both dazzle and teach.  Glitzy Las Vegas-style openings are contrasted with PR’s that tell of debt extinguishments, agreements signed, alliances gained, etc…  The truth is that CBAI lives a hand-to-mouth existence.  It has little or no cash and negative cash flow.  Debt is less of a problem than it was in ‘09 with some debt being retired, but they are not “out of the woods”.

I think the chart is positive and if CBAI can catch fire, I would expect to see some strong gains.

Here is the chart

CBAI seems to be consolidating at this level (as my chart indicates).    Any break below the current price of $.009 and the stock should be avoided.  I don’t believe that it will weaken, but, then again, my crystal ball is in the shop.

Good luck and good trading,

Jeffrey Dean

Editor

eCrypt Technologies (ECRY) Prevents Hackers From Invading Your Privacy And Stealing Your Identity!

Good Morning!

Cyber crime is a profitable business. So profitable in fact that it’s surpassed illegal drug trafficking as a felon’s #1 moneymaker.

And wireless email users are a juicy and easy target.

· Wireless email users are expected to rise to 300 million this year

· Worldwide there’s 1 known hacker for every 15 wireless email users

· 10 million Americans will become victims of identity theft this year.

· An identity thief has only a 1 in 700 chance of being caught by law enforcement

· 70% of identity theft victims may never recover from damages to their credit rating

· 47% of identity theft victims may not be able to get a loan continue

Sirius XM Radio (SIRI) has made an almost miraculous comeback from irrelevancy (and penny stock land) over the past few months.  SIRI has seen its stock rise from the low $.50’s at the end of 2009 to a recent high of around $1.15 just a few days ago.  This was very good news for the company.  Since it was facing a NASDAQ delisting and with the stock trading above the magic $1.00 mark for a period of time, SIRI was thinking it was “scot-free”.  Think again.

Last week’s drop (and this week’s continuing drop) was not surprising given the overheated condition of the stock from all indicators.  It is not clear what effect short sellers had in the decline since the short squeeze had been on for many months with the advance of the stock price.  SIRI fought through all of those challenges….that is until now.

SIRI has one more chance to regain compliance with NASDAQ regs if it can trade above $1.00 for 10 consecutive days before the March 15th date imposed by the exchange.  I don’t see that happening.  The reverse split that has been discussed seems the only option now despite management’s contention that they will be able to get a variance on appeal.  NOT BLOODY LIKELY.

SIRI should have executed the reverse split when they were so strong late last year.  The market was really pumped on SIRI and its progress.  Institutions were buying and retail investors were very happy with the run-up.  Now with a delisting notice sure to come, short sellers will be circling SIRI like sharks looking for blood.  I think the short term outlook for SIRI is definitely bearish.

Here is a chart that shows what I mean.

Is SIRI a dead dog?  Will shorters drive this one right back down to 50 cents (or lower) again.  I don’t think so.  SIRI is in a “stew of its own making”, but I think will be a good stock to buy on dips.  Right now, I would hold off (unless you are shorting the stock).  The boards and investor sentiment are telling me that this one has farther to fall.  Retail investors might not like it when they do the reverse stock split, but IMO it is inevitable.

Do your own due diligence.  It continues to be a hot topic on the boards that I monitor and it is fun to read what people write.  Make up your own mind.

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; 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.

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 must apologize first for not blogging on Monday and Tuesday, but I was on a ski trip with the family and not thinking about the markets.  My alert for Monday (BLGW) is doing very well I’m happy to report.

I jumped back in to my research this morning and came across a great company that has solid prospects:  Cytomedix, Inc., a leading developer of biologically active regenerative therapies for wound care, inflammation and angiogenesis:physiological process involving the growth of new blood vessels from pre-existing vessels).

GTF’s AutoloGel System utilizes a unique technology that enables rapid isolation and activation of platelet rich plasma (PRP) from a patient’s own blood. The PRP is subsequently processed to produce a gel for application to the wound bed, re-establishing a balance needed for natural healing to occur. AutoloGel contains growth factors, cytokines and chemokines that are essential for normal wound healing. The AutoloGel System is used at the point-of care and is the only PRP System indicated for use in exuding wounds such as leg ulcers, pressure ulcers, diabetic ulcers and for the management of mechanically or surgically-debrided wounds.  The AutoloGel System is the only PRP system that is FDA cleared for the care of wounds.

The company is generating revenues and those revenues are increasing significantly.  They have cash-in-the-bank and NO long term debt….always a positive sign for me.  With the 2009 capital raise, that bought the company some time to execute on their plan.  Based upon what I have seen, they have high expectations for their AutoloGel System.

The chart indicates that the stock is trading near the bottom of its most recent trading range.

• After a steep selloff, the stock might be ready to run again
• An Amex stock, GTF is trading at attractive levels
• The strongest support is at 40 cents (see the chart)…. I don’t think it will drop that far, but it could
  

I am recommending that traders put GTF on their radar screens.  I think the downside risk is low, but the upside is strong.

As always, do your own due diligence.

Good luck and good trading,

Jeffrey Dean

Editor

The last time I blogged Coates International, Ltd. (COTE) was to tell traders to short them (Read it here).  And, I was right.  I liked the company  fundamentally, but thought that the chart was setting it up for a fall.  COTE blazed a trail across the markets back in July of ‘09 almost tripling in value from around 40 cents to $1.15.  In my earlier blog, I said the following:  “The stock might be due for a correction in the near future.  Any kind of reasonable “support” for the stock is around the 50 cent mark….so, it could fall a long way!”

Three days later, the stock was at 53 cents! A penny stock, once again!

Now, the chart is turned around.  The stock price is depressed and I think that COTE should be watched for a bounce in the near term (and it could be the next hot stock if they start landing some contracts).

Let’s talk about the company:  COTE is the creator, developer and manufacturer of the patented Coates spherical rotary valve system (CSRV System) for use in various piston-driven internal combustion engines.  It is a technology that has been under development for over 15 years and may now be “ready for its closeup”.  The company is claiming that they have created the internal combustion engine of the future.  They claim significant benefits compared to the engines of today: Increased Engine Efficiency, Lower Emissions, Reduced Lubrication Requirements, Cheaper to Manufacture, and Adaptable to Multiple Fuel Types.  Here is a link to a very informative article done on COTE by Industry Online.  I am not an automotive engineer, but it sounds like COTE has something in their CSRV technology.

With the income of a Canadian sale for $10MM ($8 MM of which remains a receivable), its Chinese manufacturing initiatives and several Beta sites that are under negotiation, it might be a good time to put COTE on your trading radar.

The chart looks good for gains!

• COTE is trading near its 52-week low ($0.28);
• Watch to see if this level acts as support for the stock…any break below 32 cents should be watched to see if a new bottom develops;
• The MACD is drifting….with good news and some buying, it could turn bullish very quickly.

Another factor to consider about COTE that gives me comfort is the insider ownership.  I like the fact that insiders own over 80% of the company.  COTE hasn’t been an overnight sensation.  My impression is that they have a core group of founders and executives that believe in the mission of the company and are in for the long haul.  I hope they get rewarded, because that means I will be rewarded too.  I have put COTE on my own personal trading radar with the idea of buying shares in the very near future.  I have a call in to the company and will update my blog with any intelligence I gather.

Do your due diligence!

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; 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 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.