Pacific Ethanol, Inc. (PEIX) has been one of my most popular research reports for 2010.  I have the software that allows me to track clicks and time spent reading the info and PEIX has been very popular.  And, I can see why.

PEIX has made two major “stair steps” in their chart on their way from 40 cents to a 52-week high of $2.75.  Now, the stock is trading around $2.00 which seems to be a good support level for it.  It is perched on the 50-day MA which could give support to the “next leg up”.  The question is “will PEIX make the next leg up?”

My annotated chart makes a good case for some short term gains:

PEIX has coped very well through all of its troubles over the past few years.   PEIX seemed to be the poster child for the problems with the ethanol industry.   In early 2009, the bankruptcy of its operating subsidiaries was a desperation move for a company that was in deep trouble.  Here is a link to a Chapter 11 summary.

The ethanol industry crawled off its death bed with the news that the U.S. EPA made positive comments relating to a reports regarding E15 gasoline, which if approved, would boost the legal percentage of ethanol in gasoline by 50%.   The resumption of operations at several of its plants was news that the market approved of.  A drop in corn prices, increases in the price of oil and an easing of the ethanol oversupply all contributed to a positive sentiment in the minds of investors.

Of course, any bad news will drop a hammer on PEIX.  I think that it is a little fragile given the history of the ethanol business.  The shorts are around 10% of the float, so there is a constituency is hoping that the hammer falls.   It may fall long-term, but I am not a long-term investor.

The chart, to me, looks good for a little “pop”.  Any break below the support that I charted and the stock should be avoided.

Trade like you mean it!

Jeffrey Dean

Editor

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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.

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.

Winning Brands is currently a penny stock that has flirted with sub-penny stock  status very recently and then seemed like it was going to be  dollar stock…all in the space of a few weeks.

As you will see in the accompanying chart, Winning Brands, Inc. (WNDB) has been on a roller coaster ride of late.

I would look for some more confirmation that the stock is basing here at these levels.  It is highly volatile and appears to be under accumulation.

Winning Brands is one of those “take it on faith” stocks….because, there is not a great deal of  information available about them other than some PR, a website and a few filings.  They have made claims that they are going to be fully reporting.  I have talked to the company and they say that they are working aggressively towards that goal.

The company itself has a complete line of eco-friendly cleaning products that they are selling through retail outlets worldwide.  I have some experience in retail and while it is important for WNBD to get broad distribution, it is also important that they back up sales with ads, buzz, point-of-sale promotions….all stuff that costs money that WMBD doesn’t have yet.

They are on a fund raising campaign and will need every penny to make a splash in the market.  I did a very unscientific study and called my local paint store that carried WNBD’s products.  The counter person, at first, didn’t even know they carried it.  I insisted because I saw it on the site and she then located it.  I was hoping for a “gee whiz” testimonial about how this was the greatest product ever.  But, I didn’t get that.

That is, however, what WNBD needs to achieve….. A buzz that will carry the name of the company and its products to the four corners of the globe, literally.  Their “Extreme Home Makeover” tie-in is great, but where are the Billy Mays-type infomercials?  According to a December PR, they are working on a Direct Response ad program.  If that gets seen, it could be HUGE for the company.

WNBD might be a good little trader. It is building a following from what I read on the boards and it has a “story to tell”.  Any break below $.01 and the stock should be avoided.  But, if it can hold this level, then it might be a good entry point.  News and rumor are going to drive this company’s stock.

Be fast, be nimble with WNBD.

Good luck and good trading,

Jeffrey Dean

Note: Yahoo! Finance lists the name of WNBD as Global eTutor, Inc.  Google Finance and Pinksheets.com list it as Winning Brands, Inc.  This must be one of those corporate shells issues.

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A little company called Green Energy Live, Inc. (GELV) literally came out of nowhere in December of 2009 for my members.  A MASSIVE gain of 120% was the highlight of a very good December for Soup members.

Well, GELV is back! I track companies that we have done alerts for in the past and am excited to bring this one back to members.

Everyone knows that past performance is no predictor of the future, so I am not guaranteeing anything.  However, I still like GELV and think that it might be a great trade, again! continue

My apologies to the movie Network, but I am really ticked at Kender Energy, Inc. (KNDR).  Here is a company that seemingly had “the world on a string” and I believe has really let traders down.  Right now, the company is at the mercy of the discussion boards and chat rooms.

What do I mean ” at the mercy of discussion boards and chat rooms”?  It means that the company has, for all intents and purposes, disappeared.  The last PR was December of ‘09.  The PR before that was for the signing up of a distributor in one of the largest markets in the world…..Hawaii?  Two problems with that is that Hawaii is tiny AND KNDR doesn’t even have a working prototype.   The only “news” I get is on the boards and you know how reliable that is!

KNDR has a very exciting solar technology that they are touting.  (Web link here)  I have talked to a number of people about KNDR and they all agree that IF they can commercialize it, the technology could be huge.  According to my sources, KNDR MIGHT have an Alpha system by mid-2010.  What is an investor to do until then?

Since I like KNDR’s technology so much, I have gone over and above the “call of duty” to do research on them.  I called their IR firm (who is out of business and not returning calls), I have emailed the company on numerous occasions and I have talked with others about KNDR.  The company never got back to me and no one had any inside info on the company.

Here is their chart….You can see a steady decline and a lack of interest on the part of traders.

Will KNDR become a sub-penny stock?  It could, but I doubt it.  The company needs to put out some meaningful PR and let traders know that they have a pulse. If they get some news, this stock could rocket! There are a lot of people in the stock and they are rooting for it, too.

Be careful of the boards.  Many of the posts that I am seeing are highly suspect.

I am rooting for KNDR and their “solar engine”.  I am just not rooting that hard.

Good luck and good trading,

Jeffrey Dean

Editor’s note on 2-4-10 - I got an email from Robert F about KNDR that I thought made great sense.  Here is what he wrote:  “Read your blog, I agree with you that the company has been too silent. You would think that at a time when the company is in need of investor support, that they would give shareholders more transparency.” I couldn’t agree more

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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.

There is already a huge industry in America built around converting biomass into biofuel. Most of that conversion involves sugar, corn and corn kernel starch.  These readily available feed stocks seemed to be the perfect solution as a replacement of hydrocarbon-based fuels.  What planners didn’t realize is that corn and grain prices worldwide would skyrocket as biofuels were competing with food producers and growers for a finite amount of feed. What is needed is the next generation of biofuels that don’t rely upon scarce supplies of a pricey commodity.

That is where Raven Biofuels Corporation (RVBF) comes in!
continue

Carbon Dioxide (CO2) has gotten a bad rap for causing pollution, the greenhouse effect AND global warming.  Deservedly so, in most cases.

Fossil fuels such as oil, gas and coal have powered the world’s economic growth since the days of the industrial revolution.   As the world economies expand, so does the need for fossil fuels.  The U.S. Energy Information Administration projects that global energy consumption will increase 50% by 2030 to over 112 million barrels of crude oil per day.  The economic cost is significant with the price of oil and coal setting new highs seemingly every day, but the environmental impact is staggering with BILLIONS of tons of CO2 into the atmosphere annually.

What if there was a way to turn that pollution into profits?

Yes!  That is what today’s alert company Carbon Sciences, Inc. (CABN) is doing! continue

I was tempted to have a title that said something like “Helix Wind…that company really blows”, but I thought better of it. That wouldn’t be too professional.  I am serious, however, when I say that my readers should take a look at the company.

Helix Wind Corporation (HLXW) is engaged in the design, manufacturing and sale of “small wind” vertical axis turbines (VAWT) designed to generate clean, renewable electricity from wind.  The key for HLXW is the term “small wind”.   The company makes its case for the small wind strategy on its site:

“Small (or “residential”) wind energy systems typically generate just enough power to meet the demands of a home, farm or small business. They range from 400 watts to 500 kilowatts or more and typically consist of a single turbine (vertical or horizontal). They can be significant power sources and have proven records of performance, even in locations with modest winds.”

Here is graphic evidence on how they are different:

This is not the typical propeller blade turbine that is used on the wind farm installations that are so popular these days. This is a uniquely designed, niche product that is scalable from a single residence (the S322) to the D15000 which produces enough electricity for 10 homes or a medium size commercial facility.   Helix believes that the VAWT configuration is superior due to the fact that functions in wind that comes from all directions and is well suited to gusty wind conditions which typical blade wind turbines are not.

Here is a link to HLXW’s website. It is a very well done site and has a great deal of interesting information on it.  They also have a Fact Sheet nested on their site that makes for good reading.

Now, lets talk about the company and the chart. The company is long on promise and good news, but short on cash.  While the company is booking revenues, it is losing millions of $ every quarter.  The Balance Sheet is no help.  The company is essentially insolvent according to their last quarterly statement.  I have confirmed that the company is raising capital and is actually in a “quiet period” before the announcement which could happen as early as next month.  The key shareholders are subject to a lock-up of their shares in conjunction with the capital raise.

The company has released info on potential orders, but it is sparse.  The Argentinian deal sounds good for the company, but near term it doesn’t appear to help too much.  I would like to see more press releases about sales and distribution.   The company has not issued revenue guidance for 2010 yet, but says they plan to later in the year once the financing is wrapped up and at least one more acquisition is closed.

The chart makes for interesting study:

HLXW is a company worth watching. The stock may have farther to fall based upon momentum and trend lines.  In their industry, there is no market leader in the small wind category.  HLXW wants to become that market leader and in my conversations with the company, they feel that it can be achieved.   Certainly, government and utility subsidies and credits will continue to help drive wind power forward.   But, HLXW has to achieve their financing goals first before “world domination” is possible.

Honestly, I have fallen in love with the product and think that, on its face, it makes a great deal of sense for the market.  If the company wants to install a Helix wind turbine on my house, I will love them even more.

Good luck and good trading,

Jeffrey Dean

Editor

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I did a blog on Constitution Mining Corporation (CMIN) on November 19th, 2009 and came out strong that I really liked it. (Click on this link to read) It liked me right back! the stock which I alerted members to at $1.19 traded sideways for only a few days before beginning a strong bullish climb climaxing in a high price of $1.77.

CMIN is a gold exploration company with operations in Peru (and have an LOI on fields in Nevada).  I highly recommend that readers go back and read my previous blog, but here is a short description of the company:

“CMIN has 2 gold fields (in their case the Gold Sands Region of Northeastern Peru) that, according to the company, has proven reserves of over 72 MILLION ounces.  They are busy “proving out” these claims and, while they have no current revenue, are hoping to be a producing gold mining company in 2010.”

I had said in my previous blog that “what sets CMIN apart is that investors are backing them whenever they need money….and, that is all the time.”   For today’s blog, that is the good news and the bad news.  It appears that investors from a previous round of financing were selling off a large number of shares, exercising warrants…that kind of thing.  With that round being priced at 35 cents who can blame them.  I’ll take a quadruple any day of the week!

What it did to the stock price was predictable.  CMIN tanked!  The sellers drove the price down by over 40%.  The underlying company hasn’t changed nor has any adverse news been released.  In my opinion, it was strictly the selling pressure that drove it down.  I am bullish on CMIN and will probably trade this one in my own account.

Here is the chart on CMIN and you can see what I mean.

I never call a bottom, but I think that it might be coming soon.  There is support for the stock in the $1.15 - $1.20 range.  If it can regain that level, then I think that is a good entry point.  The stock is oversold so that will be acting to drive the price higher.  If the MACD continues to be strongly bearish, then look for it to fall further.

However, I think this is a stock that bears watching. It is a gold play with proven reserves that is almost a year away from showing revenue (first revenues are estimated for the 4thQ of 2010 - with moderate production in the 1stQ of 2011).  That doesn’t keep me away at all.  The stock has shown some historical volatility that we short-term traders like.

Do your DD on this one.  Read my last blog, too.  CMIN could be a real nice bounce play.

Good luck and good trading,

Jeffrey Dean

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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.