ThermoGenesis Corp. (KOOL)

I like the alliteration with this stock ticker.  It’s fun and memorable.  It is also a darn good stock: ThermoGenesis Corp. (KOOL)

Here is my edited version of the description from Yahoo! Finance:  ”ThermoGenesis Corp. operates as a supplier of products targeting the worldwide adult stem cell market. It offers devices that enable the collection, processing, and cryopreservation of stem cells and other cellular tissues from cord blood and bone marrow used in the practice of regenerative medicine.”

KOOL has a market cap of only $32.86MM, share price of $2.01, Cash of $13.55MM ($.82/sh) and NO DEBT.  Quarterly burn is low compared to total cash ($800K last Q) and, while the company is not profitable, the losses are minor.

KOOL’s chart has been a wild ride in 2011…..the stock started the year around $4.00 before dropping to a 2011 low of $1.95.

Is the time right to play KOOL?  Let’s check the chart.

KOOL is off almost 50% from its 2011 highs and appears to have put in a bottom (support) around $1.95.  That should be your stop loss…..if you play this one.

The chart is showing:

1.  A recent selloff is petering out

2.  MACD is bearish, but without much momentum and is “tickling” the zero line.  Any good news and this stock could quickly turn bullish

3.  Stochastics are oversold and could add some “oomph” to any rally

The Bottom Line

KOOL seems to be a reasonably safe play to me.  The strong (and clean) balance sheet appeals to my accountants personality.  The industry (Stem Cells) that it is most closely associated with is a highly volatile one and, while depressed currently, it could come roaring back any time.  Just let President Obama make another stem cell speech and this stock could zoom.  I can’t see much negative.  With announcements of FDA approvals, new markets being opened up in India and China, successful capital raises….the news is mostly good for KOOL.  (psst…someone should inform the stock price)

Remember….This is not an investment, but a trade.  I am not putting KOOL in my IRA to hold until retirement, but I might buy some shares to speculate.

Have fun trading,

Jeffrey Dean

Disclosure: No Positions

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Disclaimer

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

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.

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.

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.

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

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.

Provectus Pharmaceuticals, Inc. (PVCT.OB)

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

1.  Promising Drug Candidates

2.  Cash in the bank

3.  Manageable debt

4. Beaten down chart

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

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

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

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

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

Let’s take a peek at the chart:

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

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

Last Close:              $1.05

Buy Opinion:          $.90 – $1.15

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

Long Term Sell:     $2.00+

Good Luck and Great Trading,

Jeffrey Dean

About InvestorSoup

InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny 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.

Good Morning Trader!

With gold trading this week around $1,134 per oz. it’s obviously a great time to be a gold exploration and mining company—especially one that’s already pulling gold out of the ground like there’s no tomorrow!

That’s why I am excited to bring you your next trading opportunity: continue

Here are some statistics to “chew over”.  Currently, 19.63% of the World’s population resides in The People’s Republic of China which works out to roughly 1,336,500,000 people.  That is a lot of mouths to feed and today’s focus company is dedicated to that task.  They are doing very well at it, as their financials suggest.

Here is a description of CNOA (from their own site):

China Organic Agriculture Inc. (CNOA), engages in the acquisition and distribution of agricultural products in the People’s Republic of China. The Company offers green rice, organic rice, soybeans, corn, cereal crops, ice wine and other agricultural products.

CNOA has developed extensive networks throughout many of China’s major cities, including Beijing, Shanghai and Nanjing, and is positioned to leverage those networks to establish broad distribution of a number of natural and premium food and related products.

CNOA’s niche is to offer upscale, higher quality foodstuffs (including wine) to consumers in China.  That strategy seems to be working.  The company is on a strong growth curve with organic growth and a number of acquisitions.

To the Chart!

CNOA continues to impress (as my title indicates) with some very strong revenue growth and incredible profitability.  They have strong cash-in-the-bank and large receivables.  The only negative thing I see from their balance sheet is debt.  They have high debt levels  and much of it has been classified as current.  I have not seen their 10-K for 2009 yet, and will be interested to see how they are dealing with that.

CNOA is impressive.  I believe that the markets reward GROWTH and CNOA is on a strong growth track.  As previously stated, they have a lot of hungry mouths to feed in China and their adherence to safe and organic foods could stand them in good stead….after all of the food quality crises that China has experienced in recent years.

Any break below the support line and the stock should be avoided, but if this level proves durable then I would expect to  see a strong bounce.  Again, I will be interested to read their latest 10-K to see how they finished the year.

Good luck and good trading,

Jeffrey Dean, Editor

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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.

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, for the purposes of this blog, is primarily a chart play.  The company has yet to generate revenues, but from the PR’s it sure sounds like they are the  next Microsoft (jk).   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.  The technology is very interesting and has the potential to be HUGE.  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.

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

Investor Soup experienced a “phenomenon” the other day.

I did a research report on Washington Mutual (WAMUQ) and posted it to my trade alert section.  Link to my research report.  The response was overwhelming!  I have had literally thousands of unique users follow that link and view it on my site.

That report was a straight forward research report, but I recieved a number of emails asking for my OPINION of the stock.  Well, here you go…

First off, I must repeat the warning that is posted at the beginning of the research report:

Washington Mutual Inc. is in bankruptcy. Investors should be cautious in buying common stock of companies in bankruptcy. It is extremely risky and is likely to lead to financial loss.

Any questions?  No?  Good. It is clear that WAMUQ is not out of the woods, yet.  I find it interesting that a penny stock has a market cap of $354 Million and its branches still number in the thousands.  But WAMUQ’s problems may be much bigger than their branch network.

A particularly harrowing article I read on Seeking Alpha quoted the ongoing legal battles between debtors and WAMUQ and stated that “In their motion to disband, the debtor’s counsel revealed – for the first time – that WaMu’s debts could surpass $50 billion making hopes of any recovery for the equity, “extremely remote.””

There you have it….Equity holders have NO chance with this one.  And, I believe it.  Does that mean that WAMUQ should be avoided?  Not at all, but do not make the mistake of thinking that WAMUQ might be a good position for your IRA.

The chart is telling me several things that nimble traders will want to look at.  I have laid out those items on the annotated chart below:

With WAMUQ, it pays to keep an eye on the chart and on the news.  WAMUQ has been a great trader and could conceivably turn (and turn quickly), so watch the chart.  Look for confirmation that the trend is reversing.  The candles are indicating that buyers are still interested in the stock because it has not been closing at the low of the day.  However, the trend is clearly bearish.  However, my gut is telling me that WAMUQ will turn and turn quickly.

The other thing to watch is news.  WAMUQ has a blizzard of lawsuits, injunctions, and motions between itself and the Fed, FDIC, Goldman Sachs, Regulators, etc…  The Government could pull the plog on WAMUQ at any time.

Lastly, WAMUQ is a sad story.  A proud, venerable institution that traces its origins back to 1889, it fell victim to the its own poor banking practices and the financial tsunami that wiped out so many banks.  WAMUQ is gone for good….what is going on now are just the death throes.

Good luck and good trading,

Jeffrey Dean, Editor-in-Chief

I got an email yesterday  from one of my members (Jeff D.) asking me my opinion on what happened to Labopharm, Inc. (DDSS).  Jeff was at a loss to explain why DDSS’ shares dropped so preciptiously after getting FDA approval on one of their signature drugs.  In some ways, so am I.

Headlines like this one:

Labopharm Receives FDA Approval For OLEPTRO(TM)

usually means that a drug stock will rocket upwards.  Not in DDSS’ case.  The stock lost 40% of its value in just a few days.   Read full release here

You can see from the chart here just what I am talking about:

Stocks dropping on news of approvals is not uncommon ( see BDSI, NRIFF, PK and others), but it is still unexpected.   DDSS, the company, actually has a lot going for it.  It has income (no profits), cash in the bank, good ratios, manageable debt….and a big payday coming some time this year.  I have read where DDSS is in talks with several larger pharmaceutical firms regarding the commercialization of their newest drug, Oleptro.  I can only imagine the frenzy at DDSS offices as they take this surprise announcement and try and turn it into revenues.

I am not terribly surprised at the drop given the rise in the share price in anticipation of approval.  And, I am betting that DDSS will come back and come back strong.  Since I am a technical analyst, I will share one last chart with readers that backs up my contention.

This chart shows how volatile the stock has been and I think it is illustrative of the recuperative powers of DDSS.  You can see that the stock is trading within normal ranges and has shown great historical elasticity.  I would not be too worried about this dip and, in fact, would see this as a buying opportunity.  Having said that, there is support at $1.75 and $1.40.  I don’t think it will drop to those levels, but…you never know.

DDSS is both a short-term and a long-term hold.  In the short-term, I could see the stock regaining much of its recent losses.  It certainly seems like the sellers are out.  In the long-term, DDSS could be a “gold mine”.  I will watch with great interest for news on how they will commercialize this and what the financial ramifications are for the company.

I didn’t spend any time in this blog on drug pipelines and other pharma standards.  I expect that my readers will do their own DD.  Here is DDSS’s website link for your own research.

Trade like you mean it!

Jeffrey Dean

Editor-in-Chief

Note on 2/12/10:  DDSS is getting hammered.  The market did not like the news of their $20MM  offering.   DDSS blew through the $1.75 support and is headed down to the $1.40 level.  MIght be best to take an EVEN more cautious approach to this one.

I am still hanging on to my list of “Usual Suspects” and continue to hold the following penny stocks and small cap stocks on my trading radar:

VIVK - I continue to hold this stock in my own portfolio and am still bullish on its prospects.  The challenge this stock continues to have is to get anyone to care.   Stock Charts Link

LGDI – Still one of my favorites.  It has been a great trader since I first alerted members to it back in mid-2009 with the latest 100% gain making my readers and members very happy.  The company continues to execute on its plan and with the strengthening of the underlying commodity price (Phosphate), things look good for the company.  Stock Charts Link

BYSD – I bought in when I first alerted members to it and watched it plummet the next day.  I hung in because I believed in the stock.  It has recovered, so I am sitting on a profitable trade.  I like the chart and I will give it a few more days to see what transpires.  I have put in a stop loss to protect my gain and I am feeling good about the stock.  Stock Charts Link

RZ – I profiled it last week and said that it would continue to fall (and, it did).  I also said I was looking for a bounce (and, it did).  Yesterday, it advanced quite well and this might be the turning point that I was hoping for.  Stock Charts Link

ZAGG – Chart of the Day

I’ve twittered and blogged this stock this week.  Will ZAGG return to past glory?  The chart setup is certainly in its favor.

Long BYSD and VIVK

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 (with the exception of VIVK, LGDI and BYSD, which are subject to expired agreements). 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 admit that I am an alternative energy junkie.  I love all things alternative:  I love the almost infinite variety of wind, solar, biofuel, CO2 to gas technologies that are out there.  Each one of them is exciting on its own merits and each has a claim to be “The One” that makes it to the next level.  Could RZ be one of the winners?

Raser Technologies, Inc. (RZ – NYSE) is (from RZ’s website) an environmental energy technology company focused on geothermal power development and technology licensing.

RZ has two divisions:

1. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology.
2. Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.

RZ is making only nominal revenues with large losses every quarter.  Looking through their website, press releases and 3rd party articles on them is impressive.  They really appear to have some great technology and prospects.  The Evergreen Clean Energy LLC joint venture seems to hold great promise.  Read the release here.  Evergreen, a newly-formed alternative energy fund, has agreed to fund several RZ geothermal projects in the U.S. The recent news of the appointment of a new CEO, Nick Goodman, didn’t do much for the stock,  Mr. Goodman seems to have a solid resume and could be just the guy that the company needs….time will tell.

But, since we live in the real world, let’s talk RZ as it stands right now.  RZ has, according to its own balance sheet, maybe two quarters of life left based upon the present cash burn.  The liquidity ratios stink and the company has a great deal of debt (more than it can comfortably service along with huge R & D expenses each Q).

The chart, on its face, doesn’t offer much hope either. The prolonged bearish slide doesn’t appear to be slackening.  Or does it? Candlestick chart analysis gives us some insight into the chart.  Most of the sticks during this decline were long bodies or Maurbozo’s (in a declining chart, that means that sellers ruled).  Buyers put little resistance and the stock was bid down every day significantly.  Except, that is, for the last two days.  We are actually seeing tails develop on the candles which means that buyers and sellers are struggling over the stock.  In fact, yesterday’s candle shows that the sellers drove it down, but the sellers brought it back up to close near the top of its trading range.  The key for RZ is to watch for confirmation that the sellers are getting “exhausted” and that the buyers are coming back in. The oversold stochastics is an important indicator, but until the MACD intensity diminishes, the stock could continue to fall.

Here is my annotated chart:

Any good news could really send this one soaring.  I recommend that traders watch this one and keep it on the radar.  Technology-wise, RZ appears to be a “good horse to back”.  If they can get some financing for general operations and if the Evergreen deal comes through, this could be a HUGE winner.

Lots of variables, though…..

Good luck and good trading,

Jeffrey Dean

When you have been an investor/trader as long as I have, you tend to create favorites. I have my favorites certainly, stocks like JDSU, LGDI, TASR and today’s blog topic: American Oriental Bioengeneering, Inc. (AOB).  I have been aware of AOB for years and have traded it/blogged it to great success.

In fact, it was one of the first stocks that I blogged on this site.  You can read my blog here. I was right about it then, as this chart would indicate.  AOB was profiled around $4.25 and soared to $5.70 in about a week.  I was right then….I wonder if I can be right again.

Headquartered in China and with most of its sales in China, AOB’s develops, manufactures and sells plant-based pharmaceuticals, nutraceuticals and food supplements. Its product are designed to treat a wide variety of ailments under a number of brand/trade names.

The company was founded in 2001 and has enjoyed a great run.   Upon reviewing the financials, I can see that AOB makes money! Every year for the last three years, they have posted a profit.  Sales and profits have slowed down somewhat this year, but AOB is on track to post another profit for 2009.  The balance sheet is strong with great debt coverage ratios.  Debt is high at $116MM (33% of equity), but the company’s cash balances and cash flow are sufficient to service the debt easily.

Here is a two-month chart that shows the recent trading action.

AOB is a great radar stock…..It has shown strong volatility in the past and looks to me like it might be ready for a bounce.  It will be instructive to see if it will hold above the current support level.  Any break below it and the stock should be avoided.

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.

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 search high and low for stocks of interest to share with my readers and some days I don’t blog because I don’t find any.  This week is a case in point.  I didn’t find any likely companies until this morning when I came across Oil Sands Quest, Inc. (BQI).

BQI is engaged in aggressively exploring Canada’s largest contiguous oil sands land holding, which is located in northeast Alberta and northwest Saskatchewan.

This is a pure speculative play on an oil and gas exploration company that hasn’t made “dollar one” yet and has had losses for as far back as I can go.  What they do have is some interesting properties with MASSIVE potential (according to the company) AND the amazing ability to raise capital seemingly at will.

The company just announced another successful private placement that raised $10.2 Million at a price of $1.05 per share.  That is on the heels of 2009′s raise of $29.8 Million @ 83 cents per share.  So, I see a oil and gas company that can raise money when it wants and at successively higher valuations. My experience is that the reverse is usually true for exploration companies.  That is a huge vote of confidence for BQI.

What is also compelling are their estimates of the reserves that are contained in the over 1.2 Million acres that they own or lease in the Alberta and Saskatchewan Provinces.  In a report issued in late 2009, the company’s high estimate for its Axe Lake, Raven Ridge and Eagles Nest properties was in excess 19 Million barrels (P90 and P50).   That is a lot of oil.

The chart is also compelling….see the annotations below

With cash in the bank of over $46 Million and no long term debt, it appears that BQI has the financial wherewithal to make their dreams a reality.   Investors seem to be buying their story and I am pretty convinced too.

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.

One of my alerts of previous months was Wind Works Power Corporation (WWPW).  It was a great stock for members!  When I profiled WWPW on November 19th, 2009 it opened around 88 cents and hit an intraday high of $1.40 just three days later. That is a potential gain of almost 60%.  Since that time,  however, the stock has “taken a break”.  It has retraced all of that gain and is trading below my alert price.  I think the time is right to take another look at WWPW.

I like wind power. I believe that it is one of the energy technologies that will help get America off the oil habit.  The challenge with companies is realizing that promise.  The high-profile “crash and burn” of Texas billionaire, T. Boone Pickens, and his failed mega wind farm in TX is just one of the black eyes the industry has gotten in recent years.

However, I understand more about WWPW and I like their business model. I have kept it on my trading radar and have talked to their IR people and I understand even more about the company.  If you read their PR and peruse their website, you will notice that they have an impressive array of projects in Canada and around the globe.  The challenge for an investor is to look beyond the hype and see if there is a business there.  I could say that I am a wind farm developer but without utility contracts, contracts with landowners, and financing, I am just a promoter.  WWPW appears to be much more than a promoter, BUT….

The important thing to understand with WWPW is that they will never complete a single wind farm project!

I will let you digest that fact for a moment.  What WWPW does is “packaging”.  They have a management team that has done before exactly what WWPW is contemplating now.  I will use their Canada operations as an example.  Currently, the company has 190 MegaWatts (MW) of wind power on the drawing boards (spread over 15 different projects).  With land locked up, plans drawn up and utility power purchase agreements in place, these projects are VERY VALUABLE.  The value of these projects is derived by applying a dollar sales multiple per megawatt and also factoring the ongoing revenues from the profits interest WWPW will retain.  According to the company, those 190 MW’s could conceivably demand a purchase price (from a utility or another energy company) of $500,000 per MW and also the company would keep a net profits interest of 5 to 20%.

Do the math in your head and it appears that WWPW could be a very valuable company in the near future.  At 53 cents, WWPW seems cheap to me based upon expectation of future earnings. I will use another company similar to WWPW as corroboration of my point.  Recently, Schneider Power, Inc. (SNE.V) was purchased by Quantum Technologies for what appears to be a high premium, but what initially drew me to SNE was that they had sold one of their wind projects off recently for a good price.  Read release here.  Schneider sold their interest for over $5 MM  and retained a profits interest going forward of up to 20%.

I apologize for going long in this blog, but I want my readers and members to understand the opportunity as I see it.

Here is the chart…which is attractive in its own right.  See my notations on the chart.

I plan on trading WWPW (probably today) and have a good feeling about it.  It is a company that has a quick path to profitability… and don’t forget that it has another 210 MW that are located in the United States and Europe that are in various stages of development.   Here is a link to an investor presentation nested on their site that makes a very strong case for WWPW (as you would expect it to) – Investor Fact Sheet

I have so much more on this company, but since I am not trying to write ‘War and Peace’, I’ll save it for another time.  WWPW might be worth taking some time to get to know.

Good luck and good trading

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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,  Investor Soup had previously been compensated to cover WWPW in November of 2009.  That agreement has expired. 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 can’t quite understand why the market is so down on Newmarket Technology, Inc. (NWMT) Despite having a very solid company, the market (and traders) continue to sell the “hell out of the stock”.  As you will see in the accompanying chart, sellers are dominating and have turned a $1.00 into a penny stock over the past year.

A little about the company (from one of their PR’s):

NWMT is a reporting company with audited financial reports filed with the SEC. NewMarket provides systems integration, technology infrastructure services and emerging technology worldwide. NewMarket has a focus on providing technology and support services to rapidly growing economies where technology purchasing is on the rise (Emphasis added). In addition to its base of operations in North America, NewMarket has operations today in the growing economies of China, Southeast Asia, Brazil and Northern Latin America. Last year the Company reported over $40 million in revenue from Asia and over $20 million in revenue from Latin America. Overall, NewMarket reported over $95 million in revenue for 2008.

NWMT has been a victim of their own press release machine.  When we did an alert on NWMT a few months back, I fully expected it to be a good trading stock.  Well, it continued to freefall,  so today you can pick up shares for around 7 1/2 cents.  NWMT has hyped itself so much that traders have turned a deaf ear to their PR’s.  They continue to trumpet the fact that they were on the Deloitte and Touche Fast 500 as one of the fastest growing companies…..that is old news.  Move on, NWMT.  You are no longer a growth company.  Get over it and move on.

Let’s talk about what you are.  NWMT has got a lot of good going for it.  It should book around $100MM in revenues for 2009 in line with 2008.  No longer a growth company but in light of the current economic malaise booking the same revenue year over year is not bad at all.  It has a strong balance sheet with low debt and great debt coverage ratios.  NWMT has 19 cents in cash per share (and the share price is only 7 1/2 cents)!!!! They are a typical IT firm with razor thin margins, but they have shown the ability to turn a profit quarter over quarter and year over year.  Their focus on under-served foreign markets seems to be a good one.

Here is the chart that I mentioned:

This is a chart for a company that has lost the hearts and minds of traders.  And, they need us! They have no institutional ownership and insiders hold less than 2% of the shares.   Stop hyping the hell out of the stock and let traders know what a good, solid company this is.

I don’t know how much farther this stock can fall (my guess is “not much more”), but trying to guess a bottom on a stock has never been one of my talents.  I am looking at the indicators and thinking “bounce”.  Time will tell if I am right.  According to the company, the 4th Q is traditionally the strongest for the company.  Let’s see if NWMT can break the magic $100MM barrier and issue some news that traders actually care about.

Good luck and good trading

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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,  Investor Soup had previously been compensated to cover NWMT in previous months.  That agreement has expired. 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 have  a lot of fun with ticker symbols….some are fitting for the stock they represent, but others are unintentionally funny…like BLAP.  To me, it reminds me of the old Batman TV show when the words like “POW” or “WHACK” are superimposed on the screen during fight scenes.  What would “BLAP” represent?  Probably, if someone tripped and landed on their rear ends.

Seriously, though, BLAP is a stock that bears watching.  The stock was a recent high flyer (a little pump and some good news) and has retraced its recent gains.  The company continues to put out positive news and it appears that the sellers have all “gone home”.  Nothing recent with news, but I have a call in to the company to see what is going on.

BLAP is a design house specailizing in creating cutting edge iPhone, Facebook and Twitter applications.  They have little or no income, but have put out a whole host of positive PR.  You can take a peek at Yahoo! Finance to see.  Whether their intitiatives turn into income is yet to be seen, but BLAP, to me, is only a chart play right now.

Here is the chart…and, you will see what I mean.

This is a high-risk, high-reward play.  BLAP, despite a ticker symbol that sounds like a rude sound, has potential and bears watching.  Any break downward from here and the stock should be avoided.  Any strengthening could mean that buyers are coming back in.  I would like to see more recent PR’s from the company and with no financial data published, that increases the risk on this deal.

Good luck and good trading