I have known about Adaptec, Inc. for many years…even traded it once or twice.  It has mostly fallen off of my radar screen lately because it really hasn’t been that attractive.  I was doing screens on Stock Fetcher this morning and I was amazed to see that ADPT was on my screen for stocks that are down 8 days or more.  That speaks opportunity to me, but not in the way I normally speak about stocks.

Adaptec, Inc. provides hardware and software data center solutions globally.  Founded in 1981, it may not be around very much longer.

If you were going to put a company in your “back pocket” for awhile, this might be the one.  I am typically a short-term holder and after the most recent market meltdown, I am going to stick to that philosophy.  A long term trade to me is a month.  But, it might be a good strategy to put some Adaptec shares away in an account that is long-term.

Why?  Because of several simple reasons:

1. The company is for sale.  In December of ‘09, ADPT announced the engagement of Blackstone Advisory Partners to ” assist in the sale of the company’s assets and operations”;
2. The company is currently trading at less than its net cash position
3. The company is trading for less than tangible book value

At $3.16 in cash at the latest Q, ADPT is clearly a “free stock”.  It is unclear what premium its operations and assets will command, but I don’t think I am going out on a limb by saying that ADPT will sell for more than cash.

Here is a chart that tells the tale of the once-mighty ADPT:

• Sellers are dominating clearly…very few up days over the past two months
• The MACD is strongly bearish, but the histogram indicates that the strength of the signal might be waning
• The stochastics are oversold (no surprise there)

Here is ADPT’s website so you can do your own due diligence.

ADPT may have some bounce in the near term, especially if the stochastics continue to show an oversold signal.  However, the pay day for traders in ADPT will be the sale.  I am very curious about how the company is valuing itself.

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

P.S. - I am working out of the home today and I got one of those special stories that every work-at-home parent dreams of.  My absolutely adorable 4-yr. old Daughter, Teagan, needed to be in my lap while I wrote this blog.  Needless to say, I wasn’t very efficient.  Who cares?  I am reminded how blessed I am…by her and her three siblings.

Here is a picture so you can see just how blessed I am.

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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.

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.

I did a screen for small cap stocks on a losing streak of over 7 days and came up with several Junior Gold stocks:  Golden Star Resources, LTD (GSS) and Apollo Gold Corporation (AGT).  One is a company that I would suggest putting on the radar and the other is one that I be very cautious with.

Part of the reason that these companies are here is because of the slide in the price of Gold.  Once gold resumes its upwards momentum, stocks like these could become supercharged

Be careful with  Apollo Gold

Apollo Gold is a junior miner that is increasing revenues incrementally, but not making any money while doing it.  Their losses, through 3 quarters, is almost $38MM.  I realize that a great percentage of that are paper losses from writedown of assets in 2009.  Then, the theory goes, if they have a strong balance sheet things should be o.k.  Unfortunately, they don’t have a strong balance sheet.  They have lousy liquidity ratios and  long-term debt that is due and payable and has been accelerated.  Things are so bad that the company has put its 50% interest in the Montana Tunnels Mine property up for sale.

Here is the chart with my annotations:

I would never suggest holding AGT long-term, but you can play the volatility.  This is not a stock for the faint of heart.

A Golden Star?

Like AGT, GSS can show a steady climb since December of 2008 when it was trading for only 50 cents.  GSS is significantly larger than AGT and could book over $350MM in sales for 2009.  However, they are showing losses quarter over quarter, too.  Their balance sheet is not pristine, either.  Their ratios are better, but GSS has taken on a great deal of debt.  The company is trumpeting the fact that 2009 was their best year ever, but they need to continue to increase revenues and get a handle on expenses for the investing public to be convinced.

GSS should be watched to see if it continues to decline and touches the next support level.  I don’t think it will. Seller exhaustion may have set in and prices could rise.

Both companies, I can only imagine, are hoping and praying that Gold prices come back.  And, it is not like gold prices have crashed, either. The spot price at 10:33 a.m today as I was writing this was $1,098.55.  But, in the mind of traders and investors, gold prices are “DOWN”.

Both are good radar stocks and could run on news specific to the company or about gold in general.

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 have a wife that loves to shop.  The recession has only made her a better shopper.  She looks for value and quality for herself and my two daughters.

Today’s alert company is right up her alley! — PanGlobal Brands, Inc. (PNGB)

If you’re looking for a good trade, it should be on your radar as well! continue

Who woulda thunk?….That you can make fuel out of that green stuff that used to get stuck between your toes when you waded in swamps and ponds.  Origin Oil is only one of several companies that are hard at work trying to commercialize the technology to extract oil from algae.

I have followed OOIL for several months and like what I see.  It is a development-stage company but they seem to run a “tight ship”.

Here is a really good description of  the company and its goals (taken from a corporate presentation):

“The OriginOil business model can be compared to Microsoft’s in the world of computers. It is OriginOil’s intention to become part of the operating system of the algae industry (delusions of grandeur? - ed.). ……. OriginOil plans to sell its technology through its network, both as integrated technology and as branded devices, and to offer its services to help design, build and manage algae installations the world over. To help reach customers widely, it intends to develop regional partners to provide local manufacturing, sales, and services to regional end users.

The company is not in the business of producing and marketing algae-based oil or fuel as an end product. (emphasis added) OriginOil is in the preliminary stages of commercializing its scalable algae-to-oil technology. In Sept. 2009, the company presented the first comprehensive algae production model, developed with the Idaho National Laboratory (INL) of the Department of Energy under its collaborative research agreement with OriginOil.  (The Algae PDF is also an excellent sleep aid…it is packed with a great deal of information about algae)

The Chart (annotated below) looks promising.  See for yourself.

I encourage my members to put OOIL on their radar list.   OOIL is still many years away from being a revenue-producing company, but they appear to have some solid momentum going for them and run a tight ship as I had mentioned earlier.  They are, in my estimation, a short-term trade and with this chart and the buzz that is surrounding it could very well move.

Good luck and good trading.

Growing REVENUES for NWMT could equal Growing PROFITS FOR US

Information Technology (IT) is “ubiquitous” in today’s marketplace. For those that don’t have their dictionary in hand, it means that it is everywhere.  The ability to transact business in today’s high-tech world economy is absolutely crucial and companies have dedicated themselves to supplying all manner of equipment, technology and know-how to keep their clients in the 21st century, technologically-wise.

In addition, the old “IT” definition has expanded to “ICT”, Information and communication technologies.  NWMT is also very involved in this area which include VOIP, mobile computing, mobile communications and telecommunications

Their is a great deal of competition in the space and very few companies stand out…in my opinion.

Today’s alert company is one of those that stand out:  NewMarket Technologies, Inc. (NWMT)

Don’t take my word for it…..others are saying it much louder than I am.  In fact, the Deloitte Fast 500, the Microsoft Partner Program and Software Magazine’s Annual Software 500 have all named NWMT to its “best of/fastest growth” lists in the years from 2005 to 2009.

So who is NWMT?

I heard someone describe NWMT’s business as “everything IT” and that is a good description.  I paraphrased a description from their site…here goes:

In a market that has seen significant constriction in both revenues and profits, NWMT is forecasting record revenues and profits for 2009. The headline on one of their recent PR’s says volumes about what the company is accomplishing

“NewMarket Technology, Inc. to Review Planned Dividend, $2 Million Debt Reduction and Pending Contracts to Increase $73 Million in New Contracts to Over $100 Million”  Read the full release here

Another headline highlights the strategic shift for NWMT that is allowing it to post record revenues:

“NewMarket Technology, Inc. Announces Over $73 Million in New Sales Year-to-Date”

In addition to the positive news that is coming from the company, the chart is also favorable and shows a penny stock that is looking like it could bounce:

• Stochastics indicate that it is oversold
• Volume is coming back into the penny stock
• MACD is neutral suggesting neither bullishness or bearishness.  The indicator could turn bullish if the volume continues to increase.
• There appears to be very little meaningful resistance between yesterday’s close at $.39 cents and the most recent high of $.55

Here are the links you need to do your own due diligence for this potentially promising penny stock:  Company Website - Yahoo! Finance - SEC Filings

NWMT says their new corporate direction, their emphasis on emerging markets and their knowledge and core competencies will continue to drive this company forward.  I have no reason to doubt them considering what they have accomplished.  I recommend, however, that you do your due diligence, get to know the company and get them on your radar right away.

Good luck and good trading!!

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