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That will come crashing to earth soon!
MedCareers Group, Inc. (MCGI) has been a great story to watch over the past few days. Lots of PR and a frothy stock price and some very impressive gains. The question for me is it real and will it last?
It appears that it only became active recently after changing its name from RX Scripted, Inc. in early 2010.
They must have been saving up press releases because they have flooded the airwaves with several in rapid succession. With the purchase of medcareers.com, they became Med Careers, Inc. That book of business has been enhanced with the announcement of the purchase of two additional companies: Staff MD and workabroad.com.
It appears that they are in the online medical staffing business based upon the PR’s I’ve read. The website gives some amorphous description of the business they are in. …that doesn’t really match their recent PR’s.
As you can tell, I am highly skeptical of their business. It seems like it is a phenomenon of some good PR and the expectation that this company is going to be a “player”. The challenging thing is to put some kind of revenue and profits numbers to all this PR. MCGI isn’t telling us, so I am assuming that the company is more sizzle than steak.
For as fuzzy as I think their website is, you can’t argue with this chart:
Note: The issue is so new that my old charting standby, Stockcharts.com, hasn’t even listed MCGI in its database
Will this stock be a penny stock before it is a $5 stock? I think so.
The Stochastics are very overbought, but until we get more trading history it is almost impossible to point to that indicator to say that it is going to fall. What can they follow this hype up with? Eventually traders will become numb to news about MCGI. Financial transparency, real revenues and profits will keep this stock afloat. When the good news runs out, so will MCGI.
Good luck and good trading,
Jeffrey Dean
Editor
Oh, by the way: The answer to the question I posed above (The question for me is it real and will it last?) is NO and NO!
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Good Morning!
Today’s alert company is:
General Automotive Company (GNAU) continue
Good Morning!
Cyber crime is a profitable business. So profitable in fact that it’s surpassed illegal drug trafficking as a felon’s #1 moneymaker.
And wireless email users are a juicy and easy target.
· Wireless email users are expected to rise to 300 million this year
· Worldwide there’s 1 known hacker for every 15 wireless email users
· 10 million Americans will become victims of identity theft this year.
· An identity thief has only a 1 in 700 chance of being caught by law enforcement
· 70% of identity theft victims may never recover from damages to their credit rating
· 47% of identity theft victims may not be able to get a loan continue
First a personal update: Friday’s blog was kind of “doom and gloom” when I was stuck in the middle of a power outage (second year in a row for NH). Even thought I got power back relatively quickly, I am still shopping online for an emergency generator. Family is fine, house is safe and my section of NH is no longer a third-world country. It is amazing how we take important things (like power) for granted.
Now…on to stocks.
My scans today produced NightHawk Radiology Holdings, Inc. (NHWK). Nighthawk is at the end of a prolonged decline in its stock price IMO. This might be a good time to put it on the radar. If it recovers from its February swoon and embarks on a climb like last year, you will like me very, very much.
Here is what I am talking about (1 yr. chart for NHWK)
NHWK is actually a very impressive company. They have a dominant market position in their industry. They provide services to radiology groups and hospitals throughout the United States. NHWK provides a complete suite of solutions to doctors and hospitals, including professional services, business services, and its advanced, proprietary clinical workflow technology. The company claims to provide round-the-clock services for for approximately 1,560 sites or 27% of all hospitals in the United States. That is pretty impressive!
What is also impressive is that they make money. Revenues of $162 million in ‘09, but a loss in 2009 due to a $68.7MM goodwill impairment charge (so, I wouldn’t hold it against them). L-T debt of $77MM, but great liquidity ratios. Plenty of cash in the bank ($32.29MM) and over $1.37 in cash per share.
Here is the 3 month chart so traders can see in greater detail what is going on.
Here is my final analysis. The table below is a chart of NHWK’s highs and lows during the last year. Lots of volatility and nice bounces off lows to post highs again. A trader could make a great profit of trading these swings.
| Common Stock Price | ||||||
| High | Low | |||||
|
Year Ended December 31, 2009 |
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|
First Quarter |
$ | 5.16 | $ | 2.22 | ||
|
Second Quarter |
$ | 4.44 | $ | 2.64 | ||
|
Third Quarter |
$ | 7.68 | $ | 3.65 | ||
|
Fourth Quarter |
$ | 7.21 | $ | 4.20 | ||
Do you see why I say that this is a great radar stock?
I will be watching it myself.
Good luck and good trading,
Jeffrey Dean
Editor
American Sierra Gold Corporation (AMNP) was all over the boards just a few months back. An exciting new issue with two strong gold properties in Nevada and Mexico, it seemed to have no limits as to how far it could go. However, like all promoted stocks the promotion eventually stopped, traders took profits and the stock “came back to earth”.
AMNP is at an interesting place right now. The stock chart seems to indicate that the stock has stabilized from looking at the MACD, RSI and its price action recently. Having said that, it made a similar base at around 47 cents in late January, but then pushed through that to now trade around 38 cents. Is this the bottom?…I hope so!
Let’s take a look at why AMNP captured traders’ imaginations in ‘09. AMNP has two projects that seem to have great potential. Its Urique project in the Sierra Madre Mountains of Mexico is their home run. It is contiguous to NYSE listed company Gold Corp’s (GG) El Sauzal mine which is very profitable. To the end of 2008, that mine had produced 1,072,000 ounces of gold and Goldcorp has reported proven and probable reserves of 470,000 ounces left on the property. the Urique Project, encompassing 71,334 acres, has the potential to be as prolific as the El Sauzal mine according to the company. However, the earliest revenue from that mine is expected to be 2012.
Its Discovery Day project in Nevada is small in comparison to the Urique project, but is projected to be revenue generating much, much sooner. In fact, estimates I have read claim that the mine will produce significant revenues for AMNP by the end of the 2010 fiscal year (7-31-10). Recent press releases touted the fact that the mine has been reopened and they are working towards production in the near term.
AMNP has what every mining and exploration company needs: Financing. The company announced, with great fanfare, an equity-based financing agreement with Tobermory Holding Ltd., a European institutional investor. According to the latest Q available, AMNP has made two draws against that agreement totalling $800,000. The initial commitment is for $6MM with up to an additional $10.5MM of financing available. Of course, AMNP must hit certain milestones, but the fact that they have the financing is huge. I will read their latest Q (whenever it is issued) to see just how the company is progressing.
AMNP’s Chart…with my annotations
AMNP has got some real potential IMO. However….remember that for every surge in price, traders who are stuck in losing position will sell into any strength. There are a lot of angry traders out there….from reading the boards. If the company decides to promote their stock again, that could make this thing fly. Don’t forget to factor in the price of gold into your equation. Now that the hype and hysteria have died down, AMNP actually looks like a good company with some exciting prospects.
Good luck and good trading,
Jeffrey Dean
Editor-in-Chief
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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; AMNP was previously subject to a now terminated promotion agreement. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
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!
Another factor to consider about COTE that gives me comfort is the insider ownership. I like the fact that insiders own over 80% of the company. COTE hasn’t been an overnight sensation. My impression is that they have a core group of founders and executives that believe in the mission of the company and are in for the long haul. I hope they get rewarded, because that means I will be rewarded too. I have put COTE on my own personal trading radar with the idea of buying shares in the very near future. I have a call in to the company and will update my blog with any intelligence I gather.
Do your due diligence!
Good luck and good trading,
Jeffrey Dean
Editor-in-Chief
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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
I 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:
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:
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.
I did a blog on Atlantic Wind and Solar, Inc. (AWSL) a few months back and am bringing it back to my members again (link to previous blog). I think that AWSL might be a good trade for the near term and the long term.
To review: AWSL is primarily a solar company that has taken advantage of the Ontario Government’s Feed-In-Tariff program to corner the market on rooftop solar installations in that province. They have other projects outside of that jurisdiction, but the first projects that will make money for AWSL will be in Ontario. I would encourage readers to view AWSL’s site. Here is what I wrote in my previous blog:
“By partnering with corporations, associations, land and business owners, AWSL will install, service, manage solar and wind installations that can range from a single rooftop to a full parks. They are touting relationships that they are working on that will drive them to profitability and a pre-eminent position in the industry in a short time.”
AWSL has been a hot topic on the boards and Penny Stock Chaser has been flogging it unmercifully. AWSL was even on Tim Sykes radar for awhile and that is the company’s own fault. They have decided to go the stock promotion route quite vigorously. But, it is said in this business that small cap stocks don’t move without promotion…and, I believe it, too.
Let’s strip away the hype and take a look at AWSL. Here is what I have learned from numerous sources: PR, talks with their IR people, boards, 3rd-party articles:
Here is the chart so you can see what I am talking about:
I own shares in AWSL and I bought in at around $3.75. I guess I believed what I was writing. The stock dividend brought my basis down to the level where I am in the black again. However, I would like to see all of this potential become realized and I will watch with interest what effect the future news has on the stock. I know that the shorters are betting that AWSL is all hype and will “fold like a cheap suit”. I don’t agree.
I will actually end this blog with what I ended the last one:
“My conclusion is that traders should radar list AWSL. If you trade it, make sure you have a tight trailing stop on it. Take the gains as they present themselves. If the stock goes up appreciably, you can relax the trailing stop so you don’t get “stopped out” on any dips (and there will be some IMO). If this stock gets hot, it could be a $10.00 stock based upon the buzz about it…..Don’t trust buzz though. I would like to see AWSL start booking deals, signing contracts, getting necessary financing, become a reporting company, etc…, but until then I still remain a fan.”
Good luck and good trading,
Jeffrey Dean
Editor-in-Chief
Disclosure: Long AWSL
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DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
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