StemCells, Inc. (STEM) has been the poster child for the stem cell industry since late 2008.  It has made many people rich speculating on the ups and downs of this particular stock.  With its ticker symbol that seems to represent the entire industry, investors and traders have made this a very popular stock.

Their is an old saying that says “when the media sneezes, the whole world catches cold”.  That has certainly been a huge factor in the rise (and fall) of STEM and other stem cell stocks.  Stem cell hysteria has hit several times over the past few months with investor interest being peaked by media hype.

Here is a description of the company from Yahoo! Finance:  StemCells, Inc., a clinical-stage biotechnology company, focuses on the research, development, and commercialization of products derived from stem cell technologies. It focuses on developing cell-based therapeutics to treat diseases of the central nervous system and liver.

Most stem cell companies that I have seen are very far away from making their particular take on the propagation or use of stem cells profitable.  STEM is no different.  It does have some revenues, but expenses far outweigh revenues.  The good news for STEM is that management has used all of this hype and interest in stem cell stock pay dividends in the form of equity raises and fundraising.  STEM has an impressive cache of cash (over $28MM as of 9-30–09), but at a $7MM quarterly burn rate that cash will last them a year.  STEM will probably never seen penny stock land again and I could see it upgrading its listing in the future.

Chart analysis:

STEM has an interesting chart that bears watching.  See my annotations below.

The stock appears to be basing at this level and performance of this stock could depend solely on what news comes out regarding stem cells in the next few weeks.

For those traders who want to be ready for the next stem cell explosion, here are some tickers that you should hold on to:

ACTC  * ALXN * AOLS * ARIA * ASTM * BHRT * BMSN * BTIM * CBAI * CCEL * CELG * CRIS * CUR * DNDN * GERN * IART * INCR * ISCO * KOOL * MCET * MEDS * OCHT * OSTE * OSIR * PKI * PPMD * PSTI * SPPI * STEM * VODG

I have previously blogged ACTC, ARIA, CBAI, PSTI and now STEM.

There is a strong short sentiment about STEM with the latest Yahoo! stats showing a short percentage of 15.6% as of 2-12-10

In my opinion, STEM has a nice setup.  Any strength in the stock and the short squeeze will only accelerate the gains.  The stock should be avoided on any break below the current support of $1.16

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.

You would have to live on the moon not to see and be impressed by Zanett, Inc. (ZANE)

A $0.31 cent stock YESTERDAY, ZANE issued some great news about landing a huge number of new contracts (Read it here) and it took off.  It reached a HIGH of $2.50 before closing at $2.09. That is impressive by any measure.

The caution here is this is a company whose average daily volume was 16K shares and it has traded 7.9MM shares today!…on a public float of only 3.3MM shares.

Here is the chart:

Wow and Wow! This ship will crash to Earth at some point, but not yet.  Anybody doing a Tim Sykes and shorting the stock today is in a world of hurt.  Watch the trailing indicators (MACD, RSI and Stochastics) to see when the right time to short is.  Be careful, this could be a multi-day runner.  The first day of something THIS BIG with real news and HUGE investor interest could mean that this hangs around here…or even advances.

ZANE has made some people fortunes today.  Let’s see if we can make a fortune on the way down, too.

Good luck and good trading,

Jeffrey Dean

Editor

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

Good Morning!

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

And wireless email users are a juicy and easy target.

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

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

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

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

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

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

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.

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!

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

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

Do your due diligence!

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

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

I did a blog on Atlantic Wind and Solar, Inc. (AWSL) a few months back and am bringing it back to my members again (link to previous blog).  I think that AWSL might be a good trade for the near term and the long term.

To review:  AWSL is primarily a solar company that has taken advantage of the Ontario Government’s Feed-In-Tariff program to corner the market on rooftop solar installations in that province.  They have other projects outside of that jurisdiction, but the first projects that will make money for AWSL will be in Ontario.  I would encourage readers to view AWSL’s site.  Here is what I wrote in my previous blog:

“By partnering with corporations, associations, land and business owners, AWSL will install, service, manage solar and wind installations that can range from a single rooftop to a full parks.  They are touting relationships that they are working on that will drive them to profitability and a pre-eminent position in the industry in a short time.”

AWSL has been a hot topic on the boards and Penny Stock Chaser has been flogging it unmercifully.  AWSL was even on Tim Sykes radar for awhile and that is the company’s own fault.  They have decided to go the stock promotion route quite vigorously.  But, it is said in this business that small cap stocks don’t move without promotion…and, I believe it, too.

Let’s strip away the hype and take a look at AWSL.  Here is what I have learned from numerous sources:  PR, talks with their IR people, boards, 3rd-party articles:

• AWSL is for real;
• AWSL has partnered with major real estate developers in Ontario province like Cushman Wakefield and Remington Properties to lock up rooftops and other properties;
• They have secured a large number of contracts with the local utilities under power purchase agreements;
• They are working on several large debt financings that will capitalize the company in a big way;
• They are making noises about getting uplisted to larger exchanges (that is always a good thing for stocks)

Here is the chart so you can see what I am talking about:

• AWSL is trading in a range of between $2.50 and $2.75
• MACD is bearish, but is strengthening
• Volume has tailed off, but history shows that it can take off at any time
• Stochastics are neutral and could turn positive with more buying action

I own shares in AWSL and I bought in at around $3.75.  I guess I believed what I was writing.  The stock dividend brought my basis down to the level where I am in the black again.  However, I would like to see all of this potential become realized and I will watch with interest what effect the future news has on the stock.  I know that the shorters are betting that AWSL is all hype and will “fold like a cheap suit”.  I don’t agree.

I will actually end this blog with what I ended the last one:

“My conclusion is that traders should radar list AWSL.  If you trade it, make sure you have a tight trailing stop on it.  Take the gains as they present themselves.  If the stock goes up appreciably, you can relax the trailing stop so you don’t get “stopped out” on any dips (and there will be some IMO).  If this stock gets hot, it could be a $10.00 stock based upon the buzz about it…..Don’t trust buzz though.  I would like to see AWSL start booking deals, signing contracts, getting necessary financing, become a reporting company, etc…, but until then I still remain a fan.”

Good luck and good trading,

Jeffrey Dean

Editor-in-Chief

Disclosure: Long AWSL

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

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

Friday’s biggest price decliner on the NASDAQ was Yucheng Technologies Limited (YTEC). The only PR I could find was that the stock got downgraded from Market outperform to Market perform by Avondale, a research firm.  The stock was trading for under $7.00 on Thursday at close.  Friday saw a massive selloff and is now trading for roughly half that.

A typical market overreaction?  Maybe, but I thing that YTEC won’t be down too long.

Yucheng Technologies Limited (YTEC) describes itself as the “Leading IT Solutions Provider for the Chinese Financial Services Industry”.    Essentially, the company provides information technology (IT), software, solutions, and services to the banking sector in the People’s Republic of China

Here is what I was able to glean from the financials (9-30-09 Q)

• $1.18 in cash per share
• No long-term debt
• Strong cash position
• Great ratios
• Profitable Operations

True, the rampant growth of the company has slowed, but it is still a very strong company.  Traders and investors seem to be punishing the company for its dismal earnings report for 2009 and a less ambitious outlook for 2010.

Here is an annotated chart to demonstrate just how steep the drop was.

Of note: The stock dropped hard on Friday, but it gapped up at open today by 7 cents.  It appears that others suddenly saw YTEC as a bargain and bid the stock up.

Interesting stock to watch and now it is priced much more attractively for traders.  Will YTEC recover and close the bearish gap?  I am watching it with interest myself to see.

Be careful not to “catch the falling knife”.  My gut is telling me that the knife has stopped falling.  However, it may limp slightly downhill or sideways for awhile before it re-establishes a bullish trajectory.

The faint of heart need not apply.

Good luck and good trading

Jeffrey Dean

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