12
Mar
Mar
Pacific Ethanol, Inc. (PEIX) has been one of my most popular research reports for 2010. I have the software that allows me to track clicks and time spent reading the info and PEIX has been very popular. And, I can see why.
PEIX has made two major “stair steps” in their chart on their way from 40 cents to a 52-week high of $2.75. Now, the stock is trading around $2.00 which seems to be a good support level for it. It is perched on the 50-day MA which could give support to the “next leg up”. The question is “will PEIX make the next leg up?”
My annotated chart makes a good case for some short term gains:
PEIX has coped very well through all of its troubles over the past few years. PEIX seemed to be the poster child for the problems with the ethanol industry. In early 2009, the bankruptcy of its operating subsidiaries was a desperation move for a company that was in deep trouble. Here is a link to a Chapter 11 summary.
The ethanol industry crawled off its death bed with the news that the U.S. EPA made positive comments relating to a reports regarding E15 gasoline, which if approved, would boost the legal percentage of ethanol in gasoline by 50%. The resumption of operations at several of its plants was news that the market approved of. A drop in corn prices, increases in the price of oil and an easing of the ethanol oversupply all contributed to a positive sentiment in the minds of investors.
Of course, any bad news will drop a hammer on PEIX. I think that it is a little fragile given the history of the ethanol business. The shorts are around 10% of the float, so there is a constituency is hoping that the hammer falls. It may fall long-term, but I am not a long-term investor.
The chart, to me, looks good for a little “pop”. Any break below the support that I charted and the stock should be avoided.
Trade like you mean it!
Jeffrey Dean
Editor
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Investor Soup
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
Category : General Commentary | Blog
11
Mar
Mar
I am sure you would like to meet a small company
with friends in high places?
Then let me introduce:
Juhl Wind, Inc. (JUHL)
Category : Daily Soup | Blog
10
Mar
Mar
SNWT is ready for liftoff
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On the Road to Off-Road Profits!
Good Morning!
I think it’s time to say hello again (for those of you who’ve been with me awhile) to one of our past winners…
San West, Inc. (SNWT)
SNWT is a retailer of premier off-road recreational vehicles in Southern California and the Western United States as well as a leading supplier in the off-road recreational vehicle arena through aftermarket parts, accessories and its highly successful vehicle repair and maintenance center. continue
Category : Daily Soup | Blog
5
Mar
Mar
MCGI is a shooting star….
Posted by (0) Comment
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!
Category : General Commentary | Blog
4
Mar
Mar
ZANE is Zany
Posted by (1) Comment
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
Category : General Commentary | Blog
2
Mar
Mar
SIRIUS Radio (SIRI) is in trouble
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Sirius XM Radio (SIRI) has made an almost miraculous comeback from irrelevancy (and penny stock land) over the past few months. SIRI has seen its stock rise from the low $.50’s at the end of 2009 to a recent high of around $1.15 just a few days ago. This was very good news for the company. Since it was facing a NASDAQ delisting and with the stock trading above the magic $1.00 mark for a period of time, SIRI was thinking it was “scot-free”. Think again.
Last week’s drop (and this week’s continuing drop) was not surprising given the overheated condition of the stock from all indicators. It is not clear what effect short sellers had in the decline since the short squeeze had been on for many months with the advance of the stock price. SIRI fought through all of those challenges….that is until now.
SIRI has one more chance to regain compliance with NASDAQ regs if it can trade above $1.00 for 10 consecutive days before the March 15th date imposed by the exchange. I don’t see that happening. The reverse split that has been discussed seems the only option now despite management’s contention that they will be able to get a variance on appeal. NOT BLOODY LIKELY.
SIRI should have executed the reverse split when they were so strong late last year. The market was really pumped on SIRI and its progress. Institutions were buying and retail investors were very happy with the run-up. Now with a delisting notice sure to come, short sellers will be circling SIRI like sharks looking for blood. I think the short term outlook for SIRI is definitely bearish.
Here is a chart that shows what I mean.
Is SIRI a dead dog? Will shorters drive this one right back down to 50 cents (or lower) again. I don’t think so. SIRI is in a “stew of its own making”, but I think will be a good stock to buy on dips. Right now, I would hold off (unless you are shorting the stock). The boards and investor sentiment are telling me that this one has farther to fall. Retail investors might not like it when they do the reverse stock split, but IMO it is inevitable.
Do your own due diligence. It continues to be a hot topic on the boards that I monitor and it is fun to read what people write. Make up your own mind.
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.
Category : General Commentary | Blog
2
Mar
Mar
Most traders are familiar with…
BONANZA OIL & GAS, INC. (BGOI)
Over the past few months, BGOI has been in the news a lot—and rightly so!
The stock zoomed from 1 cent in mid-December to 7 cents in late January.
Then, the profit taking hit and the stock plummeted back down to around 1 cent again. And that’s were we are today!
It’s Déjà vu all over again!
Category : Daily Soup | Blog
1
Mar
Mar
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 |
||||||
|
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
Category : General Commentary | Blog
18
Feb
Feb
BEAC pulls out all the stops
Posted by (0) Comment
Beacon Enterprise Solutions Group, Inc.
Trading Symbol: BEAC.OB
Good and Great Morning!
BEAC’s corporate motto should be “Get ‘er done”.
To say that BEAC is just another, run-of-the-mill IT/Telecom firm—would be the furthest thing from the truth! continue
Category : Daily Soup | Blog
16
Feb
Feb
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.
Category : General Commentary | Blog
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